"$45,000,000" and insert "$65,000,000."
Mr. Gejdenson. Is there any discussion? If not, all those in favor
say aye, all those opposed say nay.
[Chorus of ayes.]
Mr. Gejdenson. The ayes have it.
I also have a technical amendment which I would offer before the
members. On page 56 line 2, insert the following.
[The amendment appears in the appendix.]
Mr. Gejdenson. Any discussion? If not, all those in favor say
[Chorus of ayes.]
Mr. Gejdenson. Those opposed say nay.
Mr. Gejdenson. The ayes have it.
Are there additional amendments?
There are no additional amendments. I move the bill.
All those in favor say aye.
[Chorus of ayes.]
Mr. Gejdenson. All those opposed say nay.
The ayes have it. The bill is passed.
The record will stay open long enough to give members â five
days to include any statements in the record. The markup is con-
Mr. Manzullo. I'm glad I came.
Mr. Gejdenson. I'm glad you came too, Mr. Manzullo.
[Whereupon, at 1:43 p.m., the subcommittee was proceeded to
IN THE HOUSE OF REPRESENTATIVES
Mr. GEJDEXSON introduced the following bill; which was referred to the
To extend the authorities of the Overseas Private Investment
Corporation, and for other purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives oftl\Â£ United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the "Jobs Through Trade
5 Expansion Act of 1994".
1 TITLE I -OVERSEAS PRIVATE
2 INVESTMENT CORPORATION
3 SEC. 101. SHORT TITLE. -'
4 This title may be cited as the "Overseas Private In-
5 vestment Corporation Amendments Act of 1994".
6 SEC. 102. REAUTHORIZATION OF CORPORATION.
7 Title IV of chapter 2 of part I of the Foreign Assist-
8 ance Act of 1961 (22 U.S.C. 2191 et seq.) is amended
9 to read as follows:
io "TITLE IV- OVERSEAS PRIVATE
1 1 INVESTMENT CORPORATION
1 2 "SEC. 231. PURPOSE AND POLICY.
13 "(a) PURPOSE. â The Overseas Private Investment
14 Corporation shall be an independent agency of the United
1 5 States under the foreign policy guidance of the Secretary
16 of State. The purpose of the Corporation is to promote
17 sustainable environmentally sound economic development
1 8 in developing countries and areas, and countries in transi-
19 tion from nonmarket to market economies, by mobilizing
20 and facilitating the participation of the United States pri-
2 1 vate sector.
22 "(b) Eligibility Criteria for Participating
23 Countries and Areas. â
1 "(1) In GENERAL. â Except as provided in para-
2 graph (3), the Corporation may operate its programs
3 in a country (or an area within a country) only if â
4 "(A) the United States maintains diplo-
5 matic relations with the country;
6 "(B) eitherâ
7 "(i) the country or area is a develop-
8 ing country or area; or
9 "(ii) the country is in transition from
10 a nonmarket to market economy; and
1 1 "(C) programs in that country are not pro-
12 hibited under section 234(e)(2) (relating to
13 human rights violators).
14 "(2) Preference for certain countries. â
15 In conducting its activities, the Corporation shall â
16 "(A) give preference to projects in coun-
17 tries with per capita incomes of $1,230 or less
18 in 1992 United States dollars; and
19 "(B) restrict its activities in countries with
20 per capita incomes of $5,335 or more in 1992
2 1 United States dollars (other than countries des-
22 igrnated as beneficiarv countries under section
23 212 of the Caribbean Basin Economic Recovery
1 "(3) Programs in ineligible countries. â
2 (A) Except as provided in subparagraph (B), if a
3 country in winch the Corporation is operating its
4 programs ceases to meet the criteria set forth in
5 paragraph (1), or if (pursuant to this or any other
6 Act) the government of that country becomes ineli-
7 gible for assistance, the Corporation shall cease to
8 operate its programs in such country, except that
9 the Corporation shall not be required to terminate
10 any contract or commitment entered into prior to
1 1 the date on which such country is determined to be
1 2 ineligible for such assistance.
13 "(B) The Corporation may continue to operate
14 its programs in a country which ceases to meet the
15 criteria set forth in paragraph (1) if the President
16 of the United States determines that the operation
17 of such programs would be in the national interest
1 8 of the United States.
19 "(c) Guidelines for Acttvittes op OPIC. â In
20 carrying out its purpose, the Corporation shall
2 1 undertake â
22 "(1) to conduct insurance, reinsurance, and fi-
23 nancing operations on a self-sustaining basis, taking
24 into account in its financing operations the economic
25 and financial soundness of projects;
1 "(2) to broaden private participation by selling
2 its direct investments to private investors whenever
3 it can appropriately do so on satisfactory terms;
4 "(3) to conduct its insurance operations with
5 due regard to principles of risk management, includ-
6 ing efforts to share its insurance risks and reinsur-
7 ance risks;
8 "(4) to consider in the conduct of its operations
9 the extent to which the governments of eligible coun-
10 tries are receptive to private enterprise, domestic
11 and foreign, and their willingness and ability to
12 maintain conditions which enable private enterprise
13 to make its full contribution to the development
15 "(5) to foster private initiative and competition
16 and discourage monopolistic practices;
17 "(6) to further to the greatest degree possible,
18 in a manner consistent with its goals, the balance-
19 of-payments and employment objectives of the Unit-
20 ed States;
21 "(7) to consider in the conduct of its operations
22 the extent to which the governments of eligible coun-
23 tries respect human rights, labor rights, and the
24 need to support sound environmental practices and
1 "(8) to conduct its activities in consonance with
2 the international trade, investment, and financial
3 policies of the United States Government, and to
4 seek to support those developmental projects having
5 positive trade benefits for the United States; and
6 "(9) to advise and assist, within its field of
7 competence, interested agencies of the United States
8 and other organizations, both public and private, na-
9 tional and international, with respect to projects and
10 programs relating to the development of private en-
1 1 terprise in eligible countries and areas.
12 "SEC. 232. STOCK OF THE CORPORATION; ORGANIZATION
1 3 AND MANAGEMENT.
14 "(a) STOCK. â The Secretary of the Treasury shall
1 5 hold the capital stock of the Corporation.
16 "(b) Structure of the Corporation. â The Cor-
17 poration shall have a Board of Directors, a President, an
1 8 Executive Vice President, and such other officers and staff
19 as the President of the Corporation may determine.
20 "(c) Board of Directors. â
21 "(1) In GENERAL. â All powers of the Corpora-
22 tion shall vest in and be exercised by or under the
23 authority of the Board, which shall consist of 15 Di-
24 rectors (including the Chair, the Executive Vice
1 Chair, and the Vice Chair). Eight Directors shall
2 constitute a quorum for the transaction of business.
3 "(2) Composition of the board. â
4 "(A) Chair.â The Chair of the Board
5 shall be the President of the Corporation, ex
7 "(B) Executive vice chair. â The Exec-
8 utive Vice Chair of the Board shall be the Ad-
9 ministrator of the Agency for International De-
10 velopment, ex officio.
11 "(C) Vice chair.â The Vice Chair of the
12 Board shall be the United States Trade Rep-
13 resentative, ex officio, or, if so designated by
14 the United States Trade Representative, a Dep-
1 5 uty United States Trade Representative.
16 "(D) Public sector directors. â (i) In
17 addition to the directors provided for in sub-
18 paragraphs (A), (B), and (C), four Directors
19 who are officers or employees of the Govern-
20 ment of the United States, including an officer
21 or employee of the Department of Labor, shall
22 be designated by and shall serve at the pleasure
23 of the President of the United States.
24 "(ii) The Directors designated under this
25 subparagraph shall receive no additional com-
1 pensation by virtue of their service as such a
3 "(E) Private sector directors. â (i)
4 Eight Directors who are not otherwise officers
5 or employees of the Government of the United
6 States shall be appointed by the President of
7 the United States, by and with the advice and
8 consent of the Senate. Of these, at least â
9 "(I) two shall be experienced in small
11 "(H) one shall be experienced in orga-
12 nized labor; and
13 "(HI) one shall be experienced in so-
14 cial and economic development issues.
15 "(ii) Each Director appointed under this
16 subparagraph shall be appointed for a term of
17 not more than 3 years. The terms of not more
18 than 3 such Directors shall expire in any 1
19 year. Such Directors shall serve until their suc-
20 cessors are appointed and qualified. Directors
2 1 may be reappointed to subsequent terms.
22 "(hi) Each Director appointed under this
23 subparagraph shall be compensated at the daily
24 equivalent of the annual rate of pay in effect
25 for level IV of the Executive Schedule under
1 section 5315 of title 5, United States Code, for
2 each day (including travel time) during which
3 such Director is actually engaged in the busi-
4 ness of the Corporation, and may be paid travel
5 or transportation expenses to the extent author-
6 ized for employees serving intermittently in the
7 Government service under section 5703 of title
8 5, United States Code. Any such Director may
9 waive any such compensation.
10 "(d) Appointment op the President. â The
1 1 President of the Corporation shall be appointed by the
12 President of the United States, by and with the advice
1 3 and consent of the Senate, and shall serve at the pleasure
14 of the President. In making such appointment, the Presi-
15 dent shall take into account the private business experi-
16 ence of the appointee. The President of the Corporation
17 shall be its Chief Executive Officer and shall be respon-
1 8 sible for the operations and management of the Corpora-
19 tion, subject to bylaws and policies established by the
21 "(e) Officers and Staff. â
22 "(1) Executive vice president. â The Exec-
23 utive Vice President of the Corporation shall be ap-
24 pointed by the President of the United States, by
1 and with the advice and consent of the Senate, and
2 shall serve at the pleasure of the President.
3 "(2) Other officers and staff. â (A) The
4 Corporation may appoint such other officers and
5 such employees (including attorneys) and agents as
6 the Corporation considers appropriate.
7 "(B) The officers, employees, and agents ap-
8 pointed under this subsection shall have such func-
9 tions as the Corporation may determine.
10 "(C) Of the officers, employees, and agents ap-
1 1 pointed under this paragraph, 20 may be appointed
12 without regard to the provisions of title 5. United
1 3 States Code, governing appointments in the competi-
14 tive service, may be compensated without regard to
15 the provisions of chapter 51 or subchapter EH of
1 6 chapter 53 of such title, and shall serve at the pleas-
1 7 ure of the Corporation.
18 "(D) Under such regulations as the President
19 of the United States may prescribe, any individual
20 appointed under subparagraph (C) may be entitled,
21 upon removal (except for cause) from the position to
22 which the appointment was made, to reinstatement
23 to the position occupied by that indrridual at the
24 time of appointment or to a position of comparable
25 grade and pay.
1 "SEC. 233. INVESTMENT INSURANCE, FINANCING, AND
2 OTHER PROGRAMS.
3 "(a) Investment Insurance. â
4 "(1) Risks for which insurance issued. â
5 The Corporation is authorized to issue insurance,
6 upon such terms and conditions as the Corporation
7 may determine, to eligible investors assuring protec-
8 tion in whole or in part against any or all of the fol-
9 lowing risks with respect to projects which the Cor-
10 poration has approved:
11 "(A) Inability to convert into United
12 States dollars other currencies, or credits in
13 such currencies, received as earnings or profits
14 from the approved project, as repayment or re-
15 turn of the investment in the project, in whole
16 or in part, or as compensation for the sale or
17 disposition of all or any part of the investment.
18 "(B) Loss of investment, in whole or in
19 part, in the approved project due to expropria-
20 tion or confiscation by action of a foreign gov-
2 1 ernment.
22 "(C) Loss due to war, revolution, insurrec-
23 tion, or civil strife.
24 "(D) Loss due to business interruption
25 caused by any of the risks set forth in subpara-
26 graphs (A), (B), and (C).
1 "(2) Risk sharing arrangements with for-
2 eign governments and multilateral organiza-
3 TIONS. â Recognizing that major priVate investments
4 in eligible countries or areas are often made by en-
5 terprises in which there is multinational participa-
6 tion, including significant United States private par-
7 ticipation, the Corporation may make arrangements
8 with foreign governments (including agencies, instru-
9 mentalities, and political subdivisions thereof) and
10 with multilateral organizations and institutions for
1 1 sharing liabilities assumed under investment insur-
12 ance for such investments and may, in connection
13 with such arrangements, issue insurance to investors
14 not otherwise eligible for insurance under this title,
15 except that â
16 "(A) liabilities assumed by the Corporation
17 under the authority of this paragraph shall be
1 8 consistent with the purposes of this title; and
19 "(B) the maximum share of liabilities so
20 assumed shall not exceed the proportionate par-
21 ticipation by eligible investors in the project.
22 "(3) Maximum contingent liability with
23 RESPECT TO SINGLE INVESTOR. â Not more than 10
24 percent of the maximum contingent liability of in-
25 vestment insurance which the Corporation is per-
1 mitted to have outstanding under section 235(a)(1)
2 shall be issued to a single investor.
3 "(b) Investment Financing. â
4 "(1) Direct lending. â (A) The Corporation
5 is authorized to make loans in United States dollars,
6 repayable in dollars, and to make loans in foreign
7 currencies, to firms privately owned or of mixed pri-
8 vate and public ownership, upon such terms and
9 conditions as the Corporation may determine.
10 "(B) The Corporation may designate up to 25
1 1 percent of any loan under this paragraph for use in
12 the development or adaptation in the United States
1 3 of new technologies or new products or services that
14 are to be used in the project for which the loan is
15 made and are likely to contribute to the economic or
1 6 social development of less developed countries.
17 "(2) Equity investment. â (A) The Corpora-
18 tion is authorized to purchase, invest in, or other-
19 wise acquire equity securities or securities with eq-
20 uity characteristics of any firm or entity, upon such
21 terms and conditions as the Corporation may deter-
22 mine, to be funded in the same manner as direct
23 loans under the Federal Credit Reform Act of 1990
24 for the purpose of providing capital for any project
1 which is consistent with the provisions of this title,
2 subject to the limitations in subparagraph (B).
3 "(B)(i) The aggregate amount of the Corpora-
4 tion's equity investment under this paragraph with
5 respect to any project shall not exceed 30 percent of
6 the aggregate amount of all equity investment made
7 with respect to such project at the time that the
8 Corporation's equity investment is made (excluding
9 any securities acquired through the enforcement of
10 any hen, pledge, or contractual arrangement as a re-
1 1 suit of a default by any party under any agreement
12 relating to the terms of the Corporation's invest-
14 "(u) The Corporation's equity investment under
15 this paragraph with respect to any project, when
16 added to any other investments made or guaranteed
17 by the Corporation under this subsection with re-
18 spect to such project, shall not cause the aggregate
19 amount of all such investment to exceed, at the time
20 any such investment is made or guaranteed by the
21 Corporation, 75 percent of the total investment com-
22 mitted to such project, as determined by the Cor-
23 poration. The determination of the Corporation
24 under this clause shall be conclusive for purposes of
1 the Corporation's authority to make or guarantee
2 any such investment.
3 "(C) In making investment decisions under this
4 paragraph, the Corporation shall give consideration
5 to the extent to which the Corporation's equity in-
6 vestment will assist in obtaining the financing re-
7 quired for such projects.
8 "(D) Taking into consideration, among other
9 things, the Corporation's financial interests and the
10 desirability of fostering the development of local cap-
1 1 ital markets in emerging democracies, economies in
12 transformation, and less developed countries, the
13 Corporation shall endeavor to dispose of any equity
14 interest it may acquire under this paragraph within
15 a period of 10 years from the date of acquisition of
16 such interest.
17 "(3) Investment guarantees. â (A) The Cor-
18 poration is authorized to issue to eligible investors
19 guarantees of loans and other investments made by
20 such investors assuring against loss due to such
21 risks and upon such terms and conditions as the
22 Corporation may determine, subject to subpara-
23 graphs (B) and (C).
1 "(B) A guarantee issued under subparagraph
2 (A) on other than a loan investment may not exceed
3 75 percent of such investment.
4 "(C) Except for loan investments for credit
5 unions made by eligible credit unions or credit union
6 associations, the aggregate amount of investment
7 (exclusive of interest and earnings) for which guar-
8 antees are issued under subparagraph (A) with re-
9 spect to any project shall not exceed, at the time of
10 issuance of any such guarantee, 75 percent of the
11 total investment committed to any such project as
12 determined by the Corporation. Such determination
13 by the Corporation shall be conclusive for purposes
14 of the Corporation's authority to issue any such
16 "(c) Investment Encouragement. â The Corpora-
1 7 tion is authorized to initiate and support through financial
18 participation, incentive grant, or otherwise, and on such
19 terms and conditions as the Corporation may determine,
20 the identification, assessment, surveying, and promotion
21 of private investment opportunities, using wherever fea-
22 sible and effective the facilities of private investors. The
23 Corporation shall not finance any survey to ascertain the
24 existence, location, extent, or quality of oil or gas re-
1 "(d) Special Activities. â The Corporation is au-
2 thorized to administer and manage special projects and
3 programs, including programs of financial and advisory
4 support, which provide private technical, professional, or
5 managerial assistance in the development of human re-
6 sources, skills, technology, capital savings, intermediate fi-
7 nancial and investment institutions, and cooperatives. The
8 funds for these projects and programs may, with the Cor-
9 poration's concurrence, be transferred to it for such pur-
10 poses under the authority of section 632(a) or from other
1 1 sources, public or private.
1 2 "(e) Other Insurance Functions. â
13 "(1) In general. â The Corporation is
14 authorized â
15 "(A) to make and carry out contracts of
16 insurance or reinsurance, or agreements to as-
17 sociate or share risks, with insurance compa-
18 nies, financial institutions, any other persons,
19 or groups thereof; and
20 "(B) to employ such insurance companies,
21 financial institutions, other persons, or groups,
22 where appropriate, as its agent, or to act as
23 their agent, in the issuance and servicing of in-
24 surance, the adjustment of claims, the exercise
25 of subrogation rights, the ceding and accepting
1 of reinsurance, and in any other matter incident
2 to an insurance business.
3 Such agreements and contracts shall be consistent
4 with the purposes of the Corporation set forth in
5 section 231 and shall be on equitable terms.
6 "(2) Risk-sharing agreements. â The Cor-
7 poration is authorized to enter into pooling or other
8 risk-sharing agreements with multinational insur-
9 ance or financing agencies or groups of such agen-
11 "(3) Ownership interest in risk-sharing
12 ENTITIES. â The Corporation is authorized to hold
13 an ownership interest in any association or other en-
14 tity established for the purposes of sharing risks
15 under investment insurance.
16 "(4) Reinsurance of certain liabilities. â
17 The Corporation is authorized to issue, upon such
18 terms and conditions as it mav determine, reinsur-
19 ance of liabilities assumed by other insurers or
20 groups thereof with respect to risks referred to in
21 subsection (a)(1).
22 "(5) Limitation on reinsurance. â The
23 amount of reinsurance of liabilities under this title
24 which the Corporation may issue shall not in the ag-
25 gregate exceed at any one time an amount equal to
1 the amount authorized for the maximum contingent
2 liability outstanding at any one time under section
3 235(a)(1). All reinsurance issued by the Corporation
4 under this subsection shall require that the rein-
5 sured party retain for his or her own account speci-
6 fied portions of liability, whether first loss or other-
8 "(6) Enhancing private political risk in-
9 SURANCE INDUSTRY. â In order to encourage greater
10 availability of political risk insurance for eligible in-
1 1 vestors by enhancing the private political risk insur-
12 ance industry in the United States, and to the ex-
13 tent consistent with this title, the Corporation shall
14 undertake programs of cooperation with such indus-
15 try, and in connection with such programs may en-
1 6 gage in the following activities:
17 "(A) Utilizing its statutory authorities, en-
18 courage the development of associations, pools,
19 or consortia of United States private political
20 risk insurers.
21 "(B) Share insurance risks (through coin-
22 surance, contingent insurance, or other means)
23 in a manner that is conducive to the growth
24 and development of the private political risk in-
25 surance industrv in the United States.
1 "(C) Notwithstanding section 237(e), upon
2 the expiration of insurance piwided by the Cor-
3 poration for an investment, enter into risk-shar-
4 ing agreements with United States private po-
5 litical risk insurers to insure any such invest-
6 ment. In cooperating in the offering of insur-
ance under this clause, the Corporation shall
8 not assume responsibility for more than 50 per-
9 cent of the insurance being offered in each sep-
10 arate transaction.
1 1 "SEC. 234. GUIDELINES AND CRITERIA FOR OPIC SUPPORT.
12 "(a) Development Guidelines. â
13 "(1) Criteria. â The Corporation, in determin-
14 ing whether to provide insurance, reinsurance, or fi-
15 nancing for a project shall be guided by the eco-
16 nomic, environmental, and social development impact
17 and benefits of such a project and the ways in which
18 such a project complements, or is compatible with,
19 other development assistance programs or projects
20 of the United States or other donors.
21 "(2) Development impact profile. â In
22 order to carry out the policy set forth in paragraph
23 (1), the Corporation shall prepare and maintain, for