Title XV contains seven miscellaneous provisions. Title XV restricts the ability of the United States’ Executive Director at the International Monetary Fund to approve loans to foreign countries that are unlikely to be repaid in full. The Title also imposes additional disclosure requirements: (1) on individuals selling products containing conflict minerals from the Democratic Republic of Congo or surrounding areas, (2) securities issuers that are engaged in the commercial development of oil, natural gas or minerals, and (3) mine operators. Additionally, Title XV directs the Comptroller General of the United States and the Federal Deposit Insurance Corporation to conduct studies and issue reports to Congress within one year of the Title’s enactment.
Approval Restrictions on International Monetary Fund Loans:
Title XV protects United Stated taxpayers by imposing a duty on the United States’ Executive Director at the International Monetary Fund to oppose loan proposals on behalf of United States citizens if the funds are unlikely to be repaid in full. The Executive Director ensures that taxpayer dollars are not used for excessive subsidies to foreign governments.
Restrictions on International Monetary Fund Loans:
The United States’ Executive Director at the International Monetary Fund (“IMF”) is instructed by the Secretary of the United States Department of the Treasury to evaluate any IMF loan proposals to foreign countries if the country’s total public debt is greater than its most recent annual gross domestic product (“GDP”) and the country does not qualify for assistance from the International Development Association. See 22 U.S.C. § 286tt(a)(1). If the loan is unlikely to be repaid in full, the Executive Director must oppose the proposal. See 22 U.S.C. § 286tt(a)(2).
Title XV also directs the Securities & Exchange Commission (“SEC”) to require disclosures of any conflict materials originating in the Democratic Republic of the Congo (“Congo”) that are used by individuals in their products. See 15 U.S.C. § 78m(p)(1)(A). Individuals must also issue a report on the procedures used to exercise due diligence with regard to the minerals’ sources and custody chains. See15 U.S.C. § 78m(p)(1)(A)(i). The report must be independently audited in accordance with standards established by the Comptroller General of the United States, and rules promulgated by the SEC. See id.
Title XV also requires mine operators, or companies with mine operating subsidiaries, to disclose information about violations of health and safety standards in annual reports filed with the SEC. See 15 U.S.C. § 78m-2(a)(1)(A). Among other things, the information must include the total number of violations and citations received, as well as the total number of mining-related fatalities. See 15 U.S.C. §§ 78m-2(a)(1)(C), 78m-2(a)(1)(D), 78m-2(a)(1)(G).
Title XV also requires any securities issuers that are engaged in the commercial development of oil, natural gas, or minerals to disclose certain payments made to the United States or foreign governments in an annual report. See 15 U.S.C. § 78m.
Mandated Studies and Reports to Congress:
Title XV requires the Federal Deposit Insurance Corporation (“FDIC”) to issue a report to Congress evaluating the current definitions of core deposits and brokered deposits and the way that revising the definitions to better distinguish between them would affect the Deposit Insurance Fund. See Dodd-Frank Wall Street Reform and Consumer Protection Act §§ 1506(a)(1)–(2). [H1] The study must also evaluate the role core and brokered deposits play in the economy, with a focus on how redefining core deposits would concern local economies or effectuate competitive equalities between large institutions and community banks. See id. at §§ 1506(a)(3)–(5).[H2]
Title XV also directs the Comptroller General of the United States (“Comptroller General”) to issue a report to Congress assessing the independence, effectiveness and expertise of Inspectors General. See Dodd-Frank Act§ 1505(a). [H3] The Comptroller General is also required to evaluate any effects of the Dodd-Frank Act on Inspectors General independence. See id.[H4]
Congress believes that the revenues derived from conflict mineral sales in Congo are being used to finance sexual and gendered-based violence in eastern Congo. See Dodd-Frank Act § 1502(a). [H1] Congress hopes to aid an “emergency humanitarian situation” by ensuring that United States securities issuers exercise due diligence with regard to the source of conflict minerals so that they do not inadvertently fund such acts of violence. See id. at §§ 1502(a); [H2] See also15 U.S.C. § 78m(p)(1)(A)(i) .
Title XV also allows the Securities & Exchange Commission to track mine operators’ repetitive violations of health and safety standards more effectively.