To amend the Better Utilization of Investments Leading to Development Act of 2018 to facilitate increased equity investments under that Act.

I 116TH CONGRESS 2D SESSION H. R. 7570 To amend the Better Utilization of Investments Leading to Development Act of 2018 to facilitate increased equity investments under that Act. IN THE HOUSE OF REPRESENTATIVES JULY 9, 2020 Mr. YOHO (for himself and Mr. SMITH of Washington) introduced the following bill; which was referred to the Committee on Foreign Affairs A BILL To amend the Better Utilization of Investments Leading to Development Act of 2018 to facilitate increased equity investments under that Act. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. FACILITATION OF INCREASED EQUITY INVEST- 3 MENTS UNDER THE BETTER UTILIZATION OF 4 INVESTMENTS LEADING TO DEVELOPMENT 5 ACT OF 2018. 6 (a) APPLICABILITY OF FEDERAL CREDIT REFORM 7 ACT OF 1990.—Section 1421(c) of the Better Utilization 8 of Investments Leading to Development Act of 2018 (22 9 VerDate Sep 11 2014 18:47 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7570.IH H7570 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 7570 IH U.S.C. 9621(c)) is amended by adding at the end the fol- 1 lowing: 2 ‘‘(7) APPLICABILITY OF FEDERAL CREDIT RE- 3 FORM ACT OF 1990.— 4 ‘‘(A) IN GENERAL.—Subject to subpara- 5 graphs (B) and (C), support provided under 6 paragraph (1) with respect to a project shall be 7 considered to be a Federal credit program that 8 is subject to the Federal Credit Reform Act of 9 1990 (2 U.S.C. 661 et seq.) for purposes of ap- 10 plying the requirements of such Act to such 11 support. 12 ‘‘(B) DETERMINATION OF COST.— 13 ‘‘(i) IN GENERAL.—For purposes of 14 section 502(5) of the Federal Credit Re- 15 form Act of 1990 (2 U.S.C. 661a(5) et 16 seq.) the cost of support provided under 17 paragraph (1) with respect to a project 18 shall be the net present value, at the time 19 when funds are disbursed to provide the 20 support, of the following estimated cash 21 flows: 22 ‘‘(I) The purchase price of the 23 support. 24 VerDate Sep 11 2014 18:47 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7570.IH H7570 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 7570 IH ‘‘(II) Dividends, redemptions, 1 and other shareholder distributions 2 during the term of the support. 3 ‘‘(III) Proceeds received upon a 4 sale, redemption, or other liquidation 5 of the support. 6 ‘‘(IV) Adjustments for risk of es- 7 timated losses, if any. 8 ‘‘(ii) CHANGES IN TERMS IN- 9 CLUDED.—The estimated cash flows de- 10 scribed in subclauses (I) through (IV) of 11 clause (i) shall include the effects of 12 changes in terms resulting from the exer- 13 cise of options included in the agreement 14 to provide the support. 15 ‘‘(C) REESTIMATE OF COST.—When the 16 estimated cost of support provided under para- 17 graph (1) with respect to a project made in a 18 single fiscal year is reestimated in a subsequent 19 year, the difference between the reestimated 20 cost and the previous cost estimate shall be 21 paid from the balances available in the Cor- 22 porate Capital Account established under sec- 23 tion 1434.’’. 24 VerDate Sep 11 2014 18:47 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7570.IH H7570 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 7570 IH (b) FUNDING FOR CORPORATE CAPITAL ACCOUNT.— 1 Section 1434(b) of the Better Utilization of Investments 2 Leading to Development Act of 2018 (22 U.S.C. 9634(b)) 3 is amended— 4 (1) in paragraph (5), by striking ‘‘and’’ at the 5 end; 6 (2) by redesignating paragraph (6) as para- 7 graph (7); and 8 (3) by inserting after paragraph (5) the fol- 9 lowing: 10 ‘‘(7) receipts of reestimated costs received pur- 11 suant to section 1421(c).’’. 12 Æ VerDate Sep 11 2014 18:47 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H7570.IH H7570 pbinns on DSKJLVW7X2PROD with BILLS