What This Bill Does
This bill lets the Secretary of the Treasury skip certain rules that tell U.S. representatives how to vote at international banks and lending organizations. The bill says these voting rules have piled up over decades and sometimes make it hard for U.S. representatives to work effectively in negotiations with other countries.
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Who It Affects
The Secretary of the Treasury, U.S. Executive Directors (diplomats who represent America at international financial institutions), the House Committee on Financial Services and the Senate Committee on Foreign Relations.
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Key Provisions
• The Secretary of the Treasury can skip a voting requirement on a case-by-case basis if that requirement doesn't already have its own waiver or ending date built in. (Sec. 3(a) and (b))
• The Secretary must report to Congress every six months listing any waivers used, what projects they applied to, why they were needed, and how they helped advance U.S. interests. (Sec. 3(d))
• Within 12 months, the Secretary must suggest which old voting rules should be changed or ended to strengthen U.S. leadership and help work better with allies. (Sec. 3(f))
• This waiver power expires three years after the bill becomes law. (Sec. 3(g))
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What Changes
The Secretary gets temporary power to make exceptions to voting rules without waiting for Congress to change the law. Currently, every voting rule must be followed as written or changed only through the full lawmaking process.
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Important Definitions
International financial institution means what the term means in section 1701(c)(2) of the International Financial Institutions Act. Not specified in bill text what those institutions are.
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Effective Date
Not specified in bill text when the bill takes effect. The sunset (automatic ending) happens three years after enactment.
I
118TH CONGRESS
1ST SESSION
H. R. 557
To promote United States interests at the international financial institutions,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 2023
Mr. HILL introduced the following bill; which was referred to the Committee
on Financial Services
A BILL
To promote United States interests at the international
financial institutions, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘International Financial
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Institutions Governance Act of 2023’’.
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SEC. 2. SENSE OF CONGRESS.
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It is the sense of the Congress that—
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(1) directing the use of the voice and vote of
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the United States at the international financial insti-
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•HR 557 IH
tutions (IFIs) serves an essential role in promoting
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the national interest;
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(2) despite their importance, such mandates
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have grown to represent a significant compliance
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burden for United States representatives at the
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IFIs, having accumulated to more than 260 pages of
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statutory text over the course of decades-long par-
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ticipation by the United States in the IFIs; and
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(3) while certain mandates provide appropriate
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discretion for United States representatives through
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waivers and sunset provisions, others may entail in-
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flexible requirements that—
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(A) prevent the representatives from
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achieving maximum effectiveness in the pro-
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motion of United States interests;
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(B) render the representatives less relevant
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in multilateral negotiations at the IFIs, includ-
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ing in discussions with United States allies; or
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(C) fail to adapt to intervening events and
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changing circumstances, thereby undermining
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the pursuit of United States interests.
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•HR 557 IH
SEC. 3. PILOT AUTHORITY TO WAIVE VOICE AND VOTE RE-
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QUIREMENTS, ON A CASE-BY-CASE BASIS, IN
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THE INTERNATIONAL FINANCIAL INSTITU-
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TIONS.
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(a) IN GENERAL.—The Secretary may waive, on a
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case-by-case basis, a statutory requirement that directs
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the United States Executive Director at an international
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financial institution with respect to the use of the voice
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and vote of the United States.
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(b) EXCEPTION.—Subsection (a) shall not apply to
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a statutory requirement if the provision of law providing
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for the requirement provides for—
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(1) a waiver of the requirement; or
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(2) the termination of the requirement by a
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date certain.
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(c) DEFINITIONS.—In this section:
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(1)
INTERNATIONAL
FINANCIAL
INSTITU-
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TION.—The term ‘‘international financial institu-
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tion’’ has the meaning given the term in section
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1701(c)(2) of the International Financial Institu-
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tions Act.
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(2) SECRETARY.—The term ‘‘Secretary’’ means
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the Secretary of the Treasury.
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(d) REPORT DESCRIBED.—Not less frequently than
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semiannually, the Secretary shall submit to the Committee
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on Financial Services of the House of Representatives and
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•HR 557 IH
the Committee on Foreign Relations of the Senate a writ-
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ten report that includes the following:
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(1) A list of each waiver issued under sub-
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section (a) since the later of the date of the enact-
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ment of this section or the date the then most recent
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report was submitted under this subsection.
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(2) A description of any project, policy, or other
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matter to which the waiver involved applied.
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(3) A detailed explanation of the reasons for
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the waiver involved.
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(4) A determination that the waiver involved al-
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lowed the Secretary to more effectively advance
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United States interests at the international financial
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institution involved.
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(e) NO
RETROACTIVE
APPLICATION.—A waiver
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issued under this section shall not apply retroactively.
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(f) RECOMMENDATIONS BY THE SECRETARY.—With-
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in 12 months after the date of the enactment of this Act,
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the Secretary shall submit to the committees specified in
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subsection (d) any recommendations to revise or sunset
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a statutory requirement that directs the United States Ex-
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ecutive Director at an international financial institution
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with respect to the use of the voice and vote of the United
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States. The recommendations should be aimed at achiev-
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•HR 557 IH
ing the following objectives with regard to the inter-
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national financial institution:
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(1) Strengthening United States leadership in
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the design, execution, and evaluation of activities.
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(2) Permitting the Secretary to more effectively
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support policies, projects, and other initiatives that
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advance the national interest of the United States.
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(3) Facilitating multilateral cooperation, par-
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ticularly between the United States and its allies.
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(4) Updating a requirement to appropriately re-
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flect changing conditions.
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(5) Allowing for all appropriate accountability
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to the Congress with respect to United States gov-
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ernance at, and participation in, the international fi-
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nancial institution.
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(g) SUNSET.—The preceding provisions of this sec-
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tion shall have no force or effect on and after the date
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that is 3 years after the date of the enactment of this
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Act.
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Æ
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