>STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

(Senate - September 26, 2006)

These activities not only support the expanding efforts to enhance innovation and competitiveness but are also consistent with the NASA Authorization Act which I introduced last year and which was signed into law last December. This act strongly encourages

  By Mr. CRAPO:

   S. 3938. An original bill to reauthorize the Export-Import Bank of the United States; from the Committee on Banking, Housing, and Urban Affairs; placed on the calendar.

   Mr. CRAPO. Mr. President, I want to thank my fellow Banking Committee members for working with me to reauthorize and reform the Export-Import Bank that reflects broad bipartisan agreement among our Committee. I am especially appreciative to Chairman Shelby, Ranking Member Sarbanes, Senator Bayh, and their staffs for all their diligence and hard work.

   The Export-Import Bank is the official export credit agency of the United States and the current authorization ends on September 30. Financing is a key element in global trade competition and extending the Bank's programs for five years is a vital and integral component in supporting the export of American-made goods and American provided services for both small and large companies.

   At the same time we need to ensure that the Bank's support for transactions not only helps U.S. exports but does not negatively impact domestic companies. The current system still has problems, which has been demonstrated on loan guarantees involving semiconductors, steel, ethanol, and soda ash. This legislation seeks to improve the process by making it more predictable, transparent, and by involving interested stakeholders in the process. First, it would require the Bank to maintain a list of sensitive areas where export financing is unlikely to be provided. Second, it requires detailed information to the public regarding the proposed financing at an early stage and in an adequate way so that input can be brought to bear by those who have the expertise on the specific proposal and industries involved. Third, it establishes protections against circumvention of U.S. trade remedy orders.

   There is also a lot of concern that the Bank has not met its 20 percent small business mandate and this legislation builds upon structural changes to make sure the small business community has an advocate to advance its needs and address its concerns. First, it establishes a Small Business Division, headed by a Senior Vice President who reports directly to the Bank President. Second, it establishes a Small Business Committee, chaired by the Senior Vice President of the Small Business Division. Third, it requires Ex-Im to authorize banks to process medium-term transactions on behalf of Ex-Im to facilitate the approval of such transactions.

   Additionally this section would also require that Ex-Im's Senior Vice President be notified of any staff recommendations for denial or withdrawal of an application for support involving a small business at least two days prior to a final decision. I would like to thank Senator Hagel for his work to make sure that Ex-Im does not deny small business transactions without giving the Senior Vice President for small business an opportunity to advocate on behalf of the small businesses.

   Due to Senator Hagel's efforts, Ex-Im has pledged that it will further strengthen this notification provision by administratively granting the Senior Vice President of the Small Business Division the authority to request an additional two days to review notices of staff recommendations for denial or withdrawal.

   Finally, the legislation clarifies that case-by-case decisions on whether to award tied aid credits shall be made by the Board of Directors of Ex-Im, subject to a veto by the President of the United States. It is very troubling that no tied aid has been approved since the last reauthorization.

   I ask unanimous consent that the text of the bill be printed in the RECORD.

   There being no objection, the text of the bill was ordered to be printed in the RECORD, as follows:

   S. 3938
    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
   SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Export-Import Bank Reauthorization Act of 2006''.
   SEC. 2. EXTENSION OF AUTHORITY.
    Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is amended by striking ``2006'' and inserting ``2011''.
   SEC. 3. 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 ``2006'' and inserting ``2011''.
   SEC. 4. 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 PURPOSES.
    Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 Stat. 4376) is amended by striking ``2001'' and inserting ``2011''.
   SEC. 5. DESIGNATION OF SENSITIVE COMMERCIAL SECTORS AND PRODUCTS.
    Section 2(e) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(e)) is amended by adding at the end the following new paragraph:
    ``(5) DESIGNATION OF SENSITIVE COMMERCIAL SECTORS AND PRODUCTS.--Not later than 120 days after the date of the enactment of this Act, the Export-Import Bank of the United States shall submit a list to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, which designates sensitive commercial sectors and products with respect to which the provision of financing support by the Bank is deemed unlikely by the President of the Bank due to the significant potential for a determination that such financing support would result in an adverse economic impact on the United States. The President of the Bank shall review on an annual basis thereafter the list of sensitive commercial sectors and products and the Bank shall submit an updated list to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives of such sectors and products.''.
   SEC. 6. INCREASING EXPORTS BY SMALL BUSINESS.
    (a) In General.--Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is amended by adding at the end the following:
    ``(f) Small Business Division.--
    ``(1) ESTABLISHMENT.--There is established a Small Business Division (in this subsection referred to as the `Division') within the Bank in order to--
    ``(A) carry out the provisions of subparagraphs (E) and (I) of section 2(b)(1) relating to outreach, feedback, product improvement, and transaction advocacy for small business concerns;
    ``(B) advise and seek feedback from small business concerns on the opportunities and benefits for small business concerns in the financing products offered by the Bank, with particular emphasis on conducting outreach, enhancing the tailoring of products to small business needs and increasing loans to small business concerns;
    ``(C) maintain liaison with the Small Business Administration and other departments and agencies in matters affecting small business concerns; and
    ``(D) provide oversight of the development, implementation, and operation of technology improvements to strengthen small business outreach, including the technology improvement required by section 2(b)(1)(E)(x).
    ``(2) MANAGEMENT.--The President of the Bank shall appoint an officer, who shall rank not lower than senior vice president and whose sole executive function shall be to manage the Division. The officer shall--
    ``(A) have substantial recent experience in financing exports by small business concerns; and
    ``(B) advise the Board, particularly the director appointed under section 3(c)(8)(B) to represent the interests of small business, on matters of interest to, and concern for, small business.
    ``(3) STAFF.--
    ``(A) DEDICATED PERSONNEL.--The President of the Bank shall ensure that each operating division within the Bank has staff that specializes in processing transactions that primarily benefit small business concerns.
    ``(B) RESPONSIBILITIES.--The small business specialists shall be involved in all aspects of processing applications for loans, guarantees, and insurance to support exports by small business concerns, including the approval or disapproval, or staff recommendations of approval or disapproval, as applicable, of such applications. In carrying out these responsibilities, the small business specialists shall consider the unique business requirements of small businesses and shall develop exporter performance criteria tailored to small business exporters.
    ``(C) APPROVAL AUTHORITY.--In an effort to maximize the speed and efficiency with which the Bank processes transactions primarily benefitting small business concerns, the small business specialists shall be authorized to approve applications for working capital loans and guarantees, and insurance in accordance with policies and procedures established by the Board.
    ``(D) IDENTIFICATION.--The Bank shall prominently identify the small business specialists on its website and in promotional material.
    ``(E) EMPLOYEE EVALUATIONS.--The evaluation of staff designated by the President of the Bank under subparagraph (A), including annual reviews of performance of duties related to transactions in support of exports by small business concerns, and any resulting recommendations for salary adjustments, promotions, and other personnel actions, shall address the criteria established pursuant to subsection (g)(2)(B)(iii) and shall be conducted by the manager of the relevant operating division following consultation with the senior vice president of the Division.
    ``(F) STAFF RECOMMENDATIONS.--Staff recommendations of denial or withdrawal for medium-term applications, exporter held multi-buyer policies, single buyer policies, and working capital applications processed by the Bank shall be transmitted to the Senior Vice President of the Division not later than 2 business days before a final decision.
    ``(4) RULE OF INTERPRETATION.--Nothing in this Act shall be construed to prevent the delegation to the Division of any authority necessary to carry out subparagraphs (E) and (I) of section 2(b)(1).
    ``(g) Small Business Committee.--
    ``(1) ESTABLISHMENT.--There is established a management committee to be known as the `Small Business Committee'.
    ``(2) PURPOSE AND DUTIES.--
    ``(A) PURPOSE.--The purpose of the Small Business Committee shall be to coordinate the Bank's initiatives and policies with respect to small business concerns, including the timely processing and underwriting of transactions involving direct exports by small business concerns, and the development and coordination of efforts to implement new or enhanced Bank products and services pertaining to small business concerns.
    ``(B) DUTIES.--The duties of the Small Business Committee shall be determined by the President of the Bank and shall include the following:
    ``(i) Assisting in the development of the Bank's small business strategic plans, including the Bank's plans for carrying out section 2(b)(1)(E) (v) and (x), and measuring and reporting in writing to the President of the Bank, at least once a year, on the Bank's progress in achieving the goals set forth in the plans.
    ``(ii) Evaluating and reporting in writing to the President of the Bank, at least once a year, with respect to--
    ``(I) the performance of each operating division of the Bank in serving small business concerns;
    ``(II) the impact of processing and underwriting standards on transactions involving direct exports by small business concerns; and
    ``(III) the adequacy of the staffing and resources of the Small Business Division.
    ``(iii) Establishing criteria for evaluating the performance of staff designated by the President of the Bank under section 3(f)(3)(A).
    ``(iv) Coordinating with other United States Government departments and agencies the provision of services to small business concerns.
    ``(3) COMPOSITION.--
    ``(A) CHAIRPERSON.--The Chairperson of the Small Business Committee shall be the senior vice president of the Small Business Division. The Chairperson shall have the authority to call meetings of the Small Business Committee, set the agenda for Committee meetings, and request policy recommendations from the Committee's members.
    ``(B) OTHER MEMBERS.--Except as otherwise provided in this subsection, the President of the Bank shall determine the composition of the Small Business Committee, and shall appoint or remove the members of the Small Business Committee. In making such appointments, the President of the Bank shall ensure that the Small Business Committee is comprised of--
    ``(i) the senior managing officers responsible for underwriting and processing transactions; and
    ``(ii) other officers and employees of the Bank with responsibility for outreach to small business concerns and underwriting and processing transactions that involve small business concerns.
    ``(4) REPORTING.--The Chairperson shall provide to the President of the Bank minutes of each meeting of the Small Business Committee, including any recommendations by the Committee or its individual members.''.
    (b) Enhance Delegated Loan Authority for Medium Term Transactions.--
    (1) IN GENERAL.--The Export-Import Bank of the United States shall seek to expand the exercise of authority under section 2(b)(1)(E)(vii) of the Export-Import Bank Act of 1945 (6 U.S.C. 635(b)(1)(E)(vii)) with respect to medium term transactions for small business concerns.
    (2) CONFORMING AMENDMENT.--Section 2(b)(1)(E)(vii)(III) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(E)(vii)(III)) is amended by inserting ``or other financing institutions or entities'' after ``consortia''.
    (3) DEADLINE.--Not later than 180 days after the date of the enactment of this Act, the Export-Import Bank of the United States shall make available lines of credit and guarantees to carry out section 2(b)(1)(E)(vii) of the Export-Import Bank Act of 1945 pursuant to policies and procedures established by the Board of Directors of the Export-Import Bank of the United States.