H. R. 2072
To reauthorize the Export-Import Bank of the United States, and for
IN THE HOUSE OF REPRESENTATIVES
June 1, 2011
Mr. GARY G. MILLER of California (for himself, Mr. BACHUS, Mr. FRANK of Massachusetts,
and Mrs. MCCARTHY of New York) introduced the following bill; which was referred
to the Committee on Financial Services
To reauthorize the Export-Import Bank of the United States, and for
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 `Securing American Jobs Through
Exports Act of 2011'.
(b) Table of Contents- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings; statement of purpose.
Sec. 3. Extension of authority.
Sec. 4. Limitations on outstanding loans, guarantees, and insurance.
Sec. 5. Content guidelines for the provision of Bank financing.
Sec. 6. Biennial audits of Bank transactions.
Sec. 7. Use of portion of Bank surplus to update information technology
Sec. 8. Monitoring of default rates on Bank financing; reports on default
Sec. 9. Sense of the Congress regarding Bank accountability.
Sec. 10. Sub-Saharan Africa Advisory Committee.
Sec. 11. Extension of authority to provide financing for the export of nonlethal
defense articles or services the primary end use of which will be for civilian
Sec. 12. Elimination of obsolete provisions.
SEC. 2. FINDINGS; STATEMENT OF PURPOSE.
(a) Findings- The Congress finds as follows:
(1) Export sales by United States companies are critical to national economic
(2) Increased demand for United States exports in emerging markets will
help small and large companies maintain and create United States jobs.
(3) The Export-Import Bank contributes to a stronger national economy by
financing the export of United States goods and services in markets where
private capital is limited or unavailable.
(4) The Export-Import Bank of the United States does not compete with private
(5) The Export-Import Bank of the United States helps finance United States
exports to 183 countries.
(6) A large percentage of global growth will be centered in markets served
by the Export-Import Bank of the United States, and the Bank will be critical
to helping United States companies compete for these opportunities.
(7) Through its support for exports, in fiscal year 2010 the Export-Import
Bank of the United States supported 227,000 American jobs at over 3,300
(8) The Export-Import Bank of the United States helps to level the playing
field for United States exporters by matching the financing that other governments
provide to their exporters.
(9) All the leading exporting nations have official export credit agencies
that are used actively to support their exporters.
(10) Through its insurance, loan, and loan guarantee products, the Export-Import
Bank of the United States supports the promotion and maintenance of high
levels of employment and real income and increased development of the productive
resources of the United States.
(11) The Export-Import Bank of the United States requires reasonable assurance
of repayment for the transactions it authorizes, and the Bank closely monitors
credit and other risks in its portfolio. The Bank prices transactions based
on its risk assessment of the buyers.
(12) Since 1934, the net loss rate for all long-, medium-, and short-term
loans made by the Export-Import Bank of the United States is 1.5 percent.
(13) The Export-Import Bank of the United States has been a self-sustaining
institution since fiscal year 2008, and surpluses of the Bank are remitted
to the United States Treasury. From fiscal years 2008 through 2010, the
Bank generated a surplus of $551,000,000.
(14) In fiscal year 2010, the Export-Import Bank of the United States provided
a record $5,000,000,000 directly supporting United States small business
exporters through 3,091 transactions, representing 20 percent of the total
value of the Bank's authorizations and nearly 88 percent of the total number
of the Bank's authorizations.
(b) Statement of Purpose- The purpose of this Act is to reauthorize the activities
and operations of the Export-Import Bank of the United States to ensure that
the Bank provides financing, when commercial banks are unable or unwilling
to do so, competitive with the financing provided by foreign export credit
agencies, in order to enable United States companies to contribute to a stronger
national economy by maintaining or increasing the employment of workers in
the United States through the export of goods and services.
SEC. 3. EXTENSION OF AUTHORITY.
Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is amended
by striking `2011' and inserting `2015'.
SEC. 4. LIMITATIONS ON OUTSTANDING LOANS, GUARANTEES, AND INSURANCE.
Section 6(a)(2) of the Export-Import Bank Act of 1945 (12 U.S.C. 635e(a)(2))
(1) in subparagraph (D), by striking `and';
(2) in subparagraph (E), by striking the comma at the end and inserting
a semicolon; and
(3) by adding at the end the following:
`(F) during fiscal year 2012, $120,000,000,000;
`(G) during fiscal year 2013, $140,000,000,000; and
`(H) during fiscal year 2014 and each fiscal year thereafter, $160,000,000,000.'.
SEC. 5. CONTENT GUIDELINES FOR THE PROVISION OF BANK FINANCING.
Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is amended
by adding at the end the following:
`(i) Content Guidelines for the Provision of Financing-
`(1) IN GENERAL- The Bank shall, after notice and comment and Board approval,
establish clear and comprehensive guidelines with respect to the content
of the goods and services involved in a transaction for which the Bank will
provide financing, which shall be aimed at ensuring that the Bank enables
companies with operations in the United States to maintain and create jobs
in the United States and contribute to a stronger national economy through
the export of their goods and services.
`(2) REQUIRED CONSIDERATIONS- In establishing the guidelines, the Bank shall
take into account such considerations as the Bank deems relevant to meet
the purposes described in paragraph (1), including the following:
`(A) The needs of different industry sectors to obtain financing from
the Bank for exporting their products or services in order to create and
maintain jobs in the United States.
`(B) The ability of companies with operations in the United States to
compete effectively for export opportunities that will create and maintain
jobs in the United States, particularly with respect to the Bank's content
requirements and co-financing arrangements.
`(C) The totality of support, including financing and subsidies, extended
by export credit agencies to support the exports of goods and services,
as well as key differences in, types of trade-offs among, and national
trade promotion strategies of OECD member countries and of non-OECD member
`(D) Recommendations from the advisory committee established under section
3(d), including any dissenting views.
`(E) Any findings or recommendations of the Government Accountability
Office pertaining to the ability of the Bank to provide financing that
is competitive with the financing provided by foreign export credit agencies,
to enable companies with operations in the United States to contribute
to a stronger United States economy by maintaining or increasing the employment
of workers in the United States through the export of goods and services.
`(F) The effects of the guidelines on the manufacturing workforce and
service workforce of the United States.
`(G) The effect of changes to current Bank content requirements on the
incentive for companies to create and maintain operations in the United
States in order to increase the employment of workers in the United States.
`(3) SEPARATE GUIDELINES-
`(A) The Bank may establish separate guidelines under this subsection
for services and for goods.
`(B) The Bank may establish separate guidelines under this subsection
for small business concerns (as defined in section 3(a) of the Small Business
`(C) The Bank may continue separate guidelines under this subsection with
respect to different terms and products.
`(4) CERTIFICATION THAT DOMESTIC CONTENT HAS NOT BEEN REDUCED BECAUSE OF
THE GUIDELINES- In determining whether to provide financing for a proposed
transaction, the exporter shall certify that the domestic content of a good
has not been reduced solely as a result of the guidelines.
`(5) PROCEDURAL PROVISIONS- Within 60 days after the date of the enactment
of this Act, the Bank shall publish a notice with respect to the issuance
or modification of guidelines under this subsection. Within 60 days after
the end of the public comment period otherwise required by law with respect
to the issuance or modification of the guidelines, the Bank shall submit
to the Congress, for its review, the guidelines in proposed final form.
At the end of the 30-day period that begins with the date the proposed final
guidelines are so submitted, the proposed final guidelines shall be considered
a final agency action for all purposes and shall take effect and be implemented
`(6) TERM- Every 2 years, the Bank shall review and, as appropriate, modify
the guidelines, subject to paragraph (5).
`(7) REPORT TO CONGRESS- Within 1 year after the implementation of new or
modified guidelines under this subsection, the Inspector General of the
Bank shall submit to the Congress a report evaluating the guidelines, which
`(A) a discussion of the considerations required to be taken into account
in establishing the guidelines, a comparison of how the guidelines reflect
each consideration, and a description of the extent to which the guidelines
enabled companies with operations in the United States who submitted an
application for financing from the Bank to maintain and create jobs in
the United States and contribute to a stronger national economy through
the export of their goods and services;
`(B) a description of the effect of the guidelines on the number of domestic
jobs to be supported, the kinds of domestic jobs to be supported, including
their duration and geographic location, and the existence and nature of
any transfers of technology or production; and
`(C) recommendations for how the guidelines could be modified to better
facilitate exports of goods and services from the United States in order
to maintain and create jobs in the United States and contribute to a stronger
SEC. 6. BIENNIAL AUDITS OF BANK TRANSACTIONS.
Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635), as amended
by section 5 of this Act, is amended by adding at the end the following:
`(j) Audits of Bank Transactions- Every 2 years, the Comptroller General of
the United States, in consultation with Inspector General of the Bank, shall
audit a representative sample of Bank transactions to ensure that Bank underwriting,
policies, due diligence, and content guidelines are met by applicants who
receive Bank support.'.
SEC. 7. USE OF PORTION OF BANK SURPLUS TO UPDATE INFORMATION TECHNOLOGY
Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is amended
by adding at the end the following:
`(j) Authority To Use Portion of Bank Surplus To Update Information Technology
`(1) IN GENERAL- Subject to paragraphs (3) and (4), the Bank may use an
amount equal to 1.25 percent of the surplus of the Bank during each fiscal
`(A) seek to remedy any of the operational weakness and risk management
vulnerabilities of the Bank which are the result of the information technology
system of the Bank;
`(B) remedy data fragmentation, enhance information flow throughout the
Bank, and manage data across the Bank; and
`(C) enhance the operational capacity and risk management capabilities
of the Bank to better enable the Bank to increase exports and grow jobs
while protecting the taxpayer.
`(2) SURPLUS- In paragraph (1), the term `surplus' means the amount (if
any) by which--
`(A) the sum of the interest and fees collected by the Bank; exceeds
`(i) the funds set aside to cover expected losses on transactions financed
by the Bank; and
`(ii) the costs incurred to cover the administrative expenses of the
`(3) LIMITATION- The aggregate of the amounts used in accordance with paragraph
(1) for all fiscal years shall not exceed $20,000,000.
`(4) SUBJECT TO APPROPRIATIONS- The authority provided by paragraph (1)
may be exercised only to such extent and in such amounts as are provided
in advance in appropriations Acts.'.
SEC. 8. MONITORING OF DEFAULT RATES ON BANK FINANCING; REPORTS ON DEFAULT
Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) is amended
by adding at the end the following:
`(g) Monitoring of Default Rates on Bank Financing; Reports on Default Rates-
`(1) MONITORING OF DEFAULT RATES- Not less frequently than quarterly, the
Bank shall calculate the rate at which the entities to which the Bank has
provided short-, medium-, or long-term financing are in default on a payment
obligation under the financing, by dividing the total amount of the required
payments that are overdue by the total amount of the financing involved.
`(2) REPORTS- Within 45 days after a rate calculated under paragraph (1)
equals or exceeds 2 percent, the Bank shall submit to the Congress a written
report that explains the circumstances that have caused the default rate
to equal or exceed 2 percent, and includes a plan to reduce the default
rate to less than 2 percent.'.
SEC. 9. SENSE OF THE CONGRESS REGARDING BANK ACCOUNTABILITY.
It is the sense of the Congress that--
(1) the Board of Directors of the Export-Import Bank of the United States
(in this section referred to as the `Bank') should establish a formal, transparent,
and independent accountability mechanism that would review, investigate,
and report on allegations by affected parties of failure of the Bank to
follow its own policies and procedures, including situations where the Bank
is alleged to have failed in its follow-up on the borrower's obligations
in financing agreements with respect to such policies and procedures;
(2) such an accountability mechanism should be able to provide advice to
management on policies, procedures, guidelines, resources, and systems established
to ensure adequate review and monitoring of projects;
(3) in carrying out its mandate, the confidentiality of sensitive business
information should be respected, and, in consultation with affected parties,
project sponsors, and Bank management, a flexible process should be followed
aimed primarily at correcting project failures and achieving better results
on the ground; and
(4) the accountability mechanism should be independent of the line operations
of management, and report its findings and recommendations directly to the
Board of Directors of the Bank.
SEC. 10. SUB-SAHARAN AFRICA ADVISORY COMMITTEE.
Section 2(b)(9)(B)(iii) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(9)(B)(iii))
is amended by striking `2011' and inserting `2015'.
SEC. 11. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE EXPORT OF NONLETHAL
DEFENSE ARTICLES OR SERVICES THE PRIMARY END USE OF WHICH WILL BE FOR CIVILIAN
Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 Stat. 4376) is
amended by striking `2011' and inserting `2015'.
SEC. 12. ELIMINATION OF OBSOLETE PROVISIONS.
(a) Foreign Credit Insurance Association-
(1) IN GENERAL- Section 2(b)(1) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(b)(1)) is amended by striking subparagraph (F) and redesignating
subparagraphs (G) through (L) as subparagraphs (F) through (K), respectively.
(2) CONFORMING AMENDMENTS-
(A) Section 2(h)(2) of such Act (12 U.S.C. 635(h)(2)) is amended by striking
`(J)' and inserting `(I)'.
(B) Section 3 of such Act (12 U.S.C. 635a) is amended in each of subsections
(f)(1)(A) and (g)(7) by striking `(I)' and inserting `(H)'.
(C) Section 8 of such Act (12 U.S.C. 635g) is amended in each of subsections
(c) and (f)(8)(A) by striking `(J)' and inserting `(I)'.
(D) Section 8A(a)(5) of such Act (12 U.S.C. 635g-1(a)(5)) is amended by
striking `2(b)(1)(K)' and inserting `2(b)(1)(J)'.
(b) Definition of Marxist-Leninist Country- Section 2(b)(2)(B)(ii) of such
Act (12 U.S.C. 635(b)(2)(B)(ii)) is amended by striking subclause (VII) and
redesignating subclauses (VIII) and (IX) as subclauses (VII) and (VIII), respectively.
SEC. 13. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on October