S AMDT 705

S 705 IS

To reauthorize the programs of the Overseas Private Investment Corporation, and for other purposes.

March 25, 2009

Mr. KERRY (for himself, Mr. LUGAR, Mr. KAUFMAN, and Mr. MENENDEZ) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

To reauthorize the programs of the Overseas Private Investment Corporation, and for other purposes.

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 ‘Overseas Private Investment Corporation Reauthorization Act of 2009’.

SEC. 2. REAUTHORIZATION OF OPIC PROGRAMS.

Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)(2)) is amended by striking ‘September 30, 2007’ and inserting ‘September 30, 2013’.

SEC. 3. CONGRESSIONAL NOTIFICATION REGARDING MAXIMUM CONTINGENT LIABILITY.

Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) is amended by adding at the end the following:

‘(l) Congressional Notification of Increase in Maximum Contingent Liability- The Corporation shall notify the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives not later than 15 days after the date on which the Corporation’s maximum contingent liability outstanding at any one time pursuant to insurance issued under section 234(a), and the amount of financing issued under sections 234(b) and (c), exceeds the Corporation’s maximum contingent liability for the preceding fiscal year by 25 percent or more.’.

SEC. 4. TRANSPARENCY AND ACCOUNTABILITY OF INVESTMENT FUNDS.

(a) In General- Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199), as amended by section 3, is amended by adding at the end the following:

‘(m) Transparency and Accountability of Investment Funds-

‘(1) COMPETITIVE SELECTION OF INVESTMENT FUND MANAGEMENT- With respect to any investment fund that the Corporation creates on or after the date of the enactment of the Overseas Private Investment Corporation Reauthorization Act of 2009, the Corporation may select persons to manage the fund only by contract using competitive procedures that are full and open.

‘(2) CRITERIA FOR SELECTION- In assessing a proposal for investment fund management, the Corporation shall consider, in addition to other factors, the following:

‘(A) The prospective fund management’s experience, depth, and cohesiveness.

‘(B) The prospective fund management’s track record in investing risk capital in emerging markets.

‘(C) The prospective fund management’s experience, management record, and monitoring capabilities in the countries in which the management operates, including details of local presence (directly or through local alliances).

‘(D) The prospective fund management’s experience as a fiduciary in managing institutional capital, meeting reporting requirements, and administration.

‘(E) The prospective fund management’s record in avoiding investments in companies that would be disqualified under section 239(l).

‘(3) ANNUAL REPORT- The Corporation shall include in each annual report under section 240A an analysis of the investment fund portfolio of the Corporation, including the following:

‘(A) FUND PERFORMANCE- An analysis of the aggregate financial performance of the investment fund portfolio grouped by region and maturity.

‘(B) STATUS OF LOAN GUARANTIES- The amount of guaranties committed by the Corporation to support investment funds, including the percentage of such amount that has been disbursed to the investment funds.

‘(C) RISK RATINGS- The definition of risk ratings, and the current aggregate risk ratings for the investment fund portfolio, including the number of investment funds in each of the Corporation’s rating categories.

‘(D) COMPETITIVE SELECTION OF INVESTMENT FUND MANAGEMENT- The number of proposals received and evaluated for each newly established investment fund.’.

(b) GAO Review- Not later than 1 year after the submission of the first report to Congress under section 240A of the Foreign Assistance Act of 1961 that includes the information required by section 239(m)(3) of that Act (as added by subsection (a) of this section), the Comptroller General of the United States shall prepare and submit to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives an independent assessment of the investment fund portfolio of the Overseas Private Investment Corporation, covering the items required to be addressed under such section 239(m)(3).

SEC. 5. INCREASED TRANSPARENCY.

(a) In General- Section 231A(c)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 2191a(c)(2)) is amended to read as follows:

‘(2) In conjunction with each meeting of its Board of Directors, the Corporation shall hold a public hearing in order to afford an opportunity for any person to present views regarding the activities of the Corporation. The Corporation shall provide notice of the hearing at least 20 days in before the hearing. At least 15 days in before the hearing the Corporation shall make available a public summary of each project, including information related to workers rights, to be considered at the meeting. The Corporation shall not include any confidential business information in the summary made available under this subsection. Any views expressed at the hearing or in written comments shall be made part of the record.’.

(b) Additional Transparency- Section 237 of the Foreign Assistance Act of 1961 (22 U.S.C. 2197) is amended by adding at the end the following new subsections:

‘(p) Review of Methodology- Not later than 180 days after the date of the enactment of the Overseas Private Investment Corporation Reauthorization Act of 2009, the Corporation shall make available to the public the methodology, including relevant regulations, used to assess and monitor the impact of projects supported by the Corporation--

‘(1) on employment in the United States;

‘(2) on development and the environment in host countries; and

‘(3) on the protection of internationally recognized worker rights, as well as the elimination of discrimination with respect to employment and occupation, in host countries.

‘(q) Public Notice Prior to Project Approval-

‘(1) PUBLIC NOTICE-

‘(A) IN GENERAL- The Board of Directors of the Corporation may not vote in favor of any action proposed to be taken by the Corporation on a Category A project before the date that is 60 days after the Corporation--

‘(i) makes available for public comment a summary of the project and relevant information about the project; and

‘(ii) such summary and information described in clause (i) has been made available to groups in the area that may be impacted by the proposed project and to nongovernmental organizations in the host country.

‘(B) EXCEPTION- The Corporation shall not include any confidential business information in the summary and information made available under clauses (i) and (ii) of subparagraph (A).

‘(2) PUBLISHED RESPONSE- To the extent practicable, the Corporation shall publish responses to the comments received under paragraph (1)(A)(i) with respect to a Category A project and submit the responses to the Board not later than 7 days before a vote is to be taken on any action proposed by the Corporation on the project.

‘(3) CATEGORY A PROJECT DEFINED- The term ‘Category A project’ means any project or other activity for which the Corporation proposes to provide insurance, reinsurance, a guaranty, financing, or other assistance under this title and which is likely to have a significant adverse environmental impact.’.

(c) Office of Accountability- Section 237 of the Foreign Assistance Act of 1961 (22 U.S.C. 2197), as amended by subsection (b) of this section, is amended by adding at the end the following new subsection:

‘(r) Office of Accountability- The Corporation shall maintain an Office of Accountability to provide, to the maximum extent practicable, upon request, problem-solving services for projects supported by the Corporation and review of the Corporation’s compliance with its environmental, social, internationally recognized worker rights, human rights, and transparency policies and procedures. The Office of Accountability shall operate in a manner that is fair, objective, and transparent.’.

SEC. 6. EXTRACTION INVESTMENT.