[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6644 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6644
To establish a framework for effective, transparent, and accountable
United States foreign assistance, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 11, 2012
Mr. Berman (for himself and Mr. Connolly of Virginia) introduced the
following bill; which was referred to the Committee on Foreign Affairs,
and in addition to the Committees on Ways and Means, Oversight and
Government Reform, Armed Services, and Rules, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To establish a framework for effective, transparent, and accountable
United States foreign assistance, 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 AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Global
Partnerships Act of 2012''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings.
Sec. 3. Statement of policy.
Sec. 4. Principles of assistance.
Sec. 5. Purposes of assistance.
Sec. 6. Definitions.
TITLE I--REDUCING GLOBAL POVERTY AND ALLEVIATING HUMAN SUFFERING
Sec. 1001. Findings.
Sec. 1002. Statement of policy.
Sec. 1003. Encouragement of United States private and voluntary
cooperation.
Sec. 1004. Encouragement of United States business participation.
Sec. 1005. Development partnerships fellows program.
Subtitle A--Reducing Global Poverty
Sec. 1011. Findings.
Sec. 1012. Statement of policy.
Sec. 1013. Principles of assistance.
Sec. 1014. Goals of assistance.
Sec. 1015. Development Support Funds.
Sec. 1016. Innovation Fund.
Sec. 1017. United States Strategy for Global Development.
Sec. 1018. Country Development Cooperation Strategies.
Sec. 1019. Sector strategies for development.
Sec. 1020. Interagency Policy Committee on Global Development.
Sec. 1021. Global Development Council.
Sec. 1022. Development education.
Sec. 1023. Definitions.
Chapter 1--Accelerating Economic Growth
Sec. 1101. Findings and statement of policy.
Sec. 1102. Goal and objectives.
Sec. 1103. Global Strategy for Economic Growth.
Sec. 1104. Assistance for economic growth.
Sec. 1105. Fiscal and contract transparency.
subchapter a--microenterprise development assistance
Sec. 1111. Findings and statement of policy.
Sec. 1112. Microenterprise Fund.
Sec. 1113. Office of Microenterprise Development.
Sec. 1114. Definitions.
subchapter b--small and medium enterprise development
Sec. 1121. Findings and statement of policy.
Sec. 1122. Assistance for small and medium enterprises.
Sec. 1123. Definition.
subchapter c--other programs
Sec. 1131. Development credit authority.
Sec. 1132. Technical assistance for financial management.
Chapter 2--Promoting Food Security
Sec. 1201. Findings and statement of policy.
Sec. 1202. Goal and objectives.
Sec. 1203. Global Strategy for Food Security.
Sec. 1204. Assistance for promoting food security.
Sec. 1205. Collaborative agricultural and nutrition research and
innovation.
Sec. 1206. Board for International Food and Agricultural Development.
Sec. 1207. Assistance to international and regional organizations.
Sec. 1208. Definitions.
Chapter 3--Advancing Health
Sec. 1301. Findings and statement of policy.
Sec. 1302. Goal and objectives.
Sec. 1303. Global health strategy.
Sec. 1304. Assistance for health.
Sec. 1305. Health principles and restrictions.
subchapter a--child survival and maternal health
Sec. 1311. Child survival.
Sec. 1312. Maternal and newborn health.
Sec. 1313. Assistance for orphans and other vulnerable children.
subchapter b--combating disease
Sec. 1321. Assistance to combat HIV/AIDS, tuberculosis, and malaria.
Sec. 1322. Assistance to combat neglected tropical diseases.
Sec. 1323. Assistance for disease prevention, control, and treatment.
subchapter c--family planning and reproductive health
Sec. 1331. Assistance for family planning and reproductive health.
Sec. 1332. Reproductive health care in emergencies.
Chapter 4--Expanding Quality Education
Sec. 1401. Findings and statement of policy.
Sec. 1402. Goal and objectives.
Sec. 1403. Global education strategy.
Sec. 1404. Basic education assistance.
Sec. 1405. Higher education partnerships.
Chapter 5--Protecting and Restoring the Natural Environment
Sec. 1501. Findings and statement of policy.
Sec. 1502. Goal and objectives.
Sec. 1503. Global conservation strategy.
Sec. 1504. Assistance for environmental sustainability.
Sec. 1505. Assistance for sustainable energy and natural resource
management.
Sec. 1506. Environmental restrictions.
Sec. 1507. Environmental impact statements and assessments.
Sec. 1508. Definitions.
Chapter 6--Improving Access to Safe Water, Sanitation, and Housing
Sec. 1601. Findings and statement of policy.
Sec. 1602. Goal and objectives.
Sec. 1603. Global strategy for water, sanitation and housing.
Sec. 1604. Assistance for water, sanitation and housing.
Sec. 1605. Definitions.
Chapter 7--Fostering Gender Equality
Sec. 1701. Findings and statement of policy.
Sec. 1702. Goal and objectives.
Sec. 1703. Global strategy for gender equality.
Sec. 1704. Assistance for gender equality.
Sec. 1705. Office of Gender Equality and Women's Empowerment.
Sec. 1706. Prevention of child marriage.
Sec. 1707. Coordination of efforts to prevent child marriage.
Sec. 1708. Definitions.
Chapter 8--Strengthening Democratic Governance
Sec. 1801. Findings and statement of policy.
Sec. 1802. Goal and objectives.
Sec. 1803. Assistance for democratic strengthening.
Sec. 1804. Advisory Committee on Democracy Promotion.
Sec. 1805. Foreign government approval and conditionality.
Sec. 1806. Relationship to other laws.
Sec. 1807. Prohibiting assistance to influence the outcome of
elections.
Sec. 1808. Protected speech.
Subtitle B--Alleviating Human Suffering
Sec. 1901. Findings and statement of policy.
Sec. 1902. Goal and objectives.
Sec. 1903. Humanitarian principles.
Sec. 1904. International disaster assistance.
Sec. 1905. Emergency Humanitarian Response Fund.
Sec. 1906. Definitions.
TITLE II--ADVANCING PEACE AND MITIGATING CONFLICT
Sec. 2001. Findings and statement of policy.
Sec. 2002. Definition.
Subtitle A--General Authorities
Sec. 2011. Peacekeeping.
Sec. 2012. Transition initiatives.
Sec. 2013. Limit on payment to United Nations and affiliated agencies.
Sec. 2014. Availability of aircraft.
Sec. 2015. Complex Crisis, Stabilization, and Prevention Fund.
Sec. 2016. Addressing violence against women and girls in humanitarian
relief, peacekeeping, conflict, and post-
conflict settings.
Sec. 2017. Demining activities.
Sec. 2018. Disarmament, demobilization, reintegration, and
rehabilitation activities.
Subtitle B--Strategies, Assessments, and Reports
Sec. 2021. Regional conflict risk assessment and conflict mitigation
strategy.
Sec. 2022. Data on costs incurred in support of United Nations
peacekeeping operations.
Sec. 2023. Peace on Cyprus and in the Eastern Mediterranean.
Subtitle C--Organizations and Personnel
Sec. 2031. Atrocities Prevention Board.
Sec. 2032. Under Secretary for Civilian Security, Democracy, and Human
Rights.
Sec. 2033. Conflict and stabilization operations.
Sec. 2034. Danger pay.
Sec. 2035. Stability policing coordinator.
Sec. 2036. Training in conflict management and mitigation.
TITLE III--SUPPORTING HUMAN RIGHTS AND DEMOCRACY
Subtitle A--General Provisions
Sec. 3101. Findings and statement of policy.
Sec. 3102. Country reports on human rights practices.
Sec. 3103. Action plans for human rights and democracy.
Sec. 3104. Human Rights and Democracy Fund.
Sec. 3105. Role of Bureau of Democracy, Human Rights, and Labor.
Sec. 3106. Discrimination related to sexual orientation.
Sec. 3107. Personnel awards and incentives.
Subtitle B--International Violence Against Women and Girls
Sec. 3201. Statement of policy.
Sec. 3202. Duties of the Secretary of State.
Sec. 3203. Comprehensive international strategy to prevent and respond
to violence against women and girls.
Sec. 3204. Assistance to prevent and respond to violence against women
and girls internationally.
Sec. 3205. Definitions.
Subtitle C--Rule of Law
Sec. 3301. Findings.
Sec. 3302. Global Rule of Law Policy Committee.
Sec. 3303. Assistance for rule of law.
Sec. 3304. Definition.
Subtitle D--Child Protection
Sec. 3401. Findings.
Sec. 3402. Child Protection Compacts.
Sec. 3403. Authorization of assistance.
Sec. 3404. Suspension and termination of assistance.
Sec. 3405. Congressional notification.
Sec. 3406. Definitions.
TITLE IV--BUILDING AND REINFORCING STRATEGIC PARTNERSHIPS
Sec. 4001. Findings.
Sec. 4002. Statement of policy.
Sec. 4003. Goals of assistance.
Subtitle A--Economic Support Fund
Sec. 4101. Findings and statement of policy.
Sec. 4102. Goal and objectives.
Sec. 4103. Economic Support Fund.
Sec. 4104. Cash transfer assistance.
Subtitle B--Security Partnerships
Chapter 1--General Authorities
Sec. 4211. Authorization of assistance.
Sec. 4212. Conditions of assistance.
Sec. 4213. Prohibition for misuse of United States assistance.
Chapter 2--Drawdown Authority
Sec. 4221. Authorization of emergency assistance.
Sec. 4222. Authorization of non-emergency assistance.
Sec. 4223. Commercial transportation and related services.
Sec. 4224. Report.
Chapter 3--Loans of Defense Articles
Sec. 4231. Loan requirements.
Sec. 4232. Cost of loans.
Chapter 4--Stockpiling of Defense Articles
Sec. 4241. General authority.
Sec. 4242. Value of defense articles.
Chapter 5--Foreign Military Financing
Sec. 4251. General authority.
Sec. 4252. Rule of construction.
Sec. 4253. Audits.
Sec. 4254. Cash flow financing.
Chapter 6--International Military Education and Training
Sec. 4261. Purpose.
Sec. 4262. Military education and training for foreign military and
defense personnel.
Sec. 4263. Military education and training for foreign civilian
personnel.
Sec. 4264. Locations of instruction.
Sec. 4265. Reimbursement.
Sec. 4266. Exchange of training and related support.
Chapter 7--Transfer of Excess Defense Articles
Sec. 4271. Transfer of excess defense articles.
Sec. 4272. Terms of transfers.
Sec. 4273. Advance notification to Congress for transfer of certain
excess defense articles.
Sec. 4274. Aggregate annual limitation.
Sec. 4275. Restrictions and conditions on transfers of naval vessels.
Chapter 8--Cooperative Project Agreements
Sec. 4281. Authority to enter into cooperative project agreements.
Sec. 4282. Costs.
Sec. 4283. Charges.
Sec. 4284. Certification.
Sec. 4285. Authority in addition to other authorities.
Subtitle C--Arms Sales and Related Assistance
Sec. 4301. Control of arms exports and imports.
Chapter 1--Foreign Military Sales and Cooperation
Sec. 4311. General authority.
Sec. 4312. Procurement for foreign military cash sales.
Sec. 4313. Payments.
Sec. 4314. Charges.
Sec. 4315. Non-combat duties of United States personnel supporting
foreign military sales.
Sec. 4316. Public information.
Sec. 4317. Standardization agreements.
Sec. 4318. Quality assurance and related services.
Sec. 4319. Restriction on sale of defense articles and defense services
that would adversely affect United States
combat readiness.
Sec. 4320. Acquisition of foreign-United States origin defense
articles.
Sec. 4321. Return of defense articles.
Sec. 4322. Sale of obsolete naval vessels.
Sec. 4323. Annual estimate and justification for sales program.
Sec. 4324. Sales to United States companies for incorporation into end
items.
Sec. 4325. Fiscal provisions relating to foreign military sales
credits.
Chapter 2--Arms Export Controls
Sec. 4331. Licensing requirement for exporting or importing defense
articles and defense services.
Sec. 4332. Impact of military expenditures on development.
Sec. 4333. Requirement for registration by exporters.
Sec. 4334. Identification of all consignees and freight forwarders.
Sec. 4335. Brokering activities.
Sec. 4336. Foreign persons.
Sec. 4337. Review of United States Munitions List.
Sec. 4338. Licensing of missiles and missile equipment or technology.
Sec. 4339. Special licensing authorization for certain exports to
strategic United States allies.
Chapter 3--Leases of Defense Articles
Sec. 4351. Leasing authority.
Sec. 4352. Certification for leasing.
Sec. 4353. Congressional review and disapproval.
Sec. 4354. Application of other provisions of law.
Sec. 4355. Loan of materials, supplies, and equipment for research and
development purposes.
Sec. 4356. Special leasing authority.
Chapter 4--Retransfers of United States Defense Articles
Sec. 4361. Authority to approve retransfers.
Sec. 4362. Demilitarization for retransfer of significant defense
articles.
Sec. 4363. Proceeds of sale of retransferred defense articles.
Sec. 4364. Certification.
Chapter 5--Enforcement and Monitoring of Arms Sales
Sec. 4371. General authority.
Sec. 4372. Criminal and civil penalties.
Sec. 4373. Identification of persons of concern.
Sec. 4374. Standards to identify high-risk exports.
Sec. 4375. Requirement of exporters to report shipment.
Sec. 4376. End-use monitoring of defense articles and defense services.
Sec. 4377. Fees of military sales agents and other payments.
Sec. 4378. Prohibition on incentive payments.
Chapter 6--Congressional Review of Arms Sales
Sec. 4381. Reports on commercial and governmental military exports;
congressional action.
Sec. 4382. Congressional certification of sensitive foreign military
sales and agreements.
Sec. 4383. Upgrade or enhancement.
Sec. 4384. Congressional review period and disapproval.
Sec. 4385. National security waiver of congressional review of arms
sales.
Sec. 4386. Publication of arms sales notifications.
Sec. 4387. Certification requirement relating to Israel's qualitative
military edge.
Chapter 7--Landmines and Cluster Munitions
Sec. 4391. Landmines.
Sec. 4392. Cluster munitions.
Subtitle D--General Administrative and Miscellaneous Provisions
Sec. 4401. General provisions.
Sec. 4402. Administrative expenses.
Sec. 4403. Detail of appropriate personnel.
Sec. 4404. Rule of construction.
Sec. 4405. Performance goals for processing of applications for
licenses to export items on United States
Munitions List.
Sec. 4406. Availability of information on the status of license
applications.
Sec. 4407. Requirement to ensure adequate staff and resources for the
Directorate of Defense Trade Controls of
the Department of State.
Sec. 4408. Overseas management of assistance and sales programs.
Sec. 4409. Designation of major United States allies.
Sec. 4410. Depleted uranium ammunition.
Sec. 4411. Definitions.
TITLE V--COUNTERING TRANSNATIONAL THREATS
Subtitle A--Nonproliferation Authorities
Chapter 1--Nuclear Nonproliferation
Sec. 5111. Authorization of assistance to prohibit the proliferation of
nuclear, chemical, and biological weapons.
Sec. 5112. Education and training to enhance nonproliferation and
export control capabilities.
Sec. 5113. Opposition of withdrawal from Treaty on the Non-
Proliferation of Nuclear Weapons.
Sec. 5114. Matters relating to International Atomic Energy Agency.
Sec. 5115. Arms Control and Nonproliferation Scholarship Program.
Sec. 5116. Arms Control and Nonproliferation Rotation Program.
Chapter 2--Missile Nonproliferation
Sec. 5121. Licensing.
Sec. 5122. Denial of the transfer of missile equipment or technology by
United States persons.
Sec. 5123. Transfers of missile equipment or technology by foreign
persons.
Sec. 5124. Notification of admittance of MTCR adherents.
Sec. 5125. Authority relating to MTCR adherents.
Sec. 5126. Definitions.
Chapter 3--Chemical and Biological Nonproliferation
Sec. 5131. Sanctions against certain foreign persons.
Subtitle B--Counter-Narcotics Authorities
Sec. 5201. Findings.
Sec. 5202. Statement of policy.
Sec. 5203. Goal and objectives.
Sec. 5204. General authorities.
Sec. 5205. Authorization of Bureau of International Narcotics and Law
Enforcement.
Sec. 5206. Use of funds.
Sec. 5207. Requirements relating to aircraft and other equipment.
Sec. 5208. Restrictions.
Sec. 5209. International counter-narcotics strategy.
Sec. 5210. International narcotics control assistance report.
Sec. 5211. Narcotics strategy evaluation.
Subtitle C--Counter-Terrorism Authorities
Sec. 5301. Purposes.
Sec. 5302. Assistance to countries and multilateral organizations for
counter-terrorism activities.
Sec. 5303. Counter-terrorism responsibilities of the Department of
State.
TITLE VI--SUSTAINING THE GLOBAL ENVIRONMENT
Sec. 6001. Findings and statement of policy.
Subtitle A--Debt-for-Nature Exchanges
Sec. 6101. Findings and statement of policy.
Sec. 6102. Definitions.
Sec. 6103. Establishment of the Facility.
Sec. 6104. Eligibility for benefits.
Sec. 6105. Authority to engage in debt-for-nature swaps and debt
buybacks.
Sec. 6106. Reduction of debt owed to the United States as a result of
concessional loans or credits under this
Act and certain other provisions of law.
Sec. 6107. Debt-for-Nature Agreement.
Sec. 6108. Eligible activities.
Sec. 6109. Debt-for-Nature Fund.
Sec. 6110. Responsibilities to the Congress.
Sec. 6111. General savings clause.
Subtitle B--Commercial Debt-for-Nature Exchanges
Sec. 6201. Commercial debt-for-nature exchange defined.
Sec. 6202. Authorization for commercial debt exchanges.
Sec. 6203. Eligible projects.
Sec. 6204. Eligible countries.
Sec. 6205. Prohibition.
TITLE VII--EXPANDING PROSPERITY THROUGH TRADE AND INVESTMENT
Sec. 7001. Findings.
Sec. 7002. Authority for coordination.
Subtitle A--Overseas Private Investment Corporation
Sec. 7101. Creation and purpose.
Sec. 7102. Prohibitions and restrictions.
Sec. 7103. Capital of the corporation.
Sec. 7104. Organization and management.
Sec. 7105. Investment Insurance and Other Programs.
Sec. 7106. Issuing authority; direct loan authority; discharge of
liabilities.
Sec. 7107. Income and revenues.
Sec. 7108. General provisions relating to insurance, guaranty, and
financing program.
Sec. 7109. General provisions and powers.
Sec. 7110. Reports to the Congress.
Sec. 7111. Definitions.
Subtitle B--United States Trade and Development Agency
Sec. 7201. United States Trade and Development Agency.
Subtitle C--Enterprise Funds
Sec. 7301. Findings.
Sec. 7302. Purposes.
Sec. 7303. Authority to designate enterprise funds.
Sec. 7304. GAO reports.
Sec. 7305. Operation provisions.
Sec. 7306. Best practices and procedures.
Sec. 7307. Experience of other enterprise funds.
TITLE IX--STRATEGIC PLANNING, MONITORING AND EVALUATION, AND REPORTING
Subtitle A--Strategic Planning
Sec. 9101. Quadrennial Diplomacy, Development, and Security Review.
Sec. 9102. Comprehensive workforce and human resources strategy.
Subtitle B--Monitoring and Evaluation
Sec. 9201. Monitoring and evaluation of foreign assistance.
Sec. 9202. Monitoring and evaluation of humanitarian assistance.
Subtitle C--Reporting Requirements
Sec. 9301. Transparency and accountability in budgeting.
Sec. 9302. Congressional budget justification.
Sec. 9303. Report on allocation of assistance under this Act.
Sec. 9304. Security assistance database.
Sec. 9305. Classification of reports.
Subtitle D--Congressional Notification Procedures
Sec. 9401. Notification of program changes.
Sec. 9402. Congressional notification parity.
Sec. 9403. Presidential findings and determinations.
TITLE X--POLICY RESTRICTIONS AND SPECIAL AUTHORITIES
Subtitle A--Policy Restrictions
Sec. 10001. Definitions.
Chapter 1--Human Rights
Sec. 10101. Prohibition on assistance to governments that engage in
violations of human rights.
Sec. 10102. Prohibition on assistance to certain human rights
violators.
Sec. 10103. Prohibition on assistance to governments following coups
d'etat.
Sec. 10104. Prohibition on assistance to governments that prohibit or
impede delivery of humanitarian assistance.
Sec. 10105. Prohibition on use of funds to support or justify torture.
Sec. 10106. Prohibition on assistance to governments engaged in
intimidation and harassment against
individuals in the United States.
Chapter 2--Non-Proliferation
Sec. 10201. Prohibition on assistance to governments that transfer
nuclear enrichment equipment, materials, or
technology.
Sec. 10202. Prohibition on assistance to governments that transfer
nuclear reprocessing equipment, materials,
or technology or nuclear explosive devices.
Sec. 10203. Security assistance to Pakistan.
Chapter 3--Narcotics
Sec. 10301. Prohibition on assistance to drug traffickers.
Sec. 10302. Prohibition on assistance to state sponsors of drug
trafficking.
Sec. 10303. Prohibition on reimbursements for drug crop eradications.
Chapter 4--Terrorism
subchapter a--general provisions
Sec. 10401. Prohibition on assistance to state sponsors of terrorism.
Sec. 10402. Prohibition on assistance to foreign governments supporting
state sponsors of terrorism.
Sec. 10403. Prohibition on transactions with state sponsors of
terrorism.
Sec. 10404. Transactions with countries not fully cooperating with
United States counterterrorism efforts.
Sec. 10405. Withholding of United States proportionate share for
certain programs of international
organizations.
subchapter b--middle east provisions
Sec. 10411. Conditional contributions to certain international
organizations.
Sec. 10412. Limitation on assistance to the Palestinian Authority.
Sec. 10413. Limitation on assistance for the West Bank and Gaza.
Sec. 10414. Palestinian statehood.
Sec. 10415. Restrictions concerning the Palestinian Authority.
Sec. 10416. Prohibition on assistance to the Palestinian Broadcasting
Corporation.
Sec. 10417. Assistance for the West Bank and Gaza.
Sec. 10418. Limitation on assistance to the Palestinian Authority.
Sec. 10419. Limitation relating to Palestinian status in the United
Nations.
Chapter 5--Trade and Commerce
Sec. 10501. Prohibition on assistance for exporting United States jobs.
Sec. 10502. Prohibition on assistance to governments that expropriate
United States property.
Sec. 10503. Prohibition on assistance for compensation relating to
expropriated or nationalized property.
Sec. 10504. Prohibition on assistance to governments that refuse
extradition requests.
Sec. 10505. Prohibition on taxation of foreign assistance.
Sec. 10506. Reimbursement of parking fines and real property taxes owed
by governments.
Sec. 10507. Limitation on assistance to countries in default.
Sec. 10508. Prohibition on promotion of tobacco.
Sec. 10509. Prohibition on assistance for official gifts.
Subtitle B--Policy Authorities
Sec. 10601. Contingencies.
Sec. 10602. Transfer between accounts.
Sec. 10603. Special waiver authority.
TITLE XI--ORGANIZATION, MANAGEMENT, AND HUMAN RESOURCES
Sec. 11001. Definitions.
Subtitle A--Organization
Chapter 1--Exercise and Coordination of Functions
Sec. 11101. Delegations; regulations.
Sec. 11102. Role of the Secretary of State.
Sec. 11103. Role of the Chief of Mission.
Sec. 11104. Role of the Secretary of Defense.
Sec. 11105. Office for Global Women's Issues.
Sec. 11106. Bureau for Energy Resources.
Sec. 11107. Bureau of Oceans, Environment and Science.
Chapter 2--United States Agency for International Development
Sec. 11201. United States Agency for International Development.
Sec. 11202. Role of the Administrator.
Sec. 11203. Overseas missions.
Sec. 11204. Chairman of OECD Development Assistance Committee.
Sec. 11205. Responsibilities of the Inspector General of the United
States Agency for International
Development.
Subtitle B--Management and Program Administration
Chapter 1--Operating Expenses and Administrative Authorities
Sec. 11301. Operating expenses of the United States Agency for
International Development.
Sec. 11302. Authorized uses of funds.
Sec. 11303. Operating expenses of the Office of the Inspector General.
Sec. 11304. Administrative authorities of the Department of Defense.
Sec. 11305. Working Capital Fund.
Sec. 11306. Suspension and debarment.
Sec. 11307. False claims and ineligible commodities.
Sec. 11308. Termination expenses.
Sec. 11309. Prohibition on certain first-class travel.
Chapter 2--Assistance Authorities and Program Expenses
Sec. 11401. General assistance authorities.
Sec. 11402. Authority to conduct reimbursable programs.
Sec. 11403. Retention of interest.
Sec. 11404. Marking and branding of economic and humanitarian
assistance.
Sec. 11405. Reductions in designated funds.
Sec. 11406. Requirement for authorization of appropriations.
Sec. 11407. Unexpended balances.
Sec. 11408. Authority for extended period of availability of
appropriations.
Sec. 11409. Support for regional, international and nongovernmental
organizations.
Sec. 11410. Protection of patents and technical information.
Sec. 11411. Private and voluntary organizations and cooperatives.
Chapter 3--Procurement, Disposition, Transportation and Valuation of
Articles
Sec. 11501. Procurement standards and procedures.
Sec. 11502. Local procurement.
Sec. 11503. United States competitiveness.
Sec. 11504. Small business.
Sec. 11505. Allocation or transfer of funds and reimbursement among
agencies.
Sec. 11506. Retention and use of certain items and funds.
Sec. 11507. Foreign and domestic excess property.
Sec. 11508. Ocean freight differential.
Sec. 11509. Use of aircraft for additional purposes.
Sec. 11510. Streamlining and review of procurement process.
Sec. 11511. Overseas procurement flexibility.
Sec. 11512. Local guard contracts abroad.
Sec. 11513. Authority to pay transportation costs.
Chapter 4--Use of Foreign Currencies
Sec. 11601. Separate accounts for local currencies.
Sec. 11602. Use of certain foreign currencies.
Sec. 11603. Accounting and valuation of foreign currencies.
Subtitle C--Human Resources
Chapter 1--Personnel and Benefits
Sec. 11701. Employment of personnel.
Sec. 11702. Experts and consultants.
Sec. 11703. Prohibition of discrimination against Federal personnel.
Sec. 11704. Foreign service limited appointments.
Sec. 11705. Technical advisors.
Sec. 11706. Personal services contractors for USAID.
Sec. 11707. Personal services contractors for the Department of State.
Sec. 11708. Hiring authority of Inspector General of the United States
Agency for International Development.
Sec. 11709. Public availability of consulting contracts.
Sec. 11710. Senior Foreign Service requirement.
Sec. 11711. Pay parity for criminal investigators.
Chapter 2--Details, Fellowships, and Exchanges
Sec. 11801. Details to foreign governments and international
organizations.
Sec. 11802. Details to United States Government agencies.
Sec. 11803. Science and technology fellowship programs.
Sec. 11804. Foreign relations exchange programs.
Sec. 11805. Guidelines for rotational assignments.
Chapter 3--Training and Professional Development
Sec. 11901. Training of Federal personnel.
Sec. 11902. Career development.
Sec. 11903. Language skills development.
TITLE XII--AMENDMENTS AND REPEALS
Subtitle A--Amendments
Sec. 12101. Amendments relating to assistance to combat HIV/AIDS,
tuberculosis, and malaria.
Sec. 12102. Amendments to the Millennium Challenge Act of 2003.
Sec. 12103. Amendments to the Migration and Refugee Assistance Act of
1962.
Sec. 12104. Amendments to the Fulbright-Hays Act.
Subtitle B--Repeals
Sec. 12201. Repeal of laws incorporated in this Act.
Sec. 12202. Repeal of laws inconsistent with this Act.
Sec. 12203. Repeal of obsolete provisions of law.
Sec. 12204. Repeal of unnecessary reporting requirements.
Subtitle C--Savings Provisions
Sec. 12301. References to former authorities.
Sec. 12302. Repeal of provisions amending other laws.
Sec. 12303. Savings provisions.
Sec. 12304. Effective date.
SEC. 2. FINDINGS.
Congress finds the following:
(1) In an increasingly interdependent world, the health,
prosperity, freedom, and security of the people of the United
States are strengthened when the people of all countries can
enjoy these same advantages.
(2) The development of a healthier, more peaceful,
democratic, just and prosperous world requires the sustained
and substantial investment of United States human and financial
resources in fostering international cooperation and in
building the capacity of other countries to meet the needs of
their people and to conduct themselves responsibly in the
international system.
(3) Foreign assistance is not only a reflection of the
values, generosity, and goodwill of the people of the United
States, but also an essential means for achieving United States
foreign policy, economic, and national security objectives.
SEC. 3. STATEMENT OF POLICY.
It is the policy of the United States to help build and sustain an
international community composed of states that meet basic human needs,
resolve conflicts peacefully, respect fundamental freedoms, cooperate
to address issues that transcend national boundaries, use wisely the
world's limited resources in a sustainable manner, and work toward the
achievement of economic well-being for all people.
SEC. 4. PRINCIPLES OF ASSISTANCE.
In order to maximize effectiveness and efficiency, United States
foreign assistance should be carried out in accordance with the
following principles:
(1) Foreign assistance is not an end in itself. The purpose
of foreign assistance is to create the conditions under which
it is no longer needed.
(2) United States foreign assistance should support the
development of human, financial, organizational, and technical
capacity of partner countries, both within government and among
civil society, that is sustainable over the long term and leads
to self-reliance.
(3) United States foreign assistance, regardless of type,
purpose, or recipient, should respect human rights and
democratic processes.
(4) United States embassies and United States Agency for
International Development missions in partner countries should
be accorded a central role in planning, budgeting, and
decisionmaking with respect to United States foreign assistance
to those countries.
(5) United States foreign assistance programs should be
carried out in collaboration with a wide variety of partners,
including multilateral organizations, governments of partner
countries at all levels, intermediate representative
institutions, and international, United States, and local civil
society organizations.
(6) Nonemergency United States foreign assistance should be
provided pursuant to well-coordinated strategies with specific
goals and measurable objectives, while preserving the
flexibility to respond to rapidly changing situations.
(7) Monitoring and evaluation of United States foreign
assistance should be conducted systematically to ensure
financial accountability, evaluate performance, assess impact,
determine lessons learned, disseminate findings, and identify
steps for improvement.
(8) Because gender equality is essential to democracy,
human rights and economic development, the needs, views,
rights, roles, and resources of women should be taken into
account in all stages of the foreign assistance process,
including strategic planning, budgeting, design,
implementation, monitoring, and evaluation.
(9) Because natural resources and a healthy, functioning
environment underpin sustainable economic growth, health, and
food security, the likely impact of United States foreign
assistance policies and programs upon the environment should be
taken into account in all stages of the foreign assistance
process. Effective action should be taken to mitigate any
negative impacts and to ensure that all people enjoy the same
degree of protection from environmental and health hazards.
(10) The United States Government should publish timely,
detailed, and comprehensive information on the budgeting,
delivery, and expenditure of United States foreign assistance
in order to enhance transparency and accountability for results
and should encourage and facilitate similar transparency by the
partner country regarding its national budget, government
contracts, and aid-related expenditures.
(11) United States foreign assistance should be conducted
within a coherent and coordinated structure that establishes
clear lines of authority, delineates responsibilities,
rationalizes functions, closes gaps, promotes policy
consistency, and ensures civilian leadership.
(12) To ensure that United States foreign assistance
achieves its intended objectives and to maximize its impact,
the United States Government should design and implement such
assistance in partnership with local stakeholders, including as
appropriate and feasible, governments, intermediate
representative institutions, civil society organizations, and
affected communities.
(13) The success of United States foreign assistance in
meeting humanitarian, foreign policy, and national security
objectives depends on the sustained commitment of adequate and
reliable budgetary resources as well as on the development,
training, and maintenance of a diverse and experienced corps of
professionals to design, manage, implement, and monitor such
foreign assistance.
SEC. 5. PURPOSES OF ASSISTANCE.
United States foreign assistance under this Act shall be provided
in accordance with the policy set forth in section 3 and the principles
set forth in section 4 to achieve the following interrelated and
mutually reinforcing purposes:
(1) Reducing global poverty and alleviating human
suffering.
(2) Advancing peace and mitigating crises.
(3) Supporting human rights and democracy.
(4) Building and reinforcing strategic partnerships.
(5) Countering transnational threats.
(6) Sustaining the global environment.
(7) Expanding prosperity through trade and investment.
SEC. 6. DEFINITIONS.
Except as otherwise provided, in this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the United States Agency for International
Development.
(2) Agency or usaid.--The term ``Agency'' or ``USAID''
means the United States Agency for International Development.
(3) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Appropriations of the House of
Representatives; and
(B) the Committee on Foreign Relations and the
Committee on Appropriations of the Senate.
(4) Basic human needs.--The term ``basic human needs''
means the requirements for sustaining life, health, and human
dignity.
(5) Civil society organization.--The term ``civil society
organization'' means--
(A) a registered or unregistered nonprofit
organization, independent of the government and state,
including a private and voluntary organization,
community or faith-based organization, advocacy group,
business or trade association, cooperative, credit
union, labor union, or philanthropic foundation;
(B) an independent media, educational, or research
institution; or
(C) a private enterprise, including an
international development firm, bank or other financial
institution, or a business of any type.
(6) Country.--The term ``country'' means the government,
civil society, and intermediate representative institutions of
a state or specially administered area.
(7) Development assistance.--The term ``development
assistance'' means--
(A) assistance under--
(i) subtitle A of title I;
(ii) the Millennium Challenge Act of 2003
(22 U.S.C. 7701 et seq.);
(iii) the United States Leadership Against
HIV/AIDS, Tuberculosis, and Malaria Act of 2003
(22 U.S.C. 7601 et seq.);
(iv) title V of the International Security
and Development Cooperation Act of 1980 (22
U.S.C. 290h et seq.; relating to the African
Development Foundation); or
(v) section 401 of the Foreign Assistance
Act of 1969 (22 U.S.C. 290f; relating to the
Inter-American Foundation);
(B) official development assistance under any
provision of law; and
(C) reconstruction assistance under any provision
of law.
(8) Economic assistance.--The term ``economic assistance''
means foreign assistance, other than assistance under subtitle
B or C of title IV.
(9) Federal agency.--The term ``Federal agency'' has the
meaning given the term Executive agency in section 105 of title
5, United States Code.
(10) Foreign assistance.--The term ``foreign assistance''
means any tangible or intangible item provided by the United
States Government to a foreign country or international
organization under this or any other Act, including any
training, service, or technical advice, any item of real,
personal, or mixed property, any agricultural commodity, any
gift, loan, sale, credit, guarantee, or export subsidy, United
States dollars, and any currencies of any foreign country which
are owned by the United States Government.
(11) Fundamental freedoms.--The term ``fundamental
freedoms'' means the freedoms of association, assembly,
expression, and religion.
(12) Genocide.--The term ``genocide'' means an offense as
described in section 1091 of title 18, United States Code.
(13) Humanitarian assistance.--The term ``humanitarian
assistance'' means--
(A) assistance under subtitle B of title I;
(B) emergency food assistance under title II of the
Agricultural Trade Development and Assistance Act of
1954 (Public Law 83-480); and
(C) refugee and migration assistance under the
Migration and Refugee Act of 1962.
(14) Institution of higher education.--The term
``institution of higher education'' has the meaning given such
term under section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
(15) Intermediate representative institution.--The term
``intermediate representative institution'' means an
organization with the mandate to represent citizens in
government and in political processes, such as a legislature,
political party, advisory commission, or municipal council.
(16) International organization.--The term ``international
organization'' means an international organization as defined
in section 1 of the International Organizations Immunities Act
(22 U.S.C. 288).
(17) Marginalized group.--The term ``marginalized group''--
(A) means a group that is excluded by law, policy,
or practice from participating on a full and equal
basis in the political, economic, and social life of a
country, including the enjoyment of all rights and
freedoms; and
(B) includes women, poor people, youth, refugees,
displaced or stateless persons, persons belonging to
racial, national, ethnic, religious or linguistic
minorities, persons with disabilities, and persons
discriminated against on the basis of their sexual
orientation or gender identity.
(18) Mass atrocities.--The term ``mass atrocities''
includes war crimes, genocide or acts that may constitute
genocide, and other crimes against humanity.
(19) Military education and training.--The term ``military
education and training'' includes formal or informal
instruction of foreign students in the United States or
overseas by officers or employees of the United States,
contract technicians, contractors (including instruction at
civilian institutions), or by correspondence courses,
technical, educational, or informational publications and media
of all kinds, training aids, orientation, and military advice
to foreign military units and forces.
(20) Notwithstanding, etc.--The terms ``notwithstanding any
other provision of law'' and ``notwithstanding any provision of
this or any other Act'' shall not apply to title 31, United
States Code, the Congressional Budget and Impoundment Control
Act of 1974, or the Budget Enforcement Act of 1990.
(21) Partner country.--The term ``partner country'' means a
country that is receiving or is eligible to receive foreign
assistance.
(22) Private and voluntary organization.--The term
``private and voluntary organization'' means a nonprofit,
nongovernmental organization.
(23) Private partner.--The term ``private partner'' means--
(A) a non-United States Government entity that--
(i) enters into a contract, as described in
section 6303 of title 31, United States Code,
with the United States Government;
(ii) accepts a grant, as described in
section 6304 of title 31, United States Code,
from the United States Government; or
(iii) enters into a cooperative agreement,
as described in section 6305 of title 31,
United States Code, with the United States
Government,
relating to the use by that entity of foreign
assistance; and
(B) any subcontractor or subgrantee thereof.
(24) Secretary.--The term ``Secretary'' means the Secretary
of State.
(25) Security assistance.--The term ``security assistance''
means foreign assistance under title IV or title V.
(26) United states.--The term ``United States'', when used
in the geographic sense, includes each State of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, American Samoa, Guam, the Commonwealth of the Northern
Mariana Islands, the Virgin Islands of the United States, and
any other territory or possession of the United States.
(27) United states armed forces.--The term ``United States
Armed Forces'' means the Army, Navy, Air Force, Marine Corps,
and Coast Guard.
TITLE I--REDUCING GLOBAL POVERTY AND ALLEVIATING HUMAN SUFFERING
SEC. 1001. FINDINGS.
Congress finds the following:
(1) The abject and dehumanizing conditions of extreme
poverty, which affect more than a billion people around the
world, are inimical to the achievement of a healthy, peaceful,
democratic, just and prosperous world and an affront to shared
human values.
(2) A principal objective of United States foreign policy
is reducing global poverty and its worst physical
manifestations through the encouragement and sustained support
of the people of developing countries in their efforts to
acquire the knowledge and resources essential to building the
economic, political, and social institutions that will improve
the quality of their lives.
(3) Strengthening democratic governance and the political
voice of poor and marginalized groups not only directly combats
poverty but also helps build responsive, accountable state
institutions essential to sustain the positive impact of
foreign assistance over the long-term.
(4) United States efforts to reduce global poverty and
alleviate human suffering reflect the compassion and generosity
of the American people, while also serving United States
economic and national security interests. Poor and unstable
countries make unreliable trading partners and weak markets for
United States goods and services. Violent extremism that
threatens United States national security flourishes where
democratic governance is weak, justice is uncertain, and legal
avenues for change are in short supply.
(5) Complementing the long-term objective of reducing
global poverty, the humanitarian concern and tradition of the
people of the United States demands a commitment to saving
lives and alleviating human suffering resulting from natural
and human-caused disasters, and to taking effective action to
prevent, prepare for, and mitigate such disasters.
(6) Pursuit of these interrelated objectives requires that
development and humanitarian concerns be fully reflected
throughout United States foreign policy, and that resources for
these purposes be adequately and reliably budgeted and
effectively and efficiently utilized.
(7) In order to achieve United States foreign policy and
national security objectives, the United States should act in
concert with other countries and multilateral institutions to
mobilize adequate resources from public and private sources for
poverty reduction and humanitarian relief.
SEC. 1002. STATEMENT OF POLICY.
It is the policy of the United States to undertake best efforts
to--
(1) reduce global poverty, including by establishing and
meeting, in cooperation with governments of developing
countries, other public and private donors, multilateral
institutions, nongovernmental organizations, businesses, and
affected communities, international targets for the reduction
of poverty; and
(2) prevent, prepare for, mitigate, and respond to
humanitarian crises wherever such crises may occur.
SEC. 1003. ENCOURAGEMENT OF UNITED STATES PRIVATE AND VOLUNTARY
COOPERATION.
(a) Findings.--Congress finds the following:
(1) The sustained participation of United States private
and voluntary organizations, community and faith-based
organizations, charitable foundations, labor unions,
cooperatives, and credit unions in international development
and humanitarian relief, rehabilitation, and reconstruction
significantly reduces poverty and alleviates human suffering
through--
(A) application of accumulated expertise in the
discipline of development;
(B) provision of social services in underserved
communities;
(C) building the capacity of local organizations to
operate with maximum effectiveness, thereby
strengthening civil society and advancing self-
reliance;
(D) establishing long-term partnerships with and
between local communities, civil society organizations
and governments of developing countries at all levels,
thus helping to strengthen accountability, reduce
corruption, build capable institutions, and sustain
progress;
(E) empowering marginalized groups through access
to information and a leadership role in decisionmaking
processes; and
(F) serving as a voice for the poor and bringing
best practices and lessons learned to bear on
policymaking processes in the United States and
worldwide.
(2) Such organizations, foundations, unions, and
cooperatives, by mobilizing private United States financial and
human resources, reflect the values and goodwill of the people
of the United States and embody the American spirit of self-
help.
(3) Advocacy groups and organizations that represent
American political, legal, academic and business life have
developed long-standing relationships with their overseas
counterparts, helping to build people-to-people networks that
strengthen civil society, protect human rights, support
democratic institutions and foster a policy environment
conducive to economic development.
(4) Similarly, the sustained participation of United States
educational and research institutions in building the
scientific, educational, and service capacities of developing
countries is vital to the economic and social development of
those countries, and at the same time strengthens the faculty
and programs available to United States students.
(5) Because of their ability to attract and leverage
private contributions, the entities described in paragraphs (1)
through (4) are extremely cost-effective partners for providing
foreign assistance.
(6) Because such entities, often using their own resources,
develop and maintain long-term and independent relationships
with their counterparts in foreign countries, they provide
great expertise in program implementation, an important source
of knowledge about local needs, attitudes, customs, and
conditions, and a critical means for building trust and
goodwill with local communities.
(b) Statement of Policy.--It is the policy of the United States
to--
(1) encourage and facilitate, as appropriate, international
activities of United States private and voluntary
organizations, community and faith-based organizations,
charitable foundations, labor unions, cooperatives, credit
unions, and educational and research institutions in
furtherance of the goals of this title;
(2) co-design, co-fund, and co-manage projects and
strategies with such entities to meet jointly agreed
development objectives;
(3) strengthen the capacity of such entities, without
compromising their private and independent nature, to undertake
effective international assistance efforts; and
(4) streamline and simplify the process by which such
entities may compete for resources made available under this
title.
SEC. 1004. ENCOURAGEMENT OF UNITED STATES BUSINESS PARTICIPATION.
(a) Findings.--Congress finds the following:
(1) United States businesses, including international
development firms, are significant contributors to humanitarian
relief and broad-based economic growth in developing countries,
through--
(A) the donation of financial resources,
technology, goods, and services;
(B) the sharing of training, technical, managerial,
and business skills;
(C) the investment of capital and the development
of trade relationships;
(D) the establishment and maintenance of
partnerships with the governments of developing
countries, local communities, and civil society
organizations;
(E) partnering with local businesses and
entrepreneurs;
(F) the expansion of job opportunities in
impoverished communities; and
(G) the encouragement of private sector development
and of the legal and institutional framework to support
such development.
(2) Such businesses are often staffed by individuals with a
strong commitment to and knowledge of developing countries,
many of whom have served overseas, and who bring American
values, know-how, and spirit of innovation.
(3) While some United States businesses have a long history
of engagement with international development, bringing
extensive experience, strong local ties and a proven track
record of achievement, many others seek to establish first-time
partnerships and new joint ventures.
(4) By leveraging contributions of United States businesses
and facilitating public-private partnerships, the United States
Government can maximize the impact of its efforts to improve
social and economic conditions in developing countries.
(b) Statement of Policy.--It is the policy of the United States
to--
(1) encourage and facilitate, to the maximum extent
practicable, participation by United States businesses in
achieving the purposes of this title;
(2) promote awareness by United States businesses,
including small businesses, of opportunities to promote
economic growth and expand markets in developing countries;
(3) facilitate partnerships between United States business
and international and local nongovernmental organizations,
including private and voluntary organizations, community and
faith-based organizations, charitable foundations, labor
unions, cooperatives, credit unions, and educational and
research institutions, to reduce poverty and alleviate human
suffering;
(4) build strategic alliances with United States
businesses, drawing on their unique assets and experience, to
solve complex problems in developing countries; and
(5) co-design, co-fund, and co-manage projects and
strategies with United States business partners to meet jointly
agreed development objectives.
SEC. 1005. DEVELOPMENT PARTNERSHIPS FELLOWS PROGRAM.
(a) In General.--The Administrator is authorized and encouraged to
establish a program of exchanges to strengthen individual and
institutional capacity, share knowledge and best practices, build
partnering skills and develop networks through professional exchanges
between the Agency and the private sector, including businesses and
nonprofit institutions.
(b) Strategic Focus.--The exchanges authorized under subsection (a)
should be designed to fill gaps and build capacity in areas of critical
need, as determined by the Administrator and the private sector entity.
(c) Competitive Awards.--The process for selecting individuals for
the exchanges authorized under subsection (a) should be open and
competitive, while offering opportunities to individuals with varying
levels of professional experience.
(d) Status of Employment.--Notwithstanding any other provision of
law, during the period of exchange--
(1) each participating individual (hereinafter referred to
as a ``Fellow'') shall continue to receive his or her salary,
benefits, and rights of employment from the Agency or private
sector entity, as the case may be; and
(2) in the case of a Fellow who is an employee of a private
sector entity and is working at the Agency, the Fellow shall
not be considered to be a Federal employee of the Agency,
except for purposes of obtaining necessary access to buildings,
office supplies, equipment and facilities.
(e) Parity in Exchange.--The Administrator shall ensure that the
total number of Fellows who are employees of the Agency and are working
at private sector entities is substantially equivalent to the total
number of Fellows who are employees of private sector entities and are
working at the Agency.
(f) Other Costs and Expenses.--The Administrator shall prescribe
policies and procedures regarding costs and expenses for Fellows other
than policies and procedures regarding salaries and benefits.
(g) Term of Service.--The Administrator shall determine appropriate
lengths of service for Fellows, except that such service may not exceed
a period of 2 years.
Subtitle A--Reducing Global Poverty
SEC. 1011. FINDINGS.
Congress finds the following:
(1) The goal of international development is to improve the
quality of life for all people while preserving that
opportunity for future generations.
(2) Successful economic development includes the
eradication of extreme poverty and its worst physical
manifestations.
(3) Abuses of power, failure to respect human rights,
exclusion of and discrimination against societal groups, and
unchecked violence, particularly against women and girls, are
impediments to economic development.
(4) While each country must marshal its own economic and
human resources in order to build and maintain the political,
social, and economic institutions necessary to reduce poverty
and improve the quality of life for its people, the magnitude
of the need far exceeds the resources of most developing
countries.
(5) The United States has acknowledged a collective
responsibility for, as well as a national interest in, the
reduction of global poverty through the promotion of long-term
development that is participatory, equitable, self-reliant, and
environmentally sustainable.
(6) A human rights-based approach that focuses on
empowering women and girls has been shown to maximize
development outcomes.
(7) Development is a long-term process that requires
sustained attention and resources. Foreign assistance to
achieve short-term political objectives or meet emergency
humanitarian needs should not come at the expense of efforts to
address the root causes of poverty and human suffering.
SEC. 1012. STATEMENT OF POLICY.
It is the policy of the United States to reduce global poverty by
helping poor people in developing countries to participate in a process
of self-sustaining, equitable, and environmentally sound economic
growth through productive work and to influence decisions that shape
their lives, with the goal of increasing their incomes and their access
to public services that will enable them to satisfy their basic needs,
exercise their rights, and lead lives of decency, dignity, and hope.
SEC. 1013. PRINCIPLES OF ASSISTANCE.
In order to maximize the reduction of global poverty, assistance
under this subtitle should be carried out in accordance with the
following principles:
(1) Development is primarily the responsibility of the
people of developing countries themselves. Assistance should be
used in support of, rather than substitution for, the self-help
efforts that are essential to successful economic development.
(2) Assistance should be demand-driven and designed to
support partner country ownership by respecting the development
goals chosen through an open and inclusive process in the
partner country.
(3) The United States Government should work to broaden
country-level policy dialogue on development by promoting an
open and inclusive process for choosing development goals, and
by increasing the capacity of all stakeholders to participate
meaningfully in that process.
(4) Persons affected by conflict or disaster--including
refugees, stateless persons, and internally displaced persons,
particularly those in protracted situations--are among the
world's most vulnerable to poverty, exclusion, exploitation and
other abuses. Although they have tremendous potential to
contribute to the growth and development of the communities and
countries where they reside, these populations often lack
access to development resources and programs. Such populations,
as well as other marginalized groups, must be explicitly
included in country development programs and national
development strategies.
(5) Assistance should be concentrated in countries that
have the greatest need for outside assistance and that will
make the most effective use of such assistance in achieving the
purposes of this subtitle.
(6) Program selection and design should be linked to
results, by using performance frameworks and indicators that
are included in or consistent with a developing country's
national development strategy, where possible, and by
strengthening the country's capacity and demand for results-
based management.
(7) When partner country systems are transparent,
accountable and effective, the United States Government should
use such systems for delivering assistance. Where use of such
systems is not feasible, the United States should establish
additional safeguards and measures in ways that strengthen
rather than undermine country systems.
(8) Even in countries where there is a strong and capable
state, civil society should be included in the planning,
design, management, delivery, monitoring and evaluation of
foreign assistance.
(9) Assistance should focus on building the self-
sufficiency of developing countries by upgrading human,
technical, and institutional capacity, both inside and outside
government, to effectively plan, manage, implement, monitor,
and evaluate budgets, policies, and programs in a transparent
and accountable manner that supports development objectives.
(10) The United States Government should take all
appropriate steps to harmonize its planning, funding,
conditionality, disbursement, monitoring, evaluation, and
reporting with governments of developing countries and with
other donors, including multilateral institutions, in order to
simplify and reduce the administrative burdens, achieve a more
effective division of labor that builds on donors' comparative
advantages, and improve accountability for results.
(11) In consultation with Congress and in conjunction with
the Interagency Policy Committee on Global Development
established under section 1020, the Administrator should engage
in strategic and budgetary planning over a 3- to 5-year period
that will enable the disbursement of assistance in a more
timely and predictable manner.
(12) Personnel and management systems of the Agency should
incorporate incentives for innovation and experimentation, with
tolerance of reasonable risk-taking and training on risk-
management.
(13) Poverty reduction efforts should promote a policy
environment and legal framework that is conducive to broad-
based and sustainable economic growth, including--
(A) respect for the rule of law;
(B) fair, accessible, and timely administration of
justice;
(C) representative and accountable institutions of
governance;
(D) protection of human rights and fundamental
freedoms;
(E) mechanisms of accountability and transparency;
(F) security of person, property and investments;
(G) enforcement of contracts and intellectual
property rights;
(H) encouragement of private enterprise, free
markets and labor rights; and
(I) a vibrant and informed civil society.
(14) An effective United States strategy to promote global
poverty reduction and contribute to broad-based, sustainable
economic growth must incorporate all United States policies
having an impact on development, which include foreign
assistance, debt relief, trade, agriculture, migration and
remittances, environmental protection, technology transfer, and
arms sales.
(15) Assistance should be provided in a manner that is
flexible enough to adapt to the unique needs and capabilities
of specific developing countries and changing situations on the
ground, while remaining transparent and predictable enough to
allow developing countries and other partners to plan and
budget efficiently.
(16) Assistance should give priority to undertakings that
will directly improve the lives of the poorest, most vulnerable
and marginalized groups, and strengthen their capacity to
participate in the political, economic, and social development
of their countries.
(17) Investments in research, the fostering of innovation
and the application of technology are essential to expanding
the impact and effectiveness of development policies and
programs. To ensure that such research, innovation and
technology are appropriately harnessed, development assistance
policies and programs should promote data collection and
rigorous analysis, evidence-based decisionmaking, a culture of
learning, a mechanism for scaling up successful methods and
activities, and a process for sharing best practices.
(18) Gender equality is a matter of fundamental human
rights, as well as being essential to the reduction of poverty
and to the health, education and well-being of families and
communities. Assistance should encourage and promote the full
participation of women and girls in the decisions that affect
their lives, elevate the role of women in their societies,
ensure that women are fully integrated into United States
policies and programs, afford women opportunities to support
themselves and their families, equip and empower women to serve
as leaders and as agents of transformation, and protect women
and girls against discrimination and violence.
(19) Assistance should promote the wise and efficient use
of natural resources to ensure stable economic growth and a
healthy environment in which to live, learn, and work.
(20) Policies and programs carried out under this subtitle
should promote, protect, and ensure the full and equal
enjoyment of all human rights and fundamental freedoms by all
persons with disabilities, respect their inherent dignity, and
encourage their full and effective participation in society on
an equal basis with others.
(21) International and United Nations-affiliated agencies
and multilateral development institutions are essential
components of United States poverty reduction efforts. The
United States Government should recognize the comparative
advantages of such institutions, particularly with respect to
investments in capital-intensive projects and in countries and
regions where the United States does not have a large physical
presence, while supporting reforms to make such institutions
more accountable, responsive, and representative. In addition
to direct financial contributions, the United States Government
should provide technical and logistical assistance to such
institutions as appropriate.
(22) Private investment and philanthropy and individual
remittances are increasingly important sources of development
resources. The United States Government should help to link the
United States private sector with appropriate local partners,
to encourage private investment in economic and social
development programs to which the United States lends support,
and to ensure complementarity between public and private
development efforts.
(23) Assistance should be planned and utilized to encourage
regional cooperation among developing countries in the solution
of common problems and the development of shared resources.
SEC. 1014. GOALS OF ASSISTANCE.
In order to reduce poverty in developing countries, assistance
under this subtitle shall be designed to further the following goals:
(1) Accelerating economic growth.
(2) Promoting food security.
(3) Advancing health.
(4) Expanding quality education.
(5) Protecting and restoring the natural environment.
(6) Improving access to safe water, sanitation, and
housing.
(7) Fostering gender equality.
(8) Strengthening democratic governance.
SEC. 1015. DEVELOPMENT SUPPORT FUNDS.
(a) Authorization of Assistance.--
(1) In general.--The Administrator is authorized to provide
assistance, on such terms and conditions as the Administrator
may determine, to developing countries, in accordance with the
policy described in section 1012 and the principles described
in section 1013, to further the goals described in section
1014.
(2) Country strategies.--The annual congressional budget
justification submitted under section 9302 shall specify the
amount of funds to be made available to prepare and carry out
Country Development Cooperation Strategies under section 1018.
(3) Availability.--Funds made available under this section
for a fiscal year are authorized to remain available until
expended.
(4) Designation of funds.--Assistance authorized under this
subsection shall be known as ``Development Support Funds''.
(b) Sustainability and Local Procurement.--In providing assistance
authorized under subsection (a), the Administrator--
(1) shall, to the maximum extent feasible, emphasize the
development of local capacity and the establishment of
sustainable institutions in the partner country; and
(2) should, to the extent feasible and if cost-effective,
procure required goods and services in the partner country, or,
if local procurement is not feasible or cost-effective, in
another developing country in the same region.
(c) Factors.--In determining the amount of assistance to be
provided for each country the Administrator shall take into account the
following factors:
(1) The absolute number and proportion of people in such
country living in poverty.
(2) The country's ranking on the Human Development Index or
other similar measures of living standards and overall well-
being.
(3) The country's per capita income.
(4) The availability of domestic resources for development
within such country.
(5) The availability of resources from other donors and
investors in such country.
(6) The extent to which there is a political, social, and
economic environment in such country that will enable funds to
be used effectively and accountably to achieve lasting results.
(7) The performance record of the country in reducing
poverty and responsibly using foreign assistance, if any, in
the previous three to five-year period.
(8) The country's demonstrated commitment to its own
development, including investments in its people.
(9) Any other factors that the Administrator determines to
be appropriate.
(d) Criteria and Methodology.--
(1) Establishment.--The Administrator shall establish the
criteria and methodology for determining the amount of
assistance to be provided for each country under subsection
(a). Such criteria and methodology shall--
(A) be based on the factors listed in subsection
(c);
(B) use, to the maximum extent possible, objective
and quantifiable indicators; and
(C) ensure that an appropriate proportion of funds
are made available for each geographic region of the
world.
(2) Congressional consultation.--The Administrator shall
consult with the appropriate congressional committees on the
criteria and methodology, including indicators, established
pursuant to paragraph (1).
(3) Public availability.--The criteria and methodology,
including indicators, established pursuant to paragraph (1)
shall be made publicly available on the Internet website of the
Agency.
(4) Annual budget submission.--For each fiscal year, the
Administrator shall include in the congressional budget
justification submitted under section 9302 the rankings of each
country according to the criteria and methodology established
pursuant to paragraph (1).
(e) Full Funding of Projects and Activities.--
(1) In general.--Subject to paragraph (2), funds may be
obligated to carry out a Country Development Cooperation
Strategy under section 1018 or a sector strategy for
development transmitted under section 1019 only pursuant to an
agreement for a project or activity that constitutes an
obligation of the full estimated amount of foreign assistance
for the life of such project or activity.
(2) Rules of construction.--For purposes of this section--
(A) an obligation includes any sub-obligation of
funds initially obligated under a Strategic Objective
Agreement or other similar agreement;
(B) an agreement includes any grant, cooperative
agreement, or contract entered into by the United
States Government or a partner country with funds made
available to carry out this subtitle; and
(C) funds, in addition to those obligated pursuant
to subsection (a), may be obligated for a project or
activity if the Administrator determines, on a case-by-
case basis, and reports such determination to the
appropriate congressional committees, that an
additional obligation of funds is necessary in order to
enable the Administrator to meet development objectives
that could otherwise not be met absent such additional
obligation.
(3) Outlays and expenditures.--The requirement in paragraph
(1) shall not be construed to require outlays or expenditures
for a project or activity which does not meet all applicable
conditions relating to performance, accountability, and
eligibility.
SEC. 1016. INNOVATION FUND.
(a) Establishment.--The Administrator is authorized to establish a
fund to support innovative projects and evidence-based solutions that
may be tested, replicated, and scaled up in partner countries to
significantly improve development outcomes.
(b) Funding.--The Administrator is authorized--
(1) to transfer to the fund up to $50,000,000 of amounts
made available for a fiscal year under section 1015, which may
be used notwithstanding any other provision of law; and
(2) to accept contributions to the fund from foundations,
corporations, and educational and nongovernmental
organizations.
(c) Documentation.--A detailed description of all obligations and
expenditures from the fund shall be made publicly available on the
Internet website of the Agency, including a description of amounts,
beneficiaries, locations, and intended purposes, at the time the
obligation or expenditure is made.
(d) Lessons Learned.--Each project supported by the fund shall be
independently evaluated, and the results and lessons learned shall be
made publicly available on the Internet website of the Agency.
SEC. 1017. UNITED STATES STRATEGY FOR GLOBAL DEVELOPMENT.
(a) In General.--Under the direction of the President, and
consistent with the results of the Quadrennial Diplomacy, Development,
and Security Review, the Interagency Policy Committee on Global
Development established under section 1020 shall prepare on a
quadrennial basis a comprehensive strategy to further the United States
foreign policy objective of promoting global development. Such strategy
shall be known as the ``United States Strategy for Global
Development''.
(b) Elements.--The strategy required under subsection (a) shall--
(1) establish clear and specific goals and objectives for
United States policies and programs to advance global
development that are consistent with the principles of section
1013, internationally agreed development goals, and developing
country priorities;
(2) explain how such goals and objectives are informed by
and will be coordinated with internationally agreed goals,
developing country strategies, and the programs of other
bilateral and multilateral donors;
(3) identify major policy changes and key priorities for
assistance that will be necessary to achieve such goals and
objectives;
(4) provide evidence and data to support the proposed
strategy and demonstrate how it would improve development
effectiveness;
(5) define the respective roles of each Federal agency in
carrying out the strategy;
(6) outline a process to enhance coordination among each
such agency to ensure policy and program coherence;
(7) review and improve mechanisms for consulting with other
development stakeholders;
(8) describe how crosscutting themes such as gender
equality, human rights, environment, and conflict prevention
will be integrated throughout the strategy;
(9) recommend mechanisms to ensure that the strategy can be
adjusted to respond to new information and changing situations
on the ground and to reflect best practices and lessons
learned;
(10) estimate the requirements for human and financial
resources and overseas infrastructure to carry out the strategy
over the subsequent 4-year period; and
(11) include a plan, budget, and timetable for implementing
the strategy, including any legislative requests and Executive
orders to be issued.
(c) Consultation.--In preparing the strategy required under
subsection (a), the Interagency Policy Committee on Global Development
established under section 1020 shall consult with the appropriate
congressional committees and relevant stakeholders.
(d) Transmission to Congress.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act and every four years thereafter, the
President shall transmit to the appropriate congressional
committees a copy of the strategy required under subsection
(a).
(2) Availability to public.--The strategy transmitted under
paragraph (1) shall be published on the Internet at the time of
transmission to the appropriate congressional committees.
SEC. 1018. COUNTRY DEVELOPMENT COOPERATION STRATEGIES.
(a) In General.--Every 3 to 5 years, the Mission Director of the
Agency in each country described in subsection (b) shall prepare a
strategy for United States policies and programs relating to
development in such country. Such strategy shall be known as the
``Country Development Cooperation Strategy''.
(b) Country Described.--A country described in this subsection is a
country in which--
(1) there is a full Agency mission; and
(2) significant violent conflict is neither ongoing nor
likely.
(c) Elements.--Each strategy required under subsection (a) shall be
consistent with the principles of section 1013 and shall contain the
following elements:
(1) An overview of the country's own development strategy
and national sectoral plans, as reflected in its Poverty
Reduction Strategy Paper or other official documents.
(2) An analysis of the process by which the country
established its development strategy, including the extent to
which the strategy reflects the input of marginalized groups
and affected communities.
(3) An assessment of current gaps between relief and
development programming, the country's vulnerability to a
natural or human-caused disaster and to the outbreak of violent
conflict, and the steps being taken to close current
programming gaps and to prevent, prepare for, or mitigate such
a disaster or conflict.
(4) An assessment of the country's vulnerability to climate
change, and the special challenges such change is likely to
pose.
(5) An assessment of the progress the country has made
toward meeting its development goals and of the results of
foreign assistance in the previous 3 to 5 years.
(6) An analysis of the major obstacles and challenges to
achievement of the country's development strategy, or in cases
in which there is no strategy or the strategy is deeply flawed,
the obstacles and challenges to achievement of internationally
agreed development goals in the country.
(7) A description of the specific ways in which the United
States can most effectively invest in the country's
development, including a review of the roles of the various
donors and the areas of United States comparative advantage.
(8) A description of the roles of each participating
Federal agency in carrying out the strategy.
(9) A description of the consultative mechanisms used in
developing the strategy and the stakeholders consulted.
(10) A description of the mechanisms by which United States
Government policies and programs relating to development will
be harmonized with the country's development strategy and
assistance from other donors.
(11) A description of the linkages between the strategy and
relevant sector strategies for development, including any
assistance to be provided for the country pursuant to a sector
strategy.
(12) An evaluation of the risks and tradeoffs contained in
the approach recommended in the strategy.
(13) Specific, measurable goals and objectives for
development assistance to the country over the next 3 to 5
years, including a list of indicators to be used in assessing
impact, which to the maximum extent practicable shall reflect
the country's development strategy, shall be gender-
disaggregated, and shall emphasize the reduction of extreme
poverty.
(14) The total amount of development assistance requested
for the country over the period of the strategy, and the
estimated amount that would be devoted to each goal and
objective for such assistance.
(15) A description of the types of projects and activities
to be supported in pursuit of each goal and objective for such
assistance.
(16) A description of the likely types of partners for each
type of project or activity, which to the maximum extent
practicable shall utilize and strengthen local procurement and
delivery systems.
(17) A description of the personnel resources needed to
implement the strategy, and any bureaucratic, logistical, or
infrastructural impediments to deploying such resources.
(18) A description of how development assistance will build
local capacity, strengthen country ownership, improve country
systems, advance democratic governance, and reflect country
priorities.
(19) A plan and budget for monitoring the performance and
evaluating the impact of development assistance, which to the
maximum extent practicable shall utilize and strengthen local
monitoring and evaluation systems, and shall include data on a
sex-disaggregated basis.
(20) A description of how development assistance will help
to promote regional cooperation and integration.
(d) Consultation.--In preparing the strategy required under
subsection (a), the Mission Director shall consult with a wide range of
relevant stakeholders to ensure that the strategy is appropriate to
local needs and conditions and incorporates the views of the partner
country.
(e) Review and Coordination.--
(1) By administrator.--Each strategy prepared under
subsection (a) shall be submitted to the Administrator for
review and approval.
(2) By ipc.--Each strategy reviewed and approved under
paragraph (1) shall be transmitted to the Interagency Policy
Committee on Global Development established under section 1020
to ensure coordination with the United States Global
Development Strategy and all other United States policies and
programs relating to the partner country.
(f) Transmission.--
(1) To congress.--Each strategy prepared under subsection
(a) shall be transmitted to the appropriate congressional
committees.
(2) To partner country.--Each strategy prepared under
subsection (a) shall be officially transmitted to the
government of the partner country at the same time it is
transmitted to the appropriate congressional committees under
paragraph (1).
(3) Public availability.--Each strategy prepared under
subsection (a) shall be published on the Internet website of
the Agency not later than 3 days after it is transmitted to the
government of the partner country under paragraph (2).
(4) Revisions.--
(A) In general.--A strategy prepared under
subsection (a) may be revised at any time, but any
significant revision to such strategy shall be subject
to the same consultation, review, and transmission
requirements that are applicable to a strategy prepared
under subsection (a).
(B) Definition.--In this paragraph, the term
``significant revision'' means a change--
(i) to a goal, objective, or indicator;
(ii) of more than 20 percent in--
(I) the amounts to be provided for
a goal or objective; or
(II) the number of personnel
required; or
(iii) in the general nature of the projects
or activities to be supported.
(g) Implementation.--None of the funds made available under section
1015 may be used to carry out a strategy prepared under subsection (a)
until at least 15 days after the strategy is transmitted to the
appropriate congressional committees under subsection (f)(1).
SEC. 1019. SECTOR STRATEGIES FOR DEVELOPMENT.
(a) In General.--Every 4 years, the Administrator shall prepare,
consistent with the results of the Quadrennial Diplomacy, Development,
and Security Review prepared under section 9101 and the United States
Strategy for Global Development prepared under section 1017, individual
strategies for achieving each of the goals of assistance described in
paragraphs (1) through (8) of section 1014.
(b) Elements.--Each strategy required under subsection (a) shall
include--
(1) specific objectives for the next 4-year period,
including indicators and other measurements of success;
(2) a description of how such objectives relate to, are
informed by, and will be coordinated with the development goals
and relevant sectoral plans of partner countries, as well as
with those of other bilateral and multilateral donors;
(3) a description of the roles of each Federal agency in
carrying out the strategy, and the mechanisms for coordination;
(4) a description of policies and programs needed to
achieve such objectives, and the proportion of resources to be
provided to such policies and programs;
(5) a description of the ways in which research,
innovation, and technology will be deployed in support of such
objectives;
(6) a list of priority countries, regions, and intended
beneficiaries on which resources would be focused;
(7) a description of the gender considerations taken into
account, the role of women and girls as participants and
beneficiaries of the strategy, and the impact the strategy will
have on gender equality;
(8) a description of how the policies, programs, objectives
and priorities have been informed by, and will respond to,
conflict strategies and assessments issued pursuant to section
2021;
(9) an analysis of the key opportunities and challenges for
achieving favorable results in the next 4-year period;
(10) a mechanism for ensuring that policies and programs
undertaken pursuant to the strategy inform and are informed by,
build upon, contribute to, and otherwise advance policies and
programs pursuant to each of the other sector strategies
required under this section;
(11) the amounts devoted to similar purposes in the
previous 4-year period, the results achieved and the lessons
learned; and
(12) the requirements for human and financial resources and
overseas infrastructure to carry out the strategy over the next
4-year period.
(c) Consultation.--In preparing each strategy required under
subsection (a), the Administrator shall consult with the appropriate
congressional committees and a wide range of relevant stakeholders to
ensure that the strategy is appropriate to local needs and conditions
and incorporates the views of partner countries.
(d) Review and Coordination.--Each strategy prepared under
subsection (a) shall be transmitted to the Interagency Policy Committee
on Global Development established under section 1020 to ensure
coordination with the United States Global Development Strategy and all
other United States policies and programs pertaining to that sector.
(e) Transmission to Congress.--
(1) Schedule.--At the time of transmission of the United
States Strategy for Global Development pursuant to section
1017, the Administrator shall transmit to the appropriate
congressional committees a schedule for the completion within
the next 2 years of an initial strategy for each of the goals
described in section 1014.
(2) Regular transmission.--Each strategy prepared under
subsection (a) shall be transmitted to the appropriate
congressional committees.
(3) Public availability.--Each strategy prepared under
subsection (a) shall be published on the Internet website of
the Agency not later than 3 days after it is transmitted to the
appropriate congressional committees.
(4) Revisions.--
(A) In general.--A strategy prepared under
subsection (a) and transmitted pursuant to paragraph
(2) may be revised at any time, but any significant
revision to such strategy shall be subject to the same
consultation, review, and transmission requirements
that are applicable to a strategy prepared under
subsection (a).
(B) Definition.--In this paragraph, the term
``significant revision'' means a change--
(i) to a goal, objective, or indicator;
(ii) in the general nature of the policies
and programs to be supported;
(iii) in the priority countries, regions,
or intended beneficiaries; or
(iv) of more than 10 percent of the
proportion of resources to be provided to a
policy or program.
(f) Implementation.--None of the funds made available under section
1015 may be used to carry out a strategy prepared under subsection (a)
until at least 15 days after the strategy is transmitted to the
appropriate congressional committees pursuant to subsection (e).
SEC. 1020. INTERAGENCY POLICY COMMITTEE ON GLOBAL DEVELOPMENT.
(a) Establishment.--The President shall establish an Interagency
Policy Committee on Global Development (in this section referred to as
the ``Committee'') to coordinate United States budgets, policies, and
programs affecting international development.
(b) Membership.--The Committee shall be composed of the
Administrator and a senior representative of each Federal agency with
policies or programs significantly affecting international development.
(c) Chairperson.--The President shall designate a member of the
Committee to serve as its Chairperson, who shall report directly to the
President.
(d) Vice Chairperson.--If the Administrator is not designated as
Chairperson pursuant to subsection (c), then the Administrator shall
serve as Vice Chairperson of the Committee.
(e) Meetings.--
(1) Regular meetings.--Meetings of the Committee shall be
held not less often than quarterly.
(2) Additional meetings.--In addition to its regular
meetings, the Committee shall meet subject to the call of the
Chairperson or the Vice Chairperson.
(f) Subordinate Units.--The Committee may establish such
subordinate units as it determines necessary.
(g) Duties.--The Committee shall--
(1) advise the President with respect to the coordination
of United States budgets, policies, and programs affecting
international development, including programs of bilateral and
multilateral development assistance;
(2) promote policy consistency and coherence, and minimize
program gaps and duplication;
(3) prepare, on a quadrennial basis, a comprehensive
strategy to further the United States foreign policy objective
of reducing global poverty, as described in section 1017;
(4) review, upon completion, Country Development
Cooperation Strategies required under section 1018, and ensure
that such strategies are coordinated with the United States
Strategy for Global Development and all other United States
policies and programs relating to the partner country;
(5) review, upon completion, the sector strategies for
development prepared under section 1019, and ensure that such
strategies are coordinated with the United States Strategy for
Global Development and all other United States policies and
programs relating to that sector;
(6) monitor and evaluate the results and impact of the
development policies and programs carried out by each Federal
agency;
(7) facilitate coordination, cooperation, and information
sharing among Federal agencies; and
(8) define and rationalize the role of each Federal agency
in carrying out development policies and programs.
(h) Staffing.--
(1) In general.--The Administrator shall provide
administrative and staff support to the Committee.
(2) Other agencies.--The head of a Federal agency
represented on the Committee may temporarily assign, upon the
request of the Chairperson, one or more employees from the
agency to the staff of the Committee.
SEC. 1021. GLOBAL DEVELOPMENT COUNCIL.
(a) Policy.--To help protect national security and further United
States economic, humanitarian, and strategic interests in the world, it
is the policy of the United States Government to promote and elevate
development as a core pillar of United States power and chart a course
for development, diplomacy, and defense to reinforce and complement one
another. The successful pursuit of development is essential to
advancing United States national security objectives: security,
prosperity, respect for universal values, and a just and sustainable
international order. The effectiveness of this development policy will
depend in large measure on how the United States engages with partners,
beneficiaries of development assistance, and stakeholders. The United
States will use evidence-based decisionmaking in all areas of United
States development policy and programs, and will foster development
expertise and learning worldwide.
(b) Establishment.--
(1) In general.--The President shall establish a Global
Development Council (in this section referred to as the
``Council'') to advise and support the President in furtherance
of the policy set out in subsection (a).
(2) Located within agency.--The Council shall be
established for administrative purposes within the Agency,
subject to the foreign policy and budgetary guidance of the
Secretary.
(c) Membership.--
(1) In general.--The Council shall be composed of the
following:
(A) Not more than 12 individuals from outside the
United States Government appointed by the President.
Such members may serve as representatives of a variety
of sectors, including, among others, institutions of
higher education, non-profit and philanthropic
organizations, civil society, and private industry.
(B) The Secretary of State, the Secretary of the
Treasury, the Secretary of Defense, the Administrator
of the United States Agency for International
Development, and the Chief Executive Officer of the
Millennium Challenge Corporation, who--
(i) shall serve as non-voting members of
the Council; and
(ii) may designate, to perform the Council
functions of the member, a senior-level
official who is part of the member's
department, agency, or office, and who is a
full-time officer or employee of the Federal
Government.
(2) Chair and vice chair.--The President shall designate a
member of the Council to serve as Chair and another member to
serve as Vice Chair. The Chair shall convene and preside at
meetings of the Council, determine meeting agendas, and direct
its work. The Vice Chair shall perform the duties of the Chair
in the absence of the Chair and shall perform such other
functions as the Chair may assign.
(3) Terms.--The term of office of a member appointed by the
President from outside the United States Government shall be 2
years, and such member shall be eligible for reappointment and
may continue to serve after the expiration of such term until
the President appoints a successor. A member appointed to fill
a vacancy shall serve only for the unexpired term of such
vacancy.
(d) Functions.--The Council shall meet regularly and shall--
(1) inform the policy and practice of United States global
development policy and programs by providing advice to the
President and other senior officials on issues including--
(A) innovative, scalable approaches to development
with proven demonstrable impact, particularly on
sustainable economic growth and good governance;
(B) areas for enhanced collaboration between the
United States Government and public and private sectors
to advance development policy;
(C) best practices for and effectiveness of
research and development in low and middle income
economies; and
(D) long-term solutions to issues central to
strategic planning for United States development
efforts;
(2) support new and existing public-private partnerships
by--
(A) identifying key areas for enhanced
collaboration and any barriers to collaboration; and
(B) recommending concrete efforts that the private
and public sectors together can take to promote
economic development priorities and initiatives; and
(3) increase awareness and action in support of development
by soliciting public input on current and emerging issues in
the field of global development as well as bringing to the
President's attention concerns and ideas that would inform
policy options.
(e) Administration and Related Matters.--
(1) In general.--The heads of executive departments and
agencies shall assist and provide information to the Council,
consistent with applicable law, as may be necessary to carry
out the functions of the Council.
(2) Funding and administrative support.--Funding and
administrative support for the Council shall be provided by the
Agency to the extent permitted by law and within existing
appropriations.
(3) Executive director.--The Administrator shall appoint an
Executive Director who shall be a Federal officer or employee
of the Agency and serve as a liaison to the Administrator and
the Executive Office of the President and consult with relevant
Federal departments, agencies, and offices on matters and
activities pertaining to the Council.
(4) Compensation; travel expenses.--The members of the
Council who are appointed from outside the Federal Government
shall serve without compensation for their work on the Council.
Members of the Council may receive travel expenses, including
per diem in lieu of subsistence, in accordance with applicable
provisions under subchapter I of chapter 57 of title 5, United
States Code.
(5) To the extent as the Federal Advisory Committee Act
applies to the Council, any functions of the President under
such Act, except functions relating to reporting to Congress,
shall be performed by the Administrator in accordance with the
guidelines issued by the Administrator of General Services.
(f) Termination.--
(1) In general.--Except as provided in paragraph (2), the
Council shall terminate on the date that is 2 years after the
date of the enactment of this Act.
(2) Extension.--The Council may be extended by the
President for additional two-year periods.
(3) Report.--Prior to exercising the authority under
paragraph (2) to extend the Council, the President shall submit
to the appropriate congressional committees a report on the
activities of the Council during the previous two-year period.
SEC. 1022. DEVELOPMENT EDUCATION.
The Administrator is authorized to use up to $1,000,000 of amounts
made available under section 1015 in any fiscal year to support
expansion and improvement of United States education about global
poverty, the process and challenges of international development, and
the interdependence of the United States and developing countries.
SEC. 1023. DEFINITIONS.
In this subtitle:
(1) Agriculture.--The term ``agriculture'' means the
science and practice of activities related to food, feed,
livestock, or fiber production, processing, marketing,
distribution, utilization, and trade, and encompasses the study
and practice of family and consumer sciences, nutrition, food
sciences, forestry, wildlife, fisheries, aquaculture,
floraculture, livestock management, veterinary medicine, and
other environmental and natural resource sciences.
(2) Agricultural development.--The term ``agricultural
development'' means methods to use agriculture as a basis for
food security, family livelihood, and economic growth by--
(A) increasing the productivity of those involved
in the production of food, fuel, and fiber, including
farmers, fishers, foresters, and pastoralists,
particularly those that operate on a small scale;
(B) linking producers to consumers through markets,
including postharvest activities such as storage,
processing, transport, and improving market efficiency;
(C) supporting a legal, regulatory, and policy
environment that is conducive to agricultural
investment and production; and
(D) strengthening technical, financial, and
business service providers that help food producers
grow their enterprises.
(3) Country systems.--The term ``country systems'' means
the public financial management, procurement, disbursement, and
monitoring and evaluation systems of a country.
(4) Developing country.--The term ``developing country''
means a country or area that is on the List of Official
Development Assistance Recipients of the Development Assistance
Committee of the Organization for Economic Cooperation and
Development.
(5) Development stakeholder.--The term ``development
stakeholder''--
(A) means an entity directly or indirectly affected
by the success of efforts to reduce poverty and promote
self-sustaining, equitable, and environmentally sound
economic growth in a partner country; and
(B) includes--
(i) national, regional, and local
governments and administering authorities,
intermediate representative institutions, civil
society organizations, and intended
beneficiaries, including marginalized groups;
(ii) Federal agencies, congressional
committees, the Government Accountability
Office, and private partners; and
(iii) bilateral, multilateral, and private
donors.
(6) Food security.--The term ``food security'' means that
all people at all times have both physical and economic access
to sufficient food to meet their dietary needs for a healthy
and active life.
(7) Relevant stakeholder.--The term ``relevant
stakeholder''--
(A) means a party that is--
(i) directly or indirectly affected by a
particular law, regulation, policy, process,
program, project, or activity; or
(ii) involved in the funding, design,
implementation, auditing, or oversight thereof;
and
(B) includes--
(i) national, regional, and local
governments and administering authorities,
intermediate representative institutions, civil
society organizations, and intended
beneficiaries, including marginalized groups;
(ii) Federal agencies, congressional
committees, the Government Accountability
Office, and private partners; and
(iii) bilateral, multilateral, and private
donors.
CHAPTER 1--ACCELERATING ECONOMIC GROWTH
SEC. 1101. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Broad-based and sustainable economic growth is the most
powerful engine for reducing poverty, and is key to advancing
human development. It is the surest way for countries to
generate the resources they need to address illiteracy, poor
health, and other development challenges on their own.
(2) By expanding incomes, economic growth helps families
and individuals not only to meet their basic needs, but also to
realize their unique capabilities, exercise greater freedom in
their lives, and achieve their full human potential.
(3) Economic growth enables countries to offer better
markets for United States goods and services and to become more
effective partners with the United States in working toward a
more stable, healthy, and prosperous world.
(4) Well-functioning, dynamic private markets promote
economic activity and accelerate growth, providing increased
incomes and employment.
(5) To encourage entrepreneurship and private investment,
developing countries must create a favorable legal, policy and
regulatory environment; an efficient and accountable system of
public financial management; fair, transparent and predictable
enforcement of property rights and contracts; effective
procedures for resolving economic disputes among firms and
individuals; and rigorous efforts to stem bribery and
corruption.
(6) Even where markets are functioning well, differential
access to education, technology, credit and other resources can
cause economic benefits to be uneven. Expanding economic
opportunity and access to the tools that help citizens engage
in the market economy enables the poor, women and other
marginalized groups to participate in and contribute to
economic growth.
(7) An abundance of young people in a country with a weak
economy and non-responsive government can leave individuals
frustrated by the lack of jobs and opportunities. But youth are
also key human resources for growth and positive change. When
governments embrace policies that promote education, economic
opportunities, the empowerment of women, and equitable access
to resources, countries can capitalize on the productivity of a
growing workforce to boost economic growth.
(8) Expanding trade regionally and internationally is
critical for many of the smallest and poorest developing
countries, where local demand is too weak to support large-
scale expansion of production, employment, and incomes.
Building trade capacity and removing trade barriers are
essential to lasting economic growth.
(9) Heavy debt burdens, often accumulated under prior,
undemocratic regimes, can undermine the ability of developing
countries to invest in their people and make progress fighting
poverty.
(10) United States international trade and economic
policies are often formulated with little recognition or
consideration of their impact on developing countries. More
active participation by the Agency in interagency
decisionmaking processes can help achieve greater balance among
competing United States interests, ensuring that development is
duly considered as a priority of United States foreign policy.
(b) Statement of Policy.--It is the policy of the United States to
work in cooperation with the international community to help partner
countries achieve broad-based and sustainable economic growth that--
(1) includes all major income groups, marginalized groups
and women;
(2) significantly reduces poverty;
(3) uses natural resources responsibly; and
(4) reduces dependence on foreign assistance.
SEC. 1102. GOAL AND OBJECTIVES.
(a) Goal.--The goal of assistance under this chapter is to
accelerate broad-based and sustainable economic growth.
(b) Objectives.--In furtherance of the goal described in subsection
(a), assistance under this chapter shall be designed to help partner
countries achieve the following objectives:
(1) Increase income-generating opportunities.
(2) Expand access to markets, capital, credit, land, and
other productive resources.
(3) Enhance productivity through education and training.
(4) Improve the legal, regulatory and policy environment
for business and trade.
(5) Build human and institutional capacity to compete in
the global economy.
SEC. 1103. GLOBAL STRATEGY FOR ECONOMIC GROWTH.
(a) In General.--The strategy required under section 1019 with
respect to accelerating economic growth shall be known as the ``Global
Strategy for Economic Growth''.
(b) Contents.--The Global Strategy for Economic Growth shall
include, in addition to the elements required under section 1019(b),
plans for achieving the goal and objectives of section 1102.
(c) Guidelines.--The Global Strategy for Economic Growth should--
(1) specify the role of microfinance and microenterprise
development, including the resources to be devoted to promoting
microenterprise;
(2) identify United States policies relating to trade,
agriculture, debt, and other matters that have an impact on
economic growth in developing countries, and recommend changes
that would enhance development objectives;
(3) plan for long-term sustainability through linkages to
regional and international markets and private investment;
(4) include mechanisms for increasing consultation,
cooperation, and coordination with the private sector, in order
to attract greater private sector participation in development
activities;
(5) address the impact of remittances and identify ways
that their development impact can be maximized;
(6) recommend methods for reducing illicit outflows of
natural resources and capital from developing countries; and
(7) establish mechanisms for improving policy and program
coordination among Federal agencies engaged in economic growth
activities.
SEC. 1104. ASSISTANCE FOR ECONOMIC GROWTH.
(a) Authorization.--The Administrator is authorized to use funds
made available under section 1015 to further the goal and objectives of
this chapter in partner countries.
(b) Activities.--Assistance authorized under subsection (a) shall
include the following:
(1) Expanding income generating opportunities for the poor,
including women.
(2) Enhancing the workforce by, among other things,
providing job training and vocational skills appropriate to
local needs and conditions.
(3) Improving access, particularly of women and the poor,
to markets and productive resources, including credit and
financial services, affordable and resource-conserving
technologies, technical and market-related information, and
property and inheritance rights.
(4) Strengthening the legal, policy, and regulatory
framework for broad-based and sustainable economic growth,
including the protection of private property and intellectual
property.
(5) Supporting the development of cooperatives, credit
unions, and labor unions.
(6) Expanding local capacity and demand for collection and
analysis of statistical information.
(7) Promoting the development, reform or restructuring, as
appropriate, of financial, monetary, fiscal and regulatory
systems.
(8) Building and strengthening institutional capacities to
plan, analyze, implement, manage, monitor and evaluate economic
policies and programs.
(9) Promoting sound financial management practices and
budgetary policies, and reducing corruption, waste, fraud and
abuse.
(10) Increasing private sector competitiveness,
strengthening local and regional markets, building trade
capacity, and expanding trade ties.
(11) Promoting collaboration between public and private
sector entities for the reduction of poverty and its worst
physical manifestations, and encouraging private sector
investment in projects benefitting the poor.
(12) Facilitating the development of social safety nets,
pension plans, insurance networks, and other mechanisms
designed to improve income security.
(13) Protecting internationally recognized worker rights,
especially with regard to child labor.
(14) Developing and identifying analytical tools and
methodologies to enable effective targeting and measurement of
programs for women, the poor and very poor.
(15) Increasing the transparency of budgets and procurement
processes, and the effectiveness of oversight, monitoring,
accountability and audit mechanisms.
SEC. 1105. FISCAL AND CONTRACT TRANSPARENCY.
(a) Establishment of International Standards.--The United States
Government should seek, in appropriate multilateral fora, to establish
voluntary international standards of fiscal and contract transparency,
such as the public disclosure of budget documentation, including
receipts and expenditures by ministry, and government contracts and
licenses for natural resource extraction, including bidding and
concession allocation practices.
(b) Partnerships for Transparency.--The Administrator is authorized
to use funds made available under this chapter to support improvements
to fiscal and contract transparency in partner countries.
(c) Requirement.--The Administrator shall not provide direct
government-to-government assistance under this Act for any government
that fails to make its national budget publicly available on an annual
basis.
(d) Definition.--In this section, the term ``government-to-
government assistance'' means assistance for a project or activity that
is managed directly by a partner government entity using its own
financial management and procurement systems.
Subchapter A--Microenterprise Development Assistance
SEC. 1111. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Access by women and the poor to financial and business
development services is a vital factor in reducing poverty and
promoting sustainable economic growth in developing countries.
(2) Microfinance and microenterprise development programs
have demonstrated high impact and long-term sustainability
because they build capacity for self-help among the poor,
especially women, thereby broadening the base for and
increasing the inclusiveness of economic growth.
(3) In order to ensure that microenterprise programs
promote the maximum financial inclusion of women, gender
analysis should be integrated into microenterprise program
design, implementation, monitoring and evaluation.
(4) A comprehensive approach to microenterprise development
includes support for the provision of credit, savings,
insurance, education and training, technical assistance,
business development, and other financial services to women,
poor people, and other marginalized groups.
(5) Microenterprise development and microfinance are
particularly important to enhancing the livelihoods of
refugees, displaced persons, and those affected by conflict,
whose routine employment opportunities and access to productive
resources have been reduced or disrupted.
(6) Microenterprise and microfinance activities should be
thoroughly integrated into all aspects of development,
especially including agriculture and health.
(7) United States Government support for microfinance and
microenterprise development should complement private
initiatives in this area by focusing on those who lack access
to formal financial services, and on countries and sectors that
have been underserved by private capital flows.
(8) United States Government funds should be used to
catalyze and attract additional resources, including private
sector funds, investment funds, and the savings of the poor,
such as through matching fund opportunities and challenge
grants.
(9) United States Government-supported microfinance lending
should accept a higher level of risk than private lending in
order to promote innovative products and methodologies and
serve poorer and harder-to-reach populations.
(10) United States Government support for microenterprise
development and microfinance should build the capacity of local
institutions in order to enable them to better meet the credit,
savings, and training needs of microfinance and microenterprise
clients.
(11) Microfinance and microenterprise activities,
especially those benefitting the very poor, should be a
significant component of development assistance.
(b) Statement of Policy.--It is the policy of the United States to
promote a global strategy of financial inclusion for all, and
especially the very poor and women, through support for microfinance
and microenterprise development in partner countries.
SEC. 1112. MICROENTERPRISE FUND.
(a) In General.--The Administrator shall establish a centrally
managed fund for microfinance and microenterprise development
activities, to be known as the ``Microenterprise Fund''. Assistance
provided through the Microenterprise Fund shall be in addition to
assistance otherwise made available for such purposes.
(b) Activities.--Assistance provided through the Microenterprise
Fund shall be used to advance the policy described in section 1111(b),
including through the following activities:
(1) Expanding the availability of credit, savings and other
financial and nonfinancial services to microfinance and
microenterprise clients.
(2) Training, technical assistance and business development
services for microenterprises.
(3) Capacity-building for microfinance and microenterprise
institutions.
(4) Improving the legal and regulatory environment for
microenterprise and for financial institutions that serve the
poor and very poor.
(5) Developing new and innovative microfinance and
microenterprise products and services.
(6) Developing, identifying and testing tools that
facilitate better targeting of programs to the very poor,
women, and other disadvantaged groups.
(7) Providing targeted core support for microfinance and
microenterprise networks and other practitioners.
(c) Targeting of Assistance.--
(1) Very poor and women.--At least 50 percent of the
assistance provided through the Microenterprise Fund shall be
targeted to microenterprise clients who are very poor, and a
significant proportion of such assistance shall be targeted to
women.
(2) Poverty assessment tools.--In targeting assistance
pursuant to paragraph (1), the Administrator shall identify,
field-test, and certify for use no fewer than two low-cost
methods to assess the poverty levels of incoming or prospective
clients of microenterprise institutions, and shall require that
all private partners use one of the certified methods.
(d) Private Partners.--Assistance provided through the
Microenterprise Fund shall emphasize the use of private partners who--
(1) match such assistance, to the greatest extent
practicable, with non-United States Government resources,
including funds from other donors, commercial or concessional
borrowing, participant savings, and program income;
(2) maintain low overhead and administrative costs;
(3) are highly technically competitive;
(4) design their programs to meet the needs of women;
(5) target their resources at the very poor;
(6) design their programs for maximum financial
sustainability; and
(7) adopt robust client protection principles and
incorporate them into their practices.
SEC. 1113. OFFICE OF MICROENTERPRISE DEVELOPMENT.
(a) Establishment.--There is established within the Agency an
Office of Microenterprise Development (hereafter in this section
referred to as the ``Office''), which shall be headed by a Director who
shall be appointed by the Administrator and who should possess
technical expertise and ability to offer leadership in the field of
microenterprise development.
(b) Responsibilities.--The Office shall be responsible for--
(1) administering the Microenterprise Fund established
under section 1112;
(2) developing a comprehensive and coherent plan, which
shall be made available to the public, for promoting financial
inclusion for all through microfinance and microenterprise
development programs;
(3) ensuring that such plan is integrated into the Global
Strategy for Economic Growth described in section 1103 and
other country and sector strategies for development, as
appropriate;
(4) advising and providing technical support to Agency
missions regarding the design and implementation of
microfinance and microenterprise development programs,
including through incorporation of such programs into Country
Development Cooperation Strategies;
(5) setting performance goals and indicators to ensure that
microfinance and microenterprise development activities benefit
the very poor and women; and
(6) collecting and disseminating detailed data to document
the impact of microfinance and microenterprise development
activities on the very poor and women.
SEC. 1114. DEFINITIONS.
In this subchapter:
(1) Microenterprise.--The term ``microenterprise'' means a
firm of 10 or fewer employees, including unpaid workers, which
is owned and operated by someone who is poor.
(2) Microfinance.--The term ``microfinance'' means
activities to provide, or to increase the availability of,
credit, savings, insurance, and other financial services to
microenterprises.
(3) Very poor.--The term ``very poor'' refers to
individuals whose incomes are--
(A) in the bottom 50 percent of those below the
poverty line in their country of residence; or
(B) below the World Bank international extreme
poverty line.
Subchapter B--Small and Medium Enterprise Development
SEC. 1121. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Small and medium enterprises (SMEs) are key drivers of
competition, growth, and job creation, particularly in
developing countries. They make up an estimated 90 percent of
businesses and over 50 percent of employment worldwide.
(2) Access to financial services for SMEs remains severely
constrained in many emerging markets.
(3) The global financial crisis created a financing gap
that particularly affected SMEs, making it more difficult for
these enterprises to find the capital to grow their businesses
and create jobs.
(4) Even as liquidity is restored to financial
institutions, lending volumes remain depressed and SMEs still
have limited access to financing.
(5) The lack of agribusinesses in rural areas has
contributed to the growth of urban slums and a burgeoning
population of disaffected youth.
(6) Increasing access to finance for SMEs is best achieved
by increasing the depth and breadth of local financial markets
and boosting the competitiveness of the private financial
sector.
(7) Enabling growth--and ensuring that poor people can
participate--requires an environment where people are able to
start and grow businesses, as well as create more jobs.
(b) Statement of Policy.--It is the policy of the United States to
encourage entrepreneurship and expand the formal sector in partner
countries by--
(1) building the capacity of SMEs;
(2) increasing SME access to financial services,
technology, training, and other resources; and
(3) reducing the legal and bureaucratic hurdles to starting
a business.
SEC. 1122. ASSISTANCE FOR SMALL AND MEDIUM ENTERPRISES.
The Administrator is authorized to use funds made available under
this chapter for programs to encourage entrepreneurship and strengthen
small and medium enterprises in partner countries, including:
(1) Training in entrepreneurship, including basic business
management, accounting, bookkeeping, marketing, risk
management, and computer skills.
(2) Agriculture entrepreneurship training, particularly to
increase employment opportunities in rural areas.
(3) Establishing youth entrepreneurship programs in schools
or through community partnerships with business and youth
organizations to promote economic skills, ethics, integrity,
and healthy life skills among youth.
(4) Strengthening laws, regulations, and enforcement
mechanisms to protect national and international intellectual
property rights and to protect the people and industries of
developing countries against imported counterfeit goods.
(5) Combating anti-competitive, unethical, and corrupt
practices.
(6) Improving the technology and information resources of
financial institutions and small and medium enterprises.
(7) Promoting the establishment of lending programs of
financial institutions for small and medium enterprises.
(8) Developing internal credit rating systems and credit
assessment tools that improve the ability of financial
institutions to evaluate risk.
(9) Programs specifically targeted to small and medium
enterprises owned by women, youth, and displaced persons.
SEC. 1123. DEFINITION.
In this subchapter, the term ``small and medium enterprise'' means
a corporation, sole proprietorship, partnership, or other legal entity
that--
(1) has its principal place of business in a partner
country;
(2) is owned or controlled by persons who are citizens of
such partner country; and
(3) has fewer than 50 employees.
Subchapter C--Other Programs
SEC. 1131. DEVELOPMENT CREDIT AUTHORITY.
(a) Authorization of Credit.--
(1) In general.--The Administrator is authorized to provide
direct loans, loan guarantees, and other investments involving
the extension of credit to achieve any of the goals of this
subtitle in cases in which--
(A) the borrowers or activities are determined to
be sufficiently creditworthy and do not otherwise have
access to such credit; and
(B) the use of credit authority is appropriate to
the achievement of such goals.
(2) Designation.--Assistance authorized under this
subsection shall be known as the ``Development Credit
Authority''.
(b) Priority Activities.--To the maximum extent practicable, the
Administrator shall give preference to providing assistance authorized
under subsection (a) to promote--
(1) the policy described in section 1111(b);
(2) sustainable urban and environmental activities
described in chapters 5 and 6; and
(3) policy and institutional reforms in accordance with the
objectives of this chapter.
(c) Default and Commodity Provisions.--
(1) Default provision.--For purposes of this Act, the
default of a private sector recipient of assistance provided
under this section shall not be considered to be the default of
the government of the country in which the private sector
recipient is located.
(2) Commodity provision.--Assistance may be provided under
this section without regard to commodity restrictions (as such
term is defined in section 11001).
(d) Terms and Conditions of Credit Assistance.--
(1) In general.--Assistance provided under this section
shall be offered on such terms and conditions, including fees
charged, as the Administrator may determine.
(2) Limitation.--The principal amount of loans made or
guaranteed under this section in any fiscal year, with respect
to any single country or borrower, may not exceed $100,000,000.
(3) Fraud and misrepresentation.--No payment may be made
under any guarantee issued under this section for any loss
arising out of fraud or misrepresentation for which the party
seeking payment is responsible.
(e) Full Faith and Credit.--All guarantees issued under this
section shall constitute obligations, in accordance with the terms of
such guarantees, of the United States of America and the full faith and
credit of the United States of America is hereby pledged for the full
payment and performance of such obligations to the extent of the
guarantee.
(f) Co-Financing and Risk Sharing.--
(1) In general.--Assistance provided under this section
shall be in the form of co-financing or risk sharing.
(2) Requirement.--Credit assistance may not be provided to
a borrower under this section unless the Administrator
determines that there are reasonable prospects of repayment by
such borrower.
(3) Additional requirement.--The investment or risk of the
United States in any one development activity may not exceed 80
percent of the total outstanding investment or risk.
(g) Eligible Borrowers.--
(1) In general.--In order to be eligible to receive credit
assistance under this section, a borrower shall be sufficiently
credit worthy so that the estimated costs (as defined in
section 502(5) of the Federal Credit Reform Act of 1990) of the
proposed credit assistance for the borrower does not exceed 30
percent of the principal amount of credit assistance to be
received.
(2) Additional requirement.--
(A) In general.--With respect to the eligibility of
a foreign government as an eligible borrower under this
section, the Administrator shall make a determination
that the additional debt of the government will not
exceed the debt repayment capacity of the government.
(B) Consultation.--In making a determination under
paragraph (A), the Administrator shall consult, as
appropriate, with international financial institutions
and other institutions or agencies that assess debt
service capacity.
(h) Assessment of Credit Risk.--
(1) In general.--The Administrator shall use the
Interagency Country Risk Assessment System (ICRAS) and the
methodology approved by the Office of Management and Budget to
assess the cost of risk credit assistance provided under this
section to foreign governments.
(2) Consultation.--With respect to the provision of credit
to nongovernmental organizations, the Administrator--
(A) shall consult with appropriate private sector
institutions, including large United States private
sector debt rating agencies, prior to establishing the
risk assessment standards and methodologies to be used;
and
(B) shall periodically consult with such
institutions in reviewing the performance of such
standards and methodologies.
(3) Use of cost and risk assessment determinations of
private sector co-financing entities.--In addition, if the
anticipated share of financing attributable to public sector
owned or controlled entities, including the Agency, exceeds 49
percent, the Administrator shall determine the cost (as defined
in section 502(5) of the Federal Credit Reform Act of 1990) of
such assistance by using the cost and risk assessment
determinations of the private sector co-financing entities.
(i) Retention of Receipts Collected.--Receipts collected pursuant
to this section, and the Federal Credit Reform Act of 1990, in an
amount not to exceed the amount appropriated for a fiscal year, shall
be credited as offsetting collections for Development Support Funds,
and shall be used to reduce, on a dollar-for-dollar basis,
appropriations for that purpose. Amounts collected in a fiscal year in
excess of obligations shall remain available until expended.
SEC. 1132. TECHNICAL ASSISTANCE FOR FINANCIAL MANAGEMENT.
(a) Establishment of Program.--
(1) In general.--The Secretary of the Treasury, in
consultation with the Secretary of State and the Administrator,
is authorized to establish a program to provide technical
assistance to foreign governments and foreign central banks of
partner countries.
(2) Role of secretary of state.--The Secretary of State
shall provide foreign policy guidance to the Secretary of the
Treasury to ensure that the program established under this
subsection is effectively coordinated with United States
foreign policy.
(3) Role of administrator.--The Administrator shall provide
development guidance to the Secretary of the Treasury to ensure
that the program established under this subsection is
effectively coordinated with United States development policy
and furthers the goals of this subtitle.
(b) Conduct of Program.--
(1) In general.--In carrying out the program established
under subsection (a), the Secretary of the Treasury shall
provide economic and financial technical assistance to foreign
governments and foreign central banks of partner countries by
providing advisers with appropriate expertise to advance the
enactment of laws and establishment of administrative
procedures and institutions in such countries to promote
financial integrity, financial inclusion, consumer protection,
financial education, macroeconomic and fiscal stability,
efficient resource allocation, transparent and market-oriented
processes and sustainable private sector growth.
(2) Additional requirements.--To the extent practicable,
such technical assistance shall be designed to establish--
(A) tax systems that are fair, objective, and
efficiently gather sufficient revenues for governmental
operations;
(B) debt issuance and management programs that rely
on market forces;
(C) budget planning and implementation that permits
responsible fiscal policy management;
(D) commercial banking sector development that
efficiently intermediates between savers and investors;
and
(E) financial law development and enforcement to
protect the integrity of financial systems, financial
institutions, and government programs.
(3) Emphasis on anti-corruption.--Such technical assistance
shall include elements designed to combat anti-competitive,
unethical, and corrupt activities, including protection against
actions that may distort or inhibit transparency in market and
trade mechanisms and, to the extent applicable, privatization
procedures.
(c) Administrative Requirements.--In carrying out the program
established under subsection (a), the Secretary of the Treasury shall--
(1) in consultation with the Secretary of State and the
Administrator, establish a methodology for identifying and
selecting foreign governments and foreign central banks to
receive assistance under the program;
(2) prior to selecting a foreign government or foreign
central bank to receive assistance under the program, receive
the concurrence of the Secretary of State with respect to the
selection of such government or central bank and with respect
to the cost of the assistance to such government or central
bank;
(3) consult with the heads of appropriate Federal agencies
and international financial institutions to avoid duplicative
efforts with respect to those foreign countries for which such
agencies or organizations provide similar assistance;
(4) ensure that the program is consistent with the global,
sector, and country strategies being implemented by the Agency;
and
(5) establish and carry out a plan to monitor and evaluate
the program, consistent with the requirements of section 9201.
(d) Administrative Authorities.--The administrative authorities
applicable to the Secretary of State with respect to funds made
available under this Act shall also be applicable to the Secretary of
the Treasury with respect to funds made available under this section.
(e) Issuance of Regulations.--The Secretary of the Treasury is
authorized to issue such regulations with respect to personal service
contractors as the Secretary determines necessary to carry out this
section.
(f) Rule of Construction.--Nothing in this section shall be
construed to infringe upon the powers or functions of the Secretary of
State (including the powers or functions described in section 103 of
the Omnibus Diplomatic Security and Antiterrorism Act of 1986 (22
U.S.C. 4802)) or of any chief of mission (including the powers or
functions described in section 207 of the Foreign Service Act of 1980
(22 U.S.C. 3927)).
(g) Termination of Assistance.--The Secretary of the Treasury shall
conclude assistance activities for a recipient foreign government or
foreign central bank under the program established under subsection (a)
if the Secretary of the Treasury, after consultation with the
appropriate officers of the United States, determines that such
assistance has resulted in the enactment of laws or the establishment
of institutions in that country that promote fiscal stability and
administrative procedures, efficient resource allocation, transparent
and market-oriented processes and private sector growth in a
sustainable manner.
(h) Definitions.--In this section:
(1) International financial institution.--The term
``international financial institution'' means the International
Monetary Fund, the International Bank for Reconstruction and
Development, the International Development Association, the
International Finance Corporation, the Multilateral Investment
Guarantee Agency, the Asian Development Bank, the Asian
Development Fund, the African Development Bank, the African
Development Fund, the Inter-American Development Bank, the
Inter-American Investment Corporation, the European Bank for
Reconstruction and Development, and the Bank for Economic
Cooperation and Development in the Middle East and North
Africa.
(2) Technical assistance.--The term ``technical
assistance'' includes--
(A) the provision of expert advisers to assist
foreign governments and foreign central banks for the
purposes described in subsection (b)(1);
(B) training in the partner country, the United
States, or elsewhere for the purposes described in
subsection (b)(1);
(C) grants of goods, services, or funds to foreign
governments and foreign central banks for the purposes
described in subsection (b)(1);
(D) grants to United States or local nonprofit
organizations to provide services or products which
contribute to the provision of advice to foreign
governments and foreign central banks; and
(E) study tours for foreign officials in the United
States or elsewhere for the purpose of providing
technical information to such officials.
(3) Foreign participant.--The term ``foreign participant''
means a national of a partner country who has been designated
to participate in activities under the program established
under subsection (a).
CHAPTER 2--PROMOTING FOOD SECURITY
SEC. 1201. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Hunger robs the poor of a healthy and productive life
and stunts the mental and physical development of the next
generation. The persistence of widespread hunger and
malnutrition constitutes an affront to shared moral values and
humanitarian principles.
(2) Food insecurity and chronic hunger are expanding
rapidly in developing countries, forcing millions of people
into poverty, contributing to political and social instability,
eroding economic growth, and undermining investments in basic
education, health, environmental protection, and democratic
institutions.
(3) Volatility and real increases in food prices, which are
expected to grow as grain production fails to keep pace with
rising demand, cause food insecurity and hunger for poor people
even when sufficient food is available on the market.
(4) The changing global climate, as well as the degradation
of land and water resources, threatens food security,
livelihoods and the environment worldwide but particularly for
those already most vulnerable: the millions of rural poor in
developing countries.
(5) The pressures on world food supplies and agricultural
land use caused by population growth, rapid urbanization,
energy, agricultural and trade policies in industrialized
countries, water scarcity, and climate change require a global
commitment to sustainable agriculture and the environment.
(6) Lack of transparent regulations, inconsistent and
unpredictable public policies in developing and developed
countries, and unreliable mechanisms to enforce contracts
between businesses serve to undermine development goals, deter
private investment, and limit the ability of agricultural
producers and businesses to access capital. This situation
reduces the incentives for agricultural producers to increase
the quantity, quality, and value of their agricultural
production.
(7) Reducing chronic hunger is essential to build a
foundation for investments in health, education and economic
growth. It is critical to the security and productivity of
individuals, families, communities, and nations.
(8) Approximately three-quarters of people in developing
countries live in rural areas, with the vast majority dependent
on agriculture for their livelihoods. Agricultural development
is a proven engine of growth that reduces global hunger and
poverty.
(9) Women will be a pivotal force behind achieving a food
secure world. In many developing countries, farming is done
mostly by women. However, women only own 2 percent of land
worldwide and often have limited access to agriculture inputs,
loans, and opportunities to learn about improved techniques.
When gains in income are controlled by women, they are more
likely to be spent on food and children's needs, thus
amplifying the benefits of investments in women across families
and generations.
(10) The 1,000 days between a woman's pregnancy and her
child's second birthday offer a unique window of opportunity to
help families, communities, and countries break the cycle of
poverty. Solutions to improve maternal and child nutrition in
the 1,000-day window are readily available, affordable, and
cost-effective, including vitamins and minerals and good
nutritional practices, such as breastfeeding.
(11) A comprehensive approach to long-term food security
should encompass improvements in--
(A) food availability, such that sufficient
quantities of appropriate, necessary types of food are
consistently available to all persons;
(B) food access, such that individuals have
adequate incomes or other resources to consistently
maintain an adequate diet, and food is allocated
equitably within households;
(C) food utilization and consumption, such that
people have the knowledge and basic sanitary conditions
to choose, store, prepare and distribute food in a way
that results in good nutrition for all family members;
(D) stability, such that the ability to access and
utilize food remains stable and sustained over time,
regardless of adverse weather conditions, political
instability, or economic factors; and
(E) food quality and safety, such that food
supplies provide adequate nutritional value, are free
of contamination, and are fit for human consumption.
(12) The greatest potential for significantly expanding
availability of food for people in rural areas and augmenting
world food production at relatively low cost lies in increasing
the productivity of small farmers, who constitute a majority of
the agricultural producers in developing countries.
(13) However, increasing the efficiency of agricultural
producers alone will not result in higher incomes and reduced
hunger unless surplus harvest and products can be sold in well-
functioning local, national, regional, or international
markets. Development of strong, integrated, local, national,
and regional agriculture and food markets will increase the
availability of safe and nutritious food, decrease local
prices, and expand economic growth.
(14) The United States should emphasize policies and
programs that assist developing countries to increase their
national food security by improving their food policies and
management and by strengthening national food reserves, with
particular concern for the needs of the poor, through measures
encouraging domestic production.
(15) The long-term food security of developing countries
requires that adequate legal and procedural mechanisms are in
place to protect local rights and the welfare of rural poor
people who depend on agriculture for their livelihoods.
(16) While the United States cannot be expected to shoulder
the majority of global investments in ending hunger and
providing food security, the United States can and should lead
the international community by demonstrating a sustained
commitment and a comprehensive approach to meeting
international goals and targets for reducing hunger and
undernutrition.
(17) Partner countries should decide their needs,
priorities, and strategies for agricultural development and
food security through an open, participatory and inclusive
process that takes into account the needs and views of poor
people, women, and other marginalized groups. International
efforts to improve food security and nutritional status are not
sustainable over the long term without robust leadership and
ownership by partner countries.
(18) Nongovernmental organizations and cooperatives are
particularly important for combating food insecurity and
increasing the sustainability of public investments. Given
their close ties to local communities, such organizations and
cooperatives are often effective at ensuring that people who
are very poor and vulnerable are consulted about and benefit
from agricultural and nutrition programs.
(19) Educational and research institutions play a key role
in developing the institutional capacity and human resources of
developing countries, including the establishment and
strengthening of agricultural research and extension services,
the development of networks for scientific collaboration, the
dissemination of improved methods and technologies, and the
training of students, teachers, researchers and practitioners.
(20) With their convening authority and technical
expertise, multilateral institutions play a central role in
efforts to enhance food security by providing emergency
assistance, undertaking research and analysis, offering a
platform for sector-wide investments in agriculture, and
providing a significant portion of the external financing for
investment projects and programs in developing countries. They
are important not only to mobilizing and coordinating donor
country commitments, but also to promoting global mutual
accountability among donors, partner countries and other
stakeholders.
(21) Public sector investments alone, while important, are
not sufficient to sustainably reduce poverty and food
insecurity. The private sector brings necessary financial
resources, human capital, technological resources, intellectual
property, market access, cutting-edge business practices, in-
country networks, and other relevant experience.
(b) Statement of Policy.--It is the policy of the United States to
recognize the human right to food and to work in cooperation with the
international community to end hunger and achieve universal food
security.
SEC. 1202. GOAL AND OBJECTIVES.
(a) Goal.--The goal of assistance under this chapter is to
sustainably reduce global hunger.
(b) Objectives.--In furtherance of the goal of subsection (a),
assistance under this chapter shall be designed to help partner
countries achieve the following objectives:
(1) Accelerating inclusive agriculture sector growth.
(2) Improving nutritional status, especially of women and
children and other vulnerable populations.
(3) Increasing resilience in vulnerable rural communities.
SEC. 1203. GLOBAL STRATEGY FOR FOOD SECURITY.
(a) In General.--The strategy required under section 1019 with
respect to food security shall be known as the ``Global Strategy for
Food Security''.
(b) Contents.--The Global Strategy for Food Security shall include,
in addition to the elements required under section 1019(b), plans for
achieving the goal and objectives of section 1202.
(c) Guidelines.--The Global Strategy for Food Security should--
(1) address the root causes of hunger that limit the
potential of millions of people;
(2) reduce gender inequality and integrate gender concerns;
(3) promote climate-resistant and environmentally
sustainable agricultural development;
(4) concentrate efforts and resources on core countries
where the Rome Principles (as defined in section 1208) can best
be realized;
(5) be tailored to improving the nutritional status of
women, infants and children, particularly during the 1,000 day
critical window of opportunity between a woman's pregnancy and
her child's second birthday, in which a set of proven nutrition
interventions can dramatically improve the child's chances of
surviving and living a healthy and prosperous life;
(6) invest in country-owned plans that are designed through
an open, participatory, and inclusive process and support
results-based programs and partnerships;
(7) strengthen strategic coordination to mobilize and align
the resources of diverse partners and stakeholders;
(8) ensure a comprehensive approach that accelerates
inclusive agricultural-led growth and improves nutrition, while
also bridging humanitarian relief and sustainable development
efforts;
(9) leverage the benefits of multilateral institutions so
that priorities and approaches are aligned, investments are
coordinated, and financial and technical assistance gaps are
filled; and
(10) deliver on sustained and accountable commitments,
using benchmarks and targets to measure progress toward shared
goals, and hold the United States and other stakeholders
publicly accountable for achieving results.
SEC. 1204. ASSISTANCE FOR PROMOTING FOOD SECURITY.
(a) Authorization.--The Administrator is authorized to use funds
made available under section 1015 to further the goal and objectives of
this chapter.
(b) Activities.--Assistance authorized under subsection (a) shall
include--
(1) sustainably improving agricultural productivity by--
(A) increasing access to agricultural inputs,
techniques, and technologies that are affordable and
environmentally responsible;
(B) developing inputs, techniques, and technologies
that are adapted to local conditions;
(C) expanding access to knowledge through
agricultural extension;
(D) strengthening property rights to land and other
productive assets;
(E) enhancing sustainability and resilience of
production through sound environmental and natural
resource management;
(F) increasing access to dependable and affordable
financial and risk management services;
(G) strengthening agricultural producer
organizations; and
(H) strengthening regional harmonization and
coordination;
(2) expanding markets and trade by--
(A) increasing the quality and availability of
market information for producers and enterprise owners;
(B) improving post-harvest market infrastructure;
(C) improving access to business development and
financial services;
(D) enhancing animal, plant and food safety;
(E) reducing the time and cost of moving goods
across borders;
(F) creating an enabling policy environment for
agribusiness growth and private investment, including
transparent regulations, consistent and predictable
public policies, and reliable contract enforcement
mechanisms;
(G) expanding access to larger and better
functioning regional markets; and
(H) supporting regional development corridors;
(3) raising nutritional status by--
(A) supporting community-based programs to deliver
nutrition education;
(B) improving diet quality and diversity, including
in food assistance programs;
(C) expanding access to clean water and improved
sanitation and promoting good hygiene practices;
(D) expanding delivery of nutrition services; and
(E) facilitating supplementary and therapeutic
feeding;
(4) increasing resilience in vulnerable rural communities
by--
(A) mitigating risks associated with drought,
natural disasters, and disease;
(B) promoting secure access to land and natural
resources;
(C) expanding access to financial services,
training, and technical assistance for microenterprises
and small businesses;
(D) supporting effective delivery and
implementation of productive safety nets and social
protection systems;
(E) building capacity to manage risk through early
warning systems, vulnerability assessment and mapping,
emergency response strategies, and micro-insurance;
(F) increasing the benefits of local and regional
food assistance procurement to smallholder farmers; and
(G) adopting and delivering extension and financial
services and improved technologies to very poor
communities; and
(5) supporting a participatory and inclusive process for
determining needs, priorities, and strategies and holding
stakeholders accountable for results by--
(A) expanding and facilitating the inclusion of
women, rural poor people, and other marginalized groups
in decisionmaking;
(B) building the capacity of the groups described
in subparagraph (A) to participate effectively in
decisionmaking;
(C) developing and enforcing legal protections for
the rights and welfare of the groups described in
subparagraph (A);
(D) setting meaningful benchmarks and selecting
appropriate indicators for the chosen strategies;
(E) improving the quality and availability in
partner countries of relevant data and analysis; and
(F) establishing and strengthening mechanisms for
monitoring programs, measuring progress, evaluating
outcomes, disseminating findings, and integrating best
practices and lessons learned.
SEC. 1205. COLLABORATIVE AGRICULTURAL AND NUTRITION RESEARCH AND
INNOVATION.
(a) Programs Authorized.--The Administrator is authorized to use
funds made available under this chapter for collaborative agricultural
and nutrition research and innovation programs, including--
(1) advancing the institutional capacity and human
resources of developing countries, including the establishment
and strengthening of national agricultural research and
extension systems;
(2) conducting long-term collaborative research support
programs with institutions of higher education in developing
countries, including the training of students, teachers,
extension specialists, nutritionists, and researchers;
(3) developing a global network for scientific
collaboration on agricultural development, trade, research, and
extension services;
(4) broadly disseminating agricultural research in
developing countries, in partnership with public and private
extension systems, cooperatives, and other civil society
organizations;
(5) expanding learning opportunities about agriculture and
nutrition for students, teachers, small-scale food producers,
school administrators, community leaders, entrepreneurs, and
the general public in developing countries through
international internships and exchanges, graduate fellowships,
faculty positions, and other means of education and extension,
with a focus on reaching women food producers;
(6) incentivizing the development of new and innovative
technology and methods to increase agricultural productivity
and improve nutritional status;
(7) developing scalable and cost-effective programs for
training the next generation of agricultural researchers and
research administrators in partner countries;
(8) advancing women's leadership in science and technology
through proactive recruitment, mentoring, and targeted research
support;
(9) formulating approaches to improving agricultural and
nutrition education and extension that is relevant to
agricultural producers, their needs, and the local environment;
(10) creating platforms for improving national capacity to
collect, develop, analyze, and disseminate agricultural,
nutrition, and market data; and
(11) developing mechanisms to hold research institutions
accountable for delivering technologies to agricultural
producers.
(b) Research Priorities.--In providing assistance for agricultural
research under this section, the Administrator should give priority to
research that--
(1) is aimed at improving food security;
(2) specifically addresses the nutritional needs of
vulnerable populations;
(3) is appropriate to local conditions and practices;
(4) conserves the environment and natural resources and
adapts to and mitigates the impacts of climate change; and
(5) builds local capacity.
SEC. 1206. BOARD FOR INTERNATIONAL FOOD AND AGRICULTURAL DEVELOPMENT.
(a) Establishment.--There is established a Board for International
Food and Agricultural Development (hereafter in this section referred
to as the ``Board''). The Board shall report to the Administrator.
(b) Purpose.--The purpose of the Board is to advise and assist the
Administrator regarding the design and administration of assistance
under section 1205.
(c) Duties.--The duties of the Board shall include--
(1) participating in the formulation of criteria for
program design and project selection;
(2) evaluating the qualifications of interested
institutions of higher education and the demonstrated
commitment of such institutions to the purposes of this
section;
(3) recommending appropriate focus countries for programs
carried out under this section;
(4) assessing the impact of programs carried out under this
section and making recommendations for improving the
effectiveness of such programs; and
(5) advising the Administrator on such issues as the
Administrator may request.
(d) Membership.--
(1) Number and appointment.--The Board shall be composed of
at least 7 members, of whom--
(A) not less than four members shall be
representatives of institutions of higher education;
and
(B) not less than three members shall be
representatives of United States nongovernmental
organizations or consortia of such organizations
devoted to agricultural research, education, and
development.
(2) Terms.--
(A) In general.--Subject to paragraph (2), the
Administrator shall establish the term of membership
for each member of the Board at the time of
appointment.
(B) Limitations.--A term of membership to the Board
may not exceed two years and a member of the Board may
serve not more than two consecutive terms during the
tenure of an Administrator.
(e) Chairperson and Vice Chairperson.--The Chairperson and Vice
Chairperson of the Board shall be designated by the Administrator at
the time of appointment to the Board.
(f) Report.--
(1) In general.--The Board shall submit to the
Administrator on an annual basis a report that describes the
activities of the Board during the preceding year and contains
any other information that may be required by the
Administrator.
(2) Availability to public.--The Administrator shall make
the report publicly available on the Internet website of the
Agency.
(g) Meetings.--The Board shall hold not less than 3 meetings each
year.
(h) Subordinate Units.--The Board may create such subordinate units
as may be appropriate for the performance of its duties.
(i) Expenses.--The Administrator may, on a case-by-case basis as
the Administrator determines appropriate, reimburse members of the
Board for expenses incurred in the performance of their duties
(including per diem in lieu of subsistence while away from their homes
or regular place of business).
SEC. 1207. ASSISTANCE TO INTERNATIONAL AND REGIONAL ORGANIZATIONS.
The Administrator is authorized to use funds made available under
this chapter to build the long-term capacity of international,
regional, and sub-regional organizations engaged in agricultural
research and development and food security activities, including--
(1) the Food and Agricultural Organization;
(2) the World Food Program;
(3) the International Fund for Agricultural Development;
(4) the Global Agriculture and Food Security Program; and
(5) the Consultative Group on International Agricultural
Research.
SEC. 1208. DEFINITIONS.
In this chapter:
(1) Food producers.--The term ``food producers'' includes
farmers, pastoralists, fishers, and other persons who cultivate
or harvest plants or raise animals (terrestrial or aquatic) for
consumption.
(2) Institutions of higher education.--The term
``institutions of higher education'' means--
(A) those colleges or universities in each State,
territory, or possession of the United States, or the
District of Columbia, now receiving, or which may
hereafter receive, benefits under the Act of July 2,
1862 (known as the First Morrill Act), or the Act of
August 30, 1890 (known as the Second Morrill Act),
which are commonly known as ``land-grant''
universities;
(B) institutions now designated or which may
hereafter be designated as sea-grant colleges under the
Act of October 15, 1966 (known as the National Sea
Grant College and Program Act), which are commonly
known as sea-grant colleges;
(C) Native American land-grant colleges as
authorized under the Equity in Educational Land-Grant
Status Act of 1994 (7 U.S.C. 301 note); and
(D) other United States colleges and universities
which--
(i) have demonstrable capacity in teaching,
research, and extension (including outreach)
activities in the agricultural sciences; and
(ii) can contribute effectively to the
advancement of the goal and objectives of this
chapter.
(3) Rome principles.--The term ``Rome Principles'' means
the Rome Principles for Sustainable Food Security, endorsed by
193 countries at the 2009 World Summit on Food Security, which
are as follows:
(A) Invest in country-owned plans, aimed at
channeling resources to well- designed and results-
based programs and partnerships.
(B) Foster strategic coordination at national,
regional and global level to improve governance,
promote better allocation of resources, avoid
duplication of efforts and identify response-gaps.
(C) Strive for a comprehensive twin-track approach
to food security that consists of--
(i) direct action to immediately tackle
hunger for the most vulnerable, and
(ii) medium- and long-term sustainable
agricultural, food security, nutrition and
rural development programs to eliminate the
root causes of hunger and poverty, including
through the progressive realization of the
right to adequate food.
(D) Ensure a strong role for the multilateral
system by sustained improvements in efficiency,
responsiveness, coordination and effectiveness of
multilateral institutions.
(E) Ensure sustained and substantial commitment by
all partners to investment in agriculture and food
security and nutrition, with provision of necessary
resources in a timely and reliable fashion, aimed at
multi-year plans and programs.
CHAPTER 3--ADVANCING HEALTH
SEC. 1301. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Saving and enhancing lives through better health is a
moral imperative that reflects fundamental humanitarian values.
(2) Strategic investments in global health can spur
progress in economic development, job creation, education,
agricultural development, gender equity and political
stability.
(3) Because disease knows no national bounds and can breed
hopelessness and despair, support for global health bolsters
United States national security. Such support also builds
constructive partnerships with other governments, with
multilateral institutions, between public and private
enterprises, and from people to people.
(4) United States global health programs should prioritize
the poorest and most vulnerable segments of the world's
population, including women, newborns and children, persons
with disabilities, and marginalized communities, and should be
designed with their participation wherever possible.
(5) Research and innovation play a critical role in
achieving health objectives worldwide, fostering the
development and introduction of new and improved health
products and practices and contributing to better policies.
(6) For maximum effectiveness, global health programs must
be closely integrated with efforts to advance nutrition,
improve hygiene, and expand access to clean water, sanitation,
and housing.
(7) To make health investments sustainable over the long
term, the United States should help build the capacity of--
(A) governments of partner countries to plan and
budget responsibly, allocate and disburse funds
equitably, and provide reliable and cost-effective
health care; and
(B) civil society to participate in decisionmaking,
carry out activities and monitor service delivery.
(8) In order to provide for sustainable financing of health
care, developing countries must create strong economies and
stable tax bases.
(9) By setting clear goals and targets and identifying
appropriate resources, a comprehensive, multiyear global health
strategy can help to ensure policy focus and consistency,
promote program integration, strengthen transparency and
accountability, build congressional and public support, and
accelerate results.
(10) Multilateral approaches offer a vital and necessary
complement to bilateral programs. By pooling their resources
and harmonizing priorities, the United States and multilateral
organizations are better able to meet global challenges,
mobilize effective leadership and extend the reach and impact
of programs.
(b) Statement of Policy.--It is the policy of the United States to
work in cooperation with the international community to save the
greatest possible number of lives and to help countries develop their
own capacity to improve the health of their own people.
SEC. 1302. GOAL AND OBJECTIVES.
(a) Goal.--The goal of assistance under this chapter is to achieve
sustained improvements in health status and health systems in partner
countries.
(b) Objectives.--In furtherance of the goal of subsection (a),
assistance under this chapter shall be designed to help partner
countries achieve the following objectives, including by strengthening
health systems:
(1) Saving the lives of mothers and children.
(2) Protecting communities from disease, both infectious
and noncommunicable.
(3) Creating an AIDS-free generation.
(4) Preventing unintended pregnancies and improving
reproductive health.
SEC. 1303. GLOBAL HEALTH STRATEGY.
(a) In General.--The strategy required under section 1019 with
respect to advancing health shall be known as the ``Global Health
Strategy''.
(b) Contents.--The Global Health Strategy shall include, in
addition to the elements required under section 1019(b), plans for
achieving the goal and objectives of section 1302.
(c) Guidelines.--The Global Health Strategy should--
(1) focus on women, girls, and gender equality;
(2) encourage country ownership and invest in country-led
plans;
(3) build sustainability through health systems
strengthening;
(4) strengthen and leverage key multilateral organizations,
global health partnerships and private sector engagement;
(5) increase impact through strategic coordination and
integration, including with efforts in related areas such as
nutrition, water, sanitation, and hygiene;
(6) promote learning and accountability through monitoring
and evaluation;
(7) accelerate results through research and innovation;
(8) address the health-related challenges posed by climate
change and other environmental trends; and
(9) safeguard the rights and dignity of health workers and
patients.
SEC. 1304. ASSISTANCE FOR HEALTH.
(a) Authorization.--The Administrator is authorized to use funds
made available under section 1015 to further the goal and objectives of
this chapter in partner countries.
(b) Activities.--Assistance authorized under subsection (a) shall
include--
(1) supporting the development, implementation, monitoring
and evaluation of a country's national health strategy;
(2) supporting the recruitment, training, management,
retention, effectiveness and equitable distribution within each
country of skilled health workers;
(3) facilitating the development of partnerships and
collaboration with educational and research institutions,
private corporations, nongovernmental organizations,
multilateral institutions and other donors, both public and
private;
(4) building the capacity of local nongovernmental
organizations to participate effectively in the planning,
implementation, monitoring and evaluation of health strategies
and systems;
(5) strengthening financial management, accounting,
auditing and reporting systems;
(6) establishing surveillance systems to detect, identify,
and respond to emerging health threats, including monitoring
the spread of disease among animal and plant populations;
(7) identifying, preparing for and responding to health-
related threats posed by climate change, pollution and other
environmental factors;
(8) improving the quality and availability of health
facilities at the national and local level;
(9) establishing and strengthening procurement and supply
chain management systems to safely, efficiently, and equitably
distribute medical and laboratory supplies;
(10) supporting the development and implementation of
national health information systems to securely track, compile
and manage data, with appropriate privacy safeguards;
(11) supporting evidence-based public health education
initiatives that teach healthy habits and behaviors, increase
health literacy, and encourage better utilization of the health
system;
(12) building government capacity to coordinate and
harmonize the delivery of health services provided by various
donors;
(13) developing and improving laboratory research and
testing capacity; and
(14) promoting a legal, policy and regulatory framework
conducive to the advancement of public health and sustainable
health care financing.
(c) Programs.--Assistance under this chapter includes programs--
(1) for child survival and maternal health, as described in
subchapter A;
(2) to combat disease, as described in subchapter B;
(3) for family planning and reproductive health, as
described in subchapter C; and
(4) for research, innovation and development of health
technologies, products and practices to advance global health
and the objectives of this chapter.
SEC. 1305. HEALTH PRINCIPLES AND RESTRICTIONS.
(a) Principles.--Funds made available to carry out this chapter
shall be provided in accordance with the following principles:
(1) Patients shall be provided with evidence-based, high-
quality, courteous care that upholds internationally recognized
human rights and protects human dignity.
(2) Patients shall have their privacy respected and the
confidentiality of their medical information protected to the
maximum extent practicable, with free access to their own
health records.
(3) Patients shall be provided with accurate health
information and quality care on an equitable basis, without
discrimination of any kind, coercion or violence, and in a
manner that prevents and reduces stigma.
(4) Patients shall have the right to make their own
decisions about their health, and shall be provided with
relevant, current, medically accurate and understandable
information concerning preventive health, diagnosis, all
available treatments, and prognosis, including the risks and
benefits of each treatment and any costs involved, except in
emergency situations where the patient lacks decisionmaking
capacity and the need for an intervention is urgent, or where
there is an imminent risk to public health.
(5) Patients and individuals participating in biomedical
research and experimental treatments shall do so on a strictly
voluntary basis, with valid informed consent processes in
place, and shall be fully advised of potential risks and
benefits.
(b) Restrictions.--None of the funds made available to carry out
this title may be used--
(1) for the performance of abortion as a method of family
planning;
(2) to coerce any person to undergo an abortion;
(3) for the performance of involuntary sterilization as a
method of family planning;
(4) to coerce any person to undergo sterilization; or
(5) for any biomedical research which relates, in whole or
in part, to methods of, or the performance of, abortion or
involuntary sterilization as a method of family planning.
(c) Definitions.--In this section--
(1) the term ``abortion as a method of family planning''
does not include--
(A) abortions provided in the case of rape or
incest or to protect the life or health of a woman; or
(B) treatment for the complications of induced,
spontaneous, or unsafely performed abortions.
(2) the term ``all available treatments'' means all
treatments that are legally available in the partner country;
and
(3) the term ``patients'' includes the legal guardians of
minors and persons who are incapacitated.
Subchapter A--Child Survival and Maternal Health
SEC. 1311. CHILD SURVIVAL.
The Administrator is authorized, notwithstanding any other
provision of law except for this chapter, to use funds made available
under this chapter for programs to reduce child mortality, including
the following:
(1) Increasing access to and utilization of appropriate
interventions to treat life-threatening childhood illnesses,
such as polio, measles, diarrhea, and respiratory infections.
(2) Improving child and maternal nutrition, including the
delivery of iron, folic acid, zinc, vitamin A, iodine, and
other key micronutrients and macronutrients.
(3) Preventing the spread of childhood disease and
improving child nutrition by expanding access to clean water,
improving sanitation, and promoting good hygiene practices.
(4) Reducing household dangers, including exposure to
environmental toxins and indoor smoke from cooking fires.
(5) Strengthening early childhood development, including
through early nutrition, parenting programs and early
education.
(6) Enhancing the quality, availability and sustainability
of key child health interventions by improving health care
systems, building local capacity, and promoting positive health
policies.
SEC. 1312. MATERNAL AND NEWBORN HEALTH.
The Administrator is authorized, notwithstanding any other
provision of law except for this chapter, to use funds made available
under this chapter for programs to reduce the mortality of, and improve
the health of, mothers and newborns, including the following:
(1) Strengthening preparation for childbirth through
education, antenatal care, access to skilled birth attendants,
preventing, detecting, and treating infections, and planning
for transport.
(2) Improving maternal and child nutritional status through
dietary improvements, nutrition education and appropriate
micronutrient interventions.
(3) Actively discouraging, preventing and responding to
harmful behaviors, such as gender-based violence, child
marriage and female genital cutting.
(4) Promoting safe delivery, birth spacing, and postpartum
care, including recognition, referral, and treatment of
maternal and newborn complications.
(5) Promoting healthy practices such as breastfeeding,
proper rest, good hygiene, and nutrition.
(6) Preventing and responding to long-term disability as a
result of pregnancy and birth, including obstetric fistula and
anemia.
(7) Improving long-term capacity and systems of local
institutions to provide quality maternal health care.
SEC. 1313. ASSISTANCE FOR ORPHANS AND OTHER VULNERABLE CHILDREN.
The Administrator is authorized to use funds made available under
this chapter to provide basic care and services for orphans and other
vulnerable children, including:
(1) Enabling community-based organizations to provide basic
care for orphans and other vulnerable children.
(2) Providing school feeding, including the purchase of
local or regional foodstuffs where appropriate.
(3) Increasing primary school enrollment through the
elimination of school fees, where appropriate, or other
barriers to education while ensuring that adequate resources
exist for teacher training and infrastructure.
(4) Providing employment training and related services for
orphans and other vulnerable children who are of legal working
age.
(5) Protecting and promoting the legal and inheritance
rights of orphans, other vulnerable children, and widows, and
addressing discrimination they often face.
(6) Providing culturally appropriate psychosocial support
to orphans and other vulnerable children.
(7) Treating orphans and other vulnerable children with
HIV/AIDS through the provision of pharmaceuticals, the
recruitment and training of individuals to provide pediatric
treatment, and the purchase of pediatric-specific technologies.
(8) Improving the capacity of foreign government agencies
and nongovernmental organizations to prevent child abandonment
and provide permanent homes through family reunification,
guardianship and adoptions, consistent with the Hague
Convention on the Protection of Children and Co-operation in
Respect of Inter-Country Adoption.
(9) Increasing access to adequate housing and reliable,
safe drinking water, sanitation, and hygiene education and
supplies.
(10) Integrating gender to ensure the unique needs of girl
and boy orphans and vulnerable children are met.
Subchapter B--Combating Disease
SEC. 1321. ASSISTANCE TO COMBAT HIV/AIDS, TUBERCULOSIS, AND MALARIA.
(a) Findings.--Congress finds that--
(1) the global HIV/AIDS pandemic poses a humanitarian,
economic and security crisis of unprecedented magnitude that
requires urgent and sustained attention;
(2) worldwide, women of childbearing age account for more
than half of people living with HIV/AIDS;
(3) tuberculosis is the leading killer of people with HIV/
AIDS, and the spread of drug resistant tuberculosis presents a
persistent public health threat to the United States;
(4) malaria imposes an enormous burden on the social and
economic development of poor countries, can be prevented
through cost-effective means, and can be cured if promptly
diagnosed and adequately treated;
(5) the creation of the United States President's Emergency
Plan for AIDS Relief (PEPFAR) in 2003 was the largest
commitment by any nation to combat a single disease,
establishing and expanding the infrastructure necessary to
deliver prevention, care, and treatment services in low-
resource settings;
(6) due to PEPFAR and multilateral initiatives such as the
Global Fund to Fight AIDS, Tuberculosis and Malaria,
significant strides have been made in preventing new cases of
disease, treating affected persons, training health care
workers, and educating families and communities; and
(7) to be most sustainable and have the greatest positive
impact, programs to combat HIV/AIDS, tuberculosis and malaria
should be coordinated and integrated with other global health
and health-related programs, including maternal and child
health, family planning and reproductive health, nutrition, and
water, sanitation, and hygiene.
(b) Authorization.--The President is authorized to use funds made
available under this chapter to--
(1) carry out the United States Leadership Against HIV/
AIDS, Tuberculosis, and Malaria Act of 2003 (Public Law 108-
25), as amended by this Act, and other related laws, including
the Tom Lantos and Henry J. Hyde United States Global
Leadership Against HIV/AIDS, Tuberculosis, and Malaria
Reauthorization Act of 2008 (Public Law 110-293), the Global
AIDS and Tuberculosis Relief Act of 2000 (Public Law 106-264),
and the International Malaria Control Act of 2000 (Public Law
106-570); and
(2) contribute to the Global Fund to Fight AIDS,
Tuberculosis and Malaria and the GAVI Alliance.
(c) Other Laws Superseded.--The President may exercise the
authority of subsection (b) notwithstanding any other provision of law,
except the United States Leadership Against HIV/AIDS, Tuberculosis, and
Malaria Act of 2003 (Public Law 108-25), as amended by this Act.
(d) Coordination.--Assistance provided under the authorities of
this section or the United States Leadership Against HIV/AIDS,
Tuberculosis, and Malaria Act of 2003 (Public Law 108-25) shall be
coordinated with all other health-related programs under this chapter
and chapter 6, and shall be included in the Global Health Strategy
required under section 1303.
SEC. 1322. ASSISTANCE TO COMBAT NEGLECTED TROPICAL DISEASES.
(a) Findings.--Congress finds that--
(1) more than 1,000,000,000 people worldwide suffer from
one or more painful, debilitating tropical diseases, which
disproportionately impact poor and rural populations, cause
severe sickness and disability, compromise mental and physical
development, contribute to childhood malnutrition, reduce
school enrollment, and hinder economic productivity;
(2) many of these neglected tropical diseases (NTDs) can be
controlled and treated by providing safe and effective drug
treatments, improving access to clean water and improved
sanitation, and promoting good hygiene practices for
individuals in affected communities; and
(3) an integrated approach to controlling NTDs will address
a root cause of poverty that affects a significant proportion
of the world's population.
(b) Authorization.--The Administrator is authorized to use funds
made available under this chapter for the prevention, treatment,
control, and elimination of, and research on, neglected tropical
diseases.
SEC. 1323. ASSISTANCE FOR DISEASE PREVENTION, CONTROL, AND TREATMENT.
(a) Findings.--Congress finds that--
(1) infectious diseases such as avian and pandemic
influenza not only cause death and debilitating illness in the
countries where new strains originate, but can quickly spread
around the world;
(2) the development and spread of antimicrobial resistance
threatens to undermine global efforts to control tuberculosis
and other bacterial diseases;
(3) developing countries are undergoing a rapid
epidemiological transition from infectious diseases such as
diarrhea and pneumonia to noncommunicable diseases such as
cardiovascular disease, cancer and diabetes, which threatens to
overwhelm their strapped health systems and cripple their
fragile economies;
(4) mental health is an important but frequently overlooked
or stigmatized aspect of health that requires effective and
compassionate treatment and care;
(5) improvement in the capacity of developing countries to
obtain and use good quality data for surveillance and effective
response to emerging health threats helps to protect the health
of United States citizens as well as that of local populations;
and
(6) disease-focused interventions are most effective when
they--
(A) reflect an evidence-based approach;
(B) are integrated across health programs through a
common delivery platform; and
(C) support increased collaboration and
coordination among country-level stakeholders,
including partner country governments, other public and
private donors, and international and nongovernmental
organizations.
(b) Authorization.--The Administrator is authorized to use funds
made available under this chapter to provide assistance for the
prevention, treatment, control, and elimination of, and research on,
infectious and noncommunicable diseases in partner countries.
Subchapter C--Family Planning and Reproductive Health
SEC. 1331. ASSISTANCE FOR FAMILY PLANNING AND REPRODUCTIVE HEALTH.
(a) Findings.--Congress finds that--
(1) reproductive health care is essential to reducing
poverty, improving living standards and protecting human
dignity;
(2) throughout much of the world, the lack of access by
women, particularly poor women, to reproductive health care
contributes to death and suffering, limits women's ability to
make decisions that affect their lives, and undermines the
efforts of families to lift themselves out of poverty;
(3) access to reproductive health care, including voluntary
family planning, has a direct and important impact on child
mortality, especially infant mortality;
(4) closely spaced and ill-timed pregnancies and births
contribute to high infant mortality rates, and when mothers die
as a result of giving birth, their surviving infants have a
greater risk of mortality and poor health status;
(5) in many developing countries where there are few
hospitals, few doctors, and poor transportation systems, and
where women are not highly valued, complications of labor often
result in death of the mother;
(6) lack of availability of emergency obstetric care, along
with delays in seeking medical attention, in reaching a medical
facility, and in receiving medical care once arriving at a
facility, contribute to the development of obstetric fistula,
increasing the risk of death for both mother and child;
(7) voluntary family planning allows women and couples to
freely choose the number, timing and spacing of pregnancies,
giving families and individuals greater control over their
lives;
(8) young people are particularly at risk of engaging in
unsafe sexual practices, and should be provided with clear and
evidence-based information to help them make informed decisions
about their sexual and reproductive health and human rights,
including their right to be free from all forms of violence,
coercion and discrimination;
(9) practices such as child marriage and female genital
cutting can harm the health of young people and deprive them of
their dignity and human rights. Reproductive health care can
play an important role in educating people about the dangers of
these practices, and is often the entry point for
identification of gender-based violence and sexual abuse;
(10) integrating reproductive health care, including
voluntary family planning, with HIV prevention programs is
critical to combating HIV/AIDS, and can assist in decreasing
the stigma associated with a seropositive HIV status;
(11) integration of reproductive health care with other
health-care and related social services increases the
effectiveness and efficiency of the health system and meets
people's needs for accessible, acceptable, convenient, client-
centered care;
(12) international goals and targets for reducing poverty
and improving maternal health require a significant investment
in family planning and reproductive health care;
(13) international partnerships are required to provide
adequate financing for family planning and reproductive health
care;
(14) cooperating with multilateral and bilateral donors and
the private sector can make commodities such as
antiretrovirals, maternal health equipment, and contraceptive
supplies more accessible for hard-to-reach populations; and
(15) by investing in reproductive health care, including
voluntary family planning, the United States can improve
maternal and child health, lower HIV infection rates, reduce
poverty and hunger, advance girls' education, promote gender
equality, broaden civic participation in the development
process, and slow the depletion of natural resources.
(b) Authorization.--The Administrator is authorized to use funds
made available under this chapter for reproductive health care
programs, including voluntary family planning, in partner countries.
SEC. 1332. REPRODUCTIVE HEALTH CARE IN EMERGENCIES.
The Administrator is authorized to use funds made available under
this subchapter and under subtitle B for programs to provide
reproductive health care during humanitarian emergencies and complex
crises, including:
(1) Life-saving priority activities set out in the Sphere
Project's Humanitarian Charter and Minimum Standards in
Disaster Response.
(2) Preventing sexual violence and providing medical care
and psychosocial services to survivors of sexual violence.
(3) Voluntary family planning for the duration of
displacement.
CHAPTER 4--EXPANDING QUALITY EDUCATION
SEC. 1401. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Education is a basic human right, indispensable for
human capacity development and poverty eradication.
(2) Basic education is fundamental to development. No
country has reached sustained economic growth without achieving
near universal primary education.
(3) Quality education reduces poverty and inequity, lays
the foundation for sound governance, civic participation, and
strong institutions, and equips people with the knowledge,
skills, and self-reliance they need to increase income and
expand opportunities for employment.
(4) While developing countries bear the ultimate
responsibility for educating their children, the United States
and others donors can and should do more to help developing
countries address their education needs.
(5) Investing in girls' education delivers substantial
returns not only in educational attainment but also in
increasing women's and household incomes, delaying the start of
sexual activity, reducing infant mortality, increasing women's
political participation, spurring economic growth, and delaying
marriage.
(6) Lack of access to adequate housing, safe drinking water
close to home, and to private latrines near home and at school
significantly impact girls' attendance and retention at school.
(7) Education can help to protect children in conflict
situations from physical harm, exploitation, and sexual abuse,
as well as to avoid the recruitment of children into armed
groups and gangs.
(8) The large number of children who are not enrolled in
school or who receive a poor quality education not only results
in a loss of human potential, but undermines stability and
progress within communities and across nations.
(9) Expanded access to primary and secondary education will
increase the need for qualified teachers, and the demand for
quality colleges and universities.
(10) Exchange programs which bring citizens of developing
countries to the United States for training, while helpful in
expanding individual opportunities for growth, will not by
themselves reach enough students and scholars to have a
transformational effect on the economies and human resources of
developing countries.
(11) Partnerships between educational institutions in the
United States and developing countries are an important means
for sharing knowledge, experience and lessons learned for the
benefit of all students.
(12) Resources to expand global education will be most
effective and efficient if they are transparent, increase
coordination among governments, private sector and civil
society, support national plans and hold all stakeholders
accountable.
(b) Statement of Policy.--It is the policy of the United States to
work in cooperation with the international community to achieve quality
universal basic education.
SEC. 1402. GOAL AND OBJECTIVES.
(a) Goal.--The goal of assistance under this chapter is to increase
access to quality education in partner countries.
(b) Objectives.--In furtherance of the goal of subsection (a),
assistance under this chapter shall be designed to help partner
countries achieve the following objectives:
(1) Expanding access to basic education for all children,
particularly marginalized and vulnerable groups.
(2) Improving the quality of basic education.
(3) Raising adult literacy, especially for women.
(4) Reducing gender disparities in primary and secondary
education.
(5) Strengthening higher education partnerships and
networks.
SEC. 1403. GLOBAL EDUCATION STRATEGY.
(a) In General.--The strategy required under section 1019 with
respect to expanding education shall be known as the ``Global Education
Strategy''.
(b) Contents.--The Global Education Strategy shall include, in
addition to the elements required under section 1019(b), plans for
achieving the goal and objectives of section 1402.
(c) Guidelines.--The Global Education Strategy should--
(1) contribute to meeting internationally agreed education
goals and targets;
(2) be directly responsive to partner country needs,
capacity, and commitment, strengthen partner countries'
educational systems, and be coordinated, where possible, with
national education plans;
(3) pay particular attention to expanding educational
opportunities for marginalized and vulnerable groups, including
girls, children affected by or emerging from armed conflict or
humanitarian crises, disabled children, children in remote or
rural areas, religious or ethnic minorities, indigenous
peoples, orphans and children impacted by HIV/AIDS, child
laborers, and victims of trafficking;
(4) identify ways to reduce the adverse impact of HIV/AIDS
on education systems;
(5) address the challenges posed by large numbers of out-
of-school, unemployed youth;
(6) encourage and integrate contributions of strategic
direction and financial resources from local and international
private sector and civil society organizations, including
organizations that represent teachers, students, and parents,
interested in supporting quality universal basic education
efforts;
(7) outline plans for ensuring a transition and continuity
of educational activities in countries affected by or emerging
from armed conflict or humanitarian crises;
(8) expand public-private partnerships in order to leverage
resources;
(9) promote gender equity and improve educational
opportunities for women and girls, and strive to ensure safe
schools, equal access, workforce opportunities, leadership role
development, and the preservation of dignity and respect;
(10) explain how basic education, higher education,
vocational and technical education, literacy instruction, and
other formal and nonformal training will be integrated with
other activities under this title; and
(11) address the problem of financing education.
SEC. 1404. BASIC EDUCATION ASSISTANCE.
(a) Authorization.--The Administrator is authorized to use funds
made available under section 1015 for basic education in accordance
with the goal and objectives of this chapter.
(b) Activities.--Assistance authorized under subsection (a) shall
include--
(1) increasing the supply of trained quality teachers, and
building systems for the continuing support, training and
professional development of all educators;
(2) developing and implementing effective, relevant
curricula;
(3) building the institutional capacity of a country to
manage basic education systems and measure results;
(4) increasing parent and community involvement in schools;
(5) providing learning materials;
(6) working with communities to achieve equity in schools
and address gender norms to build support for girls' education;
(7) promoting the development and effective use of systems
for data collection, monitoring and evaluation of student-
learning outcomes;
(8) improving and expanding educational infrastructure;
(9) reducing or eliminating fees for tuition, uniforms and
school materials, as well as other barriers to school
attendance, for poor and marginalized children;
(10) improving young children's capacity to learn through
early childhood development programs;
(11) supporting interventions that increase school
attendance and performance, such as scholarships, school lunch,
school health, and water and sanitation programs;
(12) ensuring that schools are not incubators for violent
extremism;
(13) providing life skills training and civic education,
including on human rights, gender equity, and conflict
resolution;
(14) making schools safe and secure places for learning,
free of violence, harassment, exploitation, or intimidation;
(15) increasing access to education, improving learning
outcomes and increasing educational opportunities for the most
disadvantaged populations;
(16) ensuring continuation or reestablishment of
educational programs and the provision of safe spaces for
children in areas of armed conflict or humanitarian crisis;
(17) increasing the relevance of formal education systems
to the needs of the poor and to disaffected youth, through
reform of curricula, teaching materials, and teaching methods,
and improved teacher training;
(18) expanding vocational and entrepreneurship skills and
opportunities, especially for out-of-school youth, in close
linkage with the private sector and in response to market
needs;
(19) supporting multilateral coordination and financing
initiatives for education; and
(20) promoting the value of education and increasing
community and family awareness of the positive impact of
education.
(c) Definition.--In this chapter, the term ``basic education''
means an education, generally consisting of completion of 9-10 years of
schooling, including efforts to improve early childhood development,
primary education, secondary education, literacy and numeracy training,
and life-skills training that prepares an individual to be an active,
productive member of society and the workforce.
SEC. 1405. HIGHER EDUCATION PARTNERSHIPS.
(a) Findings.--Congress finds that--
(1) basic and higher education are interrelated and
together play a critical role in reducing poverty, promoting
economic growth, strengthening democracy, stemming corruption,
alleviating ethnic tensions, and enhancing stability;
(2) higher education institutions foster critical thinking,
scientific discovery, entrepreneurship and innovation in local
communities as well as at the national and international level;
(3) higher education is essential for developing human
capacity to create the next generation of political,
professional and business leadership, build an effective and
accountable civil service, improve the quality and availability
of social services, and strengthen the rule of law;
(4) partnerships between institutions of higher education
in the United States and developing countries can--
(A) increase the quality and availability of, and
access to, higher education for secondary school
graduates;
(B) support the professional development of faculty
and staff, strengthen institutional and financial
management, and streamline administrative procedures;
(C) expand course offerings, academic resources and
research opportunities for students and faculty;
(D) foster continuing professional relationships
that build international understanding and
collaboration; and
(E) facilitate the sharing of knowledge, the
identification of common research interests and
challenges, and the resolution of complex problems; and
(5) partnerships between businesses and higher education
institutions in developing countries can help to meet the
significant and growing demand for business professionals
within both the private and public sectors in developing
countries.
(b) Statement of Policy.--It is the policy of the United States to
encourage the expansion and strengthening of higher education in
developing countries, through partnerships with educational
institutions, businesses, and nonprofit organizations in the United
States.
(c) Authorization.--The Administrator is authorized to use
assistance made available under this chapter to expand and strengthen
institutions of higher education in developing countries through
partnerships with--
(1) institutions of higher education in the United States;
(2) businesses in the United States;
(3) nonprofit organizations with experience in the areas of
academic institution-building and entrepreneurial and
managerial development; and
(4) international organizations.
(d) Activities.--Assistance provided under subsection (c) shall
include--
(1) building the capacity of higher education institutions
in partner countries;
(2) developing academic programs and centers of excellence
in areas critical to the partner country's economic
development; and
(3) improving the quality and availability of, and access
to, higher education for students in partner countries.
CHAPTER 5--PROTECTING AND RESTORING THE NATURAL ENVIRONMENT
SEC. 1501. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Sound natural resource management, healthy levels of
species diversity, and functioning natural ecosystems are vital
to sustainably reducing poverty in developing countries.
(2) Natural ecosystems, when properly managed, provide
economic value to local communities in the form of water, food,
medicine, energy, household products, tourism and trade, as
well as contributing to the global common good.
(3) Nature provides important services for human well-
being. For example, forests, floodplains, and wetlands are a
natural bulwark against catastrophic flooding and severe
drought, and coral reefs and mangroves reduce the impact of
large storms on coastal populations, thereby reducing damages
from extreme weather and the need for disaster assistance.
(4) Natural ecosystems serve as a buffer between wildlife
and human populations, minimizing the transmission of highly
infectious diseases from animals to people.
(5) Many of the most commonly prescribed medicines in the
United States are derived directly from natural compounds or
patterned after them. The preservation of natural areas and
wild species offers the world a rich source of potential cures
and treatments for disease and pain.
(6) The survival of many animal and plant species is
endangered by poaching and excessive harvesting, by the
presence of toxic chemicals in water, air and soil, and by the
destruction of habitats.
(7) Degradation of land and water resources impedes efforts
to improve agricultural productivity, which will be critical to
feeding the world's growing population and is a key engine of
economic growth in developing countries.
(8) The construction of dams and expansion in biofuel
production in developing countries without the necessary
environmental safeguards or consultation with the local
populations threatens the sustainability of aquatic ecosystems
and the services they provide for purifying, storing, and
delivering water.
(9) The continuing and accelerating alteration,
destruction, and loss of forests and other natural habitats in
developing countries can result in--
(A) shortages of fuel;
(B) loss of biologically productive wetlands;
(C) siltation of lakes, reservoirs, and irrigation
systems;
(D) floods, soil erosion and landslides;
(E) decimation and dislocation of indigenous
peoples;
(F) extinction of plant and animal species;
(G) reduced capacity for food production;
(H) loss of genetic resources;
(I) desertification;
(J) increased greenhouse gas emissions; and
(K) destabilization of the earth's climate.
(10) Women often are especially vulnerable to the impact of
natural resource degradation and climate change because they
produce most of the food and collect most of the water and
firewood in many countries.
(11) Mismanagement and unregulated exploitation of natural
resources has fueled conflict and corruption in many developing
countries.
(12) Illicit trade in natural resources not only robs poor
countries of valuable economic and environmental resources, but
often perpetrates political instability and human rights
abuses, including sexual violence and the use of children as
soldiers, bonded labor and sex slaves.
(13) Illegal logging, fishing, and mining in developing
countries flood the international market with low-cost products
that undercut the competitiveness of responsible companies in
the United States.
(14) Economic growth generally raises energy consumption,
and often results in increased emissions of greenhouse gases as
well as greater pollution of air, land, and water.
(15) If current trends in the degradation of natural
resources in developing countries continue, they will severely
undermine the best efforts to meet basic human needs, to
achieve sustained economic growth, and to prevent international
tension and conflict.
(16) Animals, including livestock, companion animals, and
wildlife, are important to human economic, environmental, and
social development as well as to human quality of life. Animals
and the people who depend upon them in developing countries
will be particularly vulnerable to climate-related natural
disasters unless adaptation and mitigation measures are
utilized.
(17) The world faces enormous, urgent, and complex
challenges in conserving and protecting natural resources while
fostering economic development, requiring extensive and
sustained cooperation between the United States, developing
countries and the international community as a whole.
(b) Statement of Policy.--It is the policy of the United States to
work in cooperation with the international community to reduce
biodiversity loss and the degradation of natural ecosystems, adapt to
and mitigate climate change, and integrate principles of environmental
sustainability into policies and programs for international
development.
SEC. 1502. GOAL AND OBJECTIVES.
(a) Goal.--The goal of assistance under this chapter is to help
partner countries maximize the environmental sustainability of their
development policies and programs.
(b) Objectives.--In furtherance of the goal described in subsection
(a), assistance under this chapter shall be designed to help partner
countries achieve the following objectives:
(1) Protecting and restoring natural ecosystems.
(2) Conserving biological diversity.
(3) Mitigating and adapting to climate change.
(4) Reducing pollution of air, land and water.
(5) Increasing energy efficiency.
(6) Expanding access to clean, renewable energy sources and
technologies.
(7) Building capacity for sound natural resource
management.
(c) Implementation.--Assistance under this chapter should be
implemented in a manner that--
(1) incorporates and aligns with partner country
strategies, plans and priorities;
(2) gives due regard to the rights and interests of local
and forest-dependent communities, indigenous peoples, and
marginalized and vulnerable social groups, and ensures their
full and effective participation in all stages of program
planning, implementation, and evaluation; and
(3) promotes and integrates women's empowerment and gender
equality.
SEC. 1503. GLOBAL CONSERVATION STRATEGY.
(a) In General.--The strategy required under section 1019 with
respect to protecting and restoring the natural environment shall be
known as the ``Global Conservation Strategy''.
(b) Contents.--The Global Conservation Strategy shall include, in
addition to the elements required under section 1019(b), plans for
achieving the goal and objectives of section 1502.
(c) Guidelines.--The Global Conservation Strategy should--
(1) establish priority countries, regions or natural
ecosystems for reducing environmental degradation;
(2) identify the economic, health, and conflict-prevention
benefits to be achieved through implementation of the strategy;
(3) establish policy guidance to link investments in
specific conservation programs to the broader goals of reducing
poverty and alleviating human suffering, and to integrate
environmental goals into country-based and sector-based
strategies;
(4) identify and improve United States policies that affect
the conservation of critical natural resources and biodiversity
abroad;
(5) seek to encourage and leverage participation from the
private sector, other donor governments, governments of
developing countries, international financial institutions, and
other international organizations to implement the strategy;
(6) address the anticipated effects of climate change on
highly vulnerable communities and populations and on the
achievement of key objectives; and
(7) include a review of all executive orders and
regulations that may have an impact on the strategy.
SEC. 1504. ASSISTANCE FOR ENVIRONMENTAL SUSTAINABILITY.
(a) Authorization.--The Administrator is authorized to use funds
made available under section 1015 to further the goal and objectives of
this chapter in partner countries.
(b) Activities.--Assistance provided under subsection (a) shall
include the following:
(1) Protecting and restoring natural ecosystems.--
(A) Conserving, sustainably managing, and restoring
natural ecosystems.
(B) Establishing, restoring, protecting, and
maintaining protected areas, parks and reserves.
(C) Developing and improving governance structures,
resource rights and responsibilities, and land use
planning to reduce degradation, destruction, and
illegal use of natural ecosystems.
(D) Reducing greenhouse gas emissions from land use
and land-use change, the destruction of wetlands and
peatlands and forestry, including deforestation and
forest degradation and enhancement of forest carbon
stocks.
(E) Studying and assessing the economic value of
natural ecosystems and their contributions to
addressing poverty-related issues.
(F) Developing alternatives and disincentives to
destructive farming, fishing, and forestry practices.
(2) Conserving biological diversity.--
(A) Protecting and maintaining wildlife and plant
habitats, both land and sea.
(B) Developing sound wildlife management and plant
conservation policies and programs at the local,
national, and international levels.
(C) Identifying, studying, and cataloging animal
and plant species.
(D) Establishing effective policies and regulations
to reduce loss of biological diversity.
(E) Enacting and enforcing anti-poaching measures,
including through alternative livelihood opportunities.
(F) Educating local communities, including civil
society organizations, governments and intermediate
representative institutions, about the importance and
benefits of conserving biological diversity.
(3) Mitigating and adapting to climate change.--
(A) Researching and assessing climatological and
socioeconomic factors to identify and prioritize
vulnerable populations and natural ecosystems and
likely impacts.
(B) Developing national and regional climate change
adaptation and mitigation plans.
(C) Planning, financing and implementing adaptation
programs and activities.
(D) Increasing resilience to and preparedness for
climate change and its impacts among highly vulnerable
communities and populations, including through capacity
building.
(E) Supporting the identification and adoption of
appropriate renewable and efficient energy
technologies.
(4) Reducing pollution of air, land and water.--
(A) Monitoring, regulating, and mitigating
pollutants to air, land and water.
(B) Designing, promoting and utilizing clean
technologies and practices.
(C) Increasing the quality, quantity, and
transparency of data regarding the monitoring,
regulation and mitigation of pollutants.
(D) Developing public awareness campaigns and
promoting civic participation in environmental
stewardship.
SEC. 1505. ASSISTANCE FOR SUSTAINABLE ENERGY AND NATURAL RESOURCE
MANAGEMENT.
(a) Findings.--Congress finds the following:
(1) Access to energy is essential for economic growth,
public health, clean water, sanitation, transportation,
communication, agricultural activities, and the overall
progress of developing countries.
(2) Many developing countries lack access to the financial
resources and technology necessary to locate, explore, and
develop indigenous natural resources.
(3) Black carbon contributes to pollution, health concerns,
and significantly warms the Earth's climate system by absorbing
radiation, converting it into heat, and releasing heat energy
into the atmosphere.
(4) Clean, efficient and renewable energy sources are vital
to sustain economic growth and protect human health.
(5) Energy must be accessible to the poor in order to
ensure that basic human needs are met.
(6) Title V of the Nuclear Non-Proliferation Act of 1978
(22 U.S.C. 3261 et seq.) requires the United States to work
with developing countries in assessing and finding ways to meet
their energy needs through alternatives to nuclear energy that
are consistent with economic factors, material resources, and
environmental protection.
(7) Proper management of natural resources can provide the
basis for sustainable development while the mismanagement and
unregulated exploitation of natural resources has fueled
conflict and corruption in many countries around the world.
(b) Authorization.--The Administrator is authorized to use funds
made available under this chapter for programs to promote clean energy
technologies, responsible stewardship of natural resources, and
reliable access by the poor to energy.
(c) Activities.--Assistance authorized under subsection (b) shall
include the following:
(1) Increasing energy efficiency.--
(A) Development of sound national energy and
electricity plans.
(B) Improving the efficiency of electricity
transmission, distribution, and consumption.
(C) Building local capacity to monitor and regulate
the energy sector.
(2) Expanding access to clean, renewable energy sources and
technologies.--
(A) Improving the availability of renewable
electricity generation from wind, solar, sustainably
and locally produced biomass, geothermal, marine, or
hydrokinetic sources.
(B) Expanding the deployment of low or zero
emission technologies.
(C) Increasing access to clean energy technologies,
especially in rural areas.
(D) Improving transportation system and vehicle
efficiency.
(E) Reducing black carbon emissions, including
through the use of clean cookstoves.
(F) Building local capacity to operate, maintain
and improve clean energy technologies.
(G) Mitigating the impacts of energy alternatives
on natural resources and natural ecosystems
(3) Building capacity for sound natural resource
management.--
(A) Enhancing the transparency of revenues
generated from natural resource extraction.
(B) Improving the security of land tenure and
property rights, especially for marginalized groups.
(C) Building local capacity to assess, monitor, and
regulate access to natural resources and to evaluate
the social and environmental effects of extraction.
(D) Improving local capacity to assess the value of
environmental services.
SEC. 1506. ENVIRONMENTAL RESTRICTIONS.
(a) Restriction.--Assistance authorized under this subtitle shall
not be provided for programs, projects, and activities that--
(1) introduce invasive and nonnative plant species;
(2) cause the destruction or degradation of existing
natural ecosystems, natural parks, or similar protected areas;
(3) result in or cause a loss of biological diversity or
adversely impact rare, threatened, or endangered plant and
animal species;
(4) involve destructive farming, fishing, and forest
harvesting practices such as slash and burn agriculture; or
(5) provide for the construction of dams or other water
control structures that flood natural ecosystems.
(b) Waiver.--The Administrator may waive the restrictions contained
in subsection (a) if the Administrator determines and reports to the
appropriate congressional committees that--
(1) the proposed program, project, or activity is vital to
improving the livelihoods of the rural poor;
(2) the proposed program will be conducted in an
environmentally sound manner that supports sustainable
development; and
(3) appropriate mitigation activities will be undertaken.
SEC. 1507. ENVIRONMENTAL IMPACT STATEMENTS AND ASSESSMENTS.
(a) In General.--In implementing programs, projects, and activities
under this subtitle, the Administrator shall take fully into account
the impact of such programs and projects upon the environment and
natural resources of developing countries.
(b) Required Statements and Assessments.--Subject to such
procedures as the Administrator considers appropriate, the
Administrator shall require that all agencies and officials responsible
for programs, projects, and activities under this subtitle prepare and
take fully into account--
(1) an environmental impact statement for any proposed
program, project, or activity significantly affecting the
environment of the global commons outside the jurisdiction of
any country, the environment of the United States, or other
aspects of the environment which the Administrator may specify;
and
(2) an environmental assessment of any proposed program,
project, or activity significantly affecting the environment of
any foreign country.
(c) Matters To Be Included.--Environmental impact statements and
environmental assessments undertaken pursuant to subsection (b) shall
include--
(1) recommendations for possible alternatives and
mitigation measures;
(2) an estimate of greenhouse gas emissions attributable to
the program, project, or activity; and
(3) a special review of any project that will emit more
than 100,000 tons of carbon dioxide.
(d) Local Technical Resources.--Environmental impact statements and
environmental assessments undertaken pursuant to paragraph (b) should,
to the maximum extent feasible, use local technical resources.
(e) Exceptions.--The Administrator may establish exceptions from
the requirements of this section for emergency conditions and for cases
in which the Administrator determines that compliance with those
requirements would be seriously detrimental to the foreign policy
interests of the United States.
(f) Public Availability.--
(1) In the united states.--All environmental impact
statements and environmental assessments shall be published on
the Internet website of the Agency not later than 30 days
following their completion, and may be accompanied by the
Agency's response to the findings therein.
(2) In affected countries.--To the extent feasible, all
environmental assessments shall be translated into the local
language(s) of the affected communities and made available to
the partner government, local and international nongovernmental
organizations, and affected communities.
SEC. 1508. DEFINITIONS.
In this chapter:
(1) Natural ecosystem.--The term ``natural ecosystem''
means a dynamic set of living organisms, including plants,
animals, and microorganisms interacting among themselves and
with the environment in which they live, and includes tropical
forests, freshwater, coastal, estuarian and fisheries habitats,
coral reefs, natural grasslands, and mangrove forests.
(2) Greenhouse gas.--The term ``greenhouse gas'' means
carbon dioxide, methane, nitrous oxide, sulfur hexafluoride,
hydrofluorocarbons emitted from a chemical manufacturing
process at an industrial stationary source, any
perfluorocarbon, nitrogen trifluoride, any other anthropogenic
gas designated as a greenhouse gas by the Administrator for
purposes of this chapter.
(3) Highly vulnerable communities and populations.--The
term ``highly vulnerable communities and populations'' means
communities and populations that are at risk of substantial
adverse impacts of climate change and have limited capacity to
respond to such impacts, including impoverished communities,
children, women, and indigenous peoples.
(4) Most vulnerable developing countries.--The term ``most
vulnerable developing countries'' means, as determined by the
Administrator, developing countries that are at risk of
substantial adverse impacts of climate change and have limited
capacity to respond to such impacts, considering the approaches
included in any international treaties and agreements.
CHAPTER 6--IMPROVING ACCESS TO SAFE WATER, SANITATION, AND HOUSING
SEC. 1601. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Clean water and sanitation are among the most powerful
drivers for human development. They extend opportunity, enhance
dignity, and help create a virtuous cycle of improving health
and rising wealth.
(2) Unsafe drinking water, inadequate sanitation, and
unsuitable and unhygienic living conditions exact an enormous
toll on human health in developing countries, particularly for
infants and children.
(3) Diseases linked to unsafe water and poor sanitation, as
well as the time and energy women often devote to collecting
water, significantly reduce economic productivity in less
developed countries and promote lifecycles of disadvantage.
(4) Water scarcity has negative consequences for
agricultural productivity and food security, and seriously
threatens international ability to increase food production at
the rate required to meet the needs of the world's growing
population.
(5) The underlying cause of water scarcity in the large
majority of cases is institutional and political, and requires
sustainable and effective water resource management.
(6) Demand for water resources has contributed to armed
conflict in many parts of the world, while conflict and civil
strife often reduce access to clean water and sanitation for
displaced persons and other innocent victims.
(7) The continued degradation of watersheds threatens the
benefits that healthy natural systems provide, and on which
people rely.
(8) The effects of climate change are expected to produce
severe consequences for water availability and resource
management in many developing countries, which could result in
severe and chronic water shortages.
(9) Unsuitable and unhygienic living conditions can exact a
heavy toll on human health and productivity. Adequate housing
is often a precondition for the enjoyment of various civic and
human rights, including the rights to work, vote, obtain
education, receive health care, and access other social
services.
(10) Rapid urbanization and future population growth are
expected to exacerbate already limited access to water, as well
as to adequate housing.
(11) Approximately half the world's population lives in
cities, often in slums characterized by unsafe water, poor
sanitation, lack of basic services, overcrowding, inferior
construction and insecure tenure. Because slum populations are
growing rapidly, they require increased attention and better
integrated programming.
(12) Inadequate laws, policies and enforcement mechanisms
to protect real property use, lease, and ownership rights often
subject slum dwellers to arbitrary, often supra-market rents,
forced evictions, threats, and harassment.
(13) Insecurity of tenure severely inhibits economic
development by undermining investment incentives and
constraining the growth of credit markets, imperils the ability
of families to achieve sustainable livelihoods and assured
access to housing, and often contributes to conflict over
property rights.
(14) Women are affected disproportionately by forced
evictions and insecure tenure as a result of gender
discrimination, often including gender-biased laws that define
women as legal minors or otherwise prevent them from owning or
leasing land, property, and housing, making them more
vulnerable to poverty, violence, and sexual abuse.
(15) Expanding access to clean water, sanitation, and
housing is essential for reducing the global burden of disease,
advancing economic and social development, protecting basic
human rights, and mitigating sources of conflict.
(b) Statement of Policy.--It is the policy of the United States to
recognize the human right to water and adequate housing, and to work in
cooperation with the international community to ensure access to safe
water, sanitation and adequate housing for all people.
SEC. 1602. GOAL AND OBJECTIVES.
(a) Goal.--The goal of assistance under this chapter is to improve
living conditions and basic human dignity for the world's poorest
people.
(b) Objectives.--In furtherance of the goal of subsection (a),
assistance under this chapter shall be designed to help partner
countries achieve the following objectives:
(1) Expanding access to sufficient, safe, and affordable
water for personal and domestic use.
(2) Upgrading and expanding basic sanitation.
(3) Increasing access to adequate housing.
(4) Improving the management of water and related resources
for greater sustainability.
(5) Enhancing planning for sustainable urban development.
SEC. 1603. GLOBAL STRATEGY FOR WATER, SANITATION AND HOUSING.
(a) In General.--The strategy required under section 1019 with
respect to improving access to safe water, sanitation, and housing
shall be known as the ``Global Water, Sanitation and Housing
Strategy''.
(b) Contents.--The Global Water, Sanitation and Housing Strategy
shall include, in addition to the elements required under section
1019(b), plans for achieving the goal and objectives of section 1602.
(c) Guidelines.--The Global Water, Sanitation and Housing Strategy
should--
(1) include targets for providing, on a sustainable basis,
first-time access to safe water, basic sanitation, and adequate
housing;
(2) prioritize improvements for the poorest people living
under the most inadequate conditions;
(3) explain how policies and programs relating to water,
sanitation and housing will be integrated with other policies
and programs under this title;
(4) explain how programs and policies under the strategy
will contribute to meeting internationally agreed targets
relating to access to safe drinking water and basic sanitation
and improving the lives of slum dwellers;
(5) maximize efficiency in water use and sustainability of
water supplies;
(6) identify and promote best practices for mobilizing and
leveraging public-private partnerships;
(7) address the effects of climate change on achieving the
goal of this chapter;
(8) evaluate the impact of urbanization and general
migration trends on water, sanitation, and housing;
(9) utilize expertise within the United States Government
by improving policy and program coordination among relevant
Federal agencies, including the Department of State, the United
States Agency for International Development, the Millennium
Challenge Corporation, the Centers for Disease Control and
Prevention, the National Oceanic and Atmospheric
Administration, the United States Geological Survey, and the
Environmental Protection Agency; and
(10) strengthen strategic coordination with, build on the
expertise of, and encourage contributions from, a wide variety
of stakeholders, including partner governments, the private
sector and nongovernmental organizations.
SEC. 1604. ASSISTANCE FOR WATER, SANITATION AND HOUSING.
(a) Authorization.--The Administrator is authorized to use funds
made available under section 1015 to further the goal and objectives of
this chapter in partner countries.
(b) Activities.--Assistance authorized under subsection (a) shall
include the following:
(1) Expanding access to clean water and sanitation.--
(A) Assessing water, sanitation, and hygiene needs.
(B) Developing additional, affordable, accessible,
and reliable water supplies.
(C) Expanding the coverage of existing water and
sanitation systems to reach previously underserved
populations.
(D) Improving water and sanitation infrastructure.
(E) Increasing the safety, reliability, and
sustainability of, and equity in access to, water
supplies, sanitation infrastructure, and hygiene
services.
(F) Promoting more efficient and sustainable use of
water supplies.
(G) Fostering integrated river basin and watershed
management.
(H) Increasing awareness and use of healthy hygiene
practices.
(I) Building the capacity of partner countries to
plan and manage water resources in an efficient,
transparent, inclusive and environmentally sustainable
manner.
(J) Promoting international and regional
cooperation to share technologies and best practices.
(K) Mitigating conflict over water resources.
(L) Conducting research and developing technology
to further the goal and objectives of this chapter.
(2) Expanding access to adequate housing.--
(A) Assessing housing and infrastructure needs.
(B) Upgrading existing housing to meet
international humanitarian standards.
(C) Incentivizing the construction of affordable
housing units.
(D) Improving community infrastructure, such as
sidewalks, drainage ditches, and public lighting.
(E) Enhancing recognition and protection of legal
rights to the ownership, lease and use of real
property.
(F) Reducing gender and other discrimination in
housing, property ownership, and municipal services.
(G) Developing and enforcing reasonable housing and
construction codes to protect low-income residents and
buyers.
(H) Encouraging the development and expansion of
commercially oriented housing markets in partner
countries, including home mortgage and insurance
markets and financing for municipal infrastructure.
(I) Building the capacity of partner countries for
improved urban planning and management.
SEC. 1605. DEFINITIONS.
In this chapter--
(1) the term ``adequate housing'' means housing that meets
international humanitarian standards and includes--
(A) legal security of tenure;
(B) availability of services, materials,
facilities, and infrastructure;
(C) affordability;
(D) habitability;
(E) accessibility;
(F) location; and
(G) cultural adequacy; and
(2) the term ``living conditions'' means the adequacy of
water, sanitation, and housing for human habitation.
CHAPTER 7--FOSTERING GENDER EQUALITY
SEC. 1701. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Women and girls are the majority of the world's poor,
unschooled, unhealthy, and underfed.
(2) Women around the world often work under substandard
conditions, for longer hours, and with lower compensation, less
income stability and fewer economic opportunities than men.
(3) Women are often excluded by law or practice from
participating fully and equally in the political, economic, and
social life of their country.
(4) Women own significantly less land than men and
experience numerous barriers to ownership. Access to land and
property rights offers women greater economic opportunity and
security, greater protection from physical harm, better access
to health, education, and financial services, and improved
social status.
(5) Displaced, refugee, and stateless women and girls in
humanitarian emergencies, conflict settings, and natural
disasters are at extreme risk of violence, exploitation and
intimidation.
(6) Violence against women dramatically impedes progress in
meeting global health goals, including efforts to reduce
maternal mortality and reverse the spread of HIV/AIDS.
(7) Ensuring that women have the ability to effectively
plan families is one of the keys to expanding their economic
opportunities. Yet hundreds of millions of women lack access to
affordable, effective, and appropriate contraceptive methods
and reproductive health care, putting them at greater risk of
unintended pregnancies and serious health complications.
(8) Studies have shown that investments in women and girls
have broad multiplier effects, particularly in the areas of
health and education, which over the long run can significantly
improve the future of communities and countries.
(9) Investments in women and girls can play a key role in
reducing poverty, countering violent extremism, promoting
stability, fostering tolerance and reconciliation, and building
strong and vibrant civil societies.
(10) Increasing women's access to economic opportunities is
crucial to preventing and responding to domestic and sexual
violence.
(11) Fostering gender equality requires strengthening
rules, practices, and institutions that protect the rights of
women and men, girls and boys, as well as including them in the
design, implementation, and monitoring of programs to reduce
poverty and alleviate human suffering.
(b) Statement of Policy.--It is the policy of the United States
to--
(1) invest in women and girls in partner countries as a
matter of justice and human rights as well as to promote
sustainable development and achieve internationally agreed
development goals;
(2) include women and the organizations that represent them
in the design, implementation, and monitoring of programs under
this title;
(3) mainstream into the design, implementation, and
evaluation of policies and programs at all levels an
understanding of the distinctive impact that such policies and
programs may have on women and girls, men and boys; and
(4) promote equal opportunities for all people, regardless
of sex, to achieve their personal potential and maximize their
contributions to the development of their families,
communities, and countries.
SEC. 1702. GOAL AND OBJECTIVES.
(a) Goal.--The goal of assistance under this chapter is to promote
women's empowerment, gender equality, and gender integration.
(b) Objectives.--In furtherance of the goal of subsection (a),
assistance under this chapter shall be designed to help partner
countries achieve the following objectives:
(1) Increasing educational, economic, and political
opportunities for women and girls.
(2) Building the capacity of women and girls to participate
fully in decisions that affect their lives.
(3) Reducing legal and social barriers to women's
participation in economic activity and political processes.
(4) Expanding the collection of sex-disaggregated data and
the use of gender analysis.
(5) Integrating gender considerations into all
international development policies and programs, including
those carried out by all USAID bureaus, offices, and missions.
SEC. 1703. GLOBAL STRATEGY FOR GENDER EQUALITY.
(a) In General.--The strategy required under section 1019 with
respect to fostering gender equality shall be known as the ``Global
Strategy for Gender Equality''.
(b) Contents.--The Global Strategy for Gender Equality shall
include, in addition to the elements required under section 1019(b),
plans for achieving the goal and objectives in section 1702.
(c) Guidelines.--The Global Strategy for Gender Equality should--
(1) be coordinated and integrated with the comprehensive
international strategy to prevent and respond to violence
against women and girls, as required under section 3203, and
with each sector strategy of development, as described in
section 1019;
(2) include plans for preventing child marriage;
(3) address the ways in which the exclusion of, and
discrimination against, women hinders economic growth and
heightens the risks of conflict and instability;
(4) discuss exclusionary and discriminatory practices that
are particularly harmful for the achievement of United States
development goals and identify the countries in which such
practices occur;
(5) include plans for hiring, training, deploying and
retaining a diverse USAID workforce with appropriate expertise
and responsibility for promoting women's empowerment, gender
equality and gender integration around the world;
(6) establish policy and guidance for integrating gender
considerations into all other international development
strategies and programs;
(7) ensure that the goal and objectives of this chapter are
reflected in the USAID's procurement regulations and
procedures; and
(8) build accountability for gender integration into
monitoring and evaluation systems.
(d) Preparation.--The Global Strategy for Equality shall be
prepared by the Director of the Office of Gender Equality and Women's
Empowerment, in coordination with the Policy, Planning and Learning
Bureau and the Ambassador-at-Large for Global Women's Issues.
SEC. 1704. ASSISTANCE FOR GENDER EQUALITY.
(a) In General.--The Administrator is authorized to use funds made
available under section 1015 to further the goal and objectives of this
chapter in partner countries.
(b) Activities.--Assistance authorized under subsection (a) shall
include--
(1) integrating women into the political, social, and
economic systems of partner countries;
(2) developing laws, regulations, and policies that promote
equal rights and prohibit discrimination in partner countries;
(3) providing leadership and technical training that
improves the capacity of women and girls in partner countries
to participate fully in decisions that affect their lives;
(4) enhancing the capacity of partner countries to
undertake analysis of the specialized needs of women and girls
in health, water, sanitation, housing, education, food, legal
and financial services, and other sectors, and to develop
policies and programs to meet those needs;
(5) enhancing the capacity of partner countries to prevent
and respond to violence against women and girls; and
(6) research and innovation to improve the design,
implementation, and monitoring and evaluation of United States
foreign assistance for greater effectiveness in promoting
gender equality and reducing sexual and gender-based violence.
SEC. 1705. OFFICE OF GENDER EQUALITY AND WOMEN'S EMPOWERMENT.
(a) Establishment.--There is established, within the United States
Agency for International Development, an Office of Gender Equality and
Women's Empowerment (referred to in this section as the ``Office'').
(b) Director.--The Office shall be headed by a Director (referred
to in this section as the ``Director''), who shall be highly qualified
in matters relating to international development and gender
integration. The Director shall report directly to the Administrator
and consult regularly with the Ambassador-at-Large for Global Women's
Issues.
(c) Duties.--The Director shall--
(1) advise the Administrator on matters relating to the
advancement of women's global development;
(2) lead and coordinate all efforts of the United States
Agency for International Development to empower women and
promote gender equality in developing countries, including
efforts to prevent and respond to gender-based violence;
(3) direct the preparation of the Global Strategy for
Gender Equality under section 1703;
(4) mainstream into the design, implementation, and
evaluation of policies and programs at all levels an
understanding of the distinctive impact that such policies and
programs may have on women and girls;
(5) assist other bureaus, offices, and overseas missions in
designing and revising strategies, programs, projects and
activities to empower women and promote gender equality;
(6) monitor and evaluate the impact on women and girls of
programs carried out by USAID; and
(7) disseminate information about lessons learned and best
practices for advancing women's global development throughout
USAID and other relevant Federal agencies.
SEC. 1706. PREVENTION OF CHILD MARRIAGE.
(a) Findings.--Congress finds the following:
(1) Child marriage, also known as ``forced marriage'' or
``early marriage'', is a harmful traditional practice that
deprives girls of their dignity and human rights.
(2) Child marriage as a traditional practice, as well as
through coercion or force, is a violation of article 16 of the
Universal Declaration of Human Rights, which states, ``Marriage
shall be entered into only with the free and full consent of
intending spouses''.
(3) Factors perpetuating child marriage include poverty, a
lack of educational or employment opportunities for girls,
parental concerns to ensure sexual relations within marriage,
the dowry system, and the perceived lack of value of girls.
(4) Child marriage has negative effects on the health of
girls, including significantly increased risk of maternal death
and morbidity, infant mortality and morbidity, obstetric
fistula, and sexually transmitted diseases, including HIV/AIDS.
(5) Most countries with high rates of child marriage have a
legally established minimum age of marriage, yet child marriage
persists due to strong traditional norms and the failure to
enforce existing laws.
(6) Investments in girls' schooling, creating safe
community spaces for girls, and programs to build skills for
out-of-school girls are all effective and demonstrated
strategies for preventing child marriage by addressing
conditions of poverty, low status, and social norms that
contribute to child marriage.
(b) Statement of Policy.--It is the policy of the United States to
seek the elimination of the practice of child marriage.
(c) Authorization.--The Administrator is authorized to use funds
made available under this chapter for programs to prevent the incidence
of child marriage in partner countries through the promotion of
educational, health, economic, social, and legal rights of girls and
women.
(d) Priority.--In providing assistance authorized under subsection
(c), the Administrator should give priority to--
(1) areas or regions in developing countries in which 40
percent or more of girls under the age of 18 are married; and
(2) activities to--
(A) expand and replicate existing community-based
programs that are successful in preventing the
incidence of child marriage;
(B) establish pilot projects to prevent child
marriage; and
(C) share evaluations of successful programs,
program designs, experiences, and lessons.
SEC. 1707. COORDINATION OF EFFORTS TO PREVENT CHILD MARRIAGE.
(a) Designation.--The Administrator shall designate an official to
lead and coordinate policies and programs of the Agency to prevent
child marriage.
(b) Additional Duties.--In addition to the responsibilities
described in subsection (a), the official designated under subsection
(a) shall--
(1) ensure that efforts to prevent child marriage are
integrated into the relevant country and sector strategies
prepared in accordance with sections 1018 and 1019; and
(2) collect and disseminate information on--
(A) best practices for preventing and reducing the
incidence of child marriage;
(B) the incidence of child marriage in partner
countries where the practice of child marriage is
prevalent; and
(C) the relationship between prevalence of child
marriage and the achievement of development goals.
(c) Consultation.--In carrying out the duties under this section,
the official designated under subsection (a) shall consult with a wide
range of relevant stakeholders.
SEC. 1708. DEFINITIONS.
In this chapter:
(1) Child marriage.--The term ``child marriage'' means the
marriage of a girl or a boy who has not reached the minimum
legal age for marriage in the country of residence, or where
there is no such law, under the age of 18.
(2) Gender analysis.--The term ``gender analysis'' means
the systematic examination of the different roles, rights,
resources, constraints, and opportunities of men and women,
boys and girls, in a society, economy, community or family.
(3) Gender equality.--The term ``gender equality'' means
equal opportunities for all people, regardless of sex, to
achieve their personal potential and maximize their
contributions to the development of their families,
communities, and countries.
(4) Gender integration.--The term ``gender integration''
means incorporating gender analysis and the resulting
recommendations in all policies, budgets, programming, and
performance monitoring and evaluation.
CHAPTER 8--STRENGTHENING DEMOCRATIC GOVERNANCE
SEC. 1801. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Democratic development, political pluralism, and
respect for internationally recognized human rights are
intrinsically linked to economic and social progress. Efforts
to reduce poverty and promote broad-based economic growth are
more effective and sustainable in a political environment in
which fundamental freedoms and the rule of law are respected,
government institutions are broadly representative, and
corruption is held to a minimum.
(2) Violent extremism that threatens United States national
security flourishes where democratic governance is weak,
justice uncertain, and legal avenues for change in short
supply.
(3) Democracy can only be sustained in a society in which
the legitimacy of the government rests firmly on the expressed
consent of the governed; the rights of all citizens, including
minorities, are respected and protected; and there is effective
civilian control over the military and security forces.
(4) There is a growing worldwide movement toward more open,
just and democratic societies. This trend is essential to
achieving the United States ultimate objective of worldwide
respect for human rights and fundamental freedoms without
distinction as to race, sex, language, religion, sexual
orientation, or gender identity. At the same time, this trend
holds great promise for promoting the peace of the world and
the foreign policy, security, and general welfare of the United
States.
(5) Preventing mass atrocities is a core national security
interest and a core moral responsibility of the United States.
Governmental engagement on atrocities too often arrives too
late, when opportunities for prevention or low-cost, low-risk
action have been missed. By helping partner countries to
strengthen democratic institutions and practices and to manage
diversity peacefully, responsibly and equitably, USAID can
address many of the structural conditions that give rise to
mass atrocities.
(6) Persons belonging to racial, ethnic, religious, and
linguistic minorities, as well as lesbians, gays, bisexuals,
and transgender individuals, and persons with disabilities are
often subjected to discrimination, harassment, exploitation,
intimidation, and exclusion. United States policies and
programs should seek to foster equal opportunity and equal
access to justice for all people, including marginalized
groups.
(7) Civil society organizations and activists worldwide
contribute in unique and essential ways to development as
innovative agents of change and social transformation. In
particular, such organizations have an important role to play
in bringing the voices of the poor to influence government
policies, and to hold governments and other powerful actors to
account for their actions. A diverse, strong, and independent
civil society sector is critical for the sustainable reduction
of poverty.
(8) Democracy cannot be imposed from without. However, the
United States should encourage all states to meet their
obligations under international law to uphold and protect human
rights and fundamental freedoms, and should support the
aspirations of those who seek through peaceful means to make
their governments more democratic and accountable.
(9) Democracy takes time to become firmly rooted in society
and in the political system. While short-term interventions can
be important and effective means for preventing abuses and
opening windows of opportunity, democratic development
generally requires sustained effort and a comprehensive
approach.
(b) Statement of Policy.--It is the policy of the United States
to--
(1) support democratic aspirations and values, foster the
spread of democratic institutions, and encourage universal
respect for internationally recognized human rights, including
civil and political liberties;
(2) recognize that, to be successful, such support must not
be defined narrowly in terms of parties and elections and
government institutional capacity building, but must include
other, equally important, aspects of democratic development,
including--
(A) independent and balanced media;
(B) impartial and competent judicial processes that
deliver access to justice;
(C) respect for human rights and fundamental
freedoms; and
(D) a vibrant civil society that engages
meaningfully with government; and
(3) take into consideration a country's commitment to good
governance, respect for the rule of law and protection of
internationally recognized human rights in providing assistance
under this subtitle.
SEC. 1802. GOAL AND OBJECTIVES.
(a) Goal.--The goal of assistance under this chapter is to
strengthen democratic institutions and practices and promote human
rights in partner countries.
(b) Objectives.--In furtherance of the goal of subsection (a),
assistance under this chapter shall be designed to help partner
countries achieve the following objectives:
(1) Improving government responsiveness, accountability,
transparency and effectiveness.
(2) Increasing the capacity and participation of civil
society.
(3) Strengthening the observance of internationally
recognized human rights and the rule of law.
(4) Fostering political competition and consensus-building.
(5) Protecting and expanding democratic space for civil
society organizations to operate.
SEC. 1803. ASSISTANCE FOR DEMOCRATIC STRENGTHENING.
(a) In General.--The Administrator is authorized to use funds made
available under section 1015 to further the goal and objectives of this
chapter in partner countries.
(b) Activities.--Assistance authorized under subsection (a) shall
include support for the following:
(1) Conducting free, legitimate, credible, and fair
national, state, and local elections.
(2) Developing and strengthening open, democratic, peaceful
and effective political parties.
(3) Enhancing the responsiveness and effectiveness of
public administration.
(4) Building professional, transparent and responsible
legislatures.
(5) Developing and strengthening free, independent and
professional media.
(6) Fostering inclusive and transparent legislative and
regulatory processes at all levels of government.
(7) Decentralization efforts and the development of
capable, representative local government institutions.
(8) Strengthening civilian, democratic control over the
military.
(9) Combating corruption and promoting financial integrity.
(10) Improving the independence, impartiality, transparency
and competence of judicial officials and processes.
(11) Revising and modernizing laws, constitutions, and
legal frameworks.
(12) Expanding access of crime victims and witnesses to
legal information and services.
(13) Promoting official recognition of, and respect in
practice for, internationally recognized human rights.
(14) Supporting and assisting international and domestic
courts and tribunals investigating and prosecuting instances of
mass atrocities.
(15) Rehabilitating victims of torture, including
activities specifically designed to treat the physical and
psychological effects of torture.
(16) Preventing and responding to abuses such as human
trafficking, sexual and gender-based violence, the conscription
of children into armed forces, the use of child labor and the
practice of child marriage.
(17) Strengthening the capacity of civil society
organizations to participate effectively in public life and
provide input into government decisions.
(18) Increasing citizen awareness of rights and
responsibilities, and encouraging greater participation in
political processes.
(19) Promoting tolerance, dialogue, and peaceful dispute
resolution.
(20) Reducing the risk of mass atrocities through early
warning and early action.
(21) Fostering equal rights and equal opportunities for
marginalized groups.
(22) Countering laws, regulations, policies, and practices
that restrict civil space.
(23) Expanding public access to information and
communications, including through the Internet.
(24) Implementing Action Plans for Human Rights and
Democracy prepared pursuant to section 3103.
SEC. 1804. ADVISORY COMMITTEE ON DEMOCRACY PROMOTION.
(a) Establishment.--There is established an Advisory Committee on
Democracy Promotion (in this section referred to as the ``Advisory
Committee''). The Advisory Committee shall report to the Secretary and
the Administrator.
(b) Purpose.--The purpose of the Advisory Committee is to review
and make recommendations on how to improve United States Government
efforts to promote democracy internationally.
(c) Duties.--The duties of the Advisory Committee shall include
consulting with, providing information to, and advising the Secretary
and the Administrator on issues relating to democracy promotion in the
formulation and implementation of United States foreign policy and
foreign assistance, including such matters as--
(1) the means by which the United States Government should
promote democracy, depending on circumstances in foreign
countries;
(2) the integration of democracy considerations into United
States diplomatic and development efforts;
(3) the special challenges of setting indicators and
measuring impact in the field of democracy and governance;
(4) lessons learned and best practices in international
democracy promotion;
(5) the balance between strengthening civil society and
strengthening governance;
(6) the application of principles of country ownership in
undemocratic or democratic transition countries;
(7) the application of marking and branding rules to
democracy programs;
(8) the consistency of democracy policies and programs
across Federal agencies; and
(9) the parameters for operating in undemocratic and
conflict settings.
(d) Membership.--
(1) Number and appointment.--The Advisory Committee shall
be composed of 8 individuals appointed by the Secretary and 7
individuals appointed by the Administrator who are experts in
various aspects of the field of international democracy, human
rights, and good governance.
(2) Terms.--Members of the Advisory Committee shall serve a
term of 2 years, and may be appointed to consecutive terms.
(3) Individual capacity.--Members of the Advisory Committee
shall serve in an individual, not a representative, capacity.
(4) Chairperson and vice chairperson.--The Chairperson of
the Advisory Committee shall be designated by the Secretary,
and the Vice Chairperson of the Advisory Committee shall be
designated by the Administrator, at the time of their
appointment to the Advisory Committee.
(e) Report.--
(1) In general.--The Advisory Committee shall submit to the
Secretary and the Administrator on an annual basis a report
that describes the activities of the Advisory Committee during
the preceding year.
(2) Availability to public.--The report required by
paragraph (1) shall be made publicly available on the Internet.
(f) Meetings.--The Advisory Committee shall hold not less than 4
meetings each year.
(g) Subcommittees.--The Advisory Committee may establish
subcommittees and special task forces, as determined necessary by the
Advisory Committee. Any such subcommittee or special task force shall
meet subject to the call of the Chairperson of the subcommittee or
special task force, as the case may be.
SEC. 1805. FOREIGN GOVERNMENT APPROVAL AND CONDITIONALITY.
(a) Foreign Government Approval.--The Administrator shall not
require the approval or agreement of a foreign government for--
(1) specific programs, projects, or activities authorized
under this chapter; or
(2) specific organizations carrying out assistance
authorized under this chapter.
(b) Foreign Government Conditionality.--The Administrator shall not
terminate assistance authorized under this chapter for a country
pursuant to, or in order to conclude, an agreement to provide other
forms of assistance for such country.
SEC. 1806. RELATIONSHIP TO OTHER LAWS.
Assistance authorized under this chapter to promote human rights,
strengthen civil society, and foster a free and fair election,
referendum, or vote may be made available notwithstanding any provision
of law that restricts assistance to a foreign country.
SEC. 1807. PROHIBITING ASSISTANCE TO INFLUENCE THE OUTCOME OF
ELECTIONS.
(a) In General.--No assistance authorized under this chapter shall
be used to influence the outcome of any elections in any country.
(b) Exception.--The prohibition in subsection (a) shall not be
construed to prohibit programs that make a good faith effort to assist
all democratic parties with equitable levels of assistance.
SEC. 1808. PROTECTED SPEECH.
Notwithstanding any other provision of law, regulation, or policy,
in determining eligibility for assistance under this title, foreign
nongovernmental organizations--
(1) shall not be ineligible for such assistance solely on
the basis of health or medical services, including counseling
and referral services, provided by such organizations with non-
United States Government funds, if such services--
(A) do not violate the laws of the country in which
they are being provided, and
(B) would not violate United States Federal law if
provided in the United States; and
(2) shall not be subject to requirements relating to the
use of non-United States Government funds for advocacy and
lobbying activities other than those that apply to United
States nongovernmental organizations receiving assistance under
this title.
Subtitle B--Alleviating Human Suffering
SEC. 1901. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Natural disasters can temporarily overwhelm the
capacity of countries, regardless of wealth and technological
advancement, to meet basic human needs and protect people from
harm. Such disasters are likely to increase in number and
severity along with the changes in the world's climate, the
degradation of the environment, and the expansion of the
world's population.
(2) Conflict, weak and poor governance, corruption, and
repression increase vulnerability to humanitarian crisis,
aggravate the impact of physical and environmental shocks,
complicate the ability to respond effectively, and lengthen the
recovery period.
(3) Conflicts, human rights violations, and natural
disasters often uproot people within their own countries.
Forced to abandon their homes and livelihoods, and without
access to the rights and resources available to those who cross
an international border, these internally displaced persons are
among the world's most vulnerable and neglected people.
(4) Persons affected by conflict are at greatly heightened
risk of sexual and gender-based violence. Such risk can be
mitigated through proper design and implementation of
humanitarian programs, especially those relating to water and
sanitation, health, shelter, food, education, energy, and
livelihoods, as well as through specific protection measures.
(5) In protracted crises, humanitarian resources are often
exhausted before the essential conditions are in place for
long-term, sustainable development. In addition, lack of
expertise and training, inadequate coordination, and unclear or
narrow mandates often leave programming gaps. Coordinated
action is required to address basic human needs at every stage
of the transition, from emergency relief to recovery,
rehabilitation, reconstruction, and development.
(6) Continuity of educational activities for all children
is an essential humanitarian need. Assistance to countries
affected by conflict or crisis should include formal and
informal education services to ensure that children are able to
continue their schooling and are protected from physical harm,
psychological and social distress, recruitment into armed
groups, family separation, and abuses related to their
displacement.
(7) Nongovernmental organizations play a leading role in
humanitarian action, not only by delivering relief in
underserved areas, but also by contributing a significant
proportion of the international resources, by developing
effective and innovative techniques and methodologies, by
maintaining long-term relationships of trust with affected
communities, by establishing reputations for independence,
impartiality and neutrality, by integrating knowledge and
expertise about local languages, customs, conditions, and
needs, by bridging the gaps between relief and development, and
by advocating for those in greatest need.
(8) The United Nations plays a central, unique, and vital
role in leading and coordinating international humanitarian
assistance. Its organs and affiliated agencies have
capabilities and expertise that far exceed the ability of any
single donor to respond to humanitarian needs. The collective
voice of these partners frequently enhances United States
bilateral efforts and often plays a useful role in gaining
access and achieving results where United States influence
might otherwise be limited.
(9) Multilateralism allows the United States to leverage
its humanitarian contributions as part of a wider international
donor effort and helps ensure that United States efforts
complement those of other donors. To be effective, United
States engagement with multilateral humanitarian organizations
requires predictable funding and strong diplomatic engagement
in policy development and institutional management.
(b) Statement of Policy.--It is the policy of the United States to
save lives, alleviate human suffering wherever possible, and protect
vulnerable populations, taking action solely on the basis of need,
without discrimination between or within affected populations, without
regard to diplomatic, economic, military, or other objectives of the
United States, and without favoring any side in an armed conflict or
other dispute.
SEC. 1902. GOAL AND OBJECTIVES.
(a) Goal.--The goal of assistance under this subtitle is to save
lives, alleviate suffering, maintain human dignity, and protect and
uphold the rights of extremely vulnerable people.
(b) Objectives.--In furtherance of the goal of subsection (a),
assistance under this subtitle shall be designed to achieve the
following objectives:
(1) Provide quick and effective relief in the aftermath of
disasters, whether natural or human-caused.
(2) Facilitate the transition to self-sufficiency and safe
lives and livelihoods.
(3) Protect civilians affected by conflict, disaster, and
displacement from physical harm, persecution, exploitation,
abuse, malnutrition and disease, family separation, gender-
based violence, forcible recruitment and other threats to human
rights.
(4) Build capacity to prevent and mitigate the effects of
conflict, disasters, and displacement.
SEC. 1903. HUMANITARIAN PRINCIPLES.
(a) In General.--United States humanitarian action shall be carried
out in accordance with the following principles:
(1) The central purpose of humanitarian action is to save
lives, alleviate human suffering, and protect vulnerable
population wherever possible.
(2) Humanitarian action should be impartial, based solely
on and in proportion to need, without discrimination between or
within affected populations, and without regard to the
political views, national origin, or religious affiliation of
the beneficiaries.
(3) Humanitarian action should be neutral, without
furthering a political or religious agenda or favoring any side
in an armed conflict or other dispute where such humanitarian
action is carried out.
(4) Humanitarian action should be independent, without
regard to the political, economic, military, or other
objectives that any actor may hold in relation to the affected
areas and populations.
(5) Humanitarian action should be undertaken in accordance
with international human rights law, international humanitarian
law, refugee law, and the United Nations Guiding Principles on
Internal Displacement.
(6) Humanitarian action should meet international
standards, using the SPHERE Minimum Standards for Disaster
Response and the Inter-Agency Standing Committee guidelines as
benchmarks, should be informed by the INEE Minimum Standards,
and should promote the principles and practices of Good
Humanitarian Donorship.
(7) Protection of civilians affected by conflict, disaster,
and displacement from physical harm, persecution, exploitation,
abuse, malnutrition and disease, family separation, sexual and
gender-based violence, forcible recruitment, and other threats
to human rights is a core element of humanitarian action.
(8) Humanitarian action should be primarily civilian in
nature. The Department of Defense should provide humanitarian
assistance overseas only as a last resort when there is no
comparable civilian alternative and when the use of military or
civil defense assets can uniquely meet a critical humanitarian
need.
(9) When the military is required to support a humanitarian
response, its participation should be subject to the overall
leadership, coordination and policy guidance of civilian
agencies, who must be provided the requisite resources and
authorities to perform this leadership role.
(10) The United States should adopt, between the Department
of State and USAID, a lead-agency approach with a clear
division of leadership and responsibility for humanitarian
response. Under the guidance of the President, the Secretary
should lead for operations responding to political and security
crises, while the Administrator should lead for operations in
response to humanitarian crises resulting from large-scale
natural or industrial disasters, famines, disease outbreaks,
and other natural phenomena.
(11) Humanitarian action should be undertaken in a timely,
flexible, and efficient manner on the basis of assessed needs.
(12) In addition to providing funding for relief efforts,
the United States should use its leverage to assist
humanitarian agencies in obtaining secure, unfettered access to
survivors in crisis situations.
(13) To ensure impartiality, neutrality, independence, and
the appearance thereof, humanitarian action should be
implemented by intergovernmental and nongovernmental
international humanitarian organizations, in partnership with
local communities, indigenous organizations, and affected
governments whenever possible.
(14) Individuals affected by conflict, disaster,
persecution, and displacement have the greatest stake in the
performance of humanitarian programs and should, to the
greatest possible extent, be involved in the design,
implementation, monitoring, and evaluation of such programs.
(15) Humanitarian, reconstruction, and development programs
should be coordinated, planned, and funded to ensure continuity
of life-sustaining services during transition phases.
(16) Humanitarian, development, and other economic
assistance programs should be designed with an eye toward
reducing the risk and impact of future conflict and crisis and
building resiliency among the most vulnerable populations.
(17) United States humanitarian action should strive to
ensure that refugees, internally displaced persons, and other
conflict-affected individuals and communities are treated
equally in the application of policy and the allocation of
resources.
(18) To promote learning, accountability, transparency, and
the efficient use of resources, the United States should
support independent monitoring and evaluation of all
humanitarian assistance.
(b) Definition.--In this section--
(1) the term ``United States humanitarian action'' or
``humanitarian action'' means--
(A) humanitarian assistance as defined in section
6;
(B) assistance under any provision of law to save
lives, alleviate human suffering, and protect
vulnerable populations in an international disaster;
and
(C) diplomatic and military activities in support
of the goal and objectives of this chapter; and
(2) the term ``INEE Minimum Standards'' means the standards
for education developed by the Inter-Agency Network on
Education in Emergencies for use in emergency response,
emergency preparedness, and humanitarian advocacy.
SEC. 1904. INTERNATIONAL DISASTER ASSISTANCE.
(a) Authorization.--Notwithstanding any other provision of this or
any other Act, the Administrator is authorized to provide assistance to
any foreign country, international organization, or private voluntary
organization, on such terms and conditions as the Administrator may
determine, for international disaster relief, recovery, and
reconstruction, including assistance relating to disaster preparedness,
and to the prediction of, and contingency planning for, disasters and
humanitarian crises abroad.
(b) Availability of Funds.--Amounts made available under this
section are authorized to remain available until expended.
(c) Reimbursement Authority.--In addition to amounts otherwise
available to carry out this section, up to $100,000,000 of amounts made
available under subtitle A in any fiscal year may be obligated for the
purposes of, and in accordance with the authorities of, this section.
Amounts subsequently made available under this section may be used to
reimburse any account under which obligations were incurred under this
subsection.
SEC. 1905. EMERGENCY HUMANITARIAN RESPONSE FUND.
(a) Authority.--Whenever the Administrator determines it to be
important to the national interest of the United States, the
Administrator is authorized to provide, on such terms and conditions as
the Administrator may determine, assistance under this section for the
purpose of meeting unexpected urgent humanitarian and food assistance
needs, notwithstanding any other provision of law.
(b) Establishment.--There is established a United States Emergency
Humanitarian Response Fund to carry out the purposes of this section
(in this section referred to as the ``Fund'').
(c) Transfer Authority; Availability of Funds.--In addition to
amounts otherwise available to carry out this section, the President is
authorized to transfer to the Fund from amounts made available under
any other provision of this Act such sums as may be necessary to carry
out the purposes of this section, except that the total amount in the
Fund at any time shall not exceed $500,000,000. Amounts in the Fund are
authorized to remain available until expended.
(d) Notification.--The President shall keep the appropriate
congressional committees currently informed of the use of funds and the
exercise of functions authorized in this section.
SEC. 1906. DEFINITIONS.
In this subtitle:
(1) Disaster.--The term ``disaster'' means a human-caused
or natural occurrence that causes loss of life, health,
property, or livelihood, inflicting severe destruction and
distress.
(2) International disaster relief, recovery, and
reconstruction.--The term ``international disaster relief,
recovery, and reconstruction'' means--
(A) disaster planning and preparedness, disaster
risk reduction, and other actions to mitigate death and
destruction in the event of a disaster;
(B) immediate actions intended to save lives,
alleviate human suffering, and protect vulnerable
populations during and after a disaster;
(C) short-term measures to facilitate the
transition to self-sufficiency and safe lives and
livelihoods following a disaster; and
(D) actions to begin to reconstitute basic services
and facilities following a disaster.
(3) Protect.--The terms ``protect'' and ``protection''--
(A) mean all activities aimed at obtaining full
respect for the rights of the individual in accordance
with international human rights law, international
humanitarian law, refugee law, and the United Nations
Guiding Principles on Internal Displacement; and
(B) include activities to prevent, reduce, or
mitigate the impact of violence, coercion, deprivation,
or abuse on individuals or groups during international
disasters.
TITLE II--ADVANCING PEACE AND MITIGATING CONFLICT
SEC. 2001. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Peacebuilding involves the full range of approaches,
processes, and stages of transforming violent conflict into
stable, peaceful relationships.
(2) Because many of the greatest threats to United States
national security have emerged from failed states, it is in the
national security interest of the United States to support
peacebuilding efforts to stabilize and secure fragile states
and states under stress.
(3) United States peacebuilding efforts are most effective
when they are undertaken in cooperation with the international
community, and when they build local capacity to prevent and
stop violence and mass atrocities.
(4) In the event that prevention fails, the United States
has an obligation to work both multilaterally and bilaterally
to mobilize diplomatic, humanitarian, financial, and when
necessary and appropriate, military resources to save lives and
protect civilian populations.
(5) Civil society organizations, including international
nongovernmental organizations and local community groups, play
an important role in promoting nonviolent conflict resolution,
fostering harmony among religions, ethnic groups, communities,
and factions, and facilitating second-track diplomacy. By
coordinating with and working through such organizations, the
United States can strengthen the effectiveness of its
peacebuilding programs.
(b) Statement of Policy.--It is the policy of the United States to
promote civilian security and long-term sustainable, secure, and stable
communities.
SEC. 2002. DEFINITION.
In this title, the term ``peacebuilding'' means activities to
prevent armed conflict, prevent and respond to mass atrocities,
stabilize weak and fragile states, protect civilians in conflict zones,
mitigate crises, help countries to rebuild and recover after conflict,
and support transitions to peace, stability, and democracy.
Subtitle A--General Authorities
SEC. 2011. PEACEKEEPING.
(a) Statement of Policy.--It is the policy of the United States to
employ a variety of unilateral, bilateral, and multilateral means to
respond to international conflicts and crises, placing a high priority
upon timely, preventive diplomatic efforts and exercising a leadership
role in promoting international efforts to end crises peacefully.
(b) Authorization.--The Secretary is authorized to provide
assistance to foreign countries, international organizations, and
regional arrangements, on such terms and conditions as the Secretary
may determine, for peacekeeping operations in furtherance of the
national security interests of the United States.
(c) Reimbursement.--Such assistance may include reimbursement for
expenses incurred pursuant to section 7 of the United Nations
Participation Act of 1945 (22 U.S.C. 287d-1), except that such
reimbursements may not exceed $5,000,000 in any fiscal year unless a
greater amount is specifically authorized by law.
(d) Determination.--If the President determines that, as the result
of an unforeseen emergency, the provision of assistance under this
section in amounts in excess of amounts otherwise made available for
such assistance is important to the national interests of the United
States, the President may--
(1) exercise the authority of section 10602 to transfer
amounts made available to carry out section 4103 for use under
this section without regard to the 20 percent increase
limitation contained in section 10602, except that the total
amount so transferred in any fiscal year may not exceed
$15,000,000; and
(2) in the event the President also determines that such
unforeseen emergency requires the immediate provision of
assistance under this section, direct the drawdown of
commodities and services from the inventory and resources of
any agency of the United States Government of an aggregate
value not to exceed $25,000,000 in any fiscal year.
SEC. 2012. TRANSITION INITIATIVES.
(a) Authorization.--The Administrator is authorized to provide,
notwithstanding any other provision of law, assistance to support the
transition to peace, democracy, and sustainable development of a
country or region that is at risk of, in, or in transition from,
conflict or civil strife.
(b) Use of Funds.--Assistance under this section includes support
for the following:
(1) Developing or strengthening democratic institutions and
processes.
(2) Short-term economic and political stabilization.
(3) Reconstructing or revitalizing basic infrastructure.
(4) Fostering reconciliation and the peaceful resolution of
conflict.
(c) Transfer Authority.--If the Secretary determines that it is
important to the national interests of the United States to provide
transition assistance in excess of amounts appropriated or otherwise
made available under this section, up to $25,000,000 of the funds made
available under this Act may be used for purposes of this section and
under the authorities applicable to funds made available under this
section.
(d) Notification.--
(1) By administrator.--The Administrator shall notify the
appropriate congressional committees not less than 5 days
before beginning a new program of assistance under this
section.
(2) By secretary.--The Secretary shall notify the
appropriate congressional committee not less than 5 days before
making a transfer pursuant to subsection (c).
SEC. 2013. LIMIT ON PAYMENT TO UNITED NATIONS AND AFFILIATED AGENCIES.
Section 404(b) of the Foreign Relations Authorization Act, Fiscal
Years 1994 and 1995 (Public Law 103-236; 22 U.S.C. 287e note) is
amended--
(1) by striking ``Contributions.--'' and all that follows
through ``Funds authorized'' and inserting ``Contributions.--
Funds authorized''; and
(2) by striking paragraph (2).
SEC. 2014. AVAILABILITY OF AIRCRAFT.
(a) In General.--The Secretary of Defense is authorized to make
available, on a nonreimbursable basis, aircraft maintained and operated
by the Department of Defense, to transport Department of State
personnel to prevent or respond to a conflict or civil strife,
including for use by Assistant Secretaries of State to conduct
emergency diplomatic missions in their regions of concern. Such
aircraft may include those aircraft assigned to combatant commanders in
the Unified Command Plan.
(b) Request.--A request to utilize the aircraft referred to in
subsection (a) shall be provided to the Secretary of Defense by the
Secretary of State.
SEC. 2015. COMPLEX CRISIS, STABILIZATION, AND PREVENTION FUND.
(a) Establishment of Fund.--
(1) In general.--The Secretary is authorized to establish a
fund, to be known as the ``Complex Crisis, Stabilization, and
Prevention Fund'' (referred to in this section as the
``Fund''), to provide assistance to a country or region
designated by the Secretary as a country at risk of, in, or in
transition from, conflict or civil strife and for other
purposes authorized in this section.
(2) Congressional notification.--The Secretary shall notify
the appropriate congressional committees at least five days in
advance of an obligation of funds under this section.
(3) Waiver.--The requirement for notification under
paragraph (2) may be waived if--
(A) failure to do so would pose a substantial risk
to human health or welfare;
(B) the appropriate congressional committees are
notified not later than three days after an obligation
of funds; and
(C) such notification contains an explanation of
the emergency circumstances necessitating such waiver.
(4) Purpose of assistance.--Assistance may be provided
under this section for the following purposes:
(A) Fostering reconstruction or stabilization.
(B) Mitigating or responding to emerging or
unforeseen complex crises, including urgent political,
social, or economic challenges that threaten stability.
(C) Addressing systemic and immediate causes of
crises and conflict.
(D) Undertaking preventive measures to reduce the
risk of crises and conflict and their impact on
vulnerable populations.
(b) Limitation.--The Secretary shall ensure that assistance
provided under this section is not used for--
(1) assistance of a military nature or for a military
purpose; or
(2) participation by an officer or employee of the United
States in a foreign police action.
(c) Conflict Prevention.--Not less than 25 percent of amounts made
available to carry out this section shall be used to support programs
and activities to prevent an outbreak or escalation of violence in a
country at risk of, in, or in transition from, conflict or civil
strife.
(d) Transfer.--
(1) In general.--The President may transfer up to
$500,000,000 of amounts made available under any other
provision of law to be used to implement the purposes of this
section.
(2) Additional amounts.--Notwithstanding any other
provision of law, up to $5,000,000 or five percent, whichever
is less, of any amounts that are specifically designated by
this or any other Act for particular programs or activities may
be transferred to carry out the purposes of this section.
(e) Relationship to Other Laws.--Assistance provided from the Fund
may be made available notwithstanding any other provision of law.
SEC. 2016. ADDRESSING VIOLENCE AGAINST WOMEN AND GIRLS IN HUMANITARIAN
RELIEF, PEACEKEEPING, CONFLICT, AND POST-CONFLICT
SETTINGS.
(a) Activities of the Department of State and Agency.--
(1) Duties.--The Secretary and the Administrator are
authorized to--
(A) provide assistance to programs carried out by
international organizations, international and local
nongovernmental organizations, and governments, as
appropriate, that--
(i) prevent and respond to violence against
women and girls in humanitarian relief, in a
country or region at risk of, in, or in
transition from, conflict or civil strife;
(ii) build the capacity of humanitarian
organizations and government authorities, as
appropriate, to address the special protection
needs of women and children;
(iii) support efforts to provide immediate
assistance to survivors of violence and
reintegrate such individuals through education,
psychosocial assistance, trauma counseling,
family and community reinsertion and
reunification, medical assistance, and economic
opportunity programs; and
(iv) provide legal services for women and
girls who are victims of violence;
(B) work to incorporate activities to prevent and
respond to violence against women and girls
internationally into any multilateral or bilateral
disarmament, demobilization, rehabilitation, and
reintegration efforts by--
(i) providing protection and suitable
separate facilities in demobilization and
transit centers for women and girls formerly
involved in, or associated with, fighting
forces;
(ii) ensuring equitable reintegration
activities and opportunities for such women and
girls, including access to schooling,
vocational training, employment, and childcare;
(iii) providing essential medical care and
psychosocial support for such women and girls
who are victims of violence; and
(iv) incorporating prevention and response
to violence against women and girls into
programs for former combatants;
(C) designate and deploy specialists in violence
against women and girls, as appropriate, as an integral
part of the Agency's Disaster Assistance Response Teams
to ensure the integration of prevention and response to
violence against women and girls internationally in
strategies and programming; and
(D) strive to ensure that all private partners and
others carrying out humanitarian relief in a country or
region at risk of, in, or in transition from conflict
or civil strife--
(i) train all humanitarian workers in
preventing and responding to violence against
women and girls, including in the use of
mechanisms to report violence against women and
girls;
(ii) conduct appropriate public outreach to
make known to the host community the mechanisms
to report violence against women and girls; and
(iii) promptly and appropriately respond to
reports of violence against women and girls and
treat survivors in accordance with best
practices regarding confidentiality.
(b) Coordination of United States Government Efforts.--The
Secretary of Defense and the Attorney General shall coordinate with the
Secretary of State and the Administrator when carrying out programs
relevant to the purposes of this section.
(c) Enhancing United States Leadership and Advocacy in the United
Nations.--
(1) Strengthening united nations procedures.--The
Secretary, in consultation with the Administrator and the
United States Permanent Representative to the United Nations,
is authorized to promote United Nations efforts to--
(A) develop and implement appropriate training
programs for peacekeeping and humanitarian personnel in
prevention and response to violence against women and
girls internationally;
(B) meet staffing goals for women military and
police peacekeepers, including all-women teams and
units;
(C) enhance the deployment of civilian women at all
levels to serve in peacekeeping missions, including
through innovative staffing formulas;
(D) institute effective protection mechanisms in
and around United Nations-managed refugee and
internally displaced persons camps;
(E) implement a zero tolerance policy for sexual
exploitation and abuse in United Nations peacekeeping
and humanitarian operations;
(F) support countries that contribute troops and
police in--
(i) taking appropriate actions to prevent
violence and abuse;
(ii) providing materials for pre-deployment
and in-theater awareness training; and
(iii) taking other actions to promote full
accountability in cases of abusive conduct
involving the personnel of such countries;
(G) continue to expand appropriate mechanisms to
permit individuals to safely bring to the attention of
United Nations peacekeeping commanders and heads of
humanitarian missions allegations of violence against
women and girls internationally; and
(H) ensure the capacity of the United Nations
Office of Internal Oversight to investigate in a timely
and efficient manner all credible allegations of
violence against women and girls internationally, while
protecting the whistleblower.
(d) Emergency Response to Violence Against Women and Girls.--
(1) Emergency response.--Not later than 45 days after
receiving a credible report of serious or widespread incidents
of violence against women and girls in a situation of armed
conflict or civil strife, the Secretary and the Administrator
shall, in consultation with relevant stakeholders, identify and
implement emergency response measures.
(2) Consultation.--For the purposes of paragraph (1), the
term ``relevant stakeholders'' includes, as appropriate--
(A) affected populations;
(B) international, multilateral, and
nongovernmental organizations operating in the affected
area;
(C) the government of the country in which the
violence is occurring;
(D) governments in the region in which the violence
is occurring; and
(E) donor governments.
(3) Congressional briefings.--The Secretary shall brief the
appropriate congressional committees not less than quarterly on
the status of incidents of violence against women and girls in
situations of armed conflict or civil strife, emergency
response measures taken, and consultations with relevant
stakeholders.
SEC. 2017. DEMINING ACTIVITIES.
(a) In General.--The Secretary is authorized, notwithstanding any
other provision of law, to provide assistance to foreign countries for
demining activities, including--
(1) clearance of unexploded ordinance;
(2) the destruction of small arms; and
(3) related activities.
(b) Special Authority.--Subject to such terms and conditions as the
Secretary may prescribe, the Secretary is authorized to make grants of
demining equipment to foreign countries and international
organizations, for the purposes identified in this section.
SEC. 2018. DISARMAMENT, DEMOBILIZATION, REINTEGRATION, AND
REHABILITATION ACTIVITIES.
(a) In General.--The Secretary, in coordination with the
Administrator, is authorized to carry out programs in foreign countries
to assist the disarmament, demobilization, reintegration, and
rehabilitation of former combatants.
(b) Coordination.--The programs referred to in subsection (a) shall
be coordinated, as appropriate, with international nongovernmental
organizations and the government of the country in which any such
program is carried out.
Subtitle B--Strategies, Assessments, and Reports
SEC. 2021. REGIONAL CONFLICT RISK ASSESSMENT AND CONFLICT MITIGATION
STRATEGY.
(a) Findings.--Congress finds the following:
(1) Armed conflict and civil strife often stem from
dynamics that transcend traditional state borders and require
cross-border and regional approaches.
(2) United States diplomacy is often conducted on a
bilateral, state-centric basis that fails to address problems
comprehensively or to identify and assess the full range of
issues and opportunities.
(3) A comprehensive approach towards conflict prevention is
required, incorporating cross border and regional dynamics and
non-state actors.
(b) Conflict Assessment.--The Secretary, acting through the Under
Secretary for Civilian Security, Democracy, and Human Rights and in
consultation with the Administrator, shall be responsible for ensuring
that an annual regional conflict risk assessment is conducted for each
geographic region represented by an Assistant Secretary. Each
assessment shall include the following:
(1) An identification of ongoing violent conflicts in the
region.
(2) An evaluation of the potential for outbreaks of violent
conflict in the region.
(3) A list of those conflicts determined to be at high risk
of outbreak of escalation.
(4) A description of new opportunities and challenges for
conflict mitigation in the region.
(c) Conflict Mitigation Strategy.--For each conflict identified in
subsection (b)(3), the relevant office or diplomatic or consular post
of the Department of State, in consultation with the relevant office or
overseas mission of the Agency, shall develop a conflict mitigation
strategy. Such strategy shall include the following elements:
(1) An analysis of the key drivers of potential conflict.
(2) An analysis of the impact of current United States
policies and programs on the drivers referred to in paragraph
(1).
(3) Specific objectives in mitigating conflict for the next
1- to 3-year period, including indicators and other
measurements of progress.
(4) A plan for ensuring that basic human needs are met and
civilians are protected during the period of the strategy.
(5) A description of policies and programs needed to
achieve the objectives identified in paragraph (3).
(6) A description of how such policies and programs will be
coordinated with the policies and programs of local partners
and the international community.
(7) A description of the roles of each Federal agency in
carrying out the conflict mitigation strategy, and the
mechanisms for interagency coordination.
(8) The requirements for human and financial resources to
carry out the conflict mitigation strategy over the next 1- to
3-year period.
(d) Consultation.--In preparing each conflict mitigation strategy
required under subsection (c), the relevant office or diplomatic or
consular post of the Department of State shall consult with a wide
range of local stakeholders, including civil society organizations.
(e) Transmission to Congress.--Each conflict mitigation strategy
required under subsection (c) shall be transmitted to the appropriate
congressional committees.
SEC. 2022. DATA ON COSTS INCURRED IN SUPPORT OF UNITED NATIONS
PEACEKEEPING OPERATIONS.
(a) Quarterly Reports.--The Secretary of Defense shall submit, on a
quarterly basis, to the Committee on Armed Services of the House of
Representatives, the Committee on Armed Services of the Senate, the
Committee on Foreign Affairs of the House of Representatives, and the
Committee on Foreign Relations of the Senate a report setting forth all
costs (including incremental costs) incurred by the Department of
Defense during the preceding quarter in implementing or supporting
resolutions of the United Nations Security Council, including any such
resolution calling for international sanctions, international
peacekeeping operations, or humanitarian missions undertaken by the
Department of Defense. Each quarterly report shall include an aggregate
of all such Department of Defense costs by operation or mission.
(b) United States Costs.--The President shall annually transmit to
the Secretary General of the United Nations the information required
under subsection (a).
(c) United Nations Member State Costs.--The President shall direct
the permanent representative of the United States to the United Nations
to request that the United Nations compile and publish information
concerning costs incurred by United Nations Member States in support of
the resolutions described in subsection (a).
SEC. 2023. PEACE ON CYPRUS AND IN THE EASTERN MEDITERRANEAN.
(a) Policy and Principles.--United States policy regarding Cyprus,
Greece, and Turkey shall be directed toward the establishment of
stability and peace in the Eastern Mediterranean region and shall
therefore be governed by the following principles:
(1) The United States shall actively support the resolution
of differences in the Eastern Mediterranean region through
negotiations, encourage all parties to avoid provocative
actions, and strongly oppose any attempt to resolve disputes
through force or threat of force.
(2) The United States shall provide defense articles to
Greece and Turkey only with full consideration for maintaining
balance and stability in the Eastern Mediterranean.
(3) Sustained improvement in Greek-Turkish bilateral
relations is in the interests of the United States, the North
Atlantic Treaty Organization, and the countries of the Eastern
Mediterranean region.
(4) Consistent with longstanding United States policy, the
United States recognizes and shall continue to recognize the
sovereignty of the Republic of Cyprus over the whole of Cyprus,
other than the British Sovereign Base Areas. Accordingly, the
United States recognizes the Republic of Cyprus' rights to its
territorial seas and economic exclusion zone (EEZ).
(5) The near-term achievement of a just and lasting
settlement to the Cyrus problem is a central objective of
United States foreign policy.
(6) A just settlement on Cyprus must involve the re-
unification of the island based on a bi-zonal, bi-communal
federation with a single sovereignty, international
personality, and citizenship, with its independence and
territorial integrity safeguarded, and comprising two
politically equal communities, as provided for in relevant
United Nations Security Council resolutions.
(7) Freedom of religion and respect for the cultural and
religious heritage of all Cypriot communities shall be
protected and promoted throughout the island.
(8) Agreement on the near-term return of Greek Cypriot
refugees to Famagusta (Varosha) would constitute an important
confidence-building measure.
(9) The United States shall use its influence to ensure the
continuation of the ceasefire on Cyprus until an equitable
negotiated settlement is reached.
(10) The United States shall use its influence to achieve
the withdrawal of Turkish military forces from Cyprus and to
effect an end to Turkey's illegal transfer of its citizens to
Cyprus.
(b) Quarterly Report.--
(1) Sense of congress.--Because progress toward a Cyprus
settlement is a high priority of United States policy in the
Eastern Mediterranean region, it is the sense of Congress that
the President should continually review that progress and
should determine United States policy in the region
accordingly.
(2) Report.--To facilitate such a review, the President
shall, not later than 90 days after the date of the enactment
of this Act and at the end of each succeeding 90-day period
thereafter, transmit to the Committee on Foreign Affairs of the
House of Representatives and the Committee on Foreign Relations
of the Senate a report describing efforts to achieve the
demilitarization of Cyprus and a negotiated solution to the
Cyprus problem.
(c) Certification.--In order to ensure that security assistance to
Greece and Turkey is provided consistent with the policies established
in this section, the Secretary shall, whenever transmitting a
certification pursuant to section 4382 for Greece or Turkey, include in
that certification a full explanation of how the proposed sale accords
with the principles set forth in subsection (a).
(d) Restriction.--
(1) In general.--Beginning on the day after the date of the
enactment of this Act, no articles, information, technology or
services controlled for export pursuant to this Act, the former
authority of the Arms Export Control Act, or the Export
Administration Act of 1979 (as continued in effect under the
International Emergency Economic Powers Act) may be exported,
re-exported, transferred, or provided to a military end-user,
or for a military end-use, in the internationally recognized
territory of the Republic of Cyprus, including Turkish-occupied
northern Cyprus.
(2) Report.--The President shall submit to Congress a
report on any credible information that articles, information,
technology, or services have been used in a manner inconsistent
with this subsection.
(e) Limitation on Funds.--Funds made available for Cyprus under
this Act shall be provided only for programs and activities that are
consistent with the goal of reunification of Cyprus and the achievement
of a bi-communal, bi-zonal federation.
Subtitle C--Organizations and Personnel
SEC. 2031. ATROCITIES PREVENTION BOARD.
(a) Findings.--Congress makes the following findings:
(1) Non-combatants comprise most of the casualties in
modern conflict.
(2) In many cases, civilian deaths are the result of
belligerents deliberately targeting civilians on a wide scale.
(3) Civilians are vulnerable both during interstate
conflict and intrastate situations, such as civil wars,
insurgencies, and anarchic conditions associated with failed
states.
(4) There are common variables to situations giving rise to
atrocities, including past history of such occurrences,
persistence of articulated and non-articulated tensions, and
poor or malevolent leadership.
(5) Most tellingly, atrocities--including genocide--often
occur when displaced persons attempt to flee conflict.
(6) The United States is committed to working with our
allies, and to strengthening our own internal capabilities, in
order to ensure that the United States and the international
community are proactively engaged in a strategic effort to
prevent mass atrocities and genocide. In the event that
prevention fails, the United States will work both
multilaterally and bilaterally to mobilize diplomatic,
humanitarian, financial, and--in certain instances--military
means to prevent and respond to genocide and mass atrocities.
(7) Preventing mass atrocities and genocide is a core
national security interest and a core moral responsibility of
the United States.
(8) United States security is affected when masses of
civilians are slaughtered, refugees flow across borders, and
murderers wreak havoc on regional stability and livelihoods.
(9) Governmental engagement on atrocities and genocide too
often arrives too late, when opportunities for prevention or
low-cost, low-risk action have been missed.
(10) Ensuring that a full range of options is available to
senior policy makers requires a level of governmental
organization that matches the methodical organization
characteristic of mass killings.
(b) Establishment of Interagency Atrocities Prevention Board.--The
President shall establish an Interagency Atrocities Prevention Board
(in this section referred to as the ``Board'') with the following
responsibilities:
(1) Coordinate and synchronize a whole of government
approach to preventing mass atrocities.
(2) Integrate the early warning systems of national
security agencies, including intelligence agencies, with
respect to incidents of mass atrocities and coordinate the
policy response to such incidents.
(3) Conduct gaming and contingency planning exercises
regarding atrocities prevention and response.
(4) Oversee the development and implementation of
comprehensive atrocities prevention and response strategies.
(5) Identify available resources and policy options
necessary to prevent the emergence or escalation of mass
atrocities, including--
(A) foreign assistance;
(B) diplomatic initiatives;
(C) deployment of civilian expertise;
(D) use of sanctions; and
(E) military options.
(6) Identify and close gaps in expertise, readiness, and
planning for atrocities prevention and early action across
Federal agencies.
(7) Ensure that risk assessments and policies to mitigate
identified risks are communicated in a timely fashion to the
relevant Federal agencies and integrated into activities.
(c) Leadership.--
(1) In general.--The Board shall be headed by a senior
director selected by the President, and who shall report to the
Assistant to the President for National Security Affairs
(commonly referred to as the ``National Security Advisor'').
(2) Responsibilities.--The senior director shall have
primary responsibility for promoting United States Government
policies to protect individuals affected by conflict and
atrocities and carrying out the responsibilities identified in
subsection (b).
(d) Composition.--The Board shall be composed of representatives
from the following agencies, and such others as the President
determines appropriate:
(1) The Department of Defense.
(2) The United States Agency for International Development.
(3) The Department of State.
(4) The Department of Justice.
(5) The Department of the Treasury.
(6) The Department of Homeland Security.
(7) The Central Intelligence Agency.
(8) The Office of the Director of National Intelligence.
(9) The United States Mission to the United Nations.
SEC. 2032. UNDER SECRETARY FOR CIVILIAN SECURITY, DEMOCRACY, AND HUMAN
RIGHTS.
(a) In General.--Section 1(b) of the State Department Basic
Authorities Act of 1956 (22 U.S.C. 2651a(b)) is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) Under secretary for civilian security, democracy, and
human rights.--There shall be in the Department of State, among
the Under Secretaries authorized by paragraph (1), an Under
Secretary for Civilian Security, Democracy, and Human Rights,
who shall have primary responsibility to assist the Secretary
and the Deputy Secretary in the formation and implementation of
policy, activities, and oversight related to crisis prevention
and response, democracy, human rights, and labor, and refugees
and migration. The Under Secretary for Civilian Security,
Democracy, and Human Rights shall--
``(A) coordinate and implement civilian responses
to conflict, including deployment of the Civilian
Response Corps;
``(B) oversee the full spectrum of conflict-related
policies and programs in the Department of State;
``(C) conduct strategic planning and budgeting for
conflict-related activities within the Department of
State;
``(D) manage prevention and response to refugee and
humanitarian crises, including support for major
international organizations involved in aid to conflict
affected populations; and
``(E) advance human rights and democratic
values.''.
(b) Abolition.--The position of Under Secretary for Democracy and
Global Affairs is hereby abolished.
(c) Transfer.--Responsibilities for the position of Under Secretary
for Democracy and Global Affairs shall be transferred to the Under
Secretary for Civilian Security, Democracy and Human Rights, as
appropriate. The individual serving in the capacity of Under Secretary
for Democracy and Global Affairs as of the date of the enactment of
this Act may continue serve in the capacity of the Under Secretary for
Civilian Security, Democracy, and Human Rights.
(d) Conforming Amendment.--Section 2113(a) of the Implementing
Recommendations of the 9/11 Commission Act of 2007 (22 U.S.C. 8213(a);
Public Law 110-53) is amended by striking ``Under Secretary of State
for Democracy and Global Affairs'' and inserting ``Under Secretary of
State for Civilian Security, Democracy, and Human Rights''.
SEC. 2033. CONFLICT AND STABILIZATION OPERATIONS.
(a) In General.--Section 62 of the State Department Basic
Authorities Act of 1956 (22 U.S.C. 2734) is amended to read as follows:
``SEC. 62. CONFLICT AND STABILIZATION OPERATIONS.
``(a) Bureau of Conflict and Stabilization Operations.--
``(1) Establishment.--There is established within the
Department of State the Bureau of Conflict and Stabilization
Operations.
``(2) Assistant secretary for conflict and stabilization
operations.--The head of the Bureau shall be the Assistant
Secretary for Conflict and Stabilization Operations. The
Assistant Secretary shall report directly to the Under
Secretary for Civilian Security, Democracy, and Human Rights.
``(3) Functions.--The functions of the Bureau of Conflict
and Stabilization Operations shall include the following:
``(A) Training, equipping, and deploying the
Civilian Response Corps described in subsection (b)(1).
``(B) Developing, at the request of a Chief of
Mission, a strategy or plan, and designing relevant
programming, for stabilization and reconstruction, as
appropriate to the local context.
``(C) At the request of a Chief of Mission,
mobilizing and deploying members of the Civilian
Response Corps as needed.
``(D) Entering into appropriate arrangements with
agencies to carry out activities under this section and
the Reconstruction and Stabilization Civilian
Management Act of 2008 (title XVI of the Duncan Hunter
National Defense Authorization Act for Fiscal Year
2009; Public Law 110-417).
``(E) Identifying and recruiting personnel in State
and local governments, including law enforcement
personnel, and in the private sector who are available
to participate in the Reserve Corps established under
subsection (b)(1)(B) or to otherwise participate in or
contribute to reconstruction and stabilization
activities.
``(F) Taking steps to ensure that training and
education of civilian personnel to perform such
reconstruction and stabilization operations is adequate
and is carried out, as appropriate, with other offices
in the Department of State and the United States Agency
for International Development involved with
reconstruction and stabilization activities.
``(G) Maintaining the capacity to field on short
notice an evaluation team consisting of personnel from
all relevant agencies to undertake on-site needs
assessment.
``(H) Maintaining a staff of experts to provide
technical support for crisis mitigation, including
mediation and negotiation support teams.
``(I) Establishing and maintaining a cadre of
deployable personnel to conduct contingency acquisition
support.
``(J) Establishing and maintaining on active status
a contingency contracting office for the purpose of
procuring goods, equipment, and services for use in
contingency operations and for assistance to support
reconstruction and stabilization activities.
``(b) Civilian Response Corps.--
``(1) In general.--The Secretary of State shall establish
and maintain a Civilian Response Corps (referred to in this
section as the `Corps') to provide assistance in support of
reconstruction and stabilization activities in countries or
regions that are at risk of, in, or are in transition from,
conflict or civil strife. The Corps shall be composed of active
and reserve components.
``(A) Active corps.--
``(i) In general.--The Active Corps shall
be composed of not more than 200 positions
identified by the Secretary of State, in
consultation with the Administrator, based on
the skillsets identified by the Coordinator.
``(ii) Membership.--The Active Corps shall
consist of United States Government personnel,
including employees of the Department of State,
the United States Agency for International
Development, and other agencies.
``(iii) Duties.--Members of the Active
Corps shall--
``(I) serve as liaisons between the
Bureau of Conflict and Stabilization
Operations and regional bureaus of the
Department of State;
``(II) unless deployed abroad, be
employed by the Under Secretary for
Civilian Security, Democracy, and Human
Rights; and
``(III) deploy, within 72 hours,
anywhere outside the United States
where the Secretary of State directs.
``(iv) Surge.--Members of the Active Corps
may be detailed by the Assistant Secretary for
Conflict and Stabilization Operations to
regional bureaus of the Department of State to
augment crisis and conflict planning and
response.
``(B) Reserve corps.--
``(i) In general.--The Reserve Corps shall
consist of United States Government personnel,
individuals employed by State or local
governments, or other experts who have the
skills necessary for supporting reconstruction
and stabilization activities, or who shall be
trained and employed to carry out such
activities, and who have volunteered for such
purpose.
``(ii) List.--The Secretary shall maintain
and continually update a database composed of
personnel who have volunteered for the Reserve
Corps.
``(iii) Duties.--Members of the Reserve
Corps shall--
``(I) on a voluntary basis, deploy
within 72 hours, anywhere outside the
United States, where the Secretary of
State directs; and
``(II) maintain appropriate skills
and conditioning to deploy to assist in
reconstruction and stabilization
activities.
``(2) Mitigation of domestic impact.--The establishment and
deployment of any Reserve Corps shall be undertaken in a manner
that avoids substantively impairing the capacity and readiness
of the Federal Government or any State or local government from
which Reserve Corps personnel may be drawn.
``(3) Existing training and education programs.--The
Secretary of State shall ensure that personnel of the
Department of State, and, in coordination with the
Administrator of the United States Agency for International
Development, that personnel of USAID, have access to and make
use of the relevant existing training and education programs
offered within the Federal Government, such as those at the
Center for Stabilization and Reconstruction Studies at the
Naval Postgraduate School and the Interagency Training,
Education, and After Action Review Program at the National
Defense University.
``(4) In general.--
``(A) Appointments to foreign service.--Individuals
who serve in the Civilian Response Corps shall be
eligible to be appointed as a member of the Foreign
Service pursuant to section 303 of the Foreign Service
Act of 1980 (22 U.S.C. 3943) for a term of up to three
years.
``(B) Deployment.--Not less than 60 percent of the
Active Corps should be deployed outside of the United
States at any one time.
``(C) Promotion.--Individuals who are career
members of the Foreign Service shall be considered for
promotion on the same basis as individuals who are
assigned to diplomatic or consular posts with one-year
tours of duty.
``(D) Chain-of-command.--Once deployed abroad, a
member of the Civilian Response Corps shall report to
and serve under the operational control of the chief of
mission of the country or region in which such member
is deployed.
``(E) Limitation on deployment.--The Secretary of
State is authorized to deploy to a foreign country
members of the Active Corps for a period of not longer
than one year. Such period may be extended on a
voluntary basis.
``(5) Temporary appointments for certain individuals.--The
Secretary of State, acting through the Assistant Secretary for
Conflict and Stabilization Operations, is authorized to appoint
individuals with acquisition backgrounds to the Active or
Reserve Corps on a one-year basis to implement contracts for
contingency operations.
``(c) Employment for Contingency Operations.--
``(1) Foreign service limited positions.--Pursuant to the
authority of section 309 of the Foreign Service Act of 1980 (22
U.S.C. 3949), and notwithstanding the limitation specified in
section 305 of such Act (22 U.S.C. 3945), the Administrator of
the United States Agency for International Development (USAID)
may appoint to the Senior Foreign Service up to ten individuals
to be assigned to or support contingency operations.
``(2) Waiver.--The provisions of section 8344 or 8468 of
title 5, United States Code, may be waived on a case-by-case
basis by--
``(A) the Administrator of USAID, with respect to
the employment in USAID, or
``(B) the Inspector General of USAID, with respect
to the employment in the Office of Inspector General,
of an annuitant in a position for which there is exceptional
difficulty in recruiting or retaining a qualified employee, or
when a temporary emergency hiring need exists.
``(3) Procedures.--If the authority referred to in
paragraph (1) is delegated, the Administrator of USAID or the
Inspector General of USAID, as appropriate, shall prescribe
criteria and procedures for the exercise of any authority under
this section.
``(4) Status of employment.--A Federal employee for whom a
waiver under this section is in effect shall not be considered
an employee for purposes of subchapter III of chapter 83, or
chapter 84 of title 5, United States Code.
``(d) Exception.--
``(1) In general.--The Secretary of State may select and
appoint employees to carry out conflict and stabilization
activities without regard to the provisions of title 5, United
States Code, governing appointment in the competitive service
and may fix the basic compensation of such employees without
regard to chapter 51 and subchapter III of chapter 53 of such
title.
``(2) Delegation.--The Secretary of State may authorize the
head of any agency to exercise the authority described in
paragraph (1).
``(3) Definition.--For the purpose of this subsection, the
term `employees' means individuals who qualify as an employee
as defined in section 2105 of title 5, United States Code, and
who are appointed on a time-limited basis solely to carry out
reconstruction and stabilization activities under or consistent
with this section.''.
(b) Special Authority.--Notwithstanding any other provision of law,
including section 304(c) of the Omnibus Diplomatic Security and
Antiterrorism Act of 1986 (22 U.S.C. 4834(c); Public Law 99-399),
personnel designated by the Secretary, including members of the
Civilian Response Corps, shall not be bound by the regulations and
guidance provided by the Bureau of Diplomatic Security and shall deploy
at the direction of the Secretary.
(c) Personnel.--The Reconstruction and Stabilization Civilian
Management Act of 2008 (title XVI of Public Law 110-417) is amended--
(1) in section 1603 (22 U.S.C. 2734a note), by amending
paragraph (5) to read as follows:
``(5) Personnel.--The term `personnel' means--
``(A) individuals serving in any service described
in section 2101 of title 5, United States Code, other
than in the legislative or judicial branch;
``(B) individuals employed by personal services
contract, including individuals employed pursuant to--
``(i) section 2(c) of the State Department
Basic Authorities Act of 1956 (22 U.S.C.
2669(c)); or
``(ii) section 636(a)(3) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2396(a)(3));
``(C) individuals appointed under section 303 of
the Foreign Service Act of 1980 (22 U.S.C. 3943); and
``(D) locally employed staff who are employed by
participating agencies.''; and
(2) in section 1606(b) (22 U.S.C. 2734a(b)), by inserting
``and to provide any related support'' after ``assign personnel
of such agency''.
SEC. 2034. DANGER PAY.
Section 151 of the Foreign Relations Authorization Act, Fiscal
Years 1990 and 1991 (5 U.S.C. 5928 note; Public Law 101-246) is
amended--
(1) by striking ``or'' after ``Drug Enforcement
Administration'' and inserting ``, the''; and
(2) inserting ``, or the Civilian Response Corps'' after
``Federal Bureau of Investigation''.
SEC. 2035. STABILITY POLICING COORDINATOR.
The State Department Basic Authorities Act of 1956 is amended by
adding after section 62 (as amended by 2031 of this Act) the following
new section:
``SEC. 63. OFFICE OF THE STABILITY POLICING COORDINATOR.
``(a) Establishment.--There is established within the Department of
State the Office of the Stability Policing Coordinator (in this section
referred to as the `Office').
``(b) Coordinator for Police Training.--The head of the Office
shall be the Coordinator for Stability Policing (in this section
referred to as the `Coordinator'). The Coordinator shall report
directly to the Assistant Secretary for Conflict and Stabilization
Operations.
``(c) Responsibilities.--The Coordinator shall be responsible for
developing a unified, coherent, comprehensive, and effective program of
law enforcement assistance in support of reconstruction and
stabilization activities in countries or regions that are at risk of,
in, or are in transition from, conflict or civil strife. Such program
shall include the following elements:
``(1) Developing and overseeing curricula for police
training specifically oriented towards reconstruction and
stabilization activities.
``(2) Developing and implementing policies and procedures
to ensure that human rights, and in particular those of women
and girls, are protected.
``(3) In coordination with the Bureau of Conflict and
Stabilization Operations, as appropriate, recruiting, vetting,
and training personnel to serve as police trainers.
``(4) Ensuring proper direction and oversight of
contractors hired to implement police training programs under
this section.
``(5) Establishing benchmarks to measure the progress of
police training programs conducted under this section.
``(6) Coordinating assistance carried out by the Office
with similar assistance provided by other Federal agencies and
international donors.
``(7) Overseeing procurement and delivery of supplies and
equipment, and monitoring the end use of such supplies and
equipment.
``(8) Providing policy guidance and program support to the
United States diplomatic and consular missions in the country
or region undertaking police training operations.
``(9) Providing guidance to the Bureau of Conflict and
Stabilization Operations regarding the selection and training
of law enforcement and judicial personnel for the Readiness
Response Corps.
``(d) Relationship to Global Rule of Law Policy Committee.--The
Coordinator shall ensure that the activities of the Office are
consistent with the coordination plan established pursuant to section
3202 of the Global Partnerships Act of 2012.''.
SEC. 2036. TRAINING IN CONFLICT MANAGEMENT AND MITIGATION.
Section 708 of the Foreign Assistance Act of 1980 (22 U.S.C. 4028)
is amended--
(1) in subsection (a)--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(4) instruction on methods for conflict management and
mitigation and on the necessary skills to be able to function
successfully in countries or regions that are at risk of, in,
or are in transition from, conflict or civil strife,
including--
``(A) recognizing patterns of escalation and early
warning signs of potential atrocities or violence,
including gender-based violence; and
``(B) methods of early action, prevention, and
response.''; and
(2) by adding at the end the following new subsection:
``(d) The training described in subsection (a)(4) shall be
mandatory for all Foreign Service officers assigned to a position, or
otherwise made available for service, in the department or agency or at
a post overseas with responsibilities in the subject matters described
in such subsection. Training opportunities should include, as
appropriate for the department and agency, respectively, fellowships,
details, and exchanges with relevant Federal agencies, international
organizations, and nongovernmental organizations.''.
TITLE III--SUPPORTING HUMAN RIGHTS AND DEMOCRACY
Subtitle A--General Provisions
SEC. 3101. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress makes the following findings:
(1) All human beings are born free and equal in dignity and
rights. Recognition of the inherent dignity and of the equal
and inalienable rights of all members of the human family is
the foundation of freedom, justice and peace in the world.
(2) A democratic political system, in which the will of the
people, as expressed in periodic and genuine elections, is the
basis of the authority of government, is the best guarantor of
freedom of speech and belief and freedom from fear and want.
(3) Democracy is a necessary but insufficient condition for
the effective protection of human rights. Majority rule must be
tempered by guarantees for the dignity and rights of
minorities.
(4) The advancement of human rights and the
institutionalization of democracy are important to the
achievement of other United States foreign policy goals, such
as reducing poverty, building peace, expanding prosperity and
sustaining the global environment.
(5) Human rights and fundamental freedoms can be
effectively advanced by--
(A) bilateral and multilateral diplomatic
overtures;
(B) the development and implementation of
international norms and standards, including voluntary
codes of conduct;
(C) support for the establishment and strengthening
of laws, policies and institutions that protect rights
and freedoms, including technical assistance and
training to governments and civil society
organizations;
(D) support for and protection of individuals and
civil society organizations who defend and exercise
their human rights and democratic freedoms;
(E) research and reporting on violations of human
rights, including identifying those who commit such
violations;
(F) the threat or imposition of sanctions against
violators, including criminal prosecution where
appropriate; and
(G) offering diplomatic and economic incentives for
improved performance.
(6) United States support for human rights and democracy
should be open and explicit, with due regard for the safety and
independence of local partners and impartiality among peaceful,
democratic political parties and factions.
(b) Statement of Policy.--It is the policy of the United States, in
keeping with its constitutional heritage and traditions and in
accordance with its international obligations as set forth in the
Charter of the United Nations and the Universal Declaration of Human
Rights, to promote and encourage increased respect for human rights and
fundamental freedoms throughout the world without distinction as to
race, sex, language, religion, sexual orientation or gender identity.
SEC. 3102. COUNTRY REPORTS ON HUMAN RIGHTS PRACTICES.
(a) Report Required.--The Secretary shall submit to the appropriate
congressional committees, by February 25 of each year, a comprehensive
report regarding the status of internationally recognized human rights
in each covered country.
(b) Contents.--The report required under subsection (a) shall
include, for each covered country, information relating to--
(1) respect for the integrity of the person, including
freedom from--
(A) arbitrary or unlawful deprivation of life;
(B) disappearance;
(C) torture and other cruel, inhuman or degrading
treatment or punishment;
(D) arbitrary arrest or detention;
(E) denial of fair public trial; and
(F) arbitrary interference with privacy, family,
home or correspondence;
(2) respect for civil liberties, including--
(A) freedom of speech and press, including Internet
freedom;
(B) freedom of peaceful assembly and association;
(C) freedom of religion and conscience;
(D) freedom of movement; and
(E) provision of asylum and resettlement of
refugees;
(3) respect for political rights, including the right of
citizens--
(A) to change their government;
(B) to take part in the conduct of public affairs;
and
(C) to vote and be elected at genuine periodic
elections;
(4) respect for worker rights, including--
(A) the right of association;
(B) the right to organize and bargain collectively;
(C) prohibition of forced or compulsory labor;
(D) prohibition of child labor; and
(E) acceptable conditions of work;
(5) protection of all citizens, including marginalized
groups, against violence, intimidation and discrimination,
including, wherever applicable--
(A) mass atrocities;
(B) trafficking in persons;
(C) sexual and gender-based violence;
(D) criminalization of homosexuality or deprivation
of fundamental freedoms due to sexual orientation or
gender identity;
(E) violations of the principles of voluntarism and
informed choice in health care, including coerced
abortion and involuntary sterilization;
(F) child marriage; and
(G) compulsory recruitment and conscription of
individuals under the age of 15 by armed forces of the
government of the country, government-supported
paramilitaries, or other armed groups; and
(6) official accountability, including--
(A) government corruption and transparency;
(B) government participation in, facilitation of,
or condoning of, violations of internationally
recognized human rights;
(C) steps taken by such government to prevent and
respond to violations of internationally recognized
human rights;
(D) the extent of cooperation by such government in
permitting an unimpeded investigation by international
organizations, including nongovernmental organizations,
of alleged violations of internationally recognized
human rights; and
(E) wherever applicable, such government's votes in
the United Nations Human Rights Council.
(c) Consultation.--In compiling data and making assessments for
purposes of subsection (b), United States diplomatic mission personnel
in each covered country shall consult with relevant international and
nongovernmental organizations.
(d) Translation and Publication.--For each covered country, the
report required by this section shall be translated into the principal
languages of the country and made available on the Internet website of
the United States diplomatic mission to the country, or, where there is
no diplomatic mission, on the Internet website of the Department of
State.
(e) Definitions.--In this section--
(1) the term ``covered country'' means a country that--
(A) receives assistance under this Act; or
(B) is a member of the United Nations; and
(2) the term ``child marriage'' means the marriage of a
girl or a boy who has not reached the minimum legal age for
marriage in the country of residence, or where there is no such
law, under the age of 18.
SEC. 3103. ACTION PLANS FOR HUMAN RIGHTS AND DEMOCRACY.
(a) Action Plan Required.--
(1) In general.--Except as provided in paragraph (2),
beginning 3 years after the date of the enactment of this Act
and every 3 to 5 years thereafter, the Secretary, in
coordination with the Administrator as appropriate, shall
develop an action plan for human rights and democracy in each
country that is included in the report under section 3102.
(2) Exception.--The Secretary is not required to develop an
action plan under this subsection for any country with respect
to which the Secretary determines, based on the information
required in the report under section 3102, that human rights
and fundamental freedoms are generally respected.
(b) Preparation of Plans.--The action plan required under
subsection (a) shall be prepared--
(1) in each country with a United States diplomatic
mission, by the Chief of Mission, in coordination with the
Mission Director of the Agency, if a Mission Director is
assigned to such country, and in consultation with the
Assistant Secretary for Democracy, Human Rights, and Labor; or
(2) in each country without a United States diplomatic
mission, by the Assistant Secretary of State for Democracy,
Human Rights, and Labor, in coordination with the Assistant
Administrator for Democratic and Civic Development and the
relevant regional bureaus of the Department of State and United
States Agency for International Development.
(c) Elements.--The action plan required under subsection (a) shall
contain the following elements:
(1) A description of the major barriers in such country to
fundamental rights and freedoms.
(2) Specific improvements in the areas identified under
paragraph (1) that the United States will seek over the next 3
to 5 years.
(3) A description of the policies and programs, including
assistance, to be undertaken in order to foster the
improvements identified in paragraph (2).
(4) A description of the roles of each participating
Federal agency in carrying out the policies and programs
identified in paragraph (3).
(5) A description of the budgetary and personnel resources
needed to carry out the policies and programs identified in
paragraph (3).
(d) Consultation.--In preparing the action plan required under
subsection (a), the relevant officials shall consult with a wide range
of nongovernmental organizations in the country and with
nongovernmental organizations having significant experience in or
knowledge about the country.
(e) Transmission.--
(1) To congress.--The action plan required under subsection
(a) shall be transmitted to the appropriate congressional
committees.
(2) Public availability.--At a minimum, the elements of the
action plan described in paragraphs (1) and (2) of subsection
(c) shall be published on the Internet website of the
Department of State and, in countries in which a United States
diplomatic mission is established, on the mission's Internet
website.
(f) Strategic Coordination.--In order to avoid duplication and
policy inconsistency, the Secretary shall ensure that the action plan
required under subsection (a) is coordinated with all other relevant
diplomatic and development strategies, in particular the strategies
prepared pursuant to--
(1) section 1703, relating to Global Strategy for Gender
Equality;
(2) section 1018, relating to Country Development
Cooperation Strategies;
(3) section 2012, relating to Conflict Mitigation Strategy;
and
(4) section 3203, relating to Comprehensive International
Strategy to Prevent and Respond to Violence Against Women and
Girls.
SEC. 3104. HUMAN RIGHTS AND DEMOCRACY FUND.
(a) Establishment.--There is established a Human Rights and
Democracy Fund (in this section referred to as the ``Fund'') to be
administered by the Assistant Secretary of State for Democracy, Human
Rights, and Labor.
(b) Purpose.--The purpose of the Fund is to protect and promote
fundamental freedoms and internationally recognized human rights by--
(1) supporting defenders of human rights and advocates of
democracy;
(2) assisting victims of human rights violations;
(3) preventing and responding to violence against women and
girls, in accordance with subtitle A;
(4) carrying out child protection compacts in accordance
with section 3402; and
(5) responding to emergencies and unanticipated
opportunities in the areas of human rights and democracy.
(c) Consultation.--In administering the Fund, the Assistant
Secretary of State for Democracy, Human Rights, and Labor shall consult
with the Ambassador-at-Large for Global Women's Issues and the
Assistant Administrator for Democratic and Civic Development of the
United States Agency for International Development.
(d) Additional Funds.--Funds made available under this section for
a fiscal year are in addition to funds otherwise available for such
purposes.
(e) Special Authority.--Funds made available under this section for
a fiscal year are authorized to be made available notwithstanding any
provision of law that restricts assistance to a foreign country.
SEC. 3105. ROLE OF BUREAU OF DEMOCRACY, HUMAN RIGHTS, AND LABOR.
Section 1(c)(2) of the State Department Basic Authorities Act of
1956 (22 U.S.C. 2651a(c)(2)) is amended to read as follows:
``(2) Assistant secretary of state for democracy, human
rights, and labor.--
``(A) In general.--There shall be in the Department
of State an Assistant Secretary of State for Democracy,
Human Rights, and Labor who shall be responsible to the
Secretary of State for matters pertaining to human
rights and humanitarian affairs (including matters
relating to prisoners of war and members of the United
States Armed Forces missing in action) in the conduct
of foreign policy and such other related duties as the
Secretary may from time to time designate. The
Assistant Secretary shall carry out the Secretary's
responsibilities under section 3102 of the Global
Partnerships Act of 2012.
``(B) Duties.--The Assistant Secretary of State for
Democracy, Human Rights, and Labor shall maintain
continuous observation and review all matters
pertaining to human rights and humanitarian affairs
(including matters relating to prisoners of war and
members of the United States Armed Forces missing in
action) in the conduct of foreign policy, including the
following:
``(i) Gathering detailed information
regarding humanitarian affairs and the
observance of and respect for internationally
recognized human rights in each country to
which the requirements of sections 3102 and
3103, respectively, of the Global Partnerships
Act of 2012 are relevant.
``(ii) Preparing the country reports and
action plans required under sections 3102 and
3103 of the Global Partnerships Act of 2012.
``(iii) Making recommendations to the
Secretary of State and the Administrator of the
United States Agency for International
Development regarding implementation of the
human rights policies, principles, restrictions
and authorities of the Global Partnerships Act
of 2012.
``(iv) Administering the Human Rights and
Democracy Fund established under section 3104
of the Global Partnerships Act of 2012.
``(v) Performing other responsibilities
which serve to promote increased observance of
internationally recognized human rights by all
countries.
``(C) Consultation.--The Assistant Secretary of
State for Democracy, Human Rights, and Labor shall be
consulted in the determinations of which countries
shall receive United States foreign assistance and the
nature of the assistance to be provided to each
country.
``(D) Certain assignments.--Any assignment of an
individual to a political officer position at a United
States mission abroad that has the primary
responsibility for monitoring human rights developments
in a foreign country shall be made upon the
recommendation of the Assistant Secretary of State for
Democracy, Human Rights, and Labor in conjunction with
the head of the Department of State's regional bureau
having primary responsibility for that country.''.
SEC. 3106. DISCRIMINATION RELATED TO SEXUAL ORIENTATION.
(a) Designation of Officer.--The Assistant Secretary of State for
Democracy, Human Rights, and Labor shall designate an officer or
officers who shall be responsible for tracking violence,
criminalization, and restrictions on the enjoyment of fundamental
freedoms, consistent with United States law, in foreign countries based
on actual or perceived sexual orientation and gender identity.
(b) International Efforts.--The Secretary shall work through
appropriate United States Government employees at United States
diplomatic and consular missions to encourage the governments of other
countries to reform or repeal laws of such countries criminalizing
homosexuality or consensual homosexual conduct, or restricting the
enjoyment of fundamental freedoms, consistent with United States law,
by homosexual individuals or organizations.
(c) Training for Foreign Service Officers.--Section 708(a) of the
Foreign Service Act of 1980 (22 U.S.C. 4028(a)) is amended--
(1) in the matter preceding paragraph (1), by inserting
``the Assistant Secretary for Democracy, Human Rights, and
Labor,'' before ``the Ambassador at Large'';
(2) in paragraph (2), by striking ``and'' at the end;
(3) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following new paragraph:
``(4) instruction, in courses covering human rights
reporting and advocacy work, on identifying violence,
discrimination, and restrictions on the enjoyment of
fundamental freedoms, consistent with United States law, based
on actual or perceived sexual orientation and gender
identity.''.
SEC. 3107. PERSONNEL AWARDS AND INCENTIVES.
Section 2143 of the ADVANCE Democracy Act of 2007 (22 U.S.C. 8243)
is amended by striking the matter preceding paragraph (1) and inserting
the following:
``The Secretary shall expand the range of awards and incentives to
encourage members of the Foreign Service and other employees of the
Department to take assignments relating to the promotion of democracy
and the protection of human rights, which may include the following:''.
Subtitle B--International Violence Against Women and Girls
SEC. 3201. STATEMENT OF POLICY.
It is the policy of the United States to--
(1) promote the equal participation of women in the
political, economic and social lives of their countries;
(2) build the capacity of foreign governments and civil
societies to prevent and respond to violence against women and
girls;
(3) ensure that all private partners under this Act take
appropriate steps to prevent and respond to violence against
women and girls; and
(4) systematically integrate efforts to prevent and respond
to violence against women and girls into United States foreign
policy and foreign assistance programs.
SEC. 3202. DUTIES OF THE SECRETARY OF STATE.
(a) Designation.--The Secretary shall designate a senior official
in the Department of State to conduct the activities of the Secretary
under this subtitle.
(b) Duties.--The Secretary's designee shall work with the Assistant
Secretary for Democracy, Human Rights, and Labor, the Ambassador-at-
Large for Global Women's Issues, and the heads of other of relevant
bureaus and offices of the Department of State and other Federal
agencies to--
(1) prepare the comprehensive international strategy
required under section 3203;
(2) collect and analyze data about violence against women
and girls internationally; and
(3) compile and disseminate information about effective
methods of prevention and response, including through the
preparation of public reports.
SEC. 3203. COMPREHENSIVE INTERNATIONAL STRATEGY TO PREVENT AND RESPOND
TO VIOLENCE AGAINST WOMEN AND GIRLS.
(a) Development of Strategy.--Not later than 1 year after the date
of the enactment of this Act, and every 5 years thereafter, the
Secretary, with the assistance of the Administrator, shall--
(1) develop a comprehensive, 5-year international strategy
to prevent and respond to violence against women and girls
internationally;
(2) submit the strategy developed under paragraph (1) to
the appropriate congressional committees; and
(3) make the strategy available to the public.
(b) Collaboration and Coordination.--In developing the strategy
under subsection (a), the Secretary shall consult with--
(1) Federal agencies with expertise preventing and
responding to violence against women and girls or administering
international programs;
(2) the Senior Policy Operating Group on Trafficking in
Persons; and
(3) representatives of civil society organizations with
demonstrated experience in combating violence against women and
girls or promoting women's health or women's development issues
internationally.
(c) Content.--The strategy developed under subsection (a) shall--
(1) identify 5 to 20 countries with significant levels of
violence against women and girls, including within displaced
communities, that have the government or nongovernment
organizational capacity to manage and implement gender-based
violence prevention and response program activities;
(2) include individual, comprehensive plans for prevention
and response in each of the countries identified under
paragraph (1) (hereafter in this chapter referred to as
``country plans'');
(3) estimate the resource requirements for carrying out
each country plan, including the proposed sources of funding
and amounts to be contributed by or sought from partner
countries and other public and private donors;
(4) specify the roles and responsibilities of each Federal
agency in carrying out the strategy;
(5) ensure that the country plans are integrated with
Country Development Cooperation Strategies required under
section 1018 and action plans for human rights and democracy
required under section 3103, as appropriate;
(6) explain the mechanisms and processes for consultation
and coordination with partner countries and other public and
private donors in all stages of planning and implementation of
each country plan; and
(7) describe the monitoring and evaluation mechanisms to be
used for each country plan.
(d) Activities.--Each country plan should incorporate at least 2 of
the following activities:
(1) Enhancing the capacity of the health sector to prevent
and respond to violence against women and girls.
(2) Developing and enforcing civil and criminal legal and
judicial sanctions, protections, training, and capacity.
(3) Supporting efforts to change social norms and attitudes
so that violence against women and girls is neither condoned
nor tolerated.
(4) Expanding access of women and girls to quality
education.
(5) Increasing economic opportunities for women, including
through access to credit, vocational training, property
ownership, and inheritance rights.
SEC. 3204. ASSISTANCE TO PREVENT AND RESPOND TO VIOLENCE AGAINST WOMEN
AND GIRLS INTERNATIONALLY.
(a) In General.--The Secretary and the Administrator are authorized
to use funds made available for economic assistance to carry out the
comprehensive international strategy and country plans developed under
section 3203 and to conduct research and collect and analyze data in
accordance with section 3202.
(b) Coordination of Assistance.--The Secretary and the
Administrator shall seek to ensure that programs, projects, and
activities carried out under this subtitle are coordinated with related
programs, projects, and activities carried out under other provisions
of law.
SEC. 3205. DEFINITIONS.
In this subtitle:
(1) Prevention and response.--The term ``prevention and
response'' means activities designed to prevent and respond to
violence against women and girls.
(2) Violence against women and girls.--The term ``violence
against women and girls''means any act of violence that results
in, or is likely to result in, physical, sexual, or
psychological harm or suffering to women or girls, including
threats of such acts, coercion, or arbitrary deprivations of
liberty, whether occurring in public or private life.
Subtitle C--Rule of Law
SEC. 3301. FINDINGS.
Congress finds the following:
(1) Human security depends upon the existence of a system
under which citizens are protected against arbitrary and
abusive use of power, law and order are consistently
maintained, and justice is effectively administered.
(2) The rule of law must be carried out in accordance with
international human rights standards, which include the
equality and accountability of all individuals before the law
regardless of political or social status; the protection of
individuals against arbitrary or discriminatory treatment by,
or with the acquiescence of, the government; the independence
of the judiciary and the legal profession from other branches
of government; the professional maintenance of law and order;
and the transparent and fair administration of justice.
(3) Responsible and effective criminal justice systems not
only build the foundations for democracy and economic growth in
developing countries, but also help to stem illicit activities,
such as drug trafficking and terrorism, that threaten United
States national interests.
(4) Provision of rule of law assistance to foreign police
and security forces is an inherently governmental function,
which should be performed by, or under the direct supervision
of, United States Government employees.
(5) The United States should provide assistance to foreign
law enforcement agencies only--
(A) if such agencies have demonstrated a commitment
to improving protection of the security, human rights
and dignity of the civilian population;
(B) within the context of a comprehensive program
to strengthen the rule of law and improve the
administration of justice; and
(C) in conjunction with a system to monitor and
evaluate the impact of such advice, training, and
equipment.
SEC. 3302. GLOBAL RULE OF LAW POLICY COMMITTEE.
(a) Establishment.--The President shall establish a Global Rule of
Law Policy Committee (hereafter in this section referred to as the
``Committee''), to include the Secretary of State, the Attorney
General, the Secretary of Homeland Security, the Secretary of the
Treasury, the Secretary of Defense, the Administrator, and the heads of
other Federal agencies engaged in rule of law assistance.
(b) Purpose.--The purpose of the Committee shall be to promote
coordination among Federal agencies carrying out rule of law assistance
and to build capacity to provide such assistance effectively.
(c) Review.--The Committee shall have the authority to review any
proposed legislative or legal advice to be provided by private
contractors to foreign law enforcement agencies.
(d) Coordination Plan.--Not later than 180 days after the date of
the enactment of this Act, the Committee shall establish a plan for the
coordination of rule of law assistance, including--
(1) building capacity within the United States Government
to provide expert, long-term advice and training for foreign
civilian law enforcement agencies and judicial systems;
(2) utilizing such capacity currently existing within other
donor countries and international and nongovernmental
organizations;
(3) delineating the roles and responsibilities of each
Federal agency in carrying out rule of law assistance;
(4) establishing general policies and principles guiding
the provision of rule of law assistance; and
(5) ensuring policy and program coordination among Federal
agencies carrying out rule of law assistance.
(e) Transmission to Congress.--The coordination plan required under
subsection (d) shall be transmitted to the appropriate congressional
committees and made publicly available on the Internet.
(f) Definition.--In this section, the term ``rule of law
assistance'' means assistance under this or any other Act to combat
crime, improve law enforcement, and strengthen the administration of
justice in a foreign country, including assistance under sections 1803,
3303, and 5203.
SEC. 3303. ASSISTANCE FOR RULE OF LAW.
(a) Nonlethal Assistance.--The President is authorized to provide
training, advice, and nonlethal equipment to eligible foreign law
enforcement agencies to improve the capacity of such agencies to--
(1) protect the safety and security of civilian
populations, including through community policing;
(2) promote respect for human rights and due process of
law;
(3) prevent and respond to violence against women and
girls;
(4) reduce organized crime, corruption, and financial
crimes;
(5) carry out investigative and forensic functions;
(6) bring penal institutions into conformity with
international humanitarian standards;
(7) develop training curricula;
(8) manage human and financial resources and carry out
administrative functions, including internal discipline
procedures;
(9) conduct strategic planning and institutional reform
consistent with civilian democratic control;
(10) institute effective mechanisms for accountability and
oversight;
(11) develop constructive relationships with the
communities they serve;
(12) prevent disputes from escalating into violence;
(13) respond appropriately and effectively in disasters and
emergencies;
(14) control and protect land, air and maritime borders,
and enforce customs;
(15) participate in international peace support operations;
(16) monitor and enforce sanctions regimes;
(17) detect and interdict trafficking in persons, weapons,
narcotics, and other contraband;
(18) conduct maritime law enforcement and border control;
and
(19) combat terrorism and violent extremism.
(b) Administration of Justice.--The President is authorized to
assist eligible foreign law enforcement agencies to improve
administration of justice, including through--
(1) revision and modernization of legal codes and
procedures;
(2) improving transparency and efficiency of judicial
processes;
(3) professional training, scholarships, and exchanges of
lawyers, judges, and other judicial officials;
(4) building administrative and financial management
capacity in the justice sector;
(5) programs to enhance protection of witnesses and
participants in judicial cases;
(6) strengthening professional organizations in order to
promote services to members and the role of the bar in judicial
selection, enforcement of ethical standards, and legal reform;
(7) increasing the availability of legal materials and
publications;
(8) developing systems to ensure competent defense of
indigent clients charged with crimes;
(9) enhancing access of crime victims to legal information
and services; and
(10) programs to strengthen respect for the rule of law and
internationally recognized human rights.
(c) Eligible Agencies.--A foreign law enforcement agency shall be
eligible for assistance under this section only if--
(1) the President determines, and reports to the
appropriate congressional committees not less than 15 days in
advance of providing such assistance, that such agency has
demonstrated a commitment to improving protection of the
security, human rights, and dignity of the civilian population;
(2) the assistance will be used to strengthen democratic
control over the police or prison authority or to improve
adherence to international human rights standards; and
(3) such agency is not otherwise prohibited by any
provision of this Act from receiving assistance.
(d) Accountability.--The Comptroller General of the United States
shall, not later than 1 year after the date of the enactment of this
Act, conduct a review of the effectiveness and results of rule of law
programs supported by the United States Government over the prior 5-
year period, including their outcomes for human rights, in order to
determine best practices and lessons learned for future programming.
(e) Participation in Foreign Police Actions.--
(1) Prohibition on effecting an arrest.--No officer or
employee of the United States may directly effect an arrest in
any foreign country as part of any foreign police action,
notwithstanding any other provision of law.
(2) Participation in arrest actions.--Paragraph (1) does
not prohibit an officer or employee of the United States, with
the approval of the United States chief of mission, from being
present when foreign officers are effecting an arrest or from
assisting foreign officers who are effecting an arrest.
(3) Exception for exigent, threatening circumstances.--
Paragraph (1) does not prohibit an officer or employee from
taking direct action to protect life or safety if exigent
circumstances arise which are unanticipated and which pose an
immediate threat to United States officers or employees,
officers or employees of a foreign government, or members of
the public.
(4) Exception for maritime law enforcement.--With the
agreement of a foreign country, paragraph (1) does not apply
with respect to maritime law enforcement operations in the
territorial sea or archipelagic waters of that country.
(5) Exception for status of forces arrangements.--This
subsection does not apply to the activities of the United
States Armed Forces in carrying out their responsibilities
under applicable status of forces arrangements.
SEC. 3304. DEFINITION.
In this subtitle, the term ``foreign law enforcement agency'' means
an agency--
(1) with domestic arrest powers;
(2) responsible for internal security, including the
protection of life and property; and
(3) that does not report to a defense ministry or similar
or related entity of a foreign government and is not a military
force.
Subtitle D--Child Protection
SEC. 3401. FINDINGS.
Congress finds that--
(1) the Trafficking Victims Protection Act of 2000 (Public
Law 106-386) and subsequent reauthorization Acts establish a
comprehensive framework for monitoring and combating human
trafficking, including that of children;
(2) under the Trafficking Victims Protection Act of 2000,
the Secretary annually identifies countries that do not comply
with minimum standards for the elimination of trafficking, some
of which are making significant efforts to bring themselves
into compliance;
(3) additional incentives should be provided to encourage
countries to protect and rescue children subjected to severe
forms of trafficking or sexual exploitation; and
(4) such incentives can be provided in the form of
assistance to countries that--
(A) have a significant prevalence of trafficking in
children;
(B) agree to address institutional weaknesses
within the government that result in the failure to
protect vulnerable children and to rescue and properly
rehabilitate victims; and
(C) agree to enhance efforts to apprehend
perpetrators who engage in severe forms of trafficking
in children and bring them to justice in national
courts of law.
SEC. 3402. CHILD PROTECTION COMPACTS.
(a) Authorization.--The Secretary, acting through the Office to
Monitor and Combat Trafficking in Persons and in consultation with the
Senior Policy Operating Group on Trafficking in Persons, is authorized
to enter into a compact described in subsection (b) with an eligible
country described in subsection (c) to protect and rescue children
subjected to severe forms of trafficking or sexual exploitation. Such
compact shall be known as a ``Child Protection Compact''.
(b) Compact.--
(1) In general.--A compact described in this subsection is
an agreement between the United States and an eligible country
that establishes a multiyear plan to protect and rescue
children subjected to severe forms of trafficking or sexual
exploitation.
(2) Elements.--A compact shall contain--
(A) the specific objectives that the country and
the United States expect to achieve during the term of
the compact;
(B) the responsibilities of the country and the
United States in the achievement of such objectives;
(C) the particular programs or initiatives to be
undertaken in the achievement of such objectives and
the amount of funding to be allocated to each program
or initiative;
(D) regular outcome indicators to monitor and
measure progress toward achieving such objectives,
including indicators for each program or initiative;
(E) a multi-year financial plan, including the
estimated amount of contributions by the United States
and the country; and
(F) the strategy of the country to sustain progress
made toward achieving such objectives after expiration
of the compact.
(3) Programs and initiatives.--Programs and initiatives
under a compact may include--
(A) evaluating legal standards and practices and
recommending improvements that will increase the
likelihood of successful prosecutions;
(B) training anti-trafficking police and
investigators;
(C) increasing public awareness of the risks and
dangers of child trafficking;
(D) building cooperation between domestic
nongovernmental organizations and law enforcement
agencies to identify and rescue victims;
(E) making courts more friendly to victims;
(F) providing rehabilitation and reintegration
services for rescued children;
(G) supporting innovative technology and improved
data collection to prevent child trafficking, aid in
the prosecution of criminals, and rescue victims; and
(H) developing regional cooperative plans with
neighboring countries to prevent cross-border
trafficking of children and child sex tourism.
(c) Eligible Countries.--A country is eligible for a compact if the
country--
(1) is a developing country, in that term is defined in
section 1023;
(2) is a Tier II country or Tier II Watch List country;
(3) has a documented high prevalence of trafficking of
children; and
(4) has demonstrated political will and sustained
commitment by the government to undertake meaningful measures
to address severe forms of trafficking of children, including--
(A) enactment and enforcement of laws criminalizing
trafficking in children with punishments commensurate
with the crime, including, when necessary, against
complicit government officials;
(B) cooperation with local and international
nongovernmental organizations with demonstrated
expertise in combating the trafficking in children; and
(C) the treatment of child trafficking victims in
accordance with Article 6(3) of the Protocol to
Prevent, Suppress and Punish Trafficking in Persons,
Especially Women and Children, Supplementing the United
Nations Convention Against Transnational Organized
Crime.
SEC. 3403. AUTHORIZATION OF ASSISTANCE.
(a) In General.--The Secretary is authorized to use funds made
available under this Act for economic assistance to--
(1) develop a Child Protection Compact between the United
States and an eligible country under section 3402; and
(2) provide assistance to an eligible entity described in
subsection (b) to carry out a Child Protection Compact.
(b) Eligible Entities.--In carrying out a Child Protection Compact,
the Secretary may provide assistance to--
(1) the national government of the eligible country under
section 3402;
(2) regional or local governmental units of an eligible
country under section 3402;
(3) a regional or international organization; or
(4) a nongovernmental organization or a private entity with
expertise in the protection of vulnerable children, the
investigation and prosecution of those who engage in or benefit
from child trafficking, or the rescue of child victims of
trafficking.
SEC. 3404. SUSPENSION AND TERMINATION OF ASSISTANCE.
(a) Suspension and Termination of Assistance.--The Secretary shall
suspend or terminate assistance under section 3403 in whole or in part
for an eligible entity under section 3403 if the Secretary determines
that--
(1) the entity is engaged in activities that are contrary
to the national security interests of the United States;
(2) the entity has engaged in a pattern of actions
inconsistent with the criteria used to determine the
eligibility of the country or entity, as the case may be; or
(3) the entity has failed to adhere to its responsibilities
under the Child Protection Compact.
(b) Reinstatement.--The Secretary may reinstate assistance that has
been suspended or terminated under subsection (a) only if the Secretary
determines that the entity has demonstrated a commitment to correcting
each condition for which assistance was suspended or terminated.
(c) Congressional Notification.--Not later than 3 days after the
date on which the Secretary suspends or terminates assistance under
subsection (a) for an entity, or reinstates assistance under subsection
(b) for an entity, the Secretary shall submit to the appropriate
congressional committees a report that contains the determination of
the Secretary under subsection (a) or subsection (b), as the case may
be.
SEC. 3405. CONGRESSIONAL NOTIFICATION.
(a) Prior Consultation.--Not later than 15 days prior to the start
of negotiations of a Child Protection Compact with a country, the
Ambassador shall consult with the appropriate congressional committees.
(b) Congressional Notification.--Not later than 10 days after
entering into a Child Protection Compact with a country, the Ambassador
shall notify the appropriate congressional committees, and shall
provide a detailed summary of the Compact and a copy of the text of the
Compact.
(c) Monitoring and Evaluation.--The Ambassador shall ensure that
regular monitoring reports for each compact are prepared and made
available to the appropriate congressional committees, and that an
independent impact evaluation is conducted upon the completion of a
compact.
SEC. 3406. DEFINITIONS.
In this subtitle:
(1) Ambassador.--The term ``Ambassador'' means the
Ambassador-at-Large of the Department of State's Office to
Monitor and Combat Trafficking in Persons.
(2) Child protection.--The term ``child protection'' means
efforts to prevent and respond to violence, exploitation, and
abuse against children.
(3) Compact.--The term ``Child Protection Compact'' or
``Compact'' means a Child Protection Compact described in
section 3402.
(4) Severe forms of trafficking.--The term ``severe forms
of trafficking in persons'' means--
(A) sex trafficking in which a commercial sex act
is induced by force, fraud, or coercion, or in which
the person induced to perform such act has not attained
18 years of age; or
(B) the recruitment, harboring, transportation,
provision, or obtaining of a person for labor or
services, through the use of force, fraud, or coercion
for the purpose of subjection to involuntary servitude,
peonage, debt bondage, or slavery.
(5) Tier ii countries and tier ii watch list countries.--
The terms ``Tier II countries'' and ``Tier II Watch List
countries'' mean those countries designated by the Secretary as
not meeting minimum standards for the elimination of
trafficking.
TITLE IV--BUILDING AND REINFORCING STRATEGIC PARTNERSHIPS
SEC. 4001. FINDINGS.
Congress finds the following:
(1) The ultimate goal of the United States continues to be
a world which is free from the scourge of war and the dangers
and burdens of armaments, in which the use of force has been
subordinated to the rule of law, and in which international
adjustments to a changing world are achieved peacefully.
(2) In furtherance of that goal, it remains the policy of
the United States to encourage regional arms control and
disarmament agreements; discourage arms races; and encourage
restraint in the provision of armaments, especially small arms
and light weapons and advanced conventional weapons, to
countries in regions of instability.
(3) The efforts of the United States and other friendly
countries to promote peace and security continue to require
measures of support based upon the principle of effective self-
help and mutual aid.
(4) The peace of the world and the security of the United
States are endangered so long as hostile countries continue by
threat of military action, by the use of economic pressure, by
their active or permissive support of terrorists, terrorist
organizations and extremism, and by internal subversion, or
other means to attempt to undermine the peace, security, human
rights, political freedoms, civil rights, or prosperity of
others.
(5) Peace and security for all is endangered by the failure
of countries to live up to their sovereign responsibilities to
protect civilian populations from violence, reduce terrorism,
halt the spread of dangerous materials, and control
transnational crime.
(6) It is in the interest of the United States to help
foreign countries build capable and accountable military,
police, customs, and other security forces, under civilian
democratic control, in order to exercise their sovereign
responsibilities.
(7) Extreme poverty and underdevelopment are threats to
peace. The provision of foreign assistance under this title to
developing countries must take into account how the foreign
assistance will affect such countries' social and economic
development and whether the foreign assistance is diverting
resources away from development efforts that meet basic needs
of the population and address root causes of instability.
(8) Weapons and weapons systems are not and should not be
considered to be normal commodities for international trade,
and the United States should permit such sales only to the
extent that such sales directly support United States foreign
policy and national security objectives.
(9) Foreign assistance under this title should not be
provided if such foreign assistance will likely--
(A) contribute to an arms race or regional
instability;
(B) increase the possibility of outbreak or
escalation of conflict, either within or across the
borders of the recipient country;
(C) support international terrorism;
(D) prejudice the development of bilateral or
multilateral arms control arrangements;
(E) adversely affect the arms control or
nonproliferation policy of the United States;
(F) be in excess to the legitimate defense needs of
the recipient country in terms of the actual threats to
its national security it faces; or
(G) undermine the objectives and purposes to
promote and protect human rights and democracy under
title III.
SEC. 4002. STATEMENT OF POLICY.
It is the policy of the United States--
(1) to promote the peace of the world and the foreign
policy, security, and general welfare of the United States by
fostering an improved climate of security, political
independence and individual liberty, improving the ability of
friendly countries and international organizations to deter or,
if necessary, defeat aggression in whatever form, facilitating
arrangements for individual and collective security, assisting
friendly countries to provide for their legitimate defense
needs, and creating an environment of security and stability in
the developing friendly countries essential to their more rapid
social, economic, and political progress;
(2) to exert leadership in the world community to bring
about arrangements for reducing the international trade in
implements of war and to lessen the danger of outbreak of
regional conflict and the burdens of armaments;
(3) to exert maximum efforts to achieve universal control
of weapons of mass destruction, the securing and control of the
means to produce and deliver them, and universal regulation and
reduction of armaments, including armed forces, under adequate
safeguards to protect complying countries against violation,
aggression, and invasion;
(4) to administer United States programs for or procedures
governing the export, sale, and grant of defense articles and
defense services to foreign countries and international
organizations in a manner consistent with the goals described
in section 4003;
(5) to achieve international peace and security through the
United Nations and the diplomatic settlement of disputes so
that armed force shall not be used except for individual or
collective self-defense;
(6) to encourage all other countries to join in a common
undertaking to meet the goals described in section 4003; and
(7) to give priority for the provision of foreign
assistance under this title to the needs of those countries in
danger of becoming victims of aggression, terrorism, or
intimidation by conventional or non-conventional military
means.
SEC. 4003. GOALS OF ASSISTANCE.
(a) In General.--The provision of foreign assistance under this
title to any country or organization shall be furnished solely to
achieve the following goals:
(1) To improve the ability of the country or organization
to meet its legitimate defense and internal security needs.
(2) To assist and encourage the country or organization to
recognize and effectively address problems that threaten United
States security, including terrorism, proliferation of weapons
and dangerous technologies, environmental destruction, the
spread of deadly disease, and transnational crime.
(3) To protect civilian populations from violence,
including criminal violence.
(4) To permit the country or organization to participate in
regional or collective arrangements or measures requested by
the United Nations, or consistent with the Charter of the
United Nations, for the purpose of maintaining or restoring
international peace and security.
(5) To increase the professionalization, transparency,
accountability, humanitarian and disaster response capacity, or
human rights record of the security forces of the country or
organization, and the effective control of such security forces
by civilian democratic authorities.
(6) To promote a social, economic, and political
environment conducive to stable peace in the country or region.
(b) Biennial Review and Report.--
(1) Review.--In carrying out the requirements of section
9201 with respect to security assistance, the Secretary shall,
for each country to which such assistance is provided--
(A) review the extent to which such assistance is
achieving the goals of subsection (a);
(B) review the impact of such assistance on
internationally recognized human rights; and
(C) incorporate the results of such review into
decisions regarding the provision and design of
security assistance.
(2) Biennial report.--Not later than 2 years after the date
of the enactment of this Act, and every 2 years thereafter, the
President shall submit to the appropriate congressional
committees a report on the result of the review required under
paragraph (1) and the steps taken to incorporate the results of
such review into security assistance decisionmaking.
Subtitle A--Economic Support Fund
SEC. 4101. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Conflict, violence, anarchy, and instability, fueled by
problems such as tyranny and oppression, corruption and
financial mismanagement, ethnic and religious discrimination
and discord, competition over resources, and other sources of
tension, are among the greatest threats to United States
national security.
(2) Terrorism and violent extremism undermine the stability
and survival of states, the protection of democratic freedoms,
the vitality of economies and markets, and the lives of
civilian populations.
(3) United States leadership is essential to countering
terrorism and violent extremism, fostering political and
economic stability, and reaching comprehensive, just and
lasting peace agreements.
(4) To reduce the need for military force, the United
States must develop and maintain a broad range of efficient and
effective diplomatic and economic tools to promote peaceful
resolution of conflict and to prevent the collapse of weak and
fragile states.
(5) Efforts to promote international peace and stability
are most effective when undertaken on a multilateral basis, in
concert with strategic partners.
(6) Prudent investment of United States resources to
assist, through bilateral and collective efforts, in preventing
or containing armed conflict, in restoring peace and stability,
and in addressing the sources of conflict, is essential for
achieving a peaceful world.
(7) While stability is a necessary precursor to long-term
development, stabilization programming often has different
objectives, beneficiaries, modalities, and measurement tools
than long-term development programming, and should be
justified, budgeted, and evaluated according to different
criteria.
(b) Statement of Policy.--It is the policy of the United States to
deepen engagement with close allies and partners, and to develop
relations with new partners, to prevent violent conflict, resolve
underlying grievances fairly, and build sustainable peace.
SEC. 4102. GOAL AND OBJECTIVES.
(a) Goal.--The goal of foreign assistance under this subtitle is to
expand strategic partnerships to prevent violent conflict, resolve
underlying grievances fairly, and build sustainable peace.
(b) Objectives.--In furtherance of the goal described in subsection
(a), foreign assistance under this subtitle shall be designed to
achieve the following objectives:
(1) Promoting and supporting peace agreements.
(2) Increasing economic and political stability.
(3) Facilitating participation in collective diplomatic and
security efforts.
(4) Strengthening democratic governance.
SEC. 4103. ECONOMIC SUPPORT FUND.
(a) Authorization.--The President is authorized to provide foreign
assistance under this subtitle to countries and organizations, on such
terms and conditions as the President may determine, in order to
achieve the goal and objectives of this subtitle. Such foreign
assistance shall be known as ``Economic Support Fund'' assistance.
(b) Relationship to Development Assistance.--Foreign assistance
under this subtitle--
(1) should be designed to complement assistance under title
I and should be linked with subsequent medium-term and long-
term development programs;
(2) shall be provided, to the maximum extent feasible,
consistent with the policy directions, purposes, and programs
of title I; and
(3) is authorized to be provided for countries in amounts
that could not be justified solely under assistance under title
I.
(c) Role of the Secretary.--The Secretary shall be responsible for
policy decisions and justifications for foreign assistance under this
subtitle, including determinations of whether to provide foreign
assistance to a country or organization and the amount of such foreign
assistance. The Secretary shall exercise this responsibility in
coordination with the Administrator.
(d) Information To Be Provided.--The annual congressional budget
justification required under section 9302 and the database required
under section 9301 shall include information concerning the amounts and
kinds of cash grant transfers, the amounts and kinds of budgetary and
balance-of-payments support provided, and the amounts and kinds of
project assistance provided with funds made available under this
subtitle.
(e) Non-Military Purposes.--Amounts made available to carry out
this subtitle may not be used for military or paramilitary purposes and
may not be carried out by military forces.
(f) Availability of Funds.--Amounts made available to carry out
this subtitle are authorized to remain available until expended.
SEC. 4104. CASH TRANSFER ASSISTANCE.
(a) In General.--The Secretary is authorized to provide foreign
assistance under this subtitle in the form of cash grant transfers,
balance-of-payments support, or other non-project assistance only to
the extent and in the amounts justified in the annual congressional
budget justification required under section 9302 or as subsequently
notified to Congress pursuant to section 9401.
(b) Separate Accounts.--A country or organization receiving foreign
assistance in the form of cash transfers or non-project sector
assistance shall be required to maintain such funds in a separate
account and not commingle them with any other funds.
(c) Use of Funds.--Funds placed into a separate account pursuant to
subsection (b) may be obligated and expended notwithstanding commodity
restrictions (as defined in section 11001).
Subtitle B--Security Partnerships
CHAPTER 1--GENERAL AUTHORITIES
SEC. 4211. AUTHORIZATION OF ASSISTANCE.
(a) Authorization.--
(1) In general.--The President is authorized to provide
foreign assistance under this subtitle to any country or
organization that is eligible to receive such assistance in
order to promote security in the country or region.
(2) Terms and conditions.--The President may provide
foreign assistance under this subtitle on such terms and
conditions as the President may determine.
(b) Types of Assistance.--Assistance provided under subsection (a)
includes--
(1) acquiring from any source and providing by grant any
defense article or defense service;
(2) assigning or detailing members of the United States
Armed Forces and other personnel of the Department of Defense,
the Department of State, or any other Federal agency, to
perform duties of a non-combatant nature; or
(3) transferring such amounts made available under this
title as the President may determine for assistance to the
country or organization to the account in which amounts for the
procurement of defense articles and defense services under
section 4311 and section 4312 have been deposited for the
country or organization, to be merged with such deposited
funds, and to be used solely to meet obligations of the country
or organization for payment for sales of defense items and
services under this title.
(c) Exclusion of Certain Costs.--Sales that are wholly paid from
funds transferred under subsection (b)(3) or from funds made available
on a non-repayable basis under section 4311 shall be priced to exclude
the costs of salaries of members of the United States Armed Forces
(other than the Coast Guard).
SEC. 4212. CONDITIONS OF ASSISTANCE.
(a) In General.--Consistent with the requirements of sections 4361
and 4362, foreign assistance authorized under this subtitle, including
defense articles, defense services, or related training, may be
provided to any country or organization if the country or organization
(as the case may be) has agreed that--
(1) it will not transfer title to, or possession or use of,
any defense article, defense service, or related training so
provided to it, or produced pursuant to a cooperative project
agreement, to anyone who is not an officer, employee, or agent
of the country or organization (as the case may be) or the
specific member countries (other than the United States) in the
case of a cooperative project agreement, without the prior
consent of the President;
(2) it will maintain the security of such articles,
services, or related training and will provide substantially
the same degree of security protection afforded to such
articles, services, or related training by the United States
Government;
(3) it will, as the President may require, permit
continuous observation and review by, and provide necessary
information to, representatives of the United States Government
with regard to the use of such articles, services, or related
training; and
(4) unless the President consents to other disposition, it
will return to the United States Government for such use or
disposition as the President considers in the best interests of
the United States, such articles, services, or related training
which are no longer needed for the purposes for which provided.
(b) Certification.--
(1) In general.--The Secretary may not give consent under
section 4361 to the retransfer of any defense article or
defense service that would be, if it were a sale, subject to
the requirements of section 4382 (regarding congressional
certification of sensitive foreign military sales and
agreements), unless the Secretary submits to the appropriate
congressional committees a written certification with respect
to such proposed retransfer containing--
(A) the name of the country or organization
proposing to make such retransfer;
(B) a description of such article or service
proposed to be retransferred, including its acquisition
cost;
(C) the name of the proposed recipient of such
article or service;
(D) the reasons for such proposed retransfer; and
(E) the date on which such retransfer is proposed
to be made.
(2) Form.--Any certification submitted to the appropriate
congressional committees pursuant to paragraph (1)--
(A) shall be submitted in unclassified form, except
that information regarding the dollar value and number
of defense articles or defense services proposed to be
retransferred may be submitted in classified form if
public disclosure thereof would be clearly detrimental
to the security of the United States; and
(B) shall be subject to the requirements of
sections 4384.
(3) Exception.--Paragraph (1) shall not apply to an export
that has been exempted from the licensing requirements of this
title pursuant to an agreement pursuant to section 4341.
(c) Exception for Incorporated Components.--The consent of the
President under subsection (a)(1) shall not be required for the
transfer by a foreign country or international organization of defense
articles sold by the United States under this Act if--
(1) such articles constitute components incorporated into
foreign defense articles;
(2) the recipient is the government of a strategic United
States ally;
(3) the recipient is not a country designated under section
10401;
(4) the United States-origin components are not--
(A) significant military equipment;
(B) defense articles for which notification to
Congress is required under section 4382; and
(C) identified by regulation as Missile Technology
Control Regime items; and
(5) the foreign country or international organization
provides notification of the transfer of the defense articles
to the United States Government not later than 30 days after
the date of such transfer.
SEC. 4213. PROHIBITION FOR MISUSE OF UNITED STATES ASSISTANCE.
(a) Prohibition.--No foreign assistance may be provided under this
subtitle, subtitle C, or any predecessor Act to any country or
organization if the Secretary has credible information the country or
organization (as the case may be) uses or has used assistance,
including defense articles or defense services, provided under this
title or any predecessor Act in substantial violation (either in terms
of quantities or in terms of the gravity of the consequences regardless
of the quantities involved) of any agreement entered into pursuant to
this title or any such Act--
(1) by using such articles or services for a purpose not
authorized under section 4301 or, if such agreement provides
that such articles or services may only be used for purposes
more limited than those authorized under section 4301, for a
purpose not authorized under such agreement; or
(2) by transferring such articles or services to, or
permitting any use of such articles or services by, anyone not
an officer, employee, or agent of the country or organization
without the prior consent of the United States; or
(3) by failing to maintain the security of such articles or
services, including attempts to obtain classified or
proprietary information or technology from such articles or
services.
(b) Congressional Notification.--
(1) In general.--The Secretary shall notify the appropriate
congressional committees promptly upon the receipt of credible
information that a country or organization may have committed a
violation described in subsection (a), and what actions are
being taken to implement the prohibition under that subsection.
The President shall ensure that the appropriate United States
Government departments and agencies provide to the Secretary
without delay any and all information relating to a violation
described in subsection (a).
(2) Timing.--The notification required under paragraph (1)
with respect to a country or organization shall occur before a
certification required under chapter 6 of subtitle C relating
to a proposed export of a defense article or defense service to
the country or organization.
(c) Reinstatement.--The prohibition on assistance under subsection
(a) shall cease to be effective for any country or organization if the
Secretary determines and notifies the appropriate congressional
committees that--
(1) the violation for which the prohibition was imposed has
ceased;
(2) the country or organization (as the case may be) has
given assurances satisfactory to the Secretary that the
violation will not recur; and
(3) the country or organization (as the case may be) has
taken sufficient steps to prevent a recurrence of any similar
violation; or
(4) the Secretary has determined that the violation did not
in fact occur.
(d) Waiver.--The Secretary may waive the prohibition on assistance
under subsection (a) for any country or organization if the Secretary
determines and notifies the appropriate congressional committees that
such prohibition on assistance would have a significant adverse impact
on the security of the United States.
(e) Review and Report.--
(1) Review.--Not later than 180 days after the date of the
enactment of this Act, and every 3 years thereafter, the
Inspector General of the Department of State shall conduct a
review of investigations by the Department of State of any and
all possible occasions of misuse of defense articles and
defense services by countries and organizations to determine
whether the Department of State has fully complied with the
requirements of this section, as well as with the Department of
State's internal procedures (and whether such procedures are
adequate), for reporting to Congress any information regarding
the unlawful use or transfer of defense articles and defense
services by such countries and organizations.
(2) Report.--The Inspector General of the Department of
State shall submit to the appropriate congressional committees
for each of fiscal years 2014 through 2017 a report that
contains the findings and results of the review conducted under
paragraph (1). The report shall be submitted in unclassified
form to the maximum extent possible, but may include a
classified annex.
CHAPTER 2--DRAWDOWN AUTHORITY
SEC. 4221. AUTHORIZATION OF EMERGENCY ASSISTANCE.
(a) Authorization.--If the President determines that--
(1) an unforeseen emergency exists which requires the
immediate provision of assistance authorized under this
subtitle to a country or organization, and
(2) the emergency requirement cannot be met under the
authority of any other provision of law except this section,
the President may direct, in order to meet the goals described in
section 4003, the drawdown of articles and services, including
training, from any Federal agency of an aggregate value of not to
exceed $250,000,000 in any fiscal year.
(b) Congressional Notification.--The President may exercise the
authority of subsection (a) with respect to an emergency described in
subsection (a) only if the President first notifies the appropriate
congressional committees.
SEC. 4222. AUTHORIZATION OF NON-EMERGENCY ASSISTANCE.
(a) In General.--If the President determines that it is in the
national interest of the United States to drawdown articles and
services from the inventory and resources of any Federal agency,
including military education and training from the Department of
Defense, the President may direct the drawdown of such articles,
services, and military education and training--
(1) for purposes of providing foreign assistance, as
administered by the Department of State, under this Act;
(2) for purposes of providing assistance under the
Migration and Refugee Assistance Act of 1962; or
(3) to support cooperative efforts with Vietnam, Cambodia,
or Laos to locate and repatriate members of the United States
Armed Forces and civilians employed directly or indirectly by
the United States Government who remain unaccounted for from
the Vietnam War, including for purposes of--
(A) ensuring the safety of United States Government
personnel engaged in such cooperative efforts; and
(B) supporting Department of Defense-sponsored
humanitarian projects associated with such efforts.
(b) Limitation.--An aggregate value of not to exceed $250,000,000
in any fiscal year of such articles, services, and military education
and training may be provided pursuant to subsection (a).
(c) Notification.--The authority contained in this section shall be
effective for any such drawdown only upon notification to the
appropriate congressional committees at least 15 days prior to such
drawdown in accordance with the procedures applicable to reprogramming
notifications.
SEC. 4223. COMMERCIAL TRANSPORTATION AND RELATED SERVICES.
For purposes of this chapter, a drawdown of articles or services
may include the supply of commercial transportation and related
services that are acquired by contract for the purposes of the drawdown
in question if the cost to acquire such commercial transportation and
related services is less than the cost to the United States Government
of providing such services from existing assets of the applicable
Federal agency.
SEC. 4224. REPORT.
(a) In General.--The Secretary shall keep the appropriate
congressional committees fully and currently informed of assistance
provided to a country or organization under this chapter, including by
submitting to the appropriate congressional committees a report
describing such assistance delivered to each country or organization
upon delivery of such articles or upon completion of such services or
education and training.
(b) Publication on Website.--The Secretary shall publish each
report required under subsection (a) on the Internet website of the
Department of State upon submission of the report to the appropriate
congressional committees.
CHAPTER 3--LOANS OF DEFENSE ARTICLES
SEC. 4231. LOAN REQUIREMENTS.
In addition to such other terms and conditions as the President may
determine pursuant to section 4211, defense articles and defense
services may be loaned under such section only if--
(1) there is a bona fide reason, other than the shortage of
funds, for providing such articles on a loan basis rather than
on a grant basis;
(2) there is a reasonable expectation that such articles
will be returned to the Federal agency making the loan at the
end of the loan period unless the loan is then renewed;
(3) the loan period is of fixed duration not exceeding five
years, during which such article may be recalled for any reason
by the United States;
(4) the agency making the loan is reimbursed for the loan
according to the provisions of section 4232; and
(5) the loan agreement provides that--
(A) if the defense article is damaged while on
loan, the country or organization to which it was
loaned will reimburse the United States for the cost of
restoring or replacing the defense article; and
(B) if the defense article is lost or destroyed
while on loan, the country or organization to which it
was loaned will pay to the United States an amount
equal to the replacement cost (less any depreciation in
the value) of the defense article.
SEC. 4232. COST OF LOANS.
(a) In General.--In the case of any loan of a defense article or
defense service made under section 4211, there shall be a charge to the
appropriation for security assistance for any fiscal year while such
article or service is on loan in an amount based on--
(1) the out-of-pocket expenses authorized to be incurred in
connection with such loan during such fiscal year; and
(2) the depreciation which occurs during such year while
such article is on loan.
(b) Inapplicability.--The provisions of this chapter shall not
apply to any defense article or defense service, or portion thereof,
acquired with funds made available for assistance under this title.
CHAPTER 4--STOCKPILING OF DEFENSE ARTICLES
SEC. 4241. GENERAL AUTHORITY.
(a) In General.--The President is authorized to set aside, reserve,
or otherwise earmark defense articles in the inventory of the
Department of Defense, consistent with the provisions of this Act, for
future use by any foreign country that is a strategic United States
ally.
(b) Notification.--
(1) In general.--Except as provided in paragraph (2), not
later than 15 days before making a defense article that has
been set aside, reserved, or otherwise earmarked under the
authority of this section made available to or for use by a
foreign country described in subsection (a), the President
shall transmit a notification of the proposed transfer to the
appropriate congressional committees and to the Committees on
Armed Services of the House of Representatives and the Senate.
The notification shall identify the items to be transferred and
the concessions to be received.
(2) Exception.--If the President determines that an
emergency exists that requires making a defense article
available to a foreign country described in subsection (a), the
President is authorized to make such defense article available
immediately upon notification to the appropriate congressional
committees. The President shall set forth the reasons for
determining that such an emergency exists that warrants the
immediate use of this authority.
(c) Rule of Construction.--No defense article transferred from any
stockpile which is made available to or for use by any foreign country
under this section may be considered an excess defense article for the
purpose of determining the value thereof.
SEC. 4242. VALUE OF DEFENSE ARTICLES.
(a) In General.--The value of defense articles to be set aside,
reserved, or earmarked or intended for use under this chapter in
stockpiles located in foreign countries may not exceed $300,000,000 for
a fiscal year, of which up to $200,000,000 may be made available for
stockpiles in the State of Israel.
(b) Value Defined.--For purposes of this section, the term
``value'' means the acquisition cost plus crating, packing, handling,
and transportation costs incurred in carrying out section 4241.
CHAPTER 5--FOREIGN MILITARY FINANCING
SEC. 4251. GENERAL AUTHORITY.
The President is authorized to finance the procurement of defense
articles, defense services, and design and construction services by
foreign countries and international organizations, on such terms and
conditions as the President may determine consistent with the
requirements of this chapter.
SEC. 4252. RULE OF CONSTRUCTION.
References in any law to credits extended under this chapter or
section 21 of the Arms Export Control Act shall be deemed to include
reference to participations in credits.
SEC. 4253. AUDITS.
For each fiscal year, the Secretary of Defense, as requested by the
Director of the Defense Security Assistance Agency, shall conduct
audits on a nonreimbursable basis of private firms that have entered
into contracts with countries or organizations under which defense
articles, defense services, or design and construction services are to
be procured by such firms for such countries or organizations from
financing under this chapter.
SEC. 4254. CASH FLOW FINANCING.
The Secretary may approve cash flow financing for Israel and Egypt
for the procurement of defense articles, defense services, or design
and construction services in excess of $100,000,000.
CHAPTER 6--INTERNATIONAL MILITARY EDUCATION AND TRAINING
SEC. 4261. PURPOSE.
The purpose of this chapter is to provide military education and
training activities under this chapter that are designed--
(1) to encourage effective and mutually beneficial
relations and increased understanding between the United States
and foreign countries in furtherance of the goals of
international peace and security;
(2) to improve the ability of foreign countries to utilize
their resources, including defense articles and defense
services obtained by such countries from the United States,
with maximum effectiveness, thereby contributing to greater
self-reliance by such countries; and
(3) to increase the awareness of nationals of foreign
countries participating in such activities of basic issues
involving respect and observance of internationally recognized
human rights, the importance of civilian oversight and
authority over security and national defense forces, and of
accountability of defense personnel to civilian governments and
courts.
SEC. 4262. MILITARY EDUCATION AND TRAINING FOR FOREIGN MILITARY AND
DEFENSE PERSONNEL.
(a) Authority.--The Secretary is authorized to provide, on such
terms and conditions as the Secretary may determine, military education
and training to foreign military and defense personnel.
(b) Requirements.--Professional military education and training
provided under subsection (a) shall be designed to--
(1) contribute to greater cooperation between the United
States and the government of such foreign military and defense
personnel on United States counternarcotics, counterterrorism,
or counterproliferation efforts; and
(2) foster greater respect for, and understanding of--
(A) democracy and the rule of law, including the
principle of civilian control of the military; and
(B) internationally recognized human rights.
(c) Selection of Participants.--The selection of foreign military
and defense personnel for training under this chapter shall be made in
consultation with the Secretary of Defense.
(d) Foreign Military and Defense Personnel Defined.--In this
section, the term ``foreign military and defense personnel'' means
members of the armed forces and civilian personnel of the defense
ministry of a foreign country.
SEC. 4263. MILITARY EDUCATION AND TRAINING FOR FOREIGN CIVILIAN
PERSONNEL.
(a) Authority.--The Secretary is authorized to provide, on such
terms and conditions as the Secretary may determine, military education
and training to foreign civilian personnel, if such military education
and training would contribute to--
(1) civilian, democratic control of the military;
(2) responsible defense resource management;
(3) cooperation between military and law enforcement
personnel with respect to counternarcotics, counterterrorism,
or counterproliferation activities; or
(4) improved military justice systems and procedures in
accordance with internationally recognized human rights.
(b) Foreign Civilian Personnel Defined.--In this section, the term
``foreign civilian personnel'' includes legislators, representatives of
civil society, and foreign governmental personnel of ministries other
than ministries of defense.
SEC. 4264. LOCATIONS OF INSTRUCTION.
Military education and training activities carried out under this
chapter may be provided through--
(1) attendance at military educational and training
facilities in the United States (other than Service academies)
and abroad;
(2) attendance in special courses of instruction at schools
and institutions of learning or research in the United States
and abroad; and
(3) observation and orientation visits to military
facilities and related activities in the United States and
abroad.
SEC. 4265. REIMBURSEMENT.
The Secretary shall seek reimbursement for military education and
training provided under this chapter from countries using assistance
under section 4251 to purchase such military education and training at
a rate comparable to the rate charged to countries receiving grant
assistance for military education and training under this chapter.
SEC. 4266. EXCHANGE OF TRAINING AND RELATED SUPPORT.
(a) Authority.--Subject to subsection (b), the Secretary, in
consultation with the Secretary of Defense, is authorized to provide
training and related support to foreign military and defense personnel
(as defined in section 4262) and to foreign civilian personnel (as
defined in section 4263). Such training and related support shall be
provided by the Secretary of Defense and may include the provision of
transportation, food services, health services, and logistics and the
use of facilities and equipment.
(b) Agreement or Other Arrangement Required.--
(1) In general.--Training and related support may be
provided under this section only pursuant to an agreement or
other arrangements providing for the provision by the country
or organization, on a reciprocal basis, of comparable training
and related support to the United States.
(2) Reasonable period of time.--Such reciprocal training
and related support shall be provided within a reasonable
period of time (which may not be more than one year) of the
provision of training and related support by the United States
Government under this chapter.
(c) Reimbursement Requirement.--To the extent that a country or
organization to which training and related support is provided under
this section does not provide such comparable training and related
support to the United States within a reasonable period of time, the
Secretary shall require a country or organization to reimburse the
United States for the full costs of the training and related support
provided by the United States.
(d) Regulations.--The President shall prescribe regulations for the
provision of training and related support under this section.
CHAPTER 7--TRANSFER OF EXCESS DEFENSE ARTICLES
SEC. 4271. TRANSFER OF EXCESS DEFENSE ARTICLES.
(a) Authority.--To further the goals and objectives of United
States foreign policy and the goals of this Act, the Secretary is
authorized to transfer to foreign countries and international
organizations excess defense articles under this section that have been
designated by the Secretary of Defense as excess to the military needs
of the United States, except for naval vessels subject to section 4275.
(b) Limitations on Transfers.--The Secretary may authorize the
transfer of excess defense articles under this section only if--
(1) such articles are drawn from existing stocks of the
Department of Defense;
(2) funds available to the Department of Defense for the
procurement of defense equipment are not expended in connection
with the transfer;
(3) the transfer of such articles will not have, in the
judgment of the Secretary of Defense, an adverse impact on the
military readiness of the United States;
(4) with respect to a proposed transfer of such articles on
a grant basis, such a transfer is preferable to a transfer on a
sales basis, after taking into account the potential proceeds
from, and likelihood of, such sales, and the comparative
foreign policy benefits that may accrue to the United States as
the result of a transfer on either a grant or sales basis; and
(5) the transfer of such articles will not have an adverse
impact on the national technology and industrial base and,
particularly, will not reduce the opportunities of entities in
the national technology and industrial base to sell new or used
equipment to the countries to which such articles are
transferred.
SEC. 4272. TERMS OF TRANSFERS.
(a) In General.--Excess defense articles may be transferred under
section 4271 without cost to the recipient country or international
organization.
(b) Waiver of Requirement for Reimbursement of Department of
Defense Expenses.--Section 11505(c) shall not apply with respect to the
transfer to foreign countries and international organizations of excess
defense articles (including transportation and related costs) under
section 4271.
(c) Transportation and Related Costs.--
(1) In general.--Except as provided in paragraph (2), funds
available to the Department of Defense may not be expended for
crating, packing, handling, and transportation of excess
defense articles transferred under the authority of section
4271.
(2) Exception.--Excess defense articles may be transported
to a recipient country or international organization without
charge if--
(A) the Secretary determines that it is in the
national interest of the United States to do so;
(B) the total weight of the transfer does not
exceed 50,000 pounds; and
(C) such transportation is accomplished on a space
available basis.
SEC. 4273. ADVANCE NOTIFICATION TO CONGRESS FOR TRANSFER OF CERTAIN
EXCESS DEFENSE ARTICLES.
(a) In General.--The Secretary may not transfer excess defense
articles that are significant military equipment (as defined in section
4411) or excess defense articles valued (in terms of original
acquisition cost) at $10,000,000 or more, under section 4271 until 30
days after the date on which the Secretary has provided notice of the
proposed transfer to the appropriate congressional committees in
accordance with procedures applicable to reprogramming notifications
under section 9401.
(b) Contents.--Such notification shall include--
(1) a statement outlining the purposes for which the
article is being provided to the country, including whether
such article has been previously provided to such country;
(2) an assessment of the impact of the transfer on the
military readiness of the United States;
(3) an assessment of the impact of the transfer on the
national technology and industrial base and, particularly, the
impact on opportunities of entities in the national technology
and industrial base to sell new or used equipment to the
countries to which such articles are to be transferred;
(4) a statement describing the current value of such
article and the value of such article at acquisition; and
(5) an assessment, if the article is a small arm or light
weapon, of the risk that such article or article could be
illicitly transferred to terrorist or criminal persons or
groups or otherwise used for unauthorized purposes.
SEC. 4274. AGGREGATE ANNUAL LIMITATION.
The aggregate value of excess defense articles transferred to
countries under section 4271 in any fiscal year may not exceed
$500,000,000.
SEC. 4275. RESTRICTIONS AND CONDITIONS ON TRANSFERS OF NAVAL VESSELS.
(a) In General.--A naval vessel that is in excess of 3,000 tons or
that is less than 20 years of age may not be disposed of to a foreign
country (whether by sale, lease, grant, loan, barter, transfer, or
otherwise) unless the disposal of that vessel, or of a vessel of the
class of that vessel, is authorized by law. A lease or loan of such a
vessel under such a law may be made only in accordance with the
provisions of this title. In the case of an authorization by law for
the disposal of such a vessel that names a specific vessel as being
authorized for such disposal, the Secretary of Defense may substitute
another vessel of the same class, if the vessel substituted has
virtually identical capabilities as the named vessel.
(b) Costs of Transfers.--Any expense incurred by the United States
in connection with a transfer authorized by this section shall be
charged to the recipient (notwithstanding section 4272(c)).
(c) Repair and Refurbishment in United States Shipyards.--To the
maximum extent practicable, the Secretary shall require, as a condition
of the transfer of a vessel covered by this chapter, that the recipient
to which the vessel is transferred have such repair or refurbishment of
the vessel as is needed, before the vessel joins the naval forces of
the recipient, performed at a shipyard located in the United States,
including a United States Navy shipyard.
CHAPTER 8--COOPERATIVE PROJECT AGREEMENTS
SEC. 4281. AUTHORITY TO ENTER INTO COOPERATIVE PROJECT AGREEMENTS.
(a) Authority.--The President is authorized to enter into a
cooperative project agreement with one or more foreign countries that
is undertaken in order to--
(1) further the objectives of standardization,
rationalization, and interoperability of the armed forces of
the foreign country and the United States; or
(2) enhance an ongoing multinational effort of the parties
to the agreement to improve the conventional defense
capabilities of the parties.
(b) Matters To Be Included.--
(1) In general.--A cooperative project agreement described
in subsection (a) shall provide that each of the parties to the
agreement will contribute to the cooperative project its
equitable share of the full costs of the cooperative project
and will receive an equitable share of the results of such
cooperative project.
(2) Full costs described.--The full costs of the
cooperative project includes overhead costs, administrative
costs, and costs of claims.
(3) Contribution of funds or defense articles and defense
services.--A party to the cooperative project agreement
described in subsection (a) may contribute its equitable share
of the full cost of the cooperative project in funds or in
defense articles or defense services needed for the cooperative
project.
(4) Limitation on assistance.--Assistance provided under
this Act to a foreign country may not be used by the foreign
country to provide its equitable share of the full costs of the
cooperative project under this section.
(5) Limitation on worksharing, etc.--A cooperative project
agreement described in subsection (a) may not impose a
requirement on any party to the agreement for worksharing or
other industrial or commercial compensation that is not
specified in the terms of the agreement.
SEC. 4282. COSTS.
The President may enter into contracts or incur other obligations
for a cooperative project described in section 4281 on behalf of the
other parties to the cooperative project agreement described in section
4281, without charge to any appropriation or contract authorization, if
each of the other parties to the cooperative project agreement agrees--
(1) to pay its equitable share of the contract or other
obligation; and
(2) to make such funds available in such amounts and at
such times as may be required by the contract or other
obligation and to pay any damages and costs that may accrue
from the performance of or cancellation of the contract or
other obligation in advance of the time such payments, damages,
or costs are due.
SEC. 4283. CHARGES.
(a) In General.--The President may reduce or waive the charge or
charges that would otherwise be considered appropriate under section
4314 in connection with sales under sections 4311 and 4312 if--
(1) such sales are made as part of a cooperative project
described in section 4281; and
(2) the other parties to the cooperative project agreement
described in section 4281 agree to reduce or waive
corresponding charges.
(b) Administrative Surcharges; Reimbursement.--Notwithstanding
sections 4314(a)(1) and 4402(b), administrative surcharges shall not be
increased on other sales made under this title in order to compensate
for reductions or waivers of such surcharges under this section. Funds
received pursuant to such other sales shall not be available to
reimburse the costs incurred by the United States Government for which
reduction or waiver is approved by the President under this section.
SEC. 4284. CERTIFICATION.
Not less than 30 days before a cooperative project agreement
described in section 4281 is signed on behalf of the United States, the
President shall transmit to the appropriate congressional committees
and the Committee on Armed Services of the House of Representatives and
the Committee on Armed Services of the Senate, a numbered certification
with respect to such proposed agreement, setting forth--
(1) a detailed description of the cooperative project with
respect to which the certification is made;
(2) an estimate of the quantity of the defense articles
expected to be produced in furtherance of such cooperative
project;
(3) an estimate of the full cost of the cooperative
project, with an estimate of the part of the full cost to be
incurred by the United States Government, including an estimate
of the costs as a result of waivers of sections 4314(a)(1) and
4402(b), for its participation in such cooperative project and
an estimate of that part of the full costs to be incurred by
the other participants;
(4) an estimate of the dollar value of the funds to be
contributed by the United States and each of the other
participants on behalf of such cooperative project;
(5) a description of the defense articles and defense
services expected to be contributed by the United States and
each of the other participants on behalf of such cooperative
project;
(6) a statement of the foreign policy and national security
benefits anticipated to be derived from such cooperative
project; and
(7) to the extent known, whether it is likely that prime
contracts will be awarded to particular prime contractors or
that subcontracts will be awarded to particular subcontractors
to comply with the proposed agreement.
SEC. 4285. AUTHORITY IN ADDITION TO OTHER AUTHORITIES.
The authority under this chapter is in addition to the authority
under sections 4311 and 4312 and under any other provision of law.
Subtitle C--Arms Sales and Related Assistance
SEC. 4301. CONTROL OF ARMS EXPORTS AND IMPORTS.
(a) In General.--The President is authorized to control the import
and the export of defense articles and defense services and to provide
foreign policy guidance to persons of the United States involved in the
export and import of such articles and services.
(b) Composition of United States Munitions List.--
(1) In general.--The President is authorized to designate
those items that shall be considered as defense articles and
defense services for the purposes of this section and to
promulgate regulations for the import and export of such
articles and services. The items so designated shall constitute
the United States Munitions List.
(2) Factors.--The President shall designate a defense
article or defense service if it--
(A) provides a critical military or intelligence
advantage to the United States; or
(B) would provide a military or intelligence
advantage to countries other than the United States or
to non-state actors to the detriment of the national
security of United States friends and allies, or to the
achievement of the foreign policy and national security
objectives of the United States.
(c) Purposes for Which United States Military Sales Are
Authorized.--Defense articles and defense services shall be sold or
leased by the United States Government under this title to countries
solely to meet the goals of assistance under section 4003.
(d) Factors.--Decisions on issuing export licenses under this
section shall ensure that the export of a defense article or defense
service--
(1) is justified in terms of its military utility related
to the actual security threat by the recipient country; and
(2) will not--
(A) contribute to an arms race or regional
instability;
(B) aid in the development of weapons of mass
destruction;
(C) support domestic or international terrorism;
(D) increase the possibility of outbreak or
escalation of conflict, either within or across the
borders of the recipient country;
(E) prejudice the development of bilateral or
multilateral arms control arrangements;
(F) adversely affect the arms control or
nonproliferation policy of the United States;
(G) conflict with any international agreements,
treaties or arrangements to which the United States is
a party or adherent;
(H) support blackmarket or greymarket trade in
arms, either those transferred or obsolete arms to be
replaced by the arms sale; or
(I) undermine the objectives and purposes to
promote and protect human rights and democracy under
title III.
(e) Sale Requirement.--In exercising the authorities conferred by
this section, the President may require that any defense article or
defense service be sold under this title as a condition of its
eligibility for export, and may require that persons engaged in the
negotiation for the export of defense articles and defense services
keep the President fully and currently informed of the progress and
future prospects of such negotiations.
CHAPTER 1--FOREIGN MILITARY SALES AND COOPERATION
SEC. 4311. GENERAL AUTHORITY.
(a) Sales From Defense Articles and Defense Services.--The
President may sell defense articles and defense services from the
stocks of the Department of Defense and the Coast Guard, or design and
construction services, to a foreign country or international
organization if the country or international organization agrees to pay
in United States dollars--
(1) in the case of a defense article not intended to be
replaced at the time such agreement is entered into, not less
than the actual value thereof;
(2) in the case of a defense article intended to be
replaced at the time such agreement is entered into, the
estimated cost of replacement of such article, including the
contract or production costs less any depreciation in the value
of such article; or
(3) in the case of a defense service (other than training
covered in subsection (b)), or design and construction
services, the full cost to the United States Government of
providing such service.
(b) Training.--
(1) In general.--In the case of training sold to a foreign
country or international organization that is concurrently
receiving international military education and training
assistance under this title, the country or international
organization agrees to pay in United States dollars only those
additional costs that are incurred by the United States
Government in providing such assistance.
(2) Other countries.--The President may provide training to
a foreign country not receiving assistance under chapter 6 of
subtitle B if the President determines and so notifies the
appropriate congressional committees in each fiscal year for
which such training is to be provided that providing such
training to the country is in the national interest of the
United States and the reasons for such determination.
SEC. 4312. PROCUREMENT FOR FOREIGN MILITARY CASH SALES.
(a) In General.--
(1) Contracts.--Except as otherwise provided in this
section, the President may, without requirement for charge to
any appropriation or contract authorization otherwise provided,
enter into contracts for the procurement of defense articles or
defense services or design and construction services for sale
for United States dollars to any foreign country or
international organization if such country or international
organization provides the United States Government with a
dependable undertaking--
(A) to pay the full amount of such contract which
will assure the United States Government against any
loss on the contract; and
(B) to make funds available in such amounts and at
such times as may be required to meet the payments
required by the contract and any damages and costs that
may accrue from the cancellation of such contract, in
advance of the time such payments, damages, or costs
are due.
(2) Interest.--Interest shall be charged on any net amount
by which any such country or international organization is in
arrears under all of its outstanding unliquidated dependable
undertakings, considered collectively. The rate of interest
charged shall be a rate not less than a rate determined by the
Secretary of the Treasury taking into consideration the current
average market yield on outstanding short-term obligations of
the United States as of the last day of the month preceding the
net arrearage and shall be computed from the date of net
arrearage.
(b) Letters of Offer.--
(1) In general.--The President may, if the President
determines it to be in the national interest of the United
States, issue letters of offer under this section that provide
for billing upon delivery of the defense article or rendering
of the defense service and for payment within 120 days after
the date of billing.
(2) Requirement.--The authority of paragraph (1) may be
exercised only if the President determines that the emergency
requirements of the purchaser for acquisition of such defense
articles and defense services exceed the ready availability to
the purchaser of funds sufficient to make payments on a
dependable undertaking basis and submits both determinations to
Congress together with a special emergency request for
authorization and appropriation of additional funds to finance
such purchases under this Act.
(3) Appropriations.--Appropriations available to the
Department of Defense may be used to meet the payments required
by the contracts for the procurement of defense articles and
defense services and shall be reimbursed by the amounts
subsequently received from the country or international
organization to whom articles or services are sold.
(c) Renegotiation Act of 1951.--The provisions of the Renegotiation
Act of 1951 do not apply to procurement contracts entered into under
this section or predecessor provisions of law before, on, or after the
date of the enactment of this Act.
(d) Competitive Pricing.--
(1) Procurement contracts.--Procurement contracts made in
implementation of sales under this section for defense articles
and defense services wholly paid for from funds made available
on a nonrepayable basis shall be priced on the same costing
basis with regard to profit, overhead, independent research and
development, bid and proposal, and other costing elements, as
is applicable to procurements of like items purchased by the
Department of Defense for its own use.
(2) Direct costs.--Direct costs associated with meeting
additional or unique requirements of the purchaser shall be
allowable under contracts described in paragraph (1). Loadings
applicable to such direct costs shall be permitted at the same
rates applicable to procurement of like items purchased by the
Department of Defense for its own use.
SEC. 4313. PAYMENTS.
(a) In General.--Except as provided in subsection (b), payment for
defense articles or defense services under this chapter shall be made
in advance or, if the President determines it to be in the national
interest of the United States, upon delivery of the defense article or
rendering of the defense service.
(b) Exception.--If the President determines it to be in the
national interest of the United States pursuant to subsection (a),
billings for sales made under letters of offer issued under this
section after the date of the enactment of this subsection may be dated
and issued upon delivery of the defense article or rendering of the
defense service and shall be due and payable upon receipt thereof by
the purchasing country or international organization.
(c) Interest.--
(1) In general.--Interest shall be charged on any net
amount due and payable which is not paid within 60 days after
the date of such billing. The rate of interest charged shall be
a rate not less than a rate determined by the Secretary of the
Treasury taking into consideration the current average market
yield on outstanding short-term obligations of the United
States as of the last day of the month preceding the billing
and shall be computed from the date of billing.
(2) Extension.--The President may extend such 60-day period
to 120 days if the President determines that emergency
requirements of the purchaser for acquisition of such defense
articles or defense services exceed the ready availability to
the purchaser of funds sufficient to pay the United States in
full for such articles or services within such 60-day period
and submits that determination to the Congress together with a
special emergency request for the authorization and
appropriation of additional funds to finance such purchases
under this Act.
SEC. 4314. CHARGES.
(a) In General.--Letters of offer for the sale of defense articles
or defense services that are issued pursuant to section 4311 or 4312
shall include appropriate charges for--
(1) administrative services, calculated on an average
percentage basis to recover the full estimated costs (excluding
a pro rata share of fixed base operations costs) of
administration of sales made under this Act to all purchasers
of such articles and services as specified in section 4402(b)
and (c);
(2) a proportionate amount of any nonrecurring costs of
research, development, and production of major defense
equipment (except for equipment wholly paid for either from
funds transferred under section 4211(b)(3) or from funds made
available on a nonrepayable basis under section 4251; and
(3) the recovery of ordinary inventory losses associated
with the sale from stock of defense articles that are being
stored at the expense of the purchaser of such articles.
(b) Waiver.--
(1) Administrative charges.--The President may waive the
charges for administrative services that would otherwise be
required by--
(A) subsection (a)(1) in connection with any sale
to a foreign country, if the President determines that
a waiver--
(i) is in the national security interests
of the United States; and
(ii) will facilitate the ability of that
country to detect, deter, prevent, defeat, or
counter terrorist activities, or participate
in, or support, military operations, coalition
operations, or stability operations of the
United States; or
(B) subsection (a)(2) in connection with any sale
to the Maintenance and Supply Agency of the North
Atlantic Treaty Organization in support of--
(i) a weapon system partnership agreement;
or
(ii) a NATO/SHAPE project.
(2) Major defense equipment.--The President may reduce or
waive the charge or charges that would otherwise be considered
appropriate under subsection (a)(2) for a particular sale or
for sales if the President determines that--
(A) the reduction or waiver would significantly
advance United States Government interests in
standardization with the armed forces of a foreign
country that is a strategic United States ally, or
would promote foreign procurement in the United States
under coproduction arrangements;
(B) imposition of the charge or charges likely
would result in the loss of the sale; or
(C) in the case of a sale of major defense
equipment that is also being procured for the use of
the United States Armed Forces, the waiver of the
charge or charges would (through a resulting increase
in the total quantity of the equipment purchased from
the source of the equipment that causes a reduction in
the unit cost of the equipment) result in a savings to
the United States on the cost of the equipment procured
for the use of the United States Armed Forces that
substantially offsets the revenue foregone by reason of
the waiver of the charge or charges.
(3) Increase in charges.--The President may waive, for
particular sales of major defense equipment, any increase in a
charge or charges previously considered appropriate under
paragraph (2) of subsection (a) if the increase results from a
correction of an estimate (reasonable when made) of the
production quantity base that was used for calculating the
charge or charges for purposes of such paragraph.
SEC. 4315. NON-COMBAT DUTIES OF UNITED STATES PERSONNEL SUPPORTING
FOREIGN MILITARY SALES.
(a) In General.--United States personnel performing defense
services sold under this title may not perform any duties of a
combatant nature, including any duties related to training and advising
that may engage United States personnel in combat activities, outside
the United States in connection with the performance of those defense
services.
(b) Report.--Within 48 hours of the existence of, or a change in
status of significant hostilities or terrorist acts or a series of such
acts, that may endanger lives or property of United States personnel,
involving a country in which United States personnel are performing
defense services pursuant to this title, the President shall submit to
the Speaker of the House of Representatives and to the President pro
tempore of the Senate a report, in writing, classified if necessary,
setting forth--
(1) the identity of such country;
(2) a description of such hostilities or terrorist acts;
and
(3) the number of members of the United States Armed Forces
and the number of United States civilian personnel that may be
endangered by such hostilities or terrorist acts.
SEC. 4316. PUBLIC INFORMATION.
Any contract entered into between the United States and a foreign
country under the authority of section 4311 or section 4312 shall be
prepared in a manner that will permit the contract to be made available
for public inspection to the fullest extent possible consistent with
the national security of the United States. Such information shall be
posted on the Internet website of the Department of State in a timely
fashion.
SEC. 4317. STANDARDIZATION AGREEMENTS.
(a) In General.--The President may enter into North Atlantic Treaty
Organization standardization agreements in carrying out section 814 of
the Department of Defense Appropriation Authorization Act, 1976 (Public
Law 94-106), and may enter into similar agreements with a country that
is a strategic United States ally, for the cooperative furnishing of
training on a bilateral or multilateral basis, if the financial
principles of such agreements are based on reciprocity.
(b) Reimbursement.--Each agreement shall include reimbursement for
all direct costs but may exclude reimbursement for indirect costs,
administrative surcharges, and costs of billeting of trainees (except
to the extent that members of the United States Armed Forces occupying
comparable accommodations are charged for such accommodations by the
United States).
(c) Congressional Notification.--Each agreement shall be
transmitted promptly to--
(1) the appropriate congressional committees; and
(2) the Committees on Appropriations and the Committees on
Armed Services of the House of Representatives and the Senate.
SEC. 4318. QUALITY ASSURANCE AND RELATED SERVICES.
(a) In General.--The President is authorized to provide, without
charge, quality assurance, inspection, contract administration
services, and contract audit defense services under this chapter--
(1) in connection with the placement or administration of
any contract or subcontract for defense articles, defense
services, or design and construction services entered into
under this Act on behalf of, a government that is a strategic
United States ally, if such government provides such services
in accordance with an agreement on a reciprocal basis, without
charge, to the United States Government; or
(2) in connection with the placement or administration of
any contract or subcontract for defense articles, defense
services, or design and construction services pursuant to the
North Atlantic Treaty Organization's Security Investment
program in accordance with an agreement under which the foreign
governments participating in such program provide such
services, without charge, in connection with similar contracts
or subcontracts.
(b) Cataloging Data and Cataloging Services.--In carrying out the
objectives of this section, the President is authorized to provide,
without charge, cataloging data and cataloging services to the North
Atlantic Treaty Organization or to any strategic United States ally if
that Organization or ally provides such data and services in accordance
with an agreement on a reciprocal basis, without charge, to the United
States Government.
SEC. 4319. RESTRICTION ON SALE OF DEFENSE ARTICLES AND DEFENSE SERVICES
THAT WOULD ADVERSELY AFFECT UNITED STATES COMBAT
READINESS.
(a) Restriction.--The President may not sell defense articles and
defense services if the sale of such articles or services would have
significant adverse effect on the combat readiness of the United States
Armed Forces.
(b) Waiver and Congressional Notification.--
(1) In general.--The President may waive the restriction in
subsection (a) if the President determines that the possible
significant adverse effect on the combat readiness of the
United States Armed Forces is outweighed by the benefits to
United States national security and transmits such
determination to the appropriate congressional committees and
to the Committees on Armed Services of the House of the
Representatives and the Senate.
(2) Statement.--Each such determination shall be
accompanied with a statement that shall include the following
information:
(A) The country or international organization to
which the sale is proposed to be made.
(B) The amount of the proposed sale.
(C) A description of the defense article or service
proposed to be sold.
(D) A full description of the impact which the
proposed sale will have on the United States Armed
Forces.
(E) A justification for such proposed sale,
including an explanation as to why, in the President's
judgment, benefits to United States national security
from the sale outweighs the adverse impact on the
readiness of the United States Armed Forces.
SEC. 4320. ACQUISITION OF FOREIGN-UNITED STATES ORIGIN DEFENSE
ARTICLES.
(a) In General.--The President may acquire a repairable defense
article from a foreign country or international organization if such
defense article--
(1) previously was transferred to such country or
organization under this Act or predecessor Act (as in effect on
the day before the date of the enactment of this Act);
(2) is not an end item; and
(3) will be exchanged for a defense article of the same
type that is in the stocks of the Department of Defense.
(b) Limitation.--The President may exercise the authority provided
in subsection (a) only to the extent that the Department of Defense--
(1)(A) has a requirement for the defense article being
returned; and
(B) has available sufficient funds authorized and
appropriated for such purpose; or
(2)(A) is accepting the return of the defense article for
subsequent transfer to another foreign government or
international organization pursuant to a letter of offer and
acceptance implemented in accordance with this Act or
predecessor Act (as in effect on the day before the date of the
enactment of this Act); and
(B) has available sufficient funds provided by or on behalf
of such other foreign government or international organization
pursuant to a letter of offer and acceptance implemented in
accordance with this Act or predecessor Act (as in effect on
the day before the date of the enactment of this Act).
(c) Requirement.--
(1) In general.--The foreign government or international
organization receiving a new or repaired defense article in
exchange for a repairable defense article pursuant to
subsection (a) shall, upon the acceptance by the United States
Government of the repairable defense article being returned, be
charged the total cost associated with the repair and
replacement transaction.
(2) Cost.--The total cost charged pursuant to paragraph (1)
shall be the same as that charged the United States Armed
Forces for a similar repair and replacement transaction, plus
an administrative surcharge in accordance with section
4314(a)(1).
(d) Relationship to Certain Other Provisions of Law.--The authority
of the President to accept the return of a repairable defense article
as provided in subsection (a) shall not be subject to chapter 137 of
title 10, United States Code, or any other provision of law relating to
the conclusion of contracts.
SEC. 4321. RETURN OF DEFENSE ARTICLES.
(a) In General.--The President may accept the return of a defense
article from a foreign country or international organization if such
defense article--
(1) previously was transferred to such country or
organization under this Act or predecessor Act (as in effect on
the day before the date of the enactment of this Act);
(2) is not significant military equipment (as defined in
section 4411); and
(3) is in fully functioning condition without need of
repair or rehabilitation.
(b) Limitation.--The President may exercise the authority provided
in subsection (a) only to the extent that the Department of Defense--
(1)(A) has a requirement for the defense article being
returned; and
(B) has available sufficient funds authorized and
appropriated for such purpose; or
(2)(A) is accepting the return of the defense article for
subsequent transfer to another foreign government or
international organization pursuant to a letter of offer and
acceptance implemented in accordance with this Act or
predecessor Act (as in effect on the day before the date of the
enactment of this Act); and
(B) has available sufficient funds provided by or on behalf
of such other foreign government or international organization
pursuant to a letter of offer and acceptance implemented in
accordance with this Act or predecessor Act (as in effect on
the day before the date of the enactment of this Act).
(c) Credit for Transaction.--Upon acquisition and acceptance by the
United States Government of a defense article under subsection (a), the
appropriate Foreign Military Sales account of the provider shall be
credited to reflect the transaction.
(d) Relationship to Certain Other Provisions of Law.--The authority
of the President to accept the return of a defense article as provided
in subsection (a) shall not be subject to chapter 137 of title 10,
United States Code, or any other provision of law relating to the
conclusion of contracts.
SEC. 4322. SALE OF OBSOLETE NAVAL VESSELS.
For purposes of section 4311(a), the actual value of a naval vessel
of 3,000 tons or less and 20 years or more of age shall be considered
to be not less than the greater of the scrap value or fair value
(including conversion costs) of such vessel, as determined by the
Secretary of Defense.
SEC. 4323. ANNUAL ESTIMATE AND JUSTIFICATION FOR SALES PROGRAM.
(a) Report.--Except as provided in subsection (d), not later than
February 1 of each year, the President shall transmit to the
appropriate congressional committees, as a part of the annual
presentation materials for security assistance programs proposed for
the next fiscal year, a report which sets forth--
(1) an Arms Sales Proposal covering all sales and licensed
commercial exports under this title of major weapons or
weapons-related defense equipment for $7,000,000 or more, or of
any other weapons or weapons-related defense equipment for
$25,000,000 or more, which are considered eligible for approval
during the current calendar year and are deemed most likely
actually to result in the issuance of a letter of offer or of
an export license during such year;
(2) an estimate of the total amount of sales and licensed
commercial exports expected to be made to each foreign country
from the United States;
(3) the United States national security considerations
involved in expected sales or licensed commercial exports to
each country, an analysis of the relationship between
anticipated sales to each country and arms control efforts
concerning such country and an analysis of the impact of such
anticipated sales on the stability of the region that includes
such country;
(4) an estimate with regard to the international volume of
arms traffic to and from countries purchasing arms as set forth
in paragraphs (1) and (2), together with best estimates of the
sale and delivery of weapons and weapons-related defense
equipment by all major arms suppliers to all major recipient
countries during the preceding calendar year;
(5)(A) an estimate of the aggregate dollar value and
quantity of defense articles and defense services, military
education and training, grant military assistance, and credits
and guarantees, to be furnished by the United States to each
foreign country and international organization in the next
fiscal year; and
(B) for each country that is proposed to be furnished
credits or guaranties under this Act in the next fiscal year
and that has been approved for cash flow financing in excess of
$100,000,000 as of October 1 of the current fiscal year--
(i) the amount of such approved cash flow
financing;
(ii) a description of administrative ceilings and
controls applied, and
(iii) a description of the financial resources
otherwise available to such country to pay such
approved cash flow financing;
(6) an analysis and description of the services performed
during the preceding fiscal year by officers and employees of
the United States Government carrying out functions on a full-
time basis under this Act for which reimbursement is provided
under section 4402(b) or section 4311(a), including the number
of personnel involved in performing such services;
(7) the status of--
(A) each loan and each contract of guaranty or
insurance theretofore made under this title,
predecessor Acts, or any Act authorizing international
security assistance, with respect to which there
remains outstanding any unpaid obligation or potential
liability; and
(B) each extension of credit for the procurement of
defense articles or defense services, and of each
contract of guaranty in connection with any such
procurement, theretofore made under this title or
predecessor Acts with respect to which there remains
outstanding any unpaid obligation or potential
liability;
(8)(A) a detailed accounting of all articles, services,
credits, guarantees, or any other form of assistance furnished
by the United States to each country and international
organization, including payments to the United Nations, during
the preceding fiscal year for the detection and clearance of
landmines, including activities relating to the furnishing of
education, training, and technical assistance for the detection
and clearance of landmines; and
(B) for each provision of law making funds available or
authorizing appropriations for demining activities described in
subparagraph (A), an analysis and description of the objectives
and activities undertaken during the preceding fiscal year,
including the number of personnel involved in performing such
activities;
(9) a list of weapons systems that are significant military
equipment, and numbers thereof, that are believed likely to
become available for transfer as excess defense articles during
the next 12 months; and
(10) such other information as the President may deem
necessary.
(b) Additional Information.--Not later than 30 days following the
receipt of a request made by any of the appropriate congressional
committees for additional information with respect to any information
submitted pursuant to subsection (a), the President shall submit such
information to such committees.
(c) Form.--The President shall make every effort to submit all of
the information required by subsection (a) or (b) wholly in
unclassified form. Whenever the President submits any such information
in classified form, the President shall submit such classified
information in an addendum and shall also submit simultaneously a
detailed summary, in unclassified form, of such classified information.
(d) Additional Requirement.--The information required by subsection
(a)(4) of this section shall be transmitted to Congress not later than
April 1 of each year.
SEC. 4324. SALES TO UNITED STATES COMPANIES FOR INCORPORATION INTO END
ITEMS.
(a) General Authority.--
(1) In general.--Subject to the conditions specified in
subsection (b), the President may, on a negotiated contract
basis, under cash terms--
(A) sell defense articles at not less than their
estimated replacement cost (or actual cost in the case
of services); or
(B) procure or manufacture and sell defense
articles at not less than their contract or
manufacturing cost to the United States Government, to
any United States company for incorporation into end
items (and for concurrent or follow-on support) to be
sold by such a company either--
(i) on a direct commercial basis to a
foreign country or international organization
pursuant to an export license or approval under
section 4301; or
(ii) in the case of ammunition parts
subject to subsection (b), using commercial
practices which restrict actual delivery
directly to a foreign country or international
organization pursuant to approval under section
4301.
(2) Additional authority.--The President may also sell
defense services in support of such sales of defense articles,
subject to the requirements of this chapter. Such services may
be performed only in the United States. The amount of
reimbursement received from such sales shall be credited to the
current applicable appropriation, fund, or account of the
selling agency of the United States Government.
(b) Additional Requirements.--Defense articles and defense services
may be sold, procured and sold, or manufactured and sold, pursuant to
subsection (a) only if--
(1) the end item to which the articles apply is to be
procured for the armed forces of a country or international
organization;
(2) the articles would be supplied to the prime contractor
as government-furnished equipment or materials if the end item
were being procured for the use of the United States Armed
Forces; and
(3) the articles and services are available only from
United States Government sources or are not available to the
prime contractor directly from United States commercial sources
at such times as may be required to meet the prime contractor's
delivery schedule.
SEC. 4325. FISCAL PROVISIONS RELATING TO FOREIGN MILITARY SALES
CREDITS.
(a) In General.--Cash payments received under sections 4311 and
funds received under section 4324 shall be available solely for
payments to suppliers (including the military departments) and refunds
to purchasers and shall not be available for financing credits.
(b) Repayments for Credits, Disposition of Certain Instruments, and
Other Collections.--Amounts received from foreign governments and
international organizations as repayments for any credits extended
pursuant to section 4251, and other collections (including fees and
interest) shall be transferred to the miscellaneous receipts of the
United States Treasury.
CHAPTER 2--ARMS EXPORT CONTROLS
SEC. 4331. LICENSING REQUIREMENT FOR EXPORTING OR IMPORTING DEFENSE
ARTICLES AND DEFENSE SERVICES.
(a) In General.--Except as otherwise specifically provided in
regulations issued under section 4301, defense articles, defense
services, and design and construction services designated by the
President under section 4301 may only be licensed for export or import
in accordance with this title and regulations issued under this title.
(b) Exceptions.--No license may be required for exports or imports
made by or for a Federal agency--
(1) for official use by personnel of a Federal agency; or
(2) for carrying out any foreign assistance or sales
program authorized by law and subject to the control of the
President by other means.
SEC. 4332. IMPACT OF MILITARY EXPENDITURES ON DEVELOPMENT.
(a) Review.--The Secretary shall conduct a review of the military
expenditures of developing countries to--
(1) identify those countries which the Secretary has
credible evidence to believe--
(A) are diverting official development assistance
from any source to military purposes;
(B) are devoting budgetary resources to arms
purchases to a degree that materially interferes with
the development of such countries; or
(C) are accumulating unsustainable levels of debt
to finance arms purchases;
(2) take such action as the Secretary deems appropriate,
including cessation of United States arms sales and working
with other countries to do likewise, to reduce the impact of
the military activities of the countries identified under
paragraph (1) and acquisition of arms on the economic and
political development of such countries.
(b) Timing of Review and Report to Congress.--The Secretary shall
complete the first review required under subsection (a) and submit to
the appropriate congressional committees not later than one year after
the enactment of this Act a report on all elements of subsection (a),
including the actions the Secretary will take under subsection (a)(2),
and the results of any such actions taken since the submission of the
prior report to such committees. Subsequent reviews shall be conducted
on a quadrennial basis, and reported to the appropriate congressional
committees on the quadrennial anniversary of the first report.
SEC. 4333. REQUIREMENT FOR REGISTRATION BY EXPORTERS.
(a) In General.--As prescribed in regulations issued under section
4301, every person (other than an officer or employee of the United
States Government acting in an official capacity) who engages in the
business of manufacturing, exporting, or importing defense articles or
defense services designated by the President under section 4301 shall
register with the Department of State, and shall pay a registration fee
which shall be prescribed by such regulations.
(b) Prohibition.--
(1) In general.--Such regulations shall prohibit the return
to the United States for sale in the United States (other than
for the United States Armed Forces or its allies or for any
State for local law enforcement agency) of any military
firearms or ammunition of United States manufacture furnished
to foreign governments by the United States under this Act, or
predecessor Act, or any other foreign assistance or sales
program of the United States, whether or not enhanced in value
or improved in condition in a foreign country.
(2) Exception.--The prohibition in paragraph (1) shall not
extend to similar firearms that have been so substantially
transformed as to become, in effect, articles of foreign
manufacture.
SEC. 4334. IDENTIFICATION OF ALL CONSIGNEES AND FREIGHT FORWARDERS.
The President shall require that each applicant for a license to
export an item on the United States Munitions List identify in the
application all consignees and freight forwarders involved in the
proposed export.
SEC. 4335. BROKERING ACTIVITIES.
(a) In General.--As prescribed in regulations issued under this
section, every person (other than an officer or employee of the United
States Government acting in an official capacity) who engages in the
business of brokering activities with respect to the manufacture,
export, import, or transfer of any defense article or defense service
designated by the President under section 4301, or in the business of
brokering activities with respect to the manufacture, export, import,
or transfer of any foreign defense article or defense service (as
defined in subsection (c)), shall register with the United States
Government agency charged with the administration of this section, and
shall pay a registration fee which shall be prescribed by such
regulations.
(b) Brokering Activities Described.--Such brokering activities
shall include the financing, transportation, freight forwarding, or
taking of any other action that facilitates the sale, manufacture,
export, or import of a defense article or defense service.
(c) Licensing Requirement.--No person may engage in the business of
brokering activities described in subsection (a) without a license,
issued in accordance with this title, except that no license shall be
required for such activities undertaken by or for a Federal agency--
(1) for use by a Federal agency; or
(2) for carrying out any foreign assistance or sales
program authorized by law and subject to the control of the
President by other means.
(d) Review of Registration.--A copy of each registration made under
this section shall be transmitted to the Secretary of the Treasury for
review regarding law enforcement concerns. The Secretary shall report
to the President regarding such concerns as necessary.
SEC. 4336. FOREIGN PERSONS.
(a) In General.--A license to export an item on the United States
Munitions List may not be issued to a foreign person (other than a
foreign government or international organization).
(b) License Requirement.--The President may require a license or
other form of authorization before any item on the United States
Munitions List is sold or otherwise transferred to the control or
possession of a foreign person or a person acting on behalf of a
foreign person.
SEC. 4337. REVIEW OF UNITED STATES MUNITIONS LIST.
(a) In General.--The President shall periodically review the items
on the United States Munitions List to determine what items, if any, no
longer warrant export controls under this title. The results of such
reviews shall be reported to the appropriate congressional committees.
(b) Congressional Notification and Review.--The President may not
remove any item from the United States Munitions List until 45 days
after the date on which the President has provided notice of the
proposed removal to the appropriate congressional committees in
accordance with the procedures applicable to reprogramming
notifications under section 9401, consistent with subsection (c) of
this section. Such notice shall describe the nature of any controls to
be imposed on that item under any other provision of law, and should
provide a description of the item to be removed such that the
appropriate congressional committees can fully assess the capabilities
of the item and the potential impact on United States national security
and foreign policy from its removal from the Munitions List. If the
President proposes to remove classes or categories of items from the
United States Munitions List, without enumerating individual items,
then the President shall provide the appropriate congressional
committees with a listing of items approved for export during the
previous five years that would no longer be required for licenses under
this title by virtue of being removed from the Munitions List.
(c) Congressional Disapproval.--The President may not remove any
item from the United States Munitions List if, during the 45 days
required under subsection (b), Congress enacts a joint resolution of
disapproval of the removal of such item, according to the procedures
under section 4384(c) for consideration of a joint resolution.
SEC. 4338. LICENSING OF MISSILES AND MISSILE EQUIPMENT OR TECHNOLOGY.
(a) Establishment of List of Controlled Items.--The Secretary, in
consultation with the Secretary of Defense and the heads of other
appropriate Federal agencies, shall establish and maintain, as part of
the United States Munitions List, a list of all items on the MTCR Annex
the export of which is not controlled under section 6(l) of the Export
Administration Act of 1979 (as continued in effect under the
International Emergency Economic Powers Act) or similar provisions of
any successor Act.
(b) Referral of License Applications.--
(1) In general.--A determination of the Secretary to
approve a license for the export of an item on the list
established under subsection (a) may be made only after the
license application is referred to the Secretary of Defense.
(2) Referral.--Within 10 days after a license is issued for
the export of an item on the list established under subsection
(a), the Secretary shall provide to the Secretary of Defense
and the Secretary of Commerce the license application and
accompanying documents issued to the applicant, to the extent
that the relevant Secretary indicates the need to receive such
application and documents.
(c) Information Sharing.--The Secretary shall establish a procedure
for sharing information with appropriate officials of the intelligence
community, as determined by the Director of National Intelligence, and
with other appropriate Federal agencies, that will ensure effective
monitoring of transfers of MTCR equipment or technology and other
missile technology.
(d) Exports to Space Launch Vehicle Programs.--
(1) In general.--Within 15 days after the issuance of a
license (including any brokering license) for the export of
items valued at less than $50,000,000 that are controlled under
this Act pursuant to United States obligations under the MTCR
and are goods or services that are intended to support the
design, utilization, development, or production of a space
launch vehicle system listed in Category I of the MTCR Annex,
the Secretary shall transmit to Congress a report describing
the licensed export and rationale for approving such export,
including the consistency of such export with United States
missile nonproliferation policy.
(2) Applicability.--The requirement contained in paragraph
(1) shall not apply to licenses for exports to countries that
are members of the MTCR as of as of the date of the enactment
of this Act.
SEC. 4339. SPECIAL LICENSING AUTHORIZATION FOR CERTAIN EXPORTS TO
STRATEGIC UNITED STATES ALLIES.
(a) Authorization.--The President may provide for special licensing
authorization for exports of United States-manufactured spare and
replacement parts or components listed in an application for such
special licensing authorization in connection with defense items
previously exported to a strategic United States ally. A special
licensing authorization issued pursuant to this subsection shall be
effective for a period not to exceed 5 years.
(b) Certification.--An authorization may be issued under subsection
(a) only if the applicable government of the country described in
subsection (a), acting through the applicant for the authorization,
certifies that--
(1) the export of spare and replacement parts or components
supports a defense item previously lawfully exported;
(2) the spare and replacement parts or components will be
transferred to a defense agency of the country that is a
previously approved end-user of the defense item and not to a
distributor or a foreign consignee of the defense item;
(3) the spare and replacement parts or components will not
to be used to materially enhance, optimize, or otherwise modify
or upgrade the capability of the defense item;
(4) the spare and replacement parts or components relate to
a defense item that is owned, operated, and in the inventory of
the armed forces of the country;
(5) the export of spare and replacement parts or components
will be effected using the freight forwarder designated by the
purchasing country's diplomatic mission as responsible for
handling transfers as required under regulations; and
(6) the spare and replacement parts or components to be
exported under the special licensing authorization are
specifically identified in the application.
(c) Limitation.--An authorization may not be issued under
subsection (a) for purposes of establishing offshore procurement
arrangements or producing defense articles offshore.
(d) Definition.--
(1) In general.--In this section, the term ``United States-
manufactured spare and replacement parts or components'' or
``spare and replacement parts or components'' means spare and
replacement parts or components--
(A) with respect to which--
(i) United States-origin content costs
constitute at least 85 percent of the total
content costs;
(ii) United States manufacturing costs
constitute at least 85 percent of the total
manufacturing costs; and
(iii) foreign content, if any, is limited
to content from countries eligible to receive
exports of items on the United States Munitions
List (other than de minimis foreign content);
(B) that were last substantially transformed in the
United States; and
(C) that are not--
(i) classified as significant military
equipment; or
(ii) listed on the MTCR Annex.
(2) Additional rule.--For purposes of paragraph (1)(A)(i)
and (ii), the costs of non-United States-origin content and the
costs of non-United States manufacturing shall be determined
using the final price or final cost associated with the non-
United States-origin content and non-United States
manufacturing.
(e) Inapplicability Provisions.--
(1) In general.--The provisions of this section shall not
apply with respect to re-exports or re-transfers of spare and
replacement parts or components and related services of defense
items described in subsection (a).
(2) Congressional notification.--The congressional
notification requirements contained in this title shall not
apply with respect to an authorization issued under subsection
(a).
CHAPTER 3--LEASES OF DEFENSE ARTICLES
SEC. 4351. LEASING AUTHORITY.
(a) In General.--The President may lease defense articles in the
stocks of the Department of Defense to a foreign country or
international organization if--
(1) the President determines that there are compelling
foreign policy and national security reasons for providing such
articles on a lease basis rather than on a sales basis under
this subtitle;
(2) the President determines that the articles are not for
the time needed for public use;
(3) the President first considers the effects of the lease
of the articles on the national technology and industrial base,
particularly the extent, if any, to which the lease reduces the
opportunities of entities in the national technology and
industrial base to sell new equipment to the country or
countries to which the articles are leased; and
(4) the country or international organization has agreed to
pay in United States dollars all costs incurred by the United
States Government in leasing such articles, including
reimbursement for depreciation of such articles while leased,
the costs of restoration or replacement if the articles are
damaged while leased, and, if the articles are lost or
destroyed while leased--
(A) in the event the United States intends to
replace the articles lost or destroyed, the replacement
cost (less any depreciation in the value) of the
articles; or
(B) in the event the United States does not intend
to replace the articles lost or destroyed, an amount
not less than the actual value (less any depreciation
in the value) specified in the lease agreement.
(b) Exceptions.--
(1) In general.--The requirement of subsection (a)(4) shall
not apply to leases entered into for purposes of cooperative
research or development, military exercises, or communications
or electronics interface projects.
(2) Waivers.--The President may waive the requirement of
subsection (a)(4)--
(A) for reimbursement of depreciation for any
defense article which has passed three-quarters of its
normal service life if the President determines that to
do so is important to the national security interest of
the United States;
(B) with respect to a lease which is made in
exchange with the lessee for a lease on substantially
reciprocal terms of defense articles for the Department
of Defense, except that this waiver authority--
(i) may be exercised only if the President
submits to the appropriate congressional
committees, and in addition the Committees on
Appropriations of the House of Representatives
and the Senate, a detailed notification for
each lease with respect to which the authority
is exercised; and
(ii) may be exercised only--
(I) on a fiscal year basis; and
(II) with respect to one country or
international organization for each
lease.
(3) Rule of construction.--Paragraph (2) does not
constitute authorization of appropriations for payments by the
United States for leased articles.
(c) Duration.--
(1) In general.--Each lease agreement under this section
shall be for a fixed duration which may not exceed--
(A) 5 years; and
(B) a specified period of time required to complete
major refurbishment work of the leased articles to be
performed prior to the delivery of the leased articles,
of not to exceed 5 years.
(2) Termination.--Each lease agreement under this section
shall provide that, at any time during the duration of the
lease, the President may terminate the lease and require the
immediate return of the leased articles.
(3) Definition.--In this subsection, the term ``major
refurbishment work'' means work for which the period of
performance is 6 months or more.
(d) Limitation.--Defense articles in the stocks of the Department
of Defense may be leased or loaned to a foreign country or
international organization only under the authority of this chapter or
chapter 3 of subtitle B, and may not be leased to a foreign country or
international organization under the authority of section 2667 of title
10, United States Code.
SEC. 4352. CERTIFICATION FOR LEASING.
(a) In General.--Before entering into or renewing any agreement
with a foreign country or international organization to lease any
defense article under this chapter, or to loan any defense article this
title for a period of 1 year or longer, the President shall transmit to
the appropriate congressional committees and the Committees on Armed
Services of the House of Representatives and the Senate, a written
certification which specifies--
(1) the country or international organization to which the
article is to be leased or loaned;
(2) the type, quantity, and value (in terms of replacement
cost) of the article to be leased or loaned;
(3) the terms and duration of the lease or loan; and
(4) a justification for the lease or loan, including an
explanation of why the article is being leased rather than sold
under this subtitle.
(b) Waiver.--
(1) In general.--The President may waive the requirements
of this section (and in the case of an agreement described in
section 4353, may waive the provisions of that section) if the
President states in the certification required by subsection
(a) that an emergency exists which requires that it is in the
national security interests of the United States to enter into
the lease or loan immediately.
(2) Justification.--If the President states in the
certification that such an emergency exists, the President
shall set forth in the certification a detailed justification
for the President's determination, including a description of
the emergency circumstances that necessitate that the lease be
entered into immediately and a discussion of the national
security interests involved.
(c) Deadline.--The certification required by subsection (a) shall
be transmitted--
(1) not less than 15 calendar days before the agreement is
entered into or renewed in the case of an agreement with a
strategic United States ally; or
(2) not less than 30 calendar days before the agreement is
entered into or renewed in the case of an agreement with any
other country or organization.
SEC. 4353. CONGRESSIONAL REVIEW AND DISAPPROVAL.
(a) Congressional Review and Disapproval.--
(1) In general.--Subject to paragraph (2), in the case of
any agreement involving the lease or loan under this title, to
any foreign country or international organization for a period
of 1 year or longer of any defense articles that are either--
(A) major defense equipment valued (in terms of its
replacement cost less any depreciation in its value) at
$14,000,000 or more, or
(B) defense articles valued (in terms of their
replacement cost less any depreciation in their value)
at $50,000,000 or more,
the agreement may not be entered into or renewed if Congress,
within the 15-day or 30-day period specified in section
4384(a)(1) or (2), as the case may be, enacts a joint
resolution prohibiting the proposed lease or loan.
(2) Certain agreements.--In the case of an agreement
described in paragraph (1) that is entered into with a
strategic United States ally, the limitations in paragraph (1)
shall apply only if the agreement involves a lease or loan of--
(A) major defense equipment valued (in terms of its
replacement cost less any depreciation in its value) at
$25,000,000 or more; or
(B) defense articles valued (in terms of their
replacement cost less any depreciation in their value)
at $100,000,000 or more.
(b) Senate Procedures.--Any joint resolution under subsection (a)
shall be considered in the Senate in accordance with the provisions of
section 601(b) of the International Security Assistance and Arms Export
Control Act of 1976.
(c) House Procedures.--For the purpose of expediting the
consideration and enactment of joint resolutions under subsection (a),
a motion to proceed to the consideration of any such resolution after
it has been reported by the appropriate committee shall be treated as
highly privileged in the House of Representatives.
SEC. 4354. APPLICATION OF OTHER PROVISIONS OF LAW.
Any reference to sales of defense articles under this subtitle in
any provision of law restricting the countries or organizations to
which such sales may be made shall be deemed to include a reference to
leases of defense articles under this chapter.
SEC. 4355. LOAN OF MATERIALS, SUPPLIES, AND EQUIPMENT FOR RESEARCH AND
DEVELOPMENT PURPOSES.
(a) Authority To Loan.--
(1) In general.--Except as provided in subsection (c), the
Secretary of Defense, with the concurrence of the Secretary,
may loan to a country that is a strategic United States ally or
a major United States ally materials, supplies, or equipment
for the purpose of carrying out a program of cooperative
research, development, testing, or evaluation. The Secretary of
Defense may accept as a loan or a gift from a country that is a
strategic United States ally or a major United States ally
materials, supplies, or equipment for such purpose.
(2) Agreement.--Each loan or gift transaction entered into
by the Secretary of Defense under this section shall be
provided for under the terms of a written agreement between the
Secretary of Defense and the country concerned.
(3) Testing or evaluation.--A program of testing or
evaluation for which the Secretary of Defense may loan
materials, supplies, or equipment under this section includes a
program of testing or evaluation conducted solely for the
purpose of standardization, interchangeability, or technical
evaluation if the country to which the materials, supplies, or
equipment are loaned agrees to provide the results of the
testing or evaluation to the United States without charge.
(b) Materials, Supplies, or Equipment.--The materials, supplies, or
equipment loaned to a country under this section may be expended or
otherwise consumed in connection with any testing or evaluation program
without a requirement for reimbursement of the United States if the
Secretary of Defense--
(1) determines that the success of the research,
development, test, or evaluation depends upon expending or
otherwise consuming the materials, supplies, or equipment
loaned to the country; and
(2) approves of the expenditure or consumption of such
materials, supplies, or equipment.
(c) Strategic and Critical Materials.--The Secretary of Defense may
not loan to a country under this section any material if the material
is a strategic and critical material and if, at the time the loan is to
be made, the quantity of the material in the National Defense Stockpile
(provided for under section 3 of the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. 98b)) is less than the quantity of such
material to be stockpiled, as determined by the President under section
3(a) of such Act.
SEC. 4356. SPECIAL LEASING AUTHORITY.
The authority of section 4251 may be used to provide financing to
Israel and Egypt for the procurement by leasing (including leasing with
an option to purchase) of defense articles from United States
commercial suppliers, other than major defense equipment (other than
helicopters and other types of aircraft having possible civilian
application), if the President determines that there are compelling
foreign policy or national security reasons for the articles to be
provided by commercial lease rather than by government-to-government
sale under this subtitle.
CHAPTER 4--RETRANSFERS OF UNITED STATES DEFENSE ARTICLES
SEC. 4361. AUTHORITY TO APPROVE RETRANSFERS.
(a) In General.--Subject to subsection (b), the Secretary is
authorized, consistent with the provisions of this chapter, to approve
a retransfer of any defense article or defense service transferred to a
foreign country pursuant to the authority of this Act to another
country.
(b) Additional Requirement.--The Secretary may not give consent to
a retransfer of a defense article or defense service to a foreign
country under subsection (a) if the United States is prohibited from
transferring the defense article or defense service to the country, or
would not license the export of such defense article or defense service
to such country.
SEC. 4362. DEMILITARIZATION FOR RETRANSFER OF SIGNIFICANT DEFENSE
ARTICLES.
The Secretary may not give consent to the retransfer of any
significant defense articles on the United States Munitions List or
successor list for controlling the export of United States munitions
and related items, unless the foreign country requesting consent to
retransfer--
(1) agrees to demilitarize the defense articles prior to
transfer; or
(2) commits in writing to the United States Government that
it will not transfer the defense articles if not demilitarized
to any other foreign country or person without first obtaining
the consent of the Secretary.
SEC. 4363. PROCEEDS OF SALE OF RETRANSFERRED DEFENSE ARTICLES.
The Secretary may not provide any defense article to a foreign
country or international organization on a grant basis unless the
country or organization has agreed that in disposing or transferring
the defense article--
(1) the disposition or transfer will be made on a sales
basis; and
(2) the net proceeds of the sale will be provided to the
United States Government.
SEC. 4364. CERTIFICATION.
(a) In General.--The Secretary may not give consent to a retransfer
of a defense article or defense service that would be, if it were a
sale, subject to the requirements of section 4382 (regarding
congressional certification of sensitive foreign military sales and
agreements), unless the Secretary submits to the appropriate
congressional committees a written certification with respect to such
proposed retransfer containing--
(1) the name of the country or organization proposing to
make such retransfer;
(2) a description of such article or service proposed to be
retransferred, including its acquisition cost;
(3) the name of the proposed recipient of such article or
service;
(4) the reasons for such proposed retransfer; and
(5) the date on which such retransfer is proposed to be
made.
(b) Form.--Any certification submitted to the appropriate
congressional committees pursuant to paragraph (1)--
(1) shall be submitted in unclassified form, except that
information regarding the dollar value and number of defense
articles or defense services proposed to be retransferred may
be submitted in classified form if public disclosure thereof
would be clearly detrimental to the security of the United
States; and
(2) shall be subject to the requirements of sections 4384.
(c) Exception.--Paragraph (1) shall not apply to an export that has
been exempted from the licensing requirements of this title pursuant to
an agreement pursuant to section 4341.
CHAPTER 5--ENFORCEMENT AND MONITORING OF ARMS SALES
SEC. 4371. GENERAL AUTHORITY.
(a) In General.--Except as provided in subsection (b), in carrying
out functions under this Act with respect to the export of defense
articles and defense services, the President is authorized to exercise
the same powers concerning violations and enforcement that are
conferred upon departments, agencies and officials by subsections (c),
(d), (e), and (g) of section 11 of the Export Administration Act of
1979 and by subsections (a) and (c) of section 12 of such Act (as
continued in effect under the International Emergency Economic Powers
Act), subject to the same terms and conditions as are applicable to
such powers under such Act.
(b) Exception.--Section 11(c)(2)(B) of the Export Administration
Act of 1979 (as continued in effect under the International Emergency
Economic Powers Act) shall not apply, and instead, as prescribed in
regulations issued under this section, the Secretary may assess civil
penalties for violations of this Act and regulations prescribed
thereunder and further may commence a civil action to recover such
civil penalties, and except further that the names of the countries and
the types and quantities of defense articles for which licenses are
issued under this section shall not be withheld from public disclosure
unless the President determines that the release of such information
would be contrary to the national interest.
(c) Rule of Construction.--Nothing in this section shall be
construed as authorizing the withholding of information from Congress.
SEC. 4372. CRIMINAL AND CIVIL PENALTIES.
(a) In General.--Any person who willfully violates any provision of
this Act relating to the export of defense articles and defense
services, or any rule or regulation issued thereunder, or who
willfully, in a registration or license application or required report,
makes any untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the
statements therein not misleading, shall upon conviction be fined for
each violation not more than $1,000,000, or imprisoned not more than 20
years, or both.
(b) Illicit Trafficking in the Western Hemisphere.--Any person who
willfully exports to a country in the Western Hemisphere any small arm
or light weapon without a license in violation of the requirements of
this Act shall upon conviction be fined for each violation not less
than $1,000,000 but not more than $3,000,000 and imprisoned for not
more than 20 years, or both.
SEC. 4373. IDENTIFICATION OF PERSONS OF CONCERN.
(a) In General.--The President shall develop appropriate mechanisms
to identify, in connection with the export licensing process under this
subtitle--
(1) persons who are the subject of an indictment for, or
have been convicted of, a violation under--
(A) section 4372;
(B) section 11 of the Export Administration Act of
1979 (50 U.S.C. App. 2410) (as continued in effect
under the International Emergency Economic Powers Act);
(C) section 793, 794, or 798 of title 18, United
States Code (relating to espionage involving defense or
classified information) or section 2339A of such title
(relating to providing material support to terrorists);
(D) section 16 of the Trading with the Enemy Act
(50 U.S.C. App. 16);
(E) section 206 of the International Emergency
Economic Powers Act (relating to foreign assets
controls; 50 U.S.C. App. 1705);
(F) section 30A of the Securities Exchange Act of
1934 (15 U.S.C. 78dd1) or section 104 of the Foreign
Corrupt Practices Act (15 U.S.C. 78dd2);
(G) chapter 105 of title 18, United States Code
(relating to sabotage);
(H) section 4(b) of the Internal Security Act of
1950 (relating to communication of classified
information; 50 U.S.C. 783(b));
(I) section 57, 92, 101, 104, 222, 224, 225, or 226
of the Atomic Energy Act of 1954 (42 U.S.C. 2077, 2122,
2131, 2134, 2272, 2274, 2275, and 2276);
(J) section 601 of the National Security Act of
1947 (relating to intelligence identities protection;
50 U.S.C. 421);
(K) section 603(b) or (c) of the Comprehensive
Anti-Apartheid Act of 1986 (22 U.S.C. 5113(b) or (c));
or
(L) section 3, 4, 5, and 6 of the Prevention of
Terrorist Access to Destructive Weapons Act of 2004,
relating to missile systems designed to destroy
aircraft (18 U.S.C. 2332g), prohibitions governing
atomic weapons (42 U.S.C. 2122), radiological dispersal
devices (18 U.S.C. 2332h), and variola virus (18 U.S.C.
175b);
(2) persons who are the subject of an indictment or have
been convicted under section 371 of title 18, United States
Code, for conspiracy to violate any of the provisions of law
described in paragraph (1); and
(3) persons who are ineligible--
(A) to contract with,
(B) to receive a license or other form of
authorization to export from, or
(C) to receive a license or other form of
authorization to import defense articles or defense
services from,
any Federal agency.
(b) Disapproval of Application.--If the President determines that--
(1) an applicant for a license to export under this
subtitle is the subject of an indictment for a violation of any
of the provisions of law described in subsection (a),
(2) there is reasonable cause to believe that an applicant
for a license to export under this subtitle has violated any of
the provisions of law described in subsection (a), or
(3) an applicant for a license to export under this
subtitle is ineligible to contract with, or to receive a
license or other form of authorization to import defense
articles or defense services from, any Federal agency,
the President may disapprove the export license application. The
President shall consider requests by the Secretary of the Treasury to
disapprove any export license application based on these criteria.
(c) Prohibition on Issuance of License To Export Items on the
USML.--
(1) In general.--A license to export an item on the United
States Munitions List may not be issued to a person--
(A) if the person, or any party to the export, has
been convicted of violating a provision of law
described in subsection (a); or
(B) if the person, or any party to the export, is
at the time of the license review ineligible to receive
export licenses (or other forms of authorization to
export) from any Federal agency.
(2) Exception.--A license to export an item on the United
States Munitions List may be issued to a person described in
paragraph (1) if the President, after consultation with the
Secretary of the Treasury, and after a thorough review of the
circumstances surrounding the conviction or ineligibility to
export, determines that appropriate steps have been taken to
mitigate any law enforcement concerns.
SEC. 4374. STANDARDS TO IDENTIFY HIGH-RISK EXPORTS.
The Secretary shall, in coordination with the heads of appropriate
Federal agencies, develop standards for identifying high-risk defense
articles for regular end-use verification.
SEC. 4375. REQUIREMENT OF EXPORTERS TO REPORT SHIPMENT.
As prescribed in regulations issued under this chapter, a person to
whom a license has been granted to export an item on the United States
Munitions List shall, not later than 15 days after the item is
exported, submit to the Department of State a report containing all
shipment information, including a description of the item and the
quantity, value, port of exit, and end-user and country of destination
of the item.
SEC. 4376. END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE SERVICES.
(a) Establishment of Monitoring Program.--
(1) In general.--In order to improve accountability with
respect to defense articles and defense services sold, leased,
or exported under this Act and predecessor Acts, the President
shall establish a program which provides for the end-use
monitoring of the articles and services.
(2) Requirements of program.--To the extent practicable,
the program shall be--
(A) established and carried out in accordance with
the standards that apply for identifying high-risk
exports for regular end-use verification developed
under section 4374 (commonly referred to as the ``Blue
Lantern'' program); and
(B) designed to provide reasonable assurance that--
(i) the recipient is complying with the
requirements imposed by the United States
Government with respect to use, transfers, and
security of defense articles and defense
services; and
(ii) the articles and services are being
used for the purposes for which they are
provided.
(b) Conduct of Program.--In carrying out the program established
under subsection (a), the President shall ensure that the program--
(1) provides for the end-use verification of defense
articles and defense services that incorporate sensitive
technology, defense articles and defense services that are
particularly vulnerable to diversion or other misuse, or
defense articles or defense services whose diversion or other
misuse could have significant consequences; and
(2) prevents the diversion (through reverse engineering or
other means) of technology incorporated in defense articles.
(c) Report to Congress.--As part of the annual congressional budget
justification submitted under section 9302, the President shall
transmit to Congress a report describing the actions taken to implement
this section, including a detailed accounting of the costs and number
of personnel associated with the monitoring program.
(d) Third Country Transfers.--For purposes of this section, defense
articles and defense services sold, leased, or exported under this Act
includes defense articles and defense services that are transferred to
a third country or other third party and the numbers, range, and
finding of end-use monitoring of United States transfers of small arms
and light weapons.
SEC. 4377. FEES OF MILITARY SALES AGENTS AND OTHER PAYMENTS.
(a) In General.--In accordance with such regulations as the
Secretary may prescribe under subsection (b), the Secretary shall
require adequate and timely reporting on political contributions,
gifts, commissions and fees paid, or offered or agreed to be paid, by
any person in connection with--
(1) sales of defense articles or defense services, or of
design and construction services under section 4312; or
(2) commercial sales of defense articles or defense
services licensed or approved under section 4301, to or for the
armed forces of a foreign country or international organization
in order to solicit, promote, or otherwise to secure the
conclusion of such sales.
(b) Regulations.--The regulations referred to in subsection (a)
shall specify the amounts and the kinds of payments, offers, and
agreements to be reported, and the form and timing of reports, and
shall require reports on the names of sales agents and other persons
receiving such payments. The Secretary shall by regulation require such
recordkeeping as the Secretary determines is necessary.
(c) Prohibition, Limitation, Conditions.--The Secretary may, by
regulation, prohibit, limit, or prescribe conditions with respect to
such contributions, gifts, commissions, and fees as the President
determines will be in furtherance of the purposes of this Act.
(d) Requirement for Inclusion in Procurement Contract.--
(1) In general.--No such contribution, gift, commission, or
fee may be included, in whole or in part, in the amount paid
under any procurement contract entered into under section 4312,
unless the amount thereof is reasonable, allocable to such
contract, and not made to a person who has solicited, promoted,
or otherwise secured such sale, or has held himself out as
being able to do so, through improper influence.
(2) Definition.--For the purposes of this subsection, the
term ``improper influence'' means influence, direct or
indirect, which induces or attempts to induce consideration or
action by any employee or officer of a purchasing foreign
government or international organization with respect to such
purchase on any basis other than such consideration of merit as
are involved in comparable United States procurements.
(e) Availability of Information and Records.--
(1) In general.--All information reported to the Secretary
and all records maintained by any person pursuant to
regulations prescribed under this section shall be available,
upon request, to any standing committee of Congress or any
subcommittee thereof and to any Federal agency authorized by
law to have access to the books and records of the person
required to submit reports or to maintain records under this
section.
(2) Terms and conditions.--Access by an Federal agency to
records maintained under this section shall be on the same
terms and conditions that govern access by the agency to the
books and records of the person concerned.
SEC. 4378. PROHIBITION ON INCENTIVE PAYMENTS.
(a) Prohibition.--A United States person, or any employee, agent,
or subcontractor thereof, may not, with respect to the sale or export
of any defense article or defense service to a foreign country, make
any incentive payments for the purpose of satisfying, in whole or in
part, any offset agreement with the country.
(b) Civil Penalties.--Any person who violates the provisions of
subsection (a) shall be subject to the imposition of civil penalties as
provided for in subsection (c).
(c) Enforcement.--In providing for the enforcement of this section,
the Secretary is authorized to exercise the same powers concerning
violations and enforcement and imposition of civil penalties that are
conferred upon Federal agencies and officials by subsections (c), (d),
(e), and (f) of section 11 of the Export Administration Act of 1979 and
section 12(a) of such Act (as continued in effect under the
International Emergency Economic Powers Act), subject to the same terms
and conditions as are applicable to such powers under such Act, except
that section 11(c)(2)(B) of such Act shall not apply, and instead, as
prescribed in regulations issued under this section, the Secretary may
assess civil penalties for violations of this Act and regulations
prescribed thereunder and further may commence a civil action to
recover such civil penalties, and except further that notwithstanding
section 11(c) of that Act, the civil penalty for each violation of this
section may not exceed $500,000 or five times the amount of the
prohibited incentive payment, whichever is greater.
CHAPTER 6--CONGRESSIONAL REVIEW OF ARMS SALES
SEC. 4381. REPORTS ON COMMERCIAL AND GOVERNMENTAL MILITARY EXPORTS;
CONGRESSIONAL ACTION.
(a) In General.--The Secretary shall transmit to the appropriate
congressional committees not later than 60 days after the end of each
calendar quarter an unclassified report (except that any material which
was transmitted in classified form under subsection (b)(1) or (c)(1)
may be contained in a classified addendum to such report, and any
letter of offer referred to in paragraph (1) may be listed in such
addendum unless such letter of offer has been the subject of an
unclassified certification pursuant to subsection (b)(1), and any
information provided under paragraph (11) may also be provided in a
classified addendum) containing--
(1) a listing of all letters of offer to sell any major
defense equipment for $1,000,000 or more under this Act to each
foreign country and international organization, by category, if
such letters of offer have not been accepted or canceled;
(2) a listing of all such letters of offer that have been
accepted during the fiscal year in which such report is
submitted, together with the total value of all defense
articles and defense services sold to each foreign country and
international organization during such fiscal year;
(3) the cumulative dollar amounts, by foreign country and
international organization, of sales credit agreements under
section 4251 made during the fiscal year in which such report
is submitted;
(4) a numbered listing of all licenses and approvals for
the export to each foreign country and international
organization during such fiscal year of commercially sold major
defense equipment, by category, sold for $1,000,000 or more,
together with the total value of all defense articles and
defense services so licensed for each foreign country and
international organization, setting forth, with respect to the
listed major defense equipment--
(A) the items to be exported under the license;
(B) the quantity and contract price of each such
item to be provided; and
(C) the name and address of the ultimate user of
each such item;
(5) projections of the dollar amounts, by foreign country
and international organization, of sales expected to be made
under sections 4311 and 4312, in the quarter of the fiscal year
immediately following the quarter for which such report is
submitted;
(6) a projection with respect to all sales expected to be
made to each country and organization for the remainder of the
fiscal year in which such report is transmitted;
(7) a description of each payment, contribution, gift,
commission, or fee reported to the Secretary under section
4377, including--
(A) the name of the person who made such payment,
contribution, gift, commission, or fee;
(B) the name of any sales agent or other person to
whom such payment, contribution, gift, commission, or
fee was paid;
(C) the date and amount of such payment,
contribution, gift, commission, or fee;
(D) a description of the sale in connection with
which such payment, contribution, gift, commission, or
fee was paid; and
(E) the identification of any business information
considered confidential by the person submitting it
which is included in the report;
(8) a listing of each sale under section 4251 during the
quarter for which such report is made, specifying--
(A) the purchaser;
(B) the Federal agency responsible for implementing
the sale;
(C) an estimate of the dollar amount of the sale;
and
(D) a general description of the real property
facilities to be constructed pursuant to such sale;
(9) a listing of each export of defense articles under
section 4311 during the quarter for which report is made,
specifying the recipient, the defense article, the dollar
amount of the export, and a description of the cooperative
agreement pursuant to which the export was made;
(10) a listing of the consents to third-party transfers of
defense articles or defense services which were granted, during
the quarter for which such report is submitted, if the value
(in terms of original acquisition cost) of the defense articles
or defense services to be transferred is $1,000,000 or more;
(11) a listing of all munitions items that were sold,
leased, or otherwise transferred by the Department of Defense
to any other Federal agency during the quarter for which such
report is submitted (including the name of the recipient agency
and a discussion of what the agency will do with those
munitions items) if--
(A) the value of the munitions items was $250,000
of more, and
(B) the value of all munitions items transferred to
the Federal agency during that quarter was $250,000 or
more,
excluding munitions items transferred (i) for disposition or
use solely within the United States, or (ii) for use in
connection with intelligence activities subject to reporting
requirements under title V of the National Security Act of 1947
(50 U.S.C. 413 et seq.; relating to congressional oversight of
intelligence activities);
(12) a report on all concluded government-to-government
agreements regarding foreign coproduction of defense articles
of United States origin and all other concluded agreements
involving coproduction or licensed production outside of the
United States of defense articles of United States origin
(including coproduction memoranda of understanding or
agreement) that have not been previously reported under this
subsection, which shall include--
(A) the identity of the foreign countries,
international organizations, or foreign firms involved;
(B) a description and the estimated value of the
articles authorized to be produced, and an estimate of
the quantity of the articles authorized to be produced;
(C) a description of any restrictions on third-
party transfers of the foreign-manufactured articles;
and
(D) if any such agreement does not provide for
United States access to and verification of quantities
of defense articles produced outside the United States
and their disposition in the foreign country, a
description of alternative measures and controls
incorporated in the coproduction or licensing program
to ensure compliance with restrictions in the agreement
on production quantities and third-party transfers;
(13) a report on all exports of significant military
equipment for which information has been provided pursuant to
section 4375; and
(14) copies of security assistance surveys conducted by
United States Government personnel for the calendar quarter for
which the report is transmitted.
(b) Additional Information.--For each letter of offer to sell under
paragraphs (1) and (2) of subsection (a), the report shall specify--
(1) the foreign country or international organization to
which the defense article or defense service is offered or was
sold, as the case may be;
(2) the dollar amount of the offer to sell or the sale and
the number of defense articles offered or sold, as the case may
be;
(3) a description of the defense article or defense service
offered or sold, as the case may be; and
(4) the United States Armed Forces or Federal agency that
is making the offer to sell or the sale, as the case may be.
SEC. 4382. CONGRESSIONAL CERTIFICATION OF SENSITIVE FOREIGN MILITARY
SALES AND AGREEMENTS.
(a) In General.--The President shall submit to the appropriate
congressional committees a numbered certification with respect to any
letter of offer to sell, or an application by a person for a license
for the export of, pursuant to this or any other Act, the following to
a foreign country or international organization:
(1) Major defense equipment of a type that have not been
sold to the country or organization for $25,000,000 or more.
(2) Major defense equipment of a type that have been sold
to the country or organization but are significantly different
in terms of capability from those previously sold, for
$25,000,000 or more.
(3) Fixed- or rotary-wing aircraft, whether flown remotely
or by an onboard pilot, primarily used for military purposes;
navigation, sensors, sensitive components; and engines for same
and sensitive components of such engines.
(4) Radars for military end-use.
(5) Guided or ballistic missiles, regardless of mode of
launch.
(6) Firearms, close assault weapons, and combat shotguns
over $1,000,000.
(7) Night vision devices.
(8) Naval vessels, both surface vessels (above 3,000 tons)
and submersibles.
(9) Toxicological Agents and associated equipment, for
$25,000,000 or more.
(10) Tanks (including significant components) and armored
vehicle chassis, regardless of armament or lack thereof.
(11) Other defense articles and defense services for
$100,000,000 or more.
(12) Military-related design and construction services for
$300,000,000 or more.
(b) Certification.--The following requirements shall apply with
respect to the submission of a numbered certification under subsection
(a):
(1) Before a United States commercial technical assistance
or manufacturing licensing agreement that involves the
manufacture outside the United States of any sensitive military
equipment is approved under section 4301, the Secretary shall
transmit to the appropriate congressional committees an
unclassified numbered certification with respect to the
agreement.
(2) Each numbered certification shall specify--
(A) the foreign country or international
organization to which the defense article or defense
service is offered or was sold, as the case may be;
(B) the dollar amount of the offer to sell or the
sale and the number of defense articles offered or
sold, as the case may be;
(C) a description of the defense article or defense
service offered or sold, as the case may be; and
(D) the United States Armed Forces or Federal
agency that is making the offer to sell or the sale, as
the case may be.
(3) For commercial technical assistance or manufacturing
licensing agreements, each numbered certification shall
specify--
(A) the purchaser;
(B) the Federal agency responsible for implementing
the sale;
(C) an estimate of the dollar amount of the sale;
and
(D) a general description of the real property
facilities to be constructed pursuant to such sale.
(c) Additional Information.--Each numbered certification submitted
under subsection (a) shall also contain information on the following:
(1) A description, containing the information described in
section 4381(a)(7), of any contribution, gift, commission, or
fee paid or offered or agreed to be paid in order to solicit,
promote, or otherwise to secure the letter of offer relating to
the numbered certification.
(2) An item, classified if necessary, identifying the
sensitivity of technology contained in the defense articles,
defense services, or design and construction services proposed
to be sold, and a detailed justification of the reasons
necessitating the sale of the articles, services, or design and
construction services in view of the sensitivity of the
technology.
(3) In a case in which the defense articles or defense
services listed on the Missile Technology Control Regime Annex
are intended to support the design, development, or production
of a Category I space launch vehicle system, the certification
shall also include a description of the proposed export and
rationale for approving such export, including the consistency
of such export with United States missile nonproliferation
policy.
(4) Each numbered certification shall contain an item
indicating whether any offset agreement is proposed to be
entered into in connection with such letter of offer to sell
(if known on the date of transmittal of such certification).
(d) Form.--A numbered certification transmitted pursuant to
subsection (a) shall be in unclassified form, except that the
information specified in paragraphs (2) and (3) of section 4381(b) and
the details of the description specified in subsections (b) and (c) may
be classified if the public disclosure thereof would be clearly
detrimental to the security of the United States, in which case the
information shall be accompanied by a description of the damage to the
national security that could be expected to result from public
disclosure of the information.
(e) Consultation.--The Secretary shall consult with the appropriate
congressional committees prior to the notification of a letter of
offer, an application to export, or the conclusion of an commercial
technical assistance agreement or a manufacturing license agreement.
(f) Committee Information Request.--The Secretary shall, upon the
request of an appropriate congressional committee, transmit promptly to
both such committees a statement setting forth, to the extent specified
in such request--
(1) a detailed description of the defense articles, defense
services, or design and construction services to be offered,
including a brief description of the capabilities of any
defense article to be offered;
(2) an estimate of the number of officers and employees of
the United States Government and of United States civilian
contract personnel expected to be needed in such country to
carry out the proposed sale;
(3) the name of each contractor expected to provide the
defense article, defense service, or design and construction
services proposed to be sold and a description of any offset
agreement with respect to such sale;
(4) an evaluation, prepared by the Secretary in
consultation with the Secretary of Defense and the Director of
Central Intelligence, of the manner, if any, in which the
proposed sale would--
(A) contribute to an arms race;
(B) support international terrorism;
(C) increase the possibility of an outbreak or
escalation of conflict;
(D) prejudice the negotiation of any arms controls;
(E) adversely affect the arms control or
nonproliferation policy of the United States;
(F) support blackmarket or greymarket trade in
arms, either those transferred or obsolete arms to be
replaced by the arms sale; or
(G) require the transfer of United States arms
sensitive technology or manufacturing techniques as a
condition of the arms sale, and the impact of such
transfer on the United States manufacturing base,
including on jobs based in the United States;
(5) the reasons why the foreign country or international
organization to which the sale is proposed to be made needs the
defense articles, defense services, or design and construction
services which are the subject of such sale and a description
of how such country or organization intends to use such defense
articles, defense services, or design and construction
services;
(6) an analysis of the impact of the proposed sale on the
military stocks and the military preparedness of the United
States;
(7) the reasons why the proposed sale is in the national
interest of the United States;
(8) an analysis of the impact of the proposed sale on the
military capabilities of the foreign country or international
organization to which such sale would be made;
(9) an analysis of how the proposed sale would affect the
relative military strengths of countries in the region to which
the defense articles, defense services, or design and
construction services which are the subject of such sale would
be delivered and whether other countries in the region have
comparable kinds and amounts of defense articles, defense
services, or design and construction services;
(10) an estimate of the levels of trained personnel and
maintenance facilities of the foreign country or international
organization to which the sale would be made which are needed
and available to utilize effectively the defense articles,
defense services, or design and construction services proposed
to be sold;
(11) an analysis of the extent to which comparable kinds
and amounts of defense articles, defense services, or design
and construction services are available from other countries;
(12) an analysis of the impact of the proposed sale on
United States relations with the countries in the region to
which the defense articles, defense services, or design and
construction services which are the subject of such sale would
be delivered;
(13) a detailed description of any agreement proposed to be
entered into by the United States for the purchase or
acquisition by the United States of defense articles, defense
services, design and construction services or defense
equipment, or other articles, services, or equipment of the
foreign country or international organization in connection
with, or as consideration for, such letter of offer, including
an analysis of the impact of such proposed agreement upon
United States business concerns which might otherwise have
provided such articles, services, or equipment to the United
States, an estimate of the costs to be incurred by the United
States in connection with such agreement compared with costs
which would otherwise have been incurred, an estimate of the
economic impact and unemployment which would result from
entering into such proposed agreement, and an analysis of
whether such costs and such domestic economic impact justify
entering into such proposed agreement;
(14) the projected delivery dates of the defense articles,
defense services, or design and construction services to be
offered;
(15) a detailed description of weapons and levels of
munitions that may be required as support for the proposed
sale;
(16) an analysis of the relationship of the proposed sale
to projected procurements of the same item, and
(17) an analysis, classified if necessary, of the security
to be provided by the proposed recipient of the arms sale on
the defense articles and defense services, both against
external and internal security threats, including espionage.
SEC. 4383. UPGRADE OR ENHANCEMENT.
(a) In General.--If, before the delivery of any major defense
article or major defense equipment, or the furnishing of any defense
service or design and construction service, sold pursuant to a letter
of offer or a contract pursuant to a license described in section 4382,
the sensitivity of technology or the capability of the article,
equipment, or service is enhanced or upgraded from the level of
sensitivity or capability described in the numbered certification with
respect to an offer to sell such article, equipment, or service, then,
at least 45 days before the delivery of such article or equipment or
the furnishing of such service, the President shall prepare and
transmit to the chairman of the Committee on Foreign Affairs of the
House of Representatives and the chairman of the Committee on Foreign
Relations of the Senate a report--
(1) describing the manner in which the technology or
capability has been enhanced or upgraded and describing the
significance of such enhancement or upgrade; and
(2) setting forth a detailed justification for such
enhancement or upgrade.
(b) Application.--The provisions of subsection (a) apply to an
article or equipment delivered, or a service furnished, within 10 years
after the transmittal to the Congress of a numbered certification with
respect to the sale of such article, equipment, or service.
(c) New Numbered Certification.--
(1) In general.--If the enhancement or upgrade in the
sensitivity of technology or the capability of major defense
equipment, defense articles, defense services, or design and
construction services described in a numbered certification
submitted under this section costs $14,000,000 or more in the
case of any major defense equipment, $50,000,000 or more in the
case of defense articles or defense services, or $200,000,000
or more in the case of design or construction services, then
the Secretary shall submit to the chairman of the Committee on
Foreign Affairs of the House of Representatives and the
chairman of the Committee on Foreign Relations of the Senate a
new numbered certification which relates to such enhancement or
upgrade and which shall be considered for purposes of this
section as if it were a separate letter of offer to sell
defense equipment, articles, or services, subject to all of the
requirements, restrictions, and conditions set forth in this
section.
(2) Rule of construction.--For purposes of this subsection,
references in this section to sales shall be deemed to be
references to enhancements or upgrades in the sensitivity of
technology or the capability of major defense equipment,
defense articles, or defense services, as the case may be.
SEC. 4384. CONGRESSIONAL REVIEW PERIOD AND DISAPPROVAL.
(a) Review Period.--Any numbered certification submitted to the
appropriate congressional committees for a letter of offer or a license
to export under section 4382 may not be issued not earlier than--
(1) in the case of a strategic United States ally, 15
legislative days after the date of submission of the
certification;
(2) in the case of any other country, 30 legislative days
after the date of submission of the certification; and
(3) in the case of a license for export of a commercial
communications satellite for launch from, and by nationals of,
the Russian Federation, Ukraine, or Kazakhstan, 15 legislative
days after the date of submission of the certification.
(b) Disapproval.--No letter of offer, or license to export, may be
issued for any proposed sale subject to the provisions of this section
if a joint resolution of disapproval is enacted providing for any such
sale within the respective time periods specified in subsection (a).
(c) Procedures for Consideration of Joint Resolution.--
(1) Senate.--Any such joint resolution shall be considered
in the Senate in accordance with the provisions of section
601(b) of the International Security Assistance and Arms Export
Control Act of 1976, except that for purposes of consideration
of any joint resolution with respect to a strategic United
States ally, it shall be in order in the Senate to move to
discharge a committee to which such joint resolution was
referred if such committee has not reported such joint
resolution at the end of 5 calendar days after its
introduction.
(2) House of representatives.--For the purpose of
expediting the consideration and enactment of joint resolutions
under this subsection, a motion to proceed to the consideration
of any such joint resolution after it has been reported by the
appropriate committee shall be treated as highly privileged in
the House of Representatives.
SEC. 4385. NATIONAL SECURITY WAIVER OF CONGRESSIONAL REVIEW OF ARMS
SALES.
(a) Authority.--If the President informs the appropriate
congressional committees that an emergency exists that requires a sale
of a defense article or defense service under section 4331 or a
retransfer of a defense article or defense service under section 4361
in the national security interests of the United States, the President
may exempt the proposed sale from the requirements of this chapter.
(b) Justification.--Before exercising such waiver, the President
shall set forth in a statement to the appropriate congressional
committees a detailed justification for the President's determination,
including a description of the emergency circumstances that necessitate
the immediate issuance of the letter of offer and a discussion of the
national security interests involved.
SEC. 4386. PUBLICATION OF ARMS SALES NOTIFICATIONS.
(a) Publication.--The Secretary shall publish in a timely manner in
the Federal Register, upon transmittal to the Speaker of the House of
Representatives and to the chairman of the Committee on Foreign
Relations of the Senate, the full unclassified text of each numbered
certification submitted pursuant to section 4382.
(b) Rule of Construction.--Information relating to offset
agreements shall be treated as confidential information in accordance
with section 12(c) of the Export Administration Act of 1979 (50 U.S.C.
App. 2411(c)) (as continued in effect under the International Emergency
Economic Powers Act).
SEC. 4387. CERTIFICATION REQUIREMENT RELATING TO ISRAEL'S QUALITATIVE
MILITARY EDGE.
(a) In General.--Any certification relating to a proposed sale or
export of defense articles or defense services under this chapter to
any country in the Middle East other than Israel shall include an
unclassified determination that the sale or export of the defense
articles or defense services will not adversely affect Israel's
qualitative military edge over military threats to Israel, but may also
include a classified determination as well.
(b) Qualitative Military Edge Defined.--In this section, the term
``qualitative military edge'' means the ability to counter and defeat
any credible conventional military threat from any individual state or
possible coalition of states or from non-state actors, while sustaining
minimal damages and casualties, through the use of superior military
means, possessed in sufficient quantity, including weapons, command,
control, communication, intelligence, surveillance, and reconnaissance
capabilities that in their technical characteristics are superior in
capability to those of such other individual or possible coalition of
states or non-state actors.
CHAPTER 7--LANDMINES AND CLUSTER MUNITIONS
SEC. 4391. LANDMINES.
(a) In General.--Notwithstanding any other provision of law,
demining equipment available to the Agency or the Department of State
and used in support of the clearance of landmines and unexploded
ordnance for humanitarian purposes may be disposed of on a grant basis
in foreign countries.
(b) Terms and Conditions.--The exercise of the authority under
subsection (a) shall be subject to such terms and conditions as the
President may prescribe.
SEC. 4392. CLUSTER MUNITIONS.
No security assistance may be provided for cluster munitions, no
defense export license for cluster munitions may be issued, and no
cluster munitions or cluster munitions technology shall be sold or
transferred, unless--
(1) the submunitions of the cluster munitions, after
arming, do not result in more than 1 percent unexploded
ordnance across the range of intended operational environments;
and
(2) the agreement applicable to the assistance, transfer,
or sale of such cluster munitions or cluster munitions
technology specifies that--
(A) the cluster munitions will only be used against
clearly defined military targets and will not be used
where civilians are known to be present or in areas
normally inhabited by civilians; and
(B) the recipient agrees to immediately recover any
unexploded submunitions, and to give assistance as
necessary to any civilian injuries, that follow the use
of such weapons in any area in which civilians are
present.
Subtitle D--General Administrative and Miscellaneous Provisions
SEC. 4401. GENERAL PROVISIONS.
(a) Procurement in the United States; Coproduction or Licensed
Production Outside the United States.--
(1) In general.--In carrying out this title, special
emphasis shall be placed on procurement in the United States,
but, subject to the provisions of subsection (b), consideration
shall also be given to coproduction or licensed production
outside the United States of defense articles of United States
origin when such production best serves the foreign policy,
national security, and economy of the United States.
(2) Evaluation.--In evaluating any sale proposed to be made
pursuant to this title, there shall be taken into
consideration--
(A) the extent to which the proposed sale damages
or infringes upon licensing arrangements whereby United
States entities have granted licenses for the
manufacture of the defense articles selected by the
purchasing country to entities located in friendly
foreign countries, which licenses result in financial
returns to the United States;
(B) the portion of the defense articles so
manufactured which is of United States origin; and
(C) whether, and the extent to which, such sale
might contribute to an arms race, aid in the
development of weapons of mass destruction, support
international terrorism, increase the possibility of
outbreak or escalation of conflict, or prejudice the
development of bilateral or multilateral arms control
or nonproliferation agreements or other arrangements.
(b) Prohibitions.--No credit sale shall be extended under section
4251 in any case involving coproduction or licensed production outside
the United States of any defense article of United States origin,
unless the Secretary, in advance of any such transaction, advises the
appropriate congressional committees and furnish the Speaker of the
House of Representatives and the President of the Senate with full
information regarding the proposed transaction, including a description
of the particular defense article or articles which would be produced
under license or coproduced outside the United States, the estimated
value of such production or coproduction, and the probable impact of
the proposed transaction on employment and production within the United
States.
(c) Availability of Funds.--Funds made available under this title
may be used for procurement outside the United States only if the
President determines that such procurement will not result in adverse
effects upon the economy of the United States or the industrial
mobilization base, with special reference to any areas of labor surplus
or to the net position of the United States in its balance of payments
with the rest of the world, which outweigh the economic or other
advantages to the United States of less costly procurement outside the
United States
(d) Responsibilities of Secretary of Defense.--
(1) In general.--With respect to sales under sections 4311,
4312, 4324, and 4351 the Secretary of Defense shall, under the
direction of the President, have primary responsibility for--
(A) the determination of military end-item
requirements;
(B) the procurement of military equipment in a
manner which permits its integration with service
programs;
(C) the supervision of the training of foreign
military personnel;
(D) the movement and delivery of military end-
items; and
(E) within the Department of Defense, the
performance of any other functions with respect to
sales and guaranties.
(2) Priorities.--The establishment of priorities in the
procurement, delivery, and allocation of military equipment
shall, under the direction of the President, be determined by
the Secretary of Defense.
(e) Termination Provisions.--
(1) Contracts.--Each contract for sale entered into under
sections 4311, 4312, 4324, and 4351, and each contract entered
into under section 4282, shall provide that such contract may
be canceled in whole or in part, or its execution suspended, by
the United States at any time under unusual or compelling
circumstances if the national interest of the United States so
requires.
(2) Export licenses.--Each export license issued under
section 4331 shall provide that such license may be revoked,
suspended, or amended by the Secretary, without prior notice,
whenever the Secretary deems such action to be advisable.
Nothing in this paragraph may be construed as limiting the
regulatory authority of the President under this Act.
(3) Authorization of appropriations.--There are authorized
to be appropriated from time to time such sums as may be
necessary--
(A) to refund moneys received from purchasers under
contracts of sale entered into under sections 4311,
4312, 4324, and 4351, or under contracts entered into
under section 4282, that are canceled or suspended
under this subsection to the extent such moneys have
previously been disbursed to private contractors and
United States Government agencies for work in progress;
and
(B) to pay such damages and costs that accrue from
the corresponding cancellation or suspension of the
existing procurement contracts or Federal agency work
orders involved.
(f) Civilian Contract Personnel.--The President shall, to the
maximum extent possible and consistent with the purposes of this title,
use civilian contract personnel in any foreign country to perform
defense services sold under this title.
SEC. 4402. ADMINISTRATIVE EXPENSES.
(a) In General.--Funds made available under other provisions of law
for the operations of Federal agencies carrying out functions under
this title shall be available for the administrative expenses incurred
by such agencies under this title.
(b) Recovery of Expenses.--Charges for administrative services
calculated under section 4314(a)(1) shall include recovery of
administrative expenses and official reception and representation
expenses incurred by any Federal agency, including any mission or group
thereof, in carrying out functions under this title if--
(1) such functions are primarily for the benefit of any
foreign country;
(2) such expenses are not directly and fully charged to,
and reimbursed from amounts received for, sale of defense
services under section 4311; and
(3) such expenses are neither salaries of the United States
Armed Forces nor represent unfunded estimated costs of civilian
retirement and other benefits.
(c) Official Reception and Representation Expenses.--Not more than
$86,500 of the funds derived from charges for administrative services
pursuant to section 4314(a)(1) may be used each fiscal year for
official reception and representation expenses.
SEC. 4403. DETAIL OF APPROPRIATE PERSONNEL.
The President may detail, as necessary, to the Department of State
appropriate personnel from any other Federal agency on a
nonreimbursable basis, to assist in the initial screening of
applications for export licenses under this subtitle in order to
determine the need for further review of those applications for foreign
policy, national security, and law enforcement concerns.
SEC. 4404. RULE OF CONSTRUCTION.
Nothing in this title shall be construed as modifying in any way
the provisions of the Atomic Energy Act of 1954 or section 7307 of
title 10, United States Code.
SEC. 4405. PERFORMANCE GOALS FOR PROCESSING OF APPLICATIONS FOR
LICENSES TO EXPORT ITEMS ON UNITED STATES MUNITIONS LIST.
(a) In General.--The Secretary shall establish and maintain the
following goals:
(1) The processing time for review of each application for
a license to export items on the United States Munitions List
(other than a Manufacturing License Agreement) shall be not
more than 60 days from the date of receipt of the application.
(2) The processing time for review of each application for
a commodity jurisdiction determination shall be not more than
60 days from the date of receipt of the application.
(3) The total number of applications described in paragraph
(1) that are unprocessed shall be not more than 7 percent of
the total number of such applications submitted in the
preceding calendar year.
(b) Additional Review.--
(1) In general.--If an application described in paragraph
(1) or (2) of subsection (a) is not processed within the time
period described in the respective paragraph of such
subsection, then the Secretary shall ensure that the
appropriate managing official shall review the status of the
application to determine if further action is required to
process the application.
(2) Additional requirements.--If an application described
in paragraph (1) or (2) of subsection (a) is not processed
within 90 days from the date of receipt of the application,
then the appropriate managing official shall--
(A) review the status of the application to
determine if further action is required to process the
application; and
(B) submit to the appropriate congressional
committees a notification of the review conducted under
subparagraph (A), including a description of the
application, the reason for delay in processing the
application, and a proposal for further action to
process the application.
(3) Annual review.--For each calendar year, the appropriate
managing official shall review not less than 2 percent of the
total number of applications described in paragraphs (1) and
(2) of subsection (a) to ensure that the processing of such
applications, including decisions to approve, deny, or return
without action, is consistent with both the foreign policy and
regulatory requirements of the United States.
(c) Statements of Policy.--
(1) United states allies.--Congress states that--
(A) to ensure that, to the maximum extent
practicable, the processing time for review of
applications to export items to United States allies in
direct support of combat operations or peacekeeping or
humanitarian operations with the United States Armed
Forces is not more than 7 days from the date of receipt
of the application; and
(B) the Secretary shall ensure that, to the maximum
extent practicable, the processing time for review of
applications described in subsection (a)(1) to export
items that are not subject to the requirements of
chapter 6 to a strategic United States ally, and, as
appropriate, other major United States allies for any
purpose other than the purpose described in paragraph
(1) is not more than 30 days from the date of receipt
of the application.
(2) Priority for applications for export of u.s.-origin
equipment.--In meeting the goals established by this section,
the Secretary shall prioritize the processing of applications
for licenses and agreements necessary for the export of United
States-origin equipment over applications for Manufacturing
License Agreements.
(d) Report.--Not later than 180 days after the date of the
enactment of this Act, and not later than 1 year thereafter, the
Secretary shall submit to the appropriate congressional committees a
report that contains a detailed description of--
(1)(A) the average processing time for and number of
applications described in subsection (a)(1) to--
(i) a strategic United States ally;
(ii) a major United States ally; and
(iii) any other country; and
(B) to the extent practicable, the average processing time
for and number of applications described in subsection (b)(1)
by item category;
(2) the average processing time for and number of
applications described in subsection (a)(2);
(3) the average processing time for and number of
applications for agreements described in part 124 of title 22,
Code of Federal Regulations (relating to the International
Traffic in Arms Regulations), other than Manufacturing License
Agreements;
(4) the average processing times for applications for
Manufacturing License Agreements;
(5) any management decisions of the Directorate of Defense
Trade Controls of the Department of State that have been made
in response to data contained in paragraphs (1) through (3);
and
(6) any advances in technology that will allow the time-
frames described in subsection (a)(1) to be substantially
reduced.
(e) Congressional Briefings.--If, at the end of any month beginning
after the date of the enactment of this Act, the total number of
applications described in subsection (a)(1) that are unprocessed is
more than 7 percent of the total number of such applications submitted
in the preceding calendar year, then the Secretary shall ensure that
the Assistant Secretary for Political-Military Affairs shall brief the
appropriate congressional committees on such matters and the corrective
measures that will be taken to comply with the requirements of
subsection (a).
(f) Transparency of Commodity Jurisdiction Determinations.--
(1) In general.--To the maximum extent practicable,
commodity jurisdiction determinations made as the appropriate
controls to be applied to commodities shall be made public.
(2) Publication on department of state's internet
website.--The Secretary shall--
(A) publish a commodity jurisdiction determination
referred to in paragraph (1) on the Internet website of
the Department of State not later than 30 days after
the date of the determination, which includes--
(i) the name of the manufacturer of the
item;
(ii) a brief general description of the
item;
(iii) the model or part number of the item;
and
(iv) the designation under which the item
has been designated, except that--
(I) the name of the person or
business organization that sought the
commodity jurisdiction determination
shall not be published if the person or
business organization is not the
manufacturer of the item; and
(II) the names of the customers,
the price of the item, and any
proprietary information relating to the
item indicated by the person or
business organization that sought the
commodity jurisdiction determination
shall not be published; and
(B) maintain on the Internet website of the
Department of State an archive, that is accessible to
the general public and other departments and agencies
of the United States, of the information published
under subparagraph (A).
(g) Rule of Construction.--Nothing in this section shall be
construed to prohibit the President from undertaking a thorough review
of the national security and foreign policy implications of a proposed
export of items on the United States Munitions List.
SEC. 4406. AVAILABILITY OF INFORMATION ON THE STATUS OF LICENSE
APPLICATIONS.
(a) In General.--The Secretary shall make available to persons who
have pending license applications under this chapter and the
appropriate congressional committees the ability to access
electronically current information on the status of each license
application required to be submitted under this chapter.
(b) Matters To Be Included.--The information referred to in
subsection (a) shall be limited to the following:
(1) The case number of the license application.
(2) The date on which the license application is received
by the Department of State and becomes an ``open application''.
(3) The date on which the Directorate of Defense Trade
Controls makes a determination with respect to the license
application or transmits it for interagency review, if
required.
(4) The date on which the interagency review process for
the license application is completed, if such a review process
is required.
(5) The date on which the Department of State begins
consultations with the appropriate congressional committees
with respect to the license application.
(6) The date on which the license application is sent to
the appropriate congressional committees.
SEC. 4407. REQUIREMENT TO ENSURE ADEQUATE STAFF AND RESOURCES FOR THE
DIRECTORATE OF DEFENSE TRADE CONTROLS OF THE DEPARTMENT
OF STATE.
(a) Requirement.--The Secretary shall ensure that there are the
necessary staff and resources to carry out this subtitle.
(b) Minimum Number of Licensing Officers.--The Secretary should
ensure that there is at least 1 licensing officer for every 1,250
applications for licenses and other authorizations to export items on
the United States Munitions List or successor list.
(c) Minimum Number of Staff for Commodity Jurisdiction
Determinations.--The Secretary shall ensure that the Directorate of
Defense Trade Controls has, to the extent practicable, not less than
three individuals assigned to review applications for commodity
jurisdiction determinations.
SEC. 4408. OVERSEAS MANAGEMENT OF ASSISTANCE AND SALES PROGRAMS.
(a) In General.--In order to carry out the President's
responsibilities for the management of international security
assistance programs conducted under this title, the President may
assign members of the United States Armed Forces, personnel of the
Department of Defense, the Department of State, or any other Federal
agency, to a foreign country to perform one or more of the following
functions:
(1) Equipment and services case management.
(2) Training management.
(3) Program monitoring.
(4) Evaluation and planning of the host government's
military capabilities and requirements.
(5) Administrative support.
(6) Promoting rationalization, standardization,
interoperability, and other defense cooperation measures.
(7) Liaison functions exclusive of advisory and training
assistance.
(b) Advisory and Training Assistance.--Advisory and training
assistance conducted by military personnel assigned under this section
shall be kept to an absolute minimum. It is the sense of Congress that
advisory and training assistance conducted in countries to which
military personnel are assigned under this section should be provided
primarily by other personnel who are not assigned under this section
and who are detailed for limited periods to perform specific tasks.
(c) Limitation on Number of United States Armed Forces Members.--
(1) Limitation.--
(A) In general.--Except as provided in subparagraph
(C), the number of members of the United States Armed
Forces assigned to a foreign country under this section
in a fiscal year may not exceed 12 unless specifically
authorized by Congress.
(B) Waiver.--The President may waive the limitation
in subparagraph (A) with respect to the number of
members of the United States Armed Forces assigned to a
foreign country if the President determines and reports
to the appropriate congressional committees 30 days
prior to the introduction of the additional members of
the United States Armed Forces in the foreign country,
that United States national interests require that more
than 12 members of the United States Armed Forces be
assigned under this section to carry out international
security assistance programs in the foreign country.
(C) Exempted countries.--The limitation in
subparagraph (A) shall not apply with respect to
Pakistan, Tunisia, El Salvador, Honduras, Israel,
Colombia, Indonesia, the Republic of Korea, the
Philippines, Thailand, Egypt, Jordan, Morocco, Saudi
Arabia, Greece, Portugal, Spain, and Turkey.
(2) Congressional budget justification.--The total number
of members of the United States Armed Forces assigned to a
foreign country under this section in a fiscal year may not
exceed the number justified to Congress for that country in the
congressional budget justification documents for that fiscal
year, unless the appropriate congressional committees are
notified 30 days in advance of the introduction of the
additional members of the United States Armed Forces.
(d) Costs.--The entire costs (excluding salaries of members of the
United States Armed Forces (other than the Coast Guard)) of overseas
management of international security assistance programs under this
section shall be charged to or reimbursed from funds made available to
carry out this chapter, other than any such costs which are either paid
directly for such defense services under section 4311 or reimbursed
from charges for services collected from foreign governments pursuant
to section 4311 and section 4402.
(e) Supervision of Chief of Diplomatic Mission.--Members of the
United States Armed Forces assigned to a foreign country under this
section shall serve under the direction and supervision of the Chief of
the United States Diplomatic Mission to that country.
(f) Guidance Regarding Purchases.--The President shall continue to
instruct United States diplomatic and military personnel in United
States missions that such personnel should not encourage, promote, or
influence the purchase by any foreign country of United States-made
military equipment, unless such personnel are specifically instructed
to do so by an appropriate official of the executive branch.
SEC. 4409. DESIGNATION OF MAJOR UNITED STATES ALLIES.
(a) Notice to Congress.--The President shall notify Congress in
writing at least 30 days before--
(1) designating a country as a major United States ally for
purposes of this Act; or
(2) terminating such a designation.
(b) Initial Designations.--Egypt, Argentina, Pakistan, Bahrain, the
Philippines, Jordan, Thailand, Kuwait, and Morocco shall be deemed to
have been so designated by the President as of the date of the
enactment of this Act, and the President is not required to notify
Congress of such designation of those countries.
SEC. 4410. DEPLETED URANIUM AMMUNITION.
(a) Prohibition.--Except as provided in subsection (b), none of the
funds made available to carry out this Act or any other Act may be made
available to facilitate in any way the sale of M833 or M900 antitank
shells or any comparable antitank shells containing a depleted uranium
penetrating component to any country other than a country that is a
strategic United States ally.
(b) Exception.--The prohibition in subsection (a) shall not apply
with respect to the use of funds to facilitate the sale of antitank
shells to a country if the President determines that to do so is in the
national security interest of the United States.
SEC. 4411. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Appropriations of the House of
Representatives; and
(B) the Committee on Foreign Relations and the
Committee on Appropriations of the Senate.
(2) Cash flow financing.--The term ``cash flow financing''
means the dollar amount of the difference between the total
estimated price of a Letter of Offer and Acceptance or other
purchase agreement that has been approved for financing under
this title and the amount of the financing that has been
approved therefor.
(3) Category i space launch vehicle system.--The term
``Category I space launch vehicle system'' means a category I
system as defined in the MTCR Annex for the launching of
payloads into outer space, as well as the specially designed
production facilities for these systems.
(4) Defense article.--
(A) In general.--The term ``defense article''--
(i) includes--
(I) any weapon, weapons system,
munition, aircraft, vessel, boat, or
other implement of war and related
technical data;
(II) any property, installation,
commodity, material, equipment, supply,
or goods used for the purposes of
making military sales;
(III) any machinery, facility,
tool, material, supply, or other item
necessary for the manufacture,
production, processing, repair,
servicing, storage, construction,
transportation, operation, or use of
any article listed in this paragraph;
and
(IV) any significant component or
part of any article listed in this
paragraph that has been specifically
designed or significantly modified for
a military application; but
(ii) does not include--
(I) merchant vessels; or
(II) source material (except
uranium depleted in the isotope 235
which is incorporated in defense
articles solely to take advantage of
high density or pyrophoric
characteristics unrelated to
radioactivity), byproduct material,
special nuclear material, production
facilities, utilization facilities, or
atomic weapons or articles involving
Restricted Data, as defined by the
Atomic Energy Act of 1954.
(B) Additional terms.--In subparagraph (A)(i)(IV)--
(i) the term ``significant component or
part'' means a component or part that is
essential to a military function; and
(ii) the term ``significantly modified''
means a modification that constitutes an
alteration of 25 percent or greater of the
component or part from a non-military version.
(5) Defense service.--
(A) In general.--The term ``defense service''--
(i) includes any service, test, inspection,
repair, training, publication, technical or
other assistance, or defense information used
for the purposes of making military sales; but
(ii) does not include design and
construction services under section 4311.
(B) Additional term.--In subparagraph (A)(i), the
term ``defense information'' includes any document,
writing, sketch, photograph, plan, model,
specification, design, prototype, or other recorded or
oral information relating to any defense article or
defense service, but does not include Restricted Data
as defined by the Atomic Energy Act of 1954 and data
removed from the Restricted Data category under section
142d of that Act.
(6) Design and construction services.--The term ``design
and construction services'' means, with respect to sales under
section 4251, the design and construction of real property
facilities, including necessary construction equipment and
materials, engineering services, construction contract
management services relating thereto, and technical advisory
assistance in the operation and maintenance of real property
facilities provided or performed by the Department of Defense
or by a contractor pursuant to a contract with such department
or agency.
(7) End item.--The term ``end item'' means an assembled
article that is ready for its intended use and for which only
ammunition, fuel, or another energy source is required to place
the item in its operating state.
(8) Excess defense article.--The term ``excess defense
article'' means defense articles (other than construction
equipment, including tractors, scrapers, loaders, graders,
bulldozers, dump trucks, generators, and compressors) owned by
the United States Government, and not procured in anticipation
of security assistance or sales requirements, or pursuant to a
security assistance or sales order, which is in excess of the
Approved Force Acquisition Objective and Approved Force
Retention Stock of all Department of Defense Components at the
time such articles are dropped from inventory by the supplying
agency for delivery to countries or international organizations
under this Act.
(9) Incentive payments.--The term ``incentive payments''
means direct monetary compensation made by a United States
supplier of defense articles or defense services or by any
employee, agent, or subcontractor thereof to any other United
States person to induce or persuade that United States person
to purchase or acquire goods or services produced,
manufactured, grown, or extracted, in whole or in part, in the
foreign country which is purchasing those defense articles or
defense services from the United States supplier.
(10) Major defense equipment.--The term ``major defense
equipment'' means any item of significant military equipment on
the United States Munitions List having a nonrecurring research
and development cost of more than $50,000,000 or a total
production cost of more than $200,000,000.
(11) Major united states ally.--The term ``major United
States ally'' means a country that is designated in accordance
with section 4409 as a major United States ally for purposes of
this Act.
(12) NATO/SHAPE project.--The term ``NATO/SHAPE project''
means a common-funded project supported by allocated credits
from North Atlantic Treaty Organization bodies or by host
nations with NATO Infrastructure funds.
(13) Nuclear explosive device.--The term ``nuclear
explosive device'' has the meaning given that term in section
830(4) of the Nuclear Proliferation Prevention Act of 1994.
(14) Offset agreement.--The term ``offset agreement'' means
an agreement, arrangement, or understanding between a United
States supplier of defense articles or defense services and a
foreign country under which the supplier agrees to purchase or
acquire, or to promote the purchase or acquisition by other
United States persons of, goods or services produced,
manufactured, grown, or extracted, in whole or in part, in that
foreign country in consideration for the purchase by the
foreign country of defense articles or defense services from
the supplier.
(15) Security assistance survey.--The term ``security
assistance survey'' means any survey or study conducted in a
foreign country by United States Government personnel for the
purpose of assessing the needs of that country for security
assistance, and includes defense requirement surveys, site
surveys, general surveys or studies, and engineering assessment
surveys.
(16) Significant military equipment.--The term
``significant military equipment'' means articles--
(A) for which special export controls are warranted
because of the capacity of such articles for
substantial military utility or capability; and
(B) identified on the United States Munitions List.
(17) Small arm or light weapon.--The term ``small arm or
light weapon'' means--
(A) an item listed in Category I(a) of the United
States Munitions List,
(B) an item listed in Category III (as it applies
to Category I(a)) of the United States Munitions List,
or
(C) a grenade listed in Category IV(a) of the
United States Munitions List,
that requires a license for international export under this
title.
(18) Strategic united states ally.--The term ``strategic
United States ally'' means any member country of the North
Atlantic Treaty Organization (NATO), Australia, Israel, Japan,
the Republic of Korea, or New Zealand.
(19) Training.--The term ``training'' includes formal or
informal instruction of foreign students in the United States
or overseas by officers or employees of the United States,
contract technicians, or contractors (including instruction at
civilian institutions), or by correspondence courses,
technical, educational, or information publications and media
of all kinds, training aid, orientation, training exercise, and
military advice to foreign military units and forces.
(20) United states.--The term ``United States'', when used
geographically, means the several States, the District of
Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
the Northern Mariana Islands, and any territory or possession
of the United States.
(21) Value.--The term ``value'' means, in the case of an
excess defense article, except as otherwise provided in section
4311(a), not less than the greater of--
(A) the gross cost incurred by the United States
Government in repairing, rehabilitating, or modifying
such article, plus the scrap value; or
(B) the market value, if ascertainable.
(22) Weapon system partnership agreement.--The term
``weapon system partnership agreement'' means an agreement
between two or more member countries of the Maintenance and
Supply Agency of the North Atlantic Treaty Organization that--
(A) is entered into pursuant to the terms of the
Charter of the North Atlantic Treaty Organization; and
(B) is for the common logistic support of a
specific weapon system common to the participating
countries.
(23) Weapons of mass destruction.--The term ``weapons of
mass destruction'' has the meaning given such term in section
1403(1) of the Defense Against Weapons of Mass Destruction Act
of 1996 (title XIV of Public Law 104-201; 110 Stat. 2717; 50
U.S.C. 2302(1)).
TITLE V--COUNTERING TRANSNATIONAL THREATS
Subtitle A--Nonproliferation Authorities
CHAPTER 1--NUCLEAR NONPROLIFERATION
SEC. 5111. AUTHORIZATION OF ASSISTANCE TO PROHIBIT THE PROLIFERATION OF
NUCLEAR, CHEMICAL, AND BIOLOGICAL WEAPONS.
(a) Authorization of Assistance.--The President is authorized to
provide, on such terms and conditions as the President may determine,
foreign assistance to any country or organization in order to carry out
the purposes described in subsection (b).
(b) Purposes.--The purposes of assistance under this section are to
prohibit the proliferation of nuclear, chemical, and biological weapons
and the means to deliver such weapons, through support of activities
designed--
(1) to enhance the nonproliferation capabilities of a
country or organization by providing training and equipment to
detect, deter, monitor, interdict, and counter proliferation;
(2) to strengthen the bilateral ties of the United States
with a country or organization by offering assistance in this
area of vital national security interest;
(3) to accomplish the activities and objectives set forth
in sections 503 and 504 of the FREEDOM Support Act (22 U.S.C.
5853 and 5854), without regard to the limitation of those
sections to the independent states of the former Soviet Union;
and
(4) to promote multilateral activities, including
cooperation with international organizations, relating to
nonproliferation.
(c) Activities Supported.--Assistance under this section may
include training services and the provision of funds, equipment, and
other commodities related to the detection, deterrence, monitoring,
interdiction, and prevention or countering of proliferation, the
establishment of effective nonproliferation laws and regulations, and
the apprehension of those individuals involved in acts of proliferation
of such weapons.
SEC. 5112. EDUCATION AND TRAINING TO ENHANCE NONPROLIFERATION AND
EXPORT CONTROL CAPABILITIES.
(a) In General.--The Secretary is authorized to provide education
and training to appropriate military and civilian personnel of foreign
countries for the purpose of enhancing the nonproliferation and export
control capabilities of such personnel through their attendance in
special courses of instruction conducted by the United States. Such
education and training may be provided on such terms and conditions as
the Secretary may determine and consistent with this subtitle but
whenever feasible on a reimbursable basis.
(b) Administration of Courses.--The Secretary shall have overall
responsibility for the development and conduct of international
nonproliferation education and training programs under this section,
and may utilize other Federal agencies, as appropriate, to recommend
personnel for the education and training programs and to administer
specific courses of instruction.
(c) Purposes.--Education and training activities conducted under
this section shall be--
(1) of a technical nature, emphasizing techniques for
detecting, deterring, monitoring, interdicting, and countering
proliferation;
(2) designed to encourage effective and mutually beneficial
relations and increased understanding between the United States
and other countries; and
(3) designed to improve the ability of other countries to
utilize their resources with maximum effectiveness, thereby
contributing to greater self-reliance by such countries.
(d) Priority to Certain Countries.--In selecting personnel for
education and training programs under this section, priority should be
given to personnel from countries determined by the Secretary to be
countries frequently transited by proliferation-related shipments of
cargo.
SEC. 5113. OPPOSITION OF WITHDRAWAL FROM TREATY ON THE NON-
PROLIFERATION OF NUCLEAR WEAPONS.
(a) Statement of Policy.--It is the policy of the United States to
oppose the withdrawal of any country that is a party to the Treaty on
the Non-Proliferation of Nuclear Weapons (hereinafter in this section
referred to as the ``Treaty'') and to use all political, economic, and
diplomatic means at its disposal to deter, prevent, and sanction any
such withdrawal from the Treaty.
(b) Limitation on Assistance.--
(1) In general.--Notwithstanding any other provision of
law, no foreign assistance (other than humanitarian assistance)
under any provision of law may be provided to a country that
has withdrawn from the Treaty.
(2) Waiver.--The President may waive the requirements of
paragraph (1) on a case-by-case basis if the President
determines and notifies the appropriate congressional
committees that such waiver is in the vital national security
interest of the United States.
(c) Return of All United States-Origin Materials and Equipment.--
The United States shall seek the return of any material, equipment or
components transferred under an Agreement for Civil Nuclear Cooperation
that is in force pursuant to the authority of section 123 of the Atomic
Energy Act of 1954 on or after the date of the enactment of this Act,
and any special fissionable material produced through the use of such
material, equipment or components, previously provided to a country
that withdraws from the Treaty.
SEC. 5114. MATTERS RELATING TO INTERNATIONAL ATOMIC ENERGY AGENCY.
(a) Payment of United States Dues.--Not later than January 31,
2014, and January 31 of each succeeding year, the United States shall
pay its full assessed contribution to the regular operating budget of
the International Atomic Energy Agency (IAEA).
(b) Additional Protocol as a Criterion for United States
Assistance.--
(1) Statement of policy.--It is the policy of the United
States to ensure that each country that is a party to the
Treaty on the Non-Proliferation of Nuclear Weapons should bring
into force an Additional Protocol to its safeguards agreement
with the IAEA.
(2) Criterion for assistance.--The United States shall,
when considering the provision of assistance under this Act,
take into consideration whether the proposed recipient has in
force an Additional Protocol to its safeguards agreement with
the IAEA.
SEC. 5115. ARMS CONTROL AND NONPROLIFERATION SCHOLARSHIP PROGRAM.
(a) Establishment.--
(1) In general.--The Secretary shall establish a
scholarship program (to be known as the ``Arms Control and
Nonproliferation Scholarship Program'') to award scholarships
for the purpose of recruiting and preparing students for
civilian careers in the fields of nonproliferation, arms
control, and international security to meet the critical needs
of the Department of State.
(2) Selection of recipients.--
(A) Merit and department needs.--Individuals shall
be selected to receive scholarships under this section
through a competitive process primarily on the basis of
academic merit and the arms control and
nonproliferation needs of the Department of State.
(B) Demonstrated commitment.--Individuals selected
under this section shall have a demonstrated interest
in public service and a commitment to the field of
study for which the scholarship is awarded.
(3) Contractual agreements.--In order to carry out the
scholarship program, the Secretary shall enter into contractual
agreements with individuals selected under paragraph (2)
pursuant to which such individuals agree to serve as full-time
employees of the Department of State following achievement of
the specified degree, for a period to be determined by the
Secretary, not to exceed 6 years, in arms control and
nonproliferation positions needed by the Department of State
and for which the individuals are qualified, in exchange for
receiving a scholarship.
(b) Eligibility.--Except as provided in subsection (f), in order to
be eligible to participate in the scholarship program, an individual
shall--
(1) be enrolled or accepted for enrollment as a full-time
student at an institution of higher education and be pursuing
or intend to pursue an undergraduate or graduate education
degree in an academic field or discipline specified in the list
made available under subsection (d); and
(2) be a United States citizen.
(c) Application.--An individual seeking a scholarship under this
section shall submit to the Secretary an application at such time, in
such manner, and containing such information, agreements, or assurances
as the Secretary may require.
(d) Programs and Fields of Study.--The Secretary shall make
publicly available a list of academic programs and fields of study for
which scholarships under this section may be awarded.
(e) Scholarships.--
(1) In general.--The Secretary may award a scholarship
under this section for an academic year if the individual
applying for the scholarship has submitted to the Secretary, as
part of the application required under subsection (c), a
proposed academic program leading to a degree in a program or
field of study specified on the list made available under
subsection (d).
(2) Limitation on years.--An individual may not receive a
scholarship under this section for more than 4 academic years,
unless the Secretary grants a waiver.
(3) Student responsibilities.--A scholarship recipient
shall maintain satisfactory academic progress for purposes of
continued participation in the scholarship program.
(4) Amount.--The dollar amount of a scholarship awarded
under this section for an academic year shall be determined
under regulations issued by the Secretary, but shall in no case
exceed the cost of tuition, fees, and other authorized expenses
as determined by the Secretary.
(5) Use of scholarships.--A scholarship awarded under this
section may be expended for tuition, fees, and other authorized
expenses as established by the Secretary by regulation.
(6) Payment to institution of higher education.--The
Secretary may enter into a contractual agreement with an
institution of higher education under which the amounts
provided for a scholarship under this section for tuition,
fees, and other authorized expenses are paid directly to the
institution with respect to which such scholarship is awarded.
(f) Special Consideration for Current Employees.--Notwithstanding
subsection (b), up to 5 percent of the scholarships awarded under this
section may be set aside for individuals who are Federal employees on
the date of the enactment of this Act to enhance the education of such
employees in areas of critical arms control or nonproliferation needs
of the Department of State, for undergraduate or graduate education
through enrollment in a graduate degree program under the scholarship
on a full-time or part-time basis.
(g) Repayment.--
(1) In general.--A scholarship recipient who fails to
maintain a high level of academic standing, as defined by the
Secretary who is dismissed for disciplinary reasons from the
educational institution such recipient is attending, or who
voluntarily terminates academic training before graduation from
the educational program for which the scholarship was awarded
shall be in breach of the contractual agreement under
subsection (a)(3) and, in lieu of any service obligation
arising under such agreement, shall be liable to the United
States for repayment within 1 year after the date of such
default of all scholarship funds paid to such recipient and to
the institution of higher education on the behalf of such
recipient under such agreement. The repayment period may be
extended by the Secretary if the Secretary determines such
extension to be necessary, as established by regulation.
(2) Liability.--A scholarship recipient who, for any
reason, fails to begin or complete the service obligation under
the contractual agreement under subsection (a)(3) after
completion of academic training, or fails to comply with the
terms and conditions of deferment established by the Secretary
under paragraph (1), shall be in breach of such contractual
agreement and shall be liable to the United States for an
amount equal to--
(A) the total amount of the scholarship received by
such recipient under this section; and
(B) the total amount of interest that would have
been payable under a direct unsubsidized loan issued
through the Department of Education's Direct Loan
Program.
(h) Regulations.--The Secretary shall prescribe regulations
necessary to carry out this section.
(i) Conversion.--The Secretary is authorized to convert the status
of a scholarship recipient to a member of the Foreign Service, as
defined in section 103 of the Foreign Service Act of 1980, following
the successful completion of the period of service described in
subsection (a)(3).
SEC. 5116. ARMS CONTROL AND NONPROLIFERATION ROTATION PROGRAM.
(a) Establishment.--The Secretary, in consultation with the heads
of other relevant Federal agencies, shall establish the Arms Control
and Nonproliferation Rotation Program (in this section referred to as
the ``Rotation Program'') for personnel of such agencies. The Rotation
Program shall use applicable best practices, including those prescribed
by the Chief Human Capital Officers Council. Personnel of a relevant
Federal agency participating in the Rotation Program may be detailed to
any other relevant Federal agency on a nonreimbursable basis.
(b) Goals.--The Rotation Program shall--
(1) be established in accordance with the human capital
strategic plan of the Department of State;
(2) provide midlevel personnel of relevant Federal agencies
the opportunity to broaden their knowledge through exposure to
other relevant Federal agencies, including to other bureaus and
offices of the Department of State;
(3) expand the knowledge base of the Department of State
and other relevant Federal agencies;
(4) build professional relationships and contacts among
employees of relevant Federal agencies;
(5) invigorate the Department of State's arms control and
nonproliferation workforce with professionally rewarding
opportunities; and
(6) incorporate human capital strategic plans and
activities of the Department of State, and address critical
human capital deficiencies, professional development,
recruitment and retention efforts, and succession planning
within the Department of State.
(c) Responsibilities.--The Secretary shall--
(1) provide oversight of the establishment and
implementation of the Rotation Program;
(2) establish a framework that supports the goals of the
Rotation Program and promotes cross disciplinary rotational
opportunities;
(3) establish eligibility for personnel of other relevant
agencies to participate in the Rotation Program and select
participants from among the applicants;
(4) establish incentives for personnel to participate in
the Rotation Program, including through promotions and
employment preferences;
(5) ensure that the Rotation Program provides professional
education and training;
(6) ensure that the Rotation Program develops qualified
employees and future leaders with broad based experience
throughout the Department of State; and
(7) provide for greater interaction among employees of
relevant Federal agencies.
(d) Allowances, Privileges, and Benefits.--All allowances,
privileges, rights, seniority, and other benefits of personnel
participating in the Rotation Program shall be preserved.
(e) Reporting.--Not later than 1 year after the date of the
establishment of the Rotation Program, the Secretary shall submit to
the appropriate congressional committees and the Committee on Armed
Services of the House of Representatives and the Committee on Armed
Services of the Senate a report on the status of the Rotation Program,
including a description of the Rotation Program, the number of
individuals participating, and how the Rotation Program is used in
succession planning and leadership development.
(f) Definition.--For the purposes of this section, the term
``relevant Federal agency'' means the Department of State and any other
Federal agency that is involved in United States arms control and
nonproliferation activities.
CHAPTER 2--MISSILE NONPROLIFERATION
SEC. 5121. LICENSING.
(a) Establishment of List of Controlled Items.--The Secretary, in
consultation with the Secretary of Defense and the heads of other
appropriate Federal agencies, shall establish and maintain, as part of
the United States Munitions List, a list of all items on the Missile
Technology Control Regime (MTCR) Annex the export of which is not
controlled under section 6(l) of the Export Administration Act of 1979
(as continued in effect under the International Emergency Economic
Powers Act).
(b) Referral of License Applications.--
(1) In general.--A determination of the Secretary to
approve a license for the export of an item on the list
established under subsection (a) may be made only after the
license application is referred to the Secretary of Defense.
(2) Coordination.--Not later than 10 days after a license
is issued for the export of an item on the list established
under subsection (a), the Secretary shall provide to the
Secretary of Defense and the Secretary of Commerce the license
application and accompanying documents issued to the applicant,
to the extent that the relevant Secretary indicates the need to
receive such application and documents.
(c) Information Sharing.--The Secretary shall establish a procedure
for sharing information with appropriate officials of the intelligence
community, as determined by the Director of National Intelligence, and
with other appropriate Federal departments and agencies, that will
ensure effective monitoring of transfers of MTCR equipment or
technology and other missile technology.
(d) Exports to Space Launch Vehicle Programs.--Not later than 15
days after the issuance of a license (including any brokering license)
for the export of items valued at less than $50,000,000 that are
controlled under this Act pursuant to United States obligations under
the MTCR and are goods or services that are intended to support the
design, utilization, development, or production of a space launch
vehicle system listed in Category I of the MTCR Annex, the Secretary
shall transmit to the Congress a report describing the licensed export
and rationale for approving such export, including the consistency of
such export with United States missile nonproliferation policy. The
requirement contained in the preceding sentence shall not apply to
licenses for exports to countries that were members of the MTCR as of
April 17, 1987.
SEC. 5122. DENIAL OF THE TRANSFER OF MISSILE EQUIPMENT OR TECHNOLOGY BY
UNITED STATES PERSONS.
(a) Sanctions.--
(1) In general.--If the President determines that a United
States person knowingly--
(A) exports, transfers, or otherwise engages in the
trade of any item on the MTCR Annex, in violation of
the provisions of section 4311 of this Act, section 5
or 6 of the Export Administration Act of 1979 (as
continued in effect under the International Emergency
Economic Powers Act), or any regulations or orders
issued under any such provisions of law,
(B) conspires to or attempts to engage in such
export, transfer, or trade, or
(C) facilitates such export, transfer, or trade by
any other person,
then the President shall impose the applicable sanctions
described in paragraph (2).
(2) Applicable sanctions.--The sanctions which apply to a
United States person under paragraph (1) are the following:
(A) If the item on the MTCR Annex involved in the
export, transfer, or trade is missile equipment or
technology within category II of the MTCR Annex, then
the President shall deny to such United States person
for a period of 2 years--
(i) United States Government contracts
relating to missile equipment or technology;
and
(ii) licenses for the transfer of missile
equipment or technology controlled under this
Act.
(B) If the item on the MTCR Annex involved in the
export, transfer, or trade is missile equipment or
technology within category I of the MTCR Annex, then
the President shall deny to such United States person
for a period of not less than 2 years--
(i) all United States Government contracts,
and
(ii) all export licenses and agreements for
items on the United States Munitions List.
(b) Discretionary Sanctions.--In the case of any determination made
pursuant to subsection (a), the President may pursue any penalty
provided in section 4372.
(c) Presumption.--In determining whether to apply sanctions under
subsection (a) to a United States person involved in the export,
transfer, or trade of an item on the MTCR Annex, it should be a
rebuttable presumption that such item is designed for use in a missile
listed in the MTCR Annex if the President determines that the final
destination of the item is a country the government of which the
Secretary has determined, for purposes of 6(j)(1)(A) of the Export
Administration Act of 1979 (as continued in effect under the
International Emergency Economic Powers Act), has repeatedly provided
support for acts of international terrorism (as such term is defined in
section 10401(h)).
(d) Waiver.--The President may waive the imposition of sanctions
under subsection (a) with respect to a product or service if the
President certifies to Congress that--
(1) the product or service is essential to the national
security of the United States; and
(2) such person is a sole source supplier of the product or
service, the product or service is not available from any
alternative reliable supplier, and the need for the product or
service cannot be met in a timely manner by improved
manufacturing processes or technological developments.
SEC. 5123. TRANSFERS OF MISSILE EQUIPMENT OR TECHNOLOGY BY FOREIGN
PERSONS.
(a) Sanctions.--
(1) In general.--Subject to subsections (c) through (g), if
the President determines that a foreign person, after the date
of the enactment of this Act, knowingly--
(A) exports, transfers, or otherwise engages in the
trade of any MTCR equipment or technology that
contributes to the acquisition, design, development, or
production of missiles in a country that is not an MTCR
adherent and would be, if it were United States-origin
equipment or technology, subject to the jurisdiction of
the United States under this Act,
(B) conspires to or attempts to engage in such
export, transfer, or trade, or
(C) facilitates such export, transfer, or trade by
any other person,
or if the President has made a determination with respect to a
foreign person under section 11B(b)(1) of the Export
Administration Act of 1979 (as continued in effect under the
International Emergency Economic Powers Act), then the
President shall impose on that foreign person the applicable
sanctions described in paragraph (2).
(2) Applicable sanctions.--The sanctions which apply to a
foreign person under paragraph (1) are the following:
(A) If the item involved in the export, transfer,
or trade is within category II of the MTCR Annex, then
the President shall deny, for a period of 2 years--
(i) United States Government contracts
relating to missile equipment or technology;
and
(ii) licenses for the transfer to such
foreign person of missile equipment or
technology controlled under this Act.
(B) If the item involved in the export, transfer,
or trade is within category I of the MTCR Annex, then
the President shall deny, for a period of not less than
2 years--
(i) all United States Government contracts
with such foreign person; and
(ii) licenses for the transfer to such
foreign person of all items on the United
States Munitions List.
(C) If, in addition to actions taken under
subparagraphs (A) and (B), the President determines
that the export, transfer, or trade has substantially
contributed to the design, development, or production
of missiles in a country that is not an MTCR adherent,
then the President shall prohibit, for a period of not
less than 2 years, the importation into the United
States of products produced by that foreign person.
(b) Inapplicability With Respect to MTCR Adherents.--Subsection (a)
does not apply with respect to--
(1) any export, transfer, or trading activity that is
authorized by the laws of an MTCR adherent, if such
authorization is not obtained by misrepresentation or fraud; or
(2) any export, transfer, or trade of an item to an end
user in a country that is an MTCR adherent.
(c) Effect of Enforcement Actions by MTCR Adherents.--Sanctions set
forth in subsection (a) may not be imposed under this section on a
person with respect to acts described in such subsection or, if such
sanctions are in effect against a person on account of such acts, such
sanctions shall be terminated, if an MTCR adherent is taking judicial
or other enforcement action against that person with respect to such
acts, or that person has been found by the government of an MTCR
adherent to be innocent of wrongdoing with respect to such acts, and if
the President certifies to the appropriate congressional committees
that--
(1) for any judicial or other enforcement action taken by
the MTCR adherent, such action has--
(A) been comprehensive; and
(B) been performed to the satisfaction of the
United States; and
(2) with respect to any finding of innocence of wrongdoing,
the United States is satisfied with the basis for such finding.
(d) Advisory Opinions.--The Secretary, in consultation with the
Secretary of Defense and the Secretary of Commerce, may, upon the
request of any person, issue an advisory opinion to that person as to
whether a proposed activity by that person would subject that person to
sanctions under this section. Any person who relies in good faith on
such an advisory opinion which states that the proposed activity would
not subject a person to such sanctions, and any person who thereafter
engages in such activity, may not be made subject to such sanctions on
account of such activity.
(e) Waiver and Report to Congress.--
(1) In general.--In any case other than one in which an
advisory opinion has been issued under subsection (d) stating
that a proposed activity would not subject a person to
sanctions under this section, the President may waive the
application of subsection (a) to a foreign person if the
President determines that such waiver is essential to the
national security of the United States.
(2) Notification.--In the event that the President decides
to apply the waiver described in paragraph (1), the President
shall so notify the Committee on Armed Services and the
Committee on Foreign Relations of the Senate and the Committee
on Armed Services and the Committee on Foreign Affairs of the
House of Representatives not less than 45 working days before
issuing the waiver. Such notification shall include a report
fully articulating the rationale and circumstances which led
the President to apply the waiver.
(f) Presumption.--In determining whether to apply sanctions under
subsection (a) to a foreign person involved in the export, transfer, or
trade of an item on the MTCR Annex, it should be a rebuttable
presumption that such item is designed for use in a missile listed in
the MTCR Annex if the President determines that the final destination
of the item is a country the government of which the Secretary has
determined, for purposes of 6(j)(1)(A) of the Export Administration Act
of 1979 (as continued in effect under the International Emergency
Economic Powers Act), has repeatedly provided support for acts of
international terrorism (as such term is defined in section 10401(h)).
(g) Additional Waiver.--The President may waive the imposition of
sanctions under subsection (a) on a person with respect to a product or
service if the President certifies to the Congress that--
(1) the product or service is essential to the national
security of the United States; and
(2) such person is a sole source supplier of the product or
service, the product or service is not available from any
alternative reliable supplier, and the need for the product or
service cannot be met in a timely manner by improved
manufacturing processes or technological developments.
(h) Exceptions.--The President shall not apply the sanction under
this section prohibiting the importation of the products of a foreign
person--
(1) in the case of procurement of defense articles or
defense services--
(A) under existing contracts or subcontracts,
including the exercise of options for production
quantities to satisfy requirements essential to the
national security of the United States;
(B) if the President determines that the person to
which the sanctions would be applied is a sole source
supplier of the defense articles and defense services,
that the defense articles or defense services are
essential to the national security of the United
States, and that alternative sources are not readily or
reasonably available; or
(C) if the President determines that such articles
or services are essential to the national security of
the United States under defense coproduction agreements
or NATO Programs of Cooperation;
(2) to products or services provided under contracts
entered into before the date on which the President publishes
his intention to impose the sanctions; or
(3) to--
(A) spare parts,
(B) component parts, but not finished products,
essential to United States products or production,
(C) routine services and maintenance of products,
to the extent that alternative sources are not readily
or reasonably available; or
(D) information and technology essential to United
States products or production.
SEC. 5124. NOTIFICATION OF ADMITTANCE OF MTCR ADHERENTS.
(a) Policy Report.--Following any action by the United States that
results in a country becoming a MTCR adherent, the President shall
transmit promptly to the Congress a report which describes the
rationale for such action, together with an assessment of that
country's nonproliferation policies, practices, and commitments. Such
report shall also include the text of any agreements or understandings
between the United States and such country regarding the terms and
conditions of the country's adherence to the MTCR.
(b) Intelligence Assessment Report.--At such times that a report is
transmitted pursuant to subsection (a), the Director of National
Intelligence shall promptly prepare and submit to Congress a separate
report containing any credible information indicating that the country
described in subsection (a) has engaged in any activity identified
under subparagraph (A), (B), or (C) of section 5123(a)(1) within the
previous two years.
SEC. 5125. AUTHORITY RELATING TO MTCR ADHERENTS.
Notwithstanding section 5123(b), the President may take the actions
under section 5123(a)(2) under the circumstances described in section
5126(b)(2).
SEC. 5126. DEFINITIONS.
(a) In General.--In this chapter--
(1) the term ``missile'' means a category I system as
defined in the MTCR Annex, and any other unmanned delivery
system of similar capability, as well as the specially designed
production facilities for these systems;
(2) the term ``Missile Technology Control Regime'' or
``MTCR'' means the policy statement, between the United States,
the United Kingdom, the Federal Republic of Germany, France,
Italy, Canada, and Japan, announced on April 16, 1987, to
restrict sensitive missile-relevant transfers based on the MTCR
Annex, and any amendments thereto;
(3) the term ``MTCR adherent'' means a country that
participates in the MTCR or that, pursuant to an international
understanding to which the United States is a party, controls
MTCR equipment or technology in accordance with the criteria
and standards set forth in the MTCR;
(4) the term ``MTCR Annex'' means the Guidelines and
Equipment and Technology Annex of the MTCR, and any amendments
thereto;
(5) the terms ``missile equipment or technology'' and
``MTCR equipment or technology'' mean those items listed in
category I or category II of the MTCR Annex;
(6) the term ``United States person'' has the meaning given
that term in section 16(2) of the Export Administration Act of
1979 (as continued in effect under the International Emergency
Economic Powers Act);
(7) the term ``foreign person'' means any person other than
a United States person;
(8) the term ``person''--
(A) means a natural person as well as a
corporation, business association, partnership,
society, trust, any other nongovernmental entity,
organization, or group, and any governmental entity
operating as a business enterprise, and any successor
of any such entity; and
(B) in the case of a country with a non-market
economy (excluding former members of the Warsaw Pact),
includes--
(i) all activities of that government
relating to the development or production of
any missile equipment or technology; and
(ii) all activities of that government
affecting the development or production of
electronics, space systems or equipment, and
military aircraft; and
(9) the term ``otherwise engaged in the trade of'' means,
with respect to a particular export or transfer, to be a
freight forwarder or designated exporting agent, or a consignee
or end user of the item to be exported or transferred.
(b) International Understanding Defined.--For purposes of
subsection (a)(3), as it relates to any international understanding
concluded with the United States after January 1, 2000, the term
``international understanding'' means--
(1) any specific agreement by a country not to export,
transfer, or otherwise engage in the trade of any MTCR
equipment or technology that contributes to the acquisition,
design, development, or production of missiles in a country
that is not an MTCR adherent and would be, if it were United
States-origin equipment or technology, subject to the
jurisdiction of the United States under this Act; or
(2) any specific understanding by a country that,
notwithstanding section 5123(b), the United States retains the
right to take the actions under section 5123(a)(2) in the case
of any export or transfer of any MTCR equipment or technology
that contributes to the acquisition, design, development, or
production of missiles in a country that is not an MTCR
adherent and would be, if it were United States-origin
equipment or technology, subject to the jurisdiction of the
United States under this Act.
CHAPTER 3--CHEMICAL AND BIOLOGICAL NONPROLIFERATION
SEC. 5131. SANCTIONS AGAINST CERTAIN FOREIGN PERSONS.
(a) Imposition of Sanctions.--
(1) Determination by the president.--Except as provided in
subsection (b)(2), the President shall impose both of the
sanctions described in subsection (c) if the President
determines that a foreign person, on or after the date of the
enactment of this section, has knowingly and materially
contributed--
(A) through the export from the United States of
any goods or technology that are subject to the
jurisdiction of the United States,
(B) through the export from any other country of
any goods or technology that would be, if they were
United States goods or technology, subject to the
jurisdiction of the United States, or
(C) through any other transaction not subject to
sanctions pursuant to the Export Administration Act of
1979 (as continued in effect under the International
Emergency Economic Powers Act),
to the efforts by any foreign country, project, or entity
described in paragraph (2) to use, develop, produce, stockpile,
or otherwise acquire chemical or biological weapons.
(2) Countries, projects, or entities receiving
assistance.--Paragraph (1) applies in the case of--
(A) any foreign country that the President
determines has, at any time after January 1, 1980--
(i) used chemical or biological weapons in
violation of international law;
(ii) used lethal chemical or biological
weapons against its own nationals; or
(iii) made substantial preparations to
engage in the activities described in clause
(i) or (ii);
(B) any foreign country whose government is
determined to be a government that has repeatedly
provided support for acts of international terrorism
for purposes of section 6(j) of the Export
Administration Act of 1979 (as continued in effect
under the International Emergency Economic Powers Act)
or section 10401 of this Act; or
(C) any other foreign country, project, or entity
designated by the President for purposes of this
section.
(3) Persons against whom sanctions are to be imposed.--
Sanctions shall be imposed pursuant to paragraph (1) on--
(A) the foreign person with respect to which the
President makes the determination described in that
paragraph;
(B) any successor entity to that foreign person;
(C) any foreign person that is a parent or
subsidiary of that foreign person if that parent or
subsidiary knowingly assisted in the activities which
were the basis of that determination; and
(D) any foreign person that is an affiliate of that
foreign person if that affiliate knowingly assisted in
the activities which were the basis of that
determination and if that affiliate is controlled in
fact by that foreign person.
(b) Consultations With and Actions by Foreign Government of
Jurisdiction.--
(1) Consultations.--If the President makes the
determinations described in subsection (a)(1) with respect to a
foreign person, the Congress urges the President to initiate
consultations immediately with the government with primary
jurisdiction over that foreign person with respect to the
imposition of sanctions pursuant to this section.
(2) Actions by government of jurisdiction.--In order to
pursue such consultations with that government, the President
may delay imposition of sanctions pursuant to this section for
a period of up to 90 days. Following these consultations, the
President shall impose sanctions unless the President
determines and certifies to Congress that such government has
taken specific and effective actions, including appropriate
penalties, to terminate the involvement of the foreign person
in the activities described in subsection (a)(1). The President
may delay imposition of sanctions for an additional period of
up to 90 days if the President determines and certifies to
Congress that such government is in the process of taking the
actions described in the preceding sentence.
(3) Report to congress.--The President shall report to
Congress, not later than 90 days after making a determination
under subsection (a)(1), on the status of consultations with
the appropriate government under this subsection, and the basis
for any determination under paragraph (2) of this subsection
that such government has taken specific corrective actions.
(c) Sanctions.--
(1) Description of sanctions.--The sanctions to be imposed
pursuant to subsection (a)(1) are, except as provided in
paragraph (2) of this subsection, the following:
(A) Procurement sanction.--The United States
Government shall not procure, or enter into any
contract for the procurement of, any goods or services
from any person described in subsection (a)(3).
(B) Import sanctions.--The importation into the
United States of products produced by any person
described in subsection (a)(3) shall be prohibited.
(2) Exceptions.--The President shall not be required to
apply or maintain sanctions under this section--
(A) in the case of procurement of defense articles
or defense services--
(i) under existing contracts or
subcontracts, including the exercise of options
for production quantities to satisfy United
States operational military requirements;
(ii) if the President determines that the
person or other entity to which the sanctions
would otherwise be applied is a sole source
supplier of the defense articles or defense
services, that the defense articles or defense
services are essential, and that alternative
sources are not readily or reasonably
available; or
(iii) if the President determines that such
articles or services are essential to the
national security under defense coproduction
agreements;
(B) to products or services provided under
contracts entered into before the date on which the
President publishes his intention to impose sanctions;
(C) to--
(i) spare parts,
(ii) component parts, but not finished
products, essential to United States products
or production, or
(iii) routine servicing and maintenance of
products, to the extent that alternative
sources are not readily or reasonably
available;
(D) to information and technology essential to
United States products or production; or
(E) to medical or other humanitarian items.
(d) Termination of Sanctions.--The sanctions imposed pursuant to
this section shall apply for a period of at least 12 months following
the imposition of sanctions and shall cease to apply thereafter only if
the President determines and certifies to the Congress that reliable
information indicates that the foreign person with respect to which the
determination was made under subsection (a)(1) has ceased to aid or
abet any foreign government, project, or entity in its efforts to
acquire chemical or biological weapons capability as described in that
subsection.
(e) Waiver.--
(1) Criterion for waiver.--The President may waive the
application of any sanction imposed on any person pursuant to
this section, after the end of the 12-month period beginning on
the date on which that sanction was imposed on that person, if
the President determines and certifies to the Congress that
such waiver is important to the national security interests of
the United States.
(2) Notification of and report to congress.--If the
President decides to exercise the waiver authority provided in
paragraph (1), the President shall so notify the Congress not
less than 20 days before the waiver takes effect. Such
notification shall include a report fully articulating the
rationale and circumstances which led the President to exercise
the waiver authority.
(f) Definition of Foreign Person.--For the purposes of this
section, the term ``foreign person'' means--
(1) an individual who is not a citizen of the United States
or an alien admitted for permanent residence to the United
States; or
(2) a corporation, partnership, or other entity which is
created or organized under the laws of a foreign country or
which has its principal place of business outside the United
States.
Subtitle B--Counter-Narcotics Authorities
SEC. 5201. FINDINGS.
Congress finds the following:
(1) International narcotics trafficking poses a major
transnational threat in today's world, and its suppression is
among the most important foreign policy objectives of the
United States.
(2) International criminal activities, particularly
international narcotics trafficking, money laundering, and
corruption, endanger political and economic stability and
democratic development, and assistance for the prevention and
suppression of international criminal activities should be a
priority for the United States.
(3) Effective international cooperation is necessary to
control the illicit cultivation, production, and smuggling of,
trafficking in, and abuse of narcotic and psychotropic drugs
and other controlled substances.
(4) In order for countries to effectively combat narcotics
trafficking and other transnational crimes, they must have a
strong rule of law system, to include an honest police force,
independent courts, and effective prisons.
(5) Given the magnitude of United States counter-narcotics
efforts, as well as its impact and significance on other
dimensions of United States bilateral relations, it is
essential that a process be put into place that allows the
periodic, comprehensive evaluation of these efforts and their
foreign policy implications.
SEC. 5202. STATEMENT OF POLICY.
It shall be the policy of the United States to--
(1) support international narcotics control programs that
have, as priority goals, the suppression of the illicit
manufacture of and trafficking in narcotic and psychotropic
drugs and other controlled substances, money laundering, and
the diversion of precursor chemicals, and the progressive
elimination of the illicit cultivation of the crops from which
narcotic and psychotropic drugs and other controlled substances
are derived;
(2) encourage the international community to provide
assistance, where appropriate, to those producer and transit
countries that require assistance in discharging these primary
obligations;
(3) use its voice and vote in multilateral development
banks to promote the development and implementation in the
major illicit drug producing countries of programs for the
reduction and eventual eradication of narcotic drugs and other
controlled substances, including appropriate assistance in
conjunction with effective programs of illicit crop
eradication;
(4) ensure that countries adopt comprehensive domestic
measures against money laundering and cooperate with each other
in money laundering investigations, prosecutions, and related
forfeiture actions; and
(5) endeavor to develop and promote global, regional, sub-
regional, and bilateral cooperation among judicial, law
enforcement and financial regulatory authorities in order to
combat money-laundering, narcotics trafficking, and other
transnational crimes.
SEC. 5203. GOAL AND OBJECTIVES.
(a) Goal.--The goal of foreign assistance under this subtitle is to
help relevant countries build the capacity required to combat and
reduce narcotics trafficking, money laundering, and other transnational
crimes.
(b) Objectives.--In furtherance of the goal described in subsection
(a), foreign assistance under this subtitle shall be provided to
achieve the following objectives:
(1) Increase the professionalization, transparency, and
accountability of law enforcement, judicial and penal personnel
in the relevant country.
(2) Improve the ability of law enforcement to prevent
crimes, pursue and apprehend criminals, and increase security
within their country.
(3) Strengthen the capacity of the judicial system to hear
and prosecute cases.
SEC. 5204. GENERAL AUTHORITIES.
(a) Authorities of the President.--The President is authorized to
conclude agreements, including reciprocal maritime agreements, with
United States State and local governments and with other countries to
facilitate control of the production, processing, transportation, and
distribution of narcotic and psychotropic drugs and other controlled
substances.
(b) Authorities of the Secretary.--Notwithstanding any other
provision of law restricting assistance to foreign countries except
sections 10101, 10102, and 10401, the Secretary is authorized to
provide foreign assistance to any country or international
organization, on such terms and conditions as the Secretary may
determine, for the control of narcotic and psychotropic drugs and other
controlled substances, or for related anticrime purposes.
(c) Coordination of All United States Antinarcotics Assistance to
Foreign Countries.--
(1) Responsibility of secretary of state.--The Secretary
shall be responsible for coordinating and approving all foreign
assistance provided by the United States Government to support
international efforts to combat crime and illicit narcotics
production or trafficking.
(2) Rule of construction.--Nothing in paragraph (1) shall
be construed to limit or impair the authority or responsibility
of any other Federal agency with respect to law enforcement,
domestic security operations, or intelligence activities as
defined in Executive Order No. 12333.
(d) Use of Herbicides for Aerial Eradication.--
(1) Monitoring.--The Secretary, with the assistance of the
heads of other appropriate Federal agencies, shall monitor any
use under this subtitle of a herbicide for aerial eradication
in order to determine the impact of such use on the environment
and on the health of individuals.
(2) Report upon determination of harm to environment or
health.--If the Secretary determines that any such use is
harmful to the environment or the health of individuals, the
Secretary shall immediately report that determination to the
appropriate congressional committees, together with such
recommendations as the Secretary determines appropriate.
SEC. 5205. AUTHORIZATION OF BUREAU OF INTERNATIONAL NARCOTICS AND LAW
ENFORCEMENT.
(a) Establishment.--There is established in the Department of State
a Bureau of International Narcotics and Law Enforcement (in this
section referred to as the ``Bureau'').
(b) Head of Bureau.--The head of the Bureau shall be an Assistant
Secretary of International Narcotics and Law Enforcement.
(c) Responsibilities.--The Bureau shall be responsible for
supervision (including policy oversight of resources), coordinating,
and overseeing programs related to international counternarcotics and
law enforcement activities, including--
(1) strengthening criminal justice systems;
(2) countering the flow of illegal narcotics, including
through building interdiction capabilities of partner countries
and strengthening law enforcement and judicial authorities; and
(3) minimizing transnational crime
SEC. 5206. USE OF FUNDS.
(a) Treatment of Funds.--Funds transferred to and consolidated with
funds appropriated to carry out this subtitle may be made available on
such terms and conditions as are applicable to funds appropriated to
carry out this subtitle. Funds so transferred or consolidated shall be
apportioned directly to the bureau within the Department of State
responsible for administering this subtitle.
(b) Contributions.--
(1) In general.--To ensure local commitment to the
activities assisted under this subtitle, a country receiving
assistance under this subtitle should contribute an appropriate
share of the costs of any narcotics control program, project,
or activity for which such assistance is to be provided. A
country may contribute such costs on an in kind basis.
(2) Acceptance.--The Secretary is authorized to accept
contributions from foreign governments to carry out the
purposes of this subtitle. Such contributions shall be
deposited as an offsetting collection to the applicable
appropriation account and may be used under the same terms and
conditions as funds appropriated to carry out this subtitle.
(c) Administrative Assistance.--
(1) In general.--Except as provided in paragraph (2),
personnel funded pursuant to this section are authorized to
provide administrative assistance to personnel assigned to the
Bureau of International Narcotics and Law Enforcement.
(2) Limitation.--Paragraph (1) shall not apply to the
extent that it would result in a reduction in funds available
for counter-narcotics and anticrime assistance to foreign
countries.
(d) Advance Notification of Transfer of Seized Assets.--The
Secretary shall notify the appropriate congressional committees at
least 10 days prior to any transfer by the United States Government to
a foreign country for narcotics control purposes of any property or
funds seized by or otherwise forfeited to the United States Government
in connection with narcotics-related activity.
(e) Excess Property.--For purposes of this subtitle, the Secretary
may use the authority of section 11506, without regard to the
restrictions of such section, to receive nonlethal excess property from
any United States Government department or agency for the purpose of
providing such property to a foreign government under the same terms
and conditions as funds authorized to be appropriated for the purposes
of this subtitle.
SEC. 5207. REQUIREMENTS RELATING TO AIRCRAFT AND OTHER EQUIPMENT.
(a) Retention of Title to Aircraft.--
(1) In general.--
(A) Lease or loan basis.--Except as provided in
paragraph (2), any aircraft made available to a foreign
country under this chapter, or made available to a
foreign country primarily for narcotics-related
purposes under any other provision of law, shall be
provided only on a lease or loan basis.
(B) Effective date.--Subparagraph (A) applies to
aircraft made available at any time after the enactment
of this Act.
(2) Exceptions.--
(A) Contrary to national interest.--The Secretary
is authorized to transfer title of aircraft by sale or
grant if he or she--
(i) determines that the application of
paragraph (1) with respect to particular
aircraft would be contrary to the national
interest of the United States; and
(ii) the Secretary notifies the appropriate
congressional committees in accordance with the
procedures applicable to reprogramming
notifications under section 9401.
(B) Forfeiture.--Paragraph (1) shall not apply with
respect to aircraft made available to a foreign country
under any provision of law that authorizes property
that has been civilly or criminally forfeited to the
United States to be made available to foreign
countries.
(3) Assistance for leasing of aircraft.--
(A) In general.--For purposes of satisfying the
requirement of paragraph (1), funds made available for
the Foreign Military Financing Program under title IV
may be used to finance the leasing of aircraft under
that title.
(B) Cost of lease.--Section 4351(a)(3) shall not
apply with respect to leases so financed, rather the
entire cost of any such lease (including any renewals)
shall be an initial, one time payment of the amount
which would be the sales price for the aircraft if they
were sold under section 4311(a)(2) or section 4312 (as
appropriate).
(b) Permissible Uses of Aircraft and Other Equipment.--
(1) In general.--The Secretary shall take all reasonable
steps to ensure that aircraft and other equipment made
available to foreign countries under this chapter are used only
in ways that are consistent with the purposes for which such
equipment was made available.
(2) Exception.--Paragraph (1) shall not apply to aircraft
or other equipment if the Secretary makes a determination under
section 11508(b) that there is an emergency need which requires
the use of the aircraft or other equipment.
(c) Reports.--In the reports submitted pursuant to section 5211,
the Secretary shall discuss--
(1) the actions taken by the United States Government to
prevent misuse of such equipment by that foreign country; and
(2) any credible information indicating misuse by a foreign
country of aircraft or other equipment made available under
this chapter; and(3) the actions taken by the United States
Government to prevent future misuse of such equipment by that
foreign country.
(d) Records of Aircraft Use.--
(1) Requirement to maintain records.--The President shall
maintain detailed records on the use of any aircraft made
available to a foreign country under this chapter, including
aircraft made available before the enactment of this section.
(2) Congressional access to records.--The President shall
make the records maintained pursuant to paragraph (1) available
upon request to the appropriate congressional committees.
SEC. 5208. RESTRICTIONS.
(a) Participation in Foreign Police Actions.--Participation in
foreign police actions under this subtitle shall be subject to the
requirements of section 3303(d).
(b) Procurement of Weapons and Ammunition.--
(1) Prohibition.--Except as provided in paragraph (2),
funds made available to carry out this subtitle shall not be
made available for the procurement of weapons or ammunition.
(2) Exceptions.--Paragraph (1) shall not apply with respect
to funds for the procurement of--
(A) weapons or ammunition provided only for the
defensive arming of aircraft used for narcotics-related
purposes; or
(B) firearms and related ammunition provided only
for defensive purposes to employees or contract
personnel of the Department of State engaged in
activities under this subtitle, if, at least 15 days
before obligating those funds, the President notifies
the appropriate congressional committees in accordance
with the procedures applicable to reprogramming
notifications under section 9401.
(c) Limitations on Acquisition of Real Property and Construction of
Facilities.--
(1) Acquisition of real property.--
(A) Prohibition.--Funds made available to carry out
this subtitle may not be used to acquire (by purchase
or other means) any land or other real property for use
by foreign military, paramilitary, or law enforcement
forces.
(B) Exception for certain leases.--Subparagraph (A)
shall not apply to the acquisition of real property by
lease of a duration not to exceed 2 years.
(C) Exception for international training
academies.--Subparagraph (A) shall not apply to the
acquisition of land of real property for use as a
training facility for judicial, prosecutorial, law
enforcement, or regulatory officials.
(2) Construction of facilities.--
(A) Limitation.--Funds made available to carry out
this subtitle may not be used for construction of
facilities for use by foreign military, paramilitary,
or law enforcement forces unless, at least 15 days
before obligating funds for such construction, the
President notifies the appropriate congressional
committees in accordance with procedures applicable to
reprogramming notifications under section 9401.
(B) Exception.--Paragraph (1) shall not apply to
the construction of facilities which would require the
obligation of less than $750,000 under this subtitle.
SEC. 5209. INTERNATIONAL COUNTER-NARCOTICS STRATEGY.
(a) Strategy Required.--Not later than 1 year after the date of the
enactment of this Act, and every 4 years thereafter, the Secretary
shall submit to the appropriate congressional committees a
comprehensive counter-narcotics strategy. The strategy shall include--
(1) a list of the countries which the Secretary determines
to be--
(A) a major illicit drug-producing country;
(B) a major illicit drug-transit country;
(C) a major money-laundering country; or
(D) a major source of precursor chemicals;
(2) defined objectives for the activities of the Department
of State relating to counter-narcotics, for each region and
country it plans to target;
(3) a description of how such objectives relate to, are
informed by, and will be coordinated with those of relevant
countries, as well as with those of other bilateral and
multilateral donors;
(4) a definition of the respective roles of each Federal
department and agency in carrying out the strategy, and the
mechanisms for coordination;
(5) a description of the types of policies and programs
needed to achieve such objectives;
(6) an analysis of the key opportunities and challenges for
achieving favorable results in the next 4-year period;
(7) a list of indicators and other measurements of success
to be used in assessing impact, to include the indicators
listed in section 5210(a)(6);
(8) the amounts devoted to similar purposes in the previous
4-year period, the results achieved and the lessons learned;
and
(9) an estimate of the requirements for human and financial
resources and overseas infrastructure to carry out the strategy
over the next 4-year period.
(b) Implementation.--None of the funds made available under this
title may be obligated or expended for any programs, projects, or
activities to implement a strategy required under subsection (a) until
at least 15 days after the strategy is transmitted to the appropriate
congressional committees pursuant to subsection (a).
(c) Definitions.--In this section--
(1) the term ``major illicit drug-producing country'' means
a country that illicitly produces during a fiscal year 5 metric
tons or more of opium or opium derivative, 500 metric tons or
more of coca, or 500 metric tons or more of marijuana;
(2) the term ``major illicit drug-transit country'' means a
country--
(A) that is a significant direct source of illicit
narcotic or psychotropic drugs or other controlled
substances significantly affecting the United States;
(B) through which are transported such drugs or
substances; or
(C) through which significant sums of drug-related
profits or monies are laundered with the knowledge or
complicity of the government;
(3) the term ``major money-laundering country'' means a
country whose financial institutions engage in currency
transactions involving significant amounts of proceeds from
international narcotics trafficking; and
(4) the term ``major source of precursor chemicals'' means
a country that is among the top 5 producers or the top 5
exporters of a listed chemical under section 102(33) of the
Controlled Substances Act (21 U.S.C. 802(33)).
SEC. 5210. INTERNATIONAL NARCOTICS CONTROL ASSISTANCE REPORT.
(a) Report.--Not later than 1 year after the date of the enactment
of this Act, and annually thereafter, the President shall transmit to
the appropriate congressional committees a report on international
narcotics control assistance. Such report shall, for each country--
(1) describe the types and amounts of international
narcotics control assistance provided or proposed to be
provided by each Federal agency for the preceding fiscal year,
the current fiscal year, and the next fiscal year;
(2) include all transfers that were made by each Federal
agency during the preceding fiscal year for narcotics control
or anti-crime purposes of any property seized by or otherwise
forfeited to the United States Government in connection with
narcotics-related activity, including an estimate of the fair
market value and physical condition of each item of property
transferred;
(3) discuss the extent to which the country is meeting the
goals and objectives of the United Nations Convention Against
Illicit Traffic in Narcotic Drugs and Psychotropic Substances,
and the key areas in which improvements are needed;
(4) explain how the strategy described under section 5209
is being implemented;
(5) describe any progress made toward achieving the goal
and objectives in section 5203;
(6) identify the indicators and metrics to be used in
assessing the impact of international narcotics control
assistance, including the impact of the use of herbicides for
aerial eradication on the environment, the health of
individuals, and internal displacement; and
(7) list any contributions under section 5206(b) received
in the preceding fiscal year, the amount of such contributions,
and the purposes for which such contributions were used.
(b) Definition.--In this section, the term ``international
narcotics control assistance'' means foreign assistance provided by any
Federal agency to combat or control the transit, production, or
financing of illicit narcotics.
SEC. 5211. NARCOTICS STRATEGY EVALUATION.
(a) In General.--The Comptroller General of the United States shall
conduct an impact evaluation of programs carried out by the Bureau of
International Narcotics and Law Enforcement, using rigorous
quantitative data analysis. The evaluation shall measure progress made
on the following indicators, as appropriate:
(1) Supply Side Factors, such as--
(A) estimated illicit drug production;
(B) estimated illicit drug transshipment;
(C) estimated illicit drug production and
transshipment as a percentage of GDP;
(D) number of individuals and households estimated
to be involved in illicit drug production and
transshipment;
(E) number and average size of illicit drug-crop
cultivation plots;
(F) farm-gate price of illicit drug crop; and
(G) in-country price and purity of illicit drug.
(2) Disruption of Networks, such as--
(A) drug seizures as a percentage of total
estimated drug production and transshipment; and
(B) arrests and convictions of major narcotics-
related organized crime figures.
(3) Economic well-being and governance, such as--
(A) presence of government institutions (such as
security forces, civilian ministries, local government,
justice system) in zones of greatest drug production;
(B) perceptions of police competence;
(C) number of individuals and households formerly
involved in drug production and transshipment who are
now benefitting from development and alternative income
programs;
(D) level of drug-related violence as a percentage
of overall violence; and
(E) poverty and unemployment rates in departments,
States or provinces with the greatest drug production
and transshipment.
(b) Submission.--The results of the evaluation required under
subsection (a) shall be submitted to the appropriate congressional
committees not later than 4 years after the date of the enactment of
this Act and every 4 years thereafter.
Subtitle C--Counter-Terrorism Authorities
SEC. 5301. PURPOSES.
Activities conducted under this subtitle shall be designed to--
(1) build the capacity of foreign law enforcement and
security personnel to detect, deter and counter terrorism;
(2) counter and ameliorate the conditions and circumstances
that foster terrorist and violent extremist ideologies,
activity and recruitment;
(3) increase respect for human rights by sharing with
foreign civil authorities modern, humane, and effective
antiterrorism techniques; and
(4) enhance bilateral and multilateral partnerships to
counter terrorism and violent extremism.
SEC. 5302. ASSISTANCE TO COUNTRIES AND MULTILATERAL ORGANIZATIONS FOR
COUNTER-TERRORISM ACTIVITIES.
(a) Assistance to Countries.--
(1) In general.--Notwithstanding any other provision of law
that restricts assistance to foreign countries (other than
sections 10101, 10102, 10401, and 10402), the Secretary, acting
through the Assistant Secretary for Counterterrorism or other
appropriate senior official, is authorized to provide, on such
terms and conditions as the Secretary may determine--
(A) assistance to foreign countries in order to
enhance the ability of their law enforcement and
security personnel to deter terrorists and terrorist
groups from engaging in international terrorist acts
such as bombing, kidnaping, assassination, hostage
taking, and hijacking; and
(B) in coordination with the Administrator,
assistance to foreign countries, including
nongovernmental organizations, to enhance their ability
to counter violent extremism and radicalization and to
counter the appeal of terrorist and other extremist
organizations.
(2) Assistance.--Assistance under paragraph (1)(A) may
include the following:
(A) Consistent with section 3303, the provision of
equipment, supplies, and training to build the capacity
of foreign law enforcement or security forces to
conduct counter-terrorist operations and respect human
rights.
(B) Training services and the provision of
equipment and other commodities related to detection
and disposal of bombs (including improvised explosive
devices), management of hostage situations, physical
security, and other matters relating to the detection,
deterrence, and prevention of acts of terrorism, the
resolution of terrorist incidents, and the apprehension
of those involved in such acts.
(C) Support and cooperation with foreign banking,
regulatory, and other officials to counter the
financing of terrorist activities.
(b) Assistance to Multilateral Organizations.--The Secretary is
authorized to provide, on such terms and conditions as the Secretary
may determine, support to multilateral organizations for international
and regional counterterrorism cooperation programs, including the
Regional Strategic Initiative. Such support may be provided in the form
of grants, contracts, or voluntary contributions to such organizations.
(c) Payment.--
(1) In general.--If the Secretary determines it to be
consistent with and in furtherance of the purposes of this
subtitle, and on such terms and conditions consistent with this
Act as the Secretary may determine, any Federal agency is
authorized to provide services and commodities, without charge
to funds available to carry out this subtitle, to an eligible
foreign country, subject to payment in advance of the value
thereof (within the meaning of section 4411) in United States
dollars by the foreign country.
(2) Crediting.--Collections under this subtitle shall be
credited to the currently applicable appropriation, account, or
fund of the agency providing such services and commodities and
shall be available for the purposes for which such
appropriation, account, or fund is authorized to be used.
(3) Value.--The value in terms of original acquisition cost
of all equipment and commodities provided under this subtitle
in any fiscal year shall not exceed 30 percent of the funds
made available to carry out this subtitle for that fiscal year.
(d) Consultation.--Consistent with section 1(c)(2)(C) of the State
Department Basic Authorities Act of 1956 (as added by section 3105),
the Assistant Secretary of State for Democracy, Human Rights and Labor
shall be consulted in determinations of foreign countries that will be
provided assistance under this subtitle and determinations of the
nature of assistance to be provided to each such country.
(e) Limitation.--Arms and ammunition may be provided under this
subtitle only if such arms and ammunition are directly related to
counterterrorism assistance.
(f) Rule of Construction.--Nothing in this subtitle shall apply to
information exchange activities conducted by Federal agencies under any
other authority for such purposes
SEC. 5303. COUNTER-TERRORISM RESPONSIBILITIES OF THE DEPARTMENT OF
STATE.
(a) In General.--Section 1 of the State Department Basic
Authorities Act of 1956 (22 U.S.C. 2651a) is amended--
(1) in subsection (c)(1), by striking ``24'' and inserting
``25''; and
(2) in subsection (e) to read as follows:
``(e) Counterterrorism Responsibilities.--
``(1) In general.--The Secretary of State shall be
responsible for the overall supervision (including policy
oversight of resources) of counterterrorism activities and may
designate an Assistant Secretary or other senior official, who
may report directly to the Secretary as appropriate, to assist
in such activities.
``(2) Transfer authority.--The Secretary of State may
transfer any authority, duty, or function assigned to the
Coordinator for Counterterrorism or to the Office of the
Coordinator for Counterterrorism to the Assistant Secretary or
other senior official designated by the Secretary of State
under paragraph (1) or to the Bureau of Counterterrorism (as
the case may be).''.
(b) Conforming Amendment.--Section 5315 of title 5, United States
Code, is amended in the item relating to Assistant Secretaries of
State, by striking ``(24)'' and inserting ``(25)''.
TITLE VI--SUSTAINING THE GLOBAL ENVIRONMENT
SEC. 6001. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Sound natural resource management, healthy ecosystems,
and biological diversity are vital to alleviating poverty in
developing countries that depend on natural resources for
water, food, medicine, energy, household products, and tourism
and trade.
(2) Proper management and protection of natural resources
can mitigate instability, conflict, and corruption in many
developing countries.
(3) Poaching and the illegal trafficking of wildlife
represent significant threats to preserving biological
diversity and can lead to crime and corruption.
(4) Establishing protected areas can preserve wildlife and
plant species from degradation and guard against the illegal
wildlife trade.
(5) Strengthening the indigenous capacity of partner
countries to manage their natural resources improves the long-
term sustainability of conservation programs and is essential
for economic growth in developing countries.
(b) Statement of Policy.--It is the policy of the United States to
work in cooperation with the international community, including
nongovernmental organizations, to reduce biodiversity loss, adapt to
and mitigate climate change, and integrate principles of environmental
sustainability into policies and programs for international
development.
Subtitle A--Debt-for-Nature Exchanges
SEC. 6101. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Poverty and economic pressures on the populations of
developing countries have led to environmental degradation that
exacerbate existing challenges and imperil long-term,
sustainable development.
(2) Debt reduction can reduce economic pressures on
developing countries and provide funds for environmental
conservation and development.
(3) Identifying and developing economic benefits to local
communities from sustainable use of the environment is critical
to the protection of ecosystems and to overall development.
(4) Tropical forests provide a wide range of benefits to
humankind by--
(A) harboring a major share of the Earth's
biological and terrestrial resources, which are the
basis for developing pharmaceutical products and
revitalizing agricultural crops;
(B) playing a critical role as carbon sinks in
reducing greenhouse gases in the atmosphere, thus
moderating potential global climate change; and
(C) regulating hydrological cycles on which far-
flung agricultural and coastal resources depend.
(5) Coral reefs and associated coastal marine ecosystems
provide a wide range of benefits to humankind by--
(A) harboring more species per unit area than any
other marine habitat, providing the basis for
developing pharmaceutical products and fostering a
growing marine tourism sector;
(B) providing a major source of food and jobs for
hundreds of millions of coastal residents; and
(C) serving as natural storm barriers, thus
protecting vulnerable shorelines and communities from
storm waves and erosion.
(b) Statement of Policy.--It is the policy of the United States to
work in cooperation with partner countries and nongovernmental
organizations to protect and sustainably manage tropical forests, coral
reefs, and other natural ecosystems, including through debt-for-nature
exchanges.
SEC. 6102. DEFINITIONS.
As used in this subtitle:
(1) Administering body.--The term ``administering body''
means the entity provided for in section 6107(c).
(2) Partner country.--The term ``partner country'' means an
eligible country with respect to which the authority of
paragraph (1) or (2) of section 6105(a) or section 6106(a)(1)
is exercised.
(3) Debt-for-nature agreement.--The term ``Debt-for-Nature
Agreement'' or ``Agreement'' means a Debt-for-Nature Agreement
provided for in section 6107.
(4) Debt-for-nature facility.--The term ``Debt-for-Nature
Facility'' or ``Facility'' means the Debt-for-Nature Facility
established in the Department of the Treasury by section 6103.
(5) Debt-for-nature fund.--The term ``Debt-for-Nature
Fund'' or ``Fund'' means a Debt-for-Nature Fund provided for in
section 6109.
(6) Eligible country.--The term ``eligible country'' means
a country described in section 6104.
SEC. 6103. ESTABLISHMENT OF THE FACILITY.
There is established in the Department of the Treasury an entity to
be known as the ``Debt-for-Nature Facility'' for the purpose of
providing for the administration of debt reduction in accordance with
this subtitle.
SEC. 6104. ELIGIBILITY FOR BENEFITS.
To be eligible for benefits from the Facility under this subtitle,
a country shall be a developing country the government of which--
(1) is democratically elected;
(2) does not support acts of international terrorism;
(3) does not engage in a consistent pattern of gross
violations of internationally recognized human rights;
(4) has in effect, has received approval for, or, as
appropriate in exceptional circumstances, is making significant
progress toward--
(A) an International Monetary Fund standby
arrangement, extended International Monetary Fund
arrangement, or an arrangement under the structural
adjustment facility or enhanced structural adjustment
facility, or in exceptional circumstances, an
International Monetary Fund-monitored program or its
equivalent, unless the President determines that such
an arrangement or program (or its equivalent) could
reasonably be expected to have significant adverse
social or environmental effects; and
(B) as appropriate, structural or sectoral
adjustment loans from the International Bank for
Reconstruction and Development or the International
Development Association, unless the President
determines that the resulting adjustment requirements
could reasonably be expected to have significant
adverse social or environmental effects; and
(5) if appropriate, has agreed with its commercial bank
lenders on a satisfactory financing program, including, as
appropriate, debt or debt service reduction.
SEC. 6105. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND DEBT
BUYBACKS.
(a) Loans and Credits Eligible for Sale, Reduction, or
Cancellation.--
(1) Debt-for-nature swaps.--
(A) In general.--Notwithstanding any other
provision of law, the President may, in accordance with
this section, sell to any eligible purchaser described
in subparagraph (B) any concessional loans described in
section 6106 or any credits described in section 6106,
or on receipt of payment from an eligible purchaser
described in subparagraph (B), reduce or cancel such
loans (or credits) or portion thereof under an
Agreement, only for the purpose of facilitating a debt-
for-nature swap to support eligible activities
described in section 6108.
(B) Eligible purchaser.--A loan or credit may be
sold, reduced, or canceled under subparagraph (A) only
to a purchaser who presents plans satisfactory to the
President for using the loan or credit for the purpose
of engaging in debt-for-nature swaps to support
eligible activities described in section 6108.
(2) Debt buybacks.--Notwithstanding any other provision of
law, the President may, in accordance with this section, sell
to any eligible country any concessional loans described in
section 6106 or any credits described in section 6106, or on
receipt of payment from an eligible country, reduce or cancel
such loans (or credits) or portion thereof under an Agreement,
only for the purpose of facilitating a debt buyback by an
eligible country of its own qualified debt, only if the
eligible country uses an additional amount of the local
currency of the eligible country, equal to not less than the
lesser of 40 percent of the price paid for such debt by such
eligible country, or the difference between the price paid for
such debt and the face value of such debt, to support eligible
activities described in section 6108.
(3) Limitation.--The authority provided by paragraphs (1)
and (2) shall be available only to the extent that
appropriations for the cost (as defined in section 502(5) of
the Federal Credit Reform Act of 1990) of the modification of
any debt pursuant to such paragraphs are made in advance.
(4) Terms and conditions.--Notwithstanding any other
provision of law, the President shall, in accordance with this
section, establish the terms and conditions under which loans
and credits may be sold, reduced, or canceled pursuant to this
section.
(5) Administration.--
(A) In general.--When the President determines a
purchaser to be an eligible purchaser pursuant to
paragraph (1)(B), the Administrator or the Secretary of
Agriculture, as the case may be, shall carry out the
sale, reduction, or cancellation of a loan pursuant to
such paragraph.
(B) Additional requirement.--The Administrator or
Secretary of Agriculture, as the case may be, shall
make an adjustment in its accounts to reflect the sale,
reduction, or cancellation.
(b) Deposit of Proceeds.--The proceeds from the sale, reduction, or
cancellation of any loan sold, reduced, or canceled pursuant to this
section shall be deposited in the United States Government account or
accounts established for the repayment of such loan.
SEC. 6106. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF
CONCESSIONAL LOANS OR CREDITS UNDER THIS ACT AND CERTAIN
OTHER PROVISIONS OF LAW.
(a) Authority To Reduce Debt.--
(1) Authority.--The President may reduce the amount owed to
the United States (or any Federal agency) that is outstanding
as of the date of the enactment of this Act as a result of
concessional loans or credits made to an eligible country by
the United States under this Act, the Foreign Assistance Act of
1961 (as such Act was in effect on the day before the date of
the enactment of this Act), title I of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1701 et seq.),
or predecessor foreign economic assistance legislation.
(2) Certain prohibitions inapplicable.--A reduction of debt
pursuant to this section shall not be considered foreign
assistance for purposes of any provision of law limiting
assistance to a country.
(b) Implementation of Debt Reduction.--
(1) In general.--Any debt reduction pursuant to subsection
(a) shall be accomplished at the direction of the Facility
under an Agreement by the exchange of a new obligation for
obligations of the type referred to in subsection (a)
outstanding as of the date specified in subsection (a)(1).
(2) Exchange of obligations.--
(A) In general.--The Facility shall notify the
Administrator or the Secretary of Agriculture of an
agreement entered into under paragraph (1) with an
eligible country to exchange a new obligation for
outstanding obligations.
(B) Additional requirement.--At the direction of
the Facility, the old obligations that are the subject
of the Agreement shall be canceled and a new debt
obligation for the country shall be established
relating to the Agreement, and the Administrator or the
Secretary of Agriculture, as the case may be, shall
make an adjustment in the respective agency's accounts
to reflect the debt reduction.
(c) Additional Terms and Conditions.--
(1) Repayment of principal.--The principal amount of each
new obligation issued pursuant to subsection (b) shall be
repaid in United States dollars.
(2) Deposit of payments.--Principal repayments of new
obligations shall be deposited in the United States Government
account established for principal repayments of the obligations
for which those obligations were exchanged.
(d) Interest.--Principal repayments of new obligations shall be
deposited in the United States Government account established for
principal repayments of the obligations for which those obligations
were exchanged.
(1) Rate of interest.--Each new obligation issued by a
partner country pursuant to subsection (b) shall bear interest
at a concessional rate.
(2) Currency of interest payment; deposits.--
(A) Local currency.--If the partner country has
entered into a Debt-for-Nature Agreement, interest
shall be paid in the local currency of the partner
country and deposited in the Debt-for-Nature Fund of
such country. Such interest shall be the property of
the partner country, until such time as it is disbursed
pursuant to section 6109(b)(3). Such local currencies
shall be used for the purposes specified in the
Agreement.
(B) United states dollars.--If the partner country
has not entered into a Debt-for-Nature Agreement,
interest shall be paid in United States dollars and
deposited in the United States Government account
established for interest payments of the obligations
for which the new obligations were exchanged.
(3) Interest already paid.--If a partner country enters
into a Debt-for-Nature Agreement subsequent to the date on
which interest first became due on the newly issued obligation,
any interest already paid on such new obligation shall not be
redeposited into the Debt-for-Nature Fund established for that
country.
SEC. 6107. DEBT-FOR-NATURE AGREEMENT.
(a) Authority.--The President is authorized to enter into a Debt-
for-Nature Agreement with any eligible country concerning the operation
and use of the Debt-for-Nature Fund for the country.
(b) Contents of Agreement.--An Agreement with an eligible country
shall--
(1) require--
(A) the establishment of a Fund for the country; or
(B) in the case of a country with respect to which
a fund has been established under part IV (relating to
Enterprise for the Americas Initiative) or part V
(relating to debt reduction for developing countries
with tropical forests) of the Foreign Assistance Act of
1961 (as such Act was in effect on the day before the
date of the enactment of this Act), the continued
utilization of such fund;
(2) require the country to make prompt disbursements from
the Fund to the administering body described in subsection (c);
(3) when appropriate, seek to maintain the value of the
local currency resources of the Fund in terms of United States
dollars;
(4) contain reasonable provisions for the enforcement of
the terms of the Agreement; and
(5) establish criteria and priorities guiding the
disbursement of grants consistent with the eligible activities
in section 6108.
(c) Administering Body.--
(1) In general.--Amounts disbursed from the Fund in each
partner country shall be administered by a body constituted
under the laws of that country.
(2) Composition.--
(A) In general.--The administering body shall
consist of--
(i) one or more individuals appointed by
the United States Government;
(ii) one or more individuals appointed by
the government of the partner country; and
(iii) individuals who represent a broad
range of--
(I) environmental nongovernmental
organizations of, or active in, the
partner country;
(II) local community development
nongovernmental organizations of the
partner country; and
(III) scientific, academic, or
institutions of the partner country.
(B) Additional requirement.--A majority of the
members of the administering body shall be individuals
described in subparagraph (A)(iii).
(3) Responsibilities.--The administering body shall--
(A) receive proposals for grant assistance from
eligible grant recipients (as determined under
subsection (d)) and make grants to eligible grant
recipients in accordance with the priorities agreed
upon in the Agreement, consistent with section 6108;
(B) be responsible for the management of the
program and oversight of grant activities funded from
resources of the Fund;
(C) consult with local communities on the planning,
development, and implementation of plans, programs, and
activities associated with the disbursements of grants;
(D) be subject, on an annual basis, to an audit of
financial statements conducted in accordance with
generally accepted auditing standards by an independent
auditor;
(E) be required to grant to representatives of the
United States Government Accountability Office such
access to books and records associated with operations
of the Fund as the Comptroller General of the United
States may request; and
(F) present an annual plan on activities for the
upcoming year for review and an annual report on the
activities the administering body undertook during the
previous year to the Secretary of State, the Secretary
of the Treasury, the Administrator, the government of
the partner country, and, if appropriate, the
nongovernmental organization.
(d) Grant Recipients.--
(1) In general.--Grants made from the Fund shall be made
to--
(A) nongovernmental environmental, forestry,
conservation, and indigenous peoples organizations of,
or active in, the partner country;
(B) other appropriate local or regional entities
of, or active in, the partner country; or
(C) in exceptional circumstances, the government of
the partner country.
(2) Priority.--In providing grants under paragraph (1),
priority shall be given to projects that are run by local
nongovernmental organizations and other private entities and
that involve local communities in their planning and execution.
(e) Review of Larger Grants.--Any grant of more than $250,000 from
a Fund shall be subject to approval by the Government of the United
States and the government of the partner country.
(f) Eligibility Criteria.--In the event that a country ceases to
meet the eligibility requirements set forth in section 6104, then
grants from the Fund for that country may only be made to
nongovernmental organizations until such time as the country meets the
eligibility requirements set forth in section 6104.
(g) Use of Funds To Conduct Program Audits and Evaluation.--Of the
amounts made available to carry out this subtitle for a fiscal year, up
to one percent is authorized to be made available to carry out audits,
evaluations, monitoring, and administration of programs under this
subtitle, including personnel costs associated with such audits,
evaluations, monitoring, and administration.
(h) Congressional Notification.--The President shall notify the
appropriate congressional committees of the President's intention to
enter into an Agreement with an eligible country at least 15 days in
advance of entering into such Agreement.
SEC. 6108. ELIGIBLE ACTIVITIES.
(a) In General.--Grants made from the Fund shall be used for--
(1) restoration, conservation, or sustainable use of
terrestrial and marine animal and plant species;
(2) establishment, restoration, protection, and maintenance
of parks, protected areas, and reserves;
(3) development and implementation of scientifically sound
systems of natural resource management, including land and
water and ecosystem management practices;
(4) development and implementation of programs to address
the effects of climate change on environmental resources;
(5) training programs to strengthen conservation
institutions and increase scientific, technical, and managerial
capabilities of local individuals and organizations involved in
conservation efforts; or
(6) research and identification of medicinal uses of plant
life to treat human diseases, illnesses, and health related
concerns.
(b) Prioritizing Activities.--In cooperation with the partner
country and nongovernmental organizations, the President shall seek to
identify those areas, which because of an imminent threat, are in
particular need of immediate attention to prevent the loss of unique
biological life or valuable ecosystem.
SEC. 6109. DEBT-FOR-NATURE FUND.
(a) Establishment.--Each partner country that enters into a Debt-
for-Nature Agreement under section 6107 shall be required to establish
a Debt-for-Nature Fund to receive payments of interest and principal on
new obligations undertaken by the partner country under this subtitle.
(b) Requirements Relating to Operation of Fund.--The following
terms and conditions shall apply to the Fund:
(1) Deposits.--Local currencies deposited in the Fund shall
not be considered foreign assistance for purposes of any
provision of law limiting assistance to a country.
(2) Investment.--Deposits made in the Fund shall be
invested until disbursed. Any return on such investment may be
retained by the Fund, without deposit in the Treasury of the
United States and without further appropriation by Congress.
(3) Disbursements.--Funds in the Fund shall be disbursed
pursuant to a Debt-for-Nature Agreement authorized under
section 6107.
SEC. 6110. RESPONSIBILITIES TO THE CONGRESS.
(a) Consultations With the Congress.--The President shall consult
with the appropriate congressional committees on a periodic basis to
review the operation of the Facility under this subtitle and the
eligibility of countries for benefits from the Facility under this
subtitle.
(b) Report to Congress.--Not later than December 31 of each year,
the President shall prepare and transmit to Congress an annual report
concerning the operations of the Debt-for-Nature Facility under this
subtitle for the prior fiscal year. Such report shall include--
(1) a description of the activities undertaken by such
Facility during the previous fiscal year;
(2) a description of any Agreement entered into under this
subtitle;
(3) a report on Debt-for-Nature Funds that have been
established under this subtitle and on the operations of such
Funds; and
(4) a description of any grants that have been provided by
administering bodies pursuant to Debt-for-Nature Agreements
under this subtitle.
SEC. 6111. GENERAL SAVINGS CLAUSE.
An agreement in effect on the day before the date of the enactment
of this Act under part IV (relating to Enterprise for the Americas
Initiative) or part V (relating to debt reduction for developing
countries with tropical forests) of the Foreign Assistance Act of 1961
(as such parts were in effect on the day before the date of the
enactment of this Act) shall remain in effect subject to the terms and
conditions under such agreement.
Subtitle B--Commercial Debt-for-Nature Exchanges
SEC. 6201. COMMERCIAL DEBT-FOR-NATURE EXCHANGE DEFINED.
For purposes of this subtitle, the term ``commercial debt-for-
nature exchange'' means the cancellation or redemption of the foreign
debt of the government of a country in exchange for--
(1) the government's making available local currencies
(including through the issuance of bonds) that are used only
for eligible projects involving the conservation or protection
of the environment in that country (as described in section
6203);
(2) the government's financial resource or policy
commitment to take certain specified actions to ensure the
restoration, protection, or sustainable use of natural
resources within that country; or
(3) a combination of assets and actions under both
paragraphs (1) and (2).
SEC. 6202. AUTHORIZATION FOR COMMERCIAL DEBT EXCHANGES.
(a) In General.--The Administrator is authorized to provide grants,
on such terms and conditions as the Administrator may determine, to
nongovernmental organizations for the purchase on the open market of
discounted commercial debt of a foreign government of an eligible
country described in section 6204 which will be canceled or redeemed
under agreed upon terms with that government as part of a commercial
debt-for-nature exchange.
(b) Interest.--Notwithstanding any other provision of law, a
grantee (or any subgrantee) of the grants referred to in subsection (a)
may retain, without deposit in the Treasury of the United States and
without further appropriation by Congress, interest earned on the
proceeds of any resulting commercial debt-for-nature exchange pending
the disbursements of such proceeds and interest for approved program
purposes, which may include the establishment of an endowment, the
income of which is used for such purposes.
SEC. 6203. ELIGIBLE PROJECTS.
(a) In General.--The Administrator shall seek to ensure that
commercial debt-for-nature exchanges under this subtitle support one or
more of the eligible activities listed in section 6108 by either the
relevant government, a local private conservation group, or a
combination thereof.
(b) Identification of Certain Areas.--In cooperation with
nongovernmental organizations and the relevant country, the
Administrator shall seek to identify those areas, which because of an
imminent threat, are in particular need of immediate attention to
prevent the loss of unique biological life or valuable ecosystem.
SEC. 6204. ELIGIBLE COUNTRIES.
In order for a foreign country to be eligible to participate in a
commercial debt-for-nature exchange under this subtitle the foreign
country shall be a developing country that--
(1) meets the requirements of section 6104; and
(2) the Administrator determines--
(A) is fully committed to the long-term viability
of the program or project that is to be undertaken
through the commercial debt-for-nature exchange;
(B) has prepared a long-term plan, or a private
conservation group has prepared a long-term plan for
the country, which adequately provides for the long-
term viability of the program or project that is to be
undertaken through the commercial debt-for-nature
exchange or that such a plan will be prepared in a
timely manner; and
(C) has a government agency or a local
nongovernmental organization, or combination thereof,
with the capability, commitment, and record of
environmental concern to oversee the long-term
viability of the program or project that is to be
undertaken through the commercial debt-for-nature
exchange.
SEC. 6205. PROHIBITION.
The United States Government is prohibited from accepting title or
interest in any land in a foreign country as a condition on the
commercial debt-for-nature exchange.
TITLE VII--EXPANDING PROSPERITY THROUGH TRADE AND INVESTMENT
SEC. 7001. FINDINGS.
Congress finds the following:
(1) Fostering economic growth is essential to sustaining
the impact of United States development assistance.
(2) United States development assistance must be
supplemented by developmentally beneficial private investment,
which can be stimulated by United States-sponsored programs.
(3) Attracting and retaining private investment requires
improvements in the investment climate of developing countries,
which require United States technical assistance.
(4) Increasing exports is necessary for sustained economic
growth in most developing countries, because domestic
consumption is usually inadequate to stimulate and sustain
increases in gross domestic product, employment, and personal
income.
(5) For most developing countries, receipt of additional
loans would be counterproductive, exacerbating existing high
debt levels that consume scarce domestic financial resources.
SEC. 7002. AUTHORITY FOR COORDINATION.
(a) Identification of Priority Countries.--In preparing the United
States Strategy for Global Development under section 1017, the
Interagency Policy Committee on Global Development shall identify a
list of priority countries which would substantially benefit from
United States programs to stimulate private investment flows and to
provide technical assistance to attract and sustain such investment,
taking into account each country's--
(1) high-level political leadership and commitment to
development progress;
(2) potential for rapid and sustained economic growth; and
(3) importance to United States national interests and
development goals.
(b) Joint Country Action Plan.--For each country identified as a
priority country under subsection (a), the Interagency Policy Committee
on Global Development shall--
(1) undertake a rigorous joint analysis of constraints to
growth, in partnership with the priority country and in
consultation with the United States, international, and local
private sectors, the donor community, civil society
organizations, and relevant experts;
(2) develop a joint country action plan that outlines
potential tools, reforms, technical assistance, and resources
that can be applied over the next five years to address the
highest-priority constraints to growth;
(3) coordinate and integrate the joint country action plan
with Country Development Cooperation Strategies and related
policies and programs; and
(4) establish high-level mutual accountability for
implementation, including through transparency and fact-based
monitoring and evaluation.
(c) Direction of Resources.--The Interagency Policy Committee on
Global Development may direct the resources of the Department of State,
the United States Agency for International Development, the Overseas
Private Investment Corporation, the Trade and Development Agency, and
the Millennium Challenge Corporation to be made available to carry out
the country plan.
Subtitle A--Overseas Private Investment Corporation
SEC. 7101. CREATION AND PURPOSE.
(a) Creation.--There is established the Overseas Private Investment
Corporation (in this subtitle referred to as the ``Corporation''),
which shall be an agency of the United States under the policy guidance
of the Secretary of State and the Interagency Policy Committee on
Global Development.
(b) Purpose.--
(1) In general.--The primary purpose of the Corporation
shall be to mobilize and facilitate the participation of United
States private capital in the economic and social development
of less developed countries, thereby complementing the foreign
policy and development assistance objectives of the United
States.
(2) Responsibilities.--In carrying out its purpose, the
Corporation shall undertake--
(A) to conduct financing, insurance, and
reinsurance operations on a self-sustaining basis,
taking into account in its financing operations the
economic and financial soundness of projects;
(B) to use private credit and investment
institutions and the Corporation's guaranty authority
as the principal means of mobilizing capital investment
funds;
(C) to broaden private participation and revolve
its funds through selling its direct loans to private
investors whenever it can appropriately do so on
satisfactory terms;
(D) to conduct its insurance operations with due
regard to principles of risk management, including
efforts to share its insurance risks and reinsurance
risks;
(E) to support the expansion of private enterprise
and market-based economies;
(F) to conduct its activities in coordination with
the Interagency Policy Committee on Global Development,
so as to carry out the foreign policy and development
strategy of the United States; and
(G) to advise and assist agencies of the United
States and other organizations, both public and
private, national and international, with respect to
projects and programs relating to the development of
private enterprise in less developed countries.
SEC. 7102. PROHIBITIONS AND RESTRICTIONS.
(a) Prohibitions.--The Corporation shall--
(1) decline to issue any contract of insurance or
reinsurance, or any guaranty, or to enter into any agreement to
provide financing for a proposed investment, if the Corporation
determines that such investment is likely to cause a reduction
in the employment of United States persons;
(2) decline to insure, reinsure, guarantee, or finance any
investment that would reduce exports of goods or services of
United States origin or otherwise negatively affect the balance
of trade of the United States;
(3) decline to insure, reinsure, guarantee, or finance any
investment in connection with a project that the Corporation
determines will negatively affect the environment, or cause a
health or safety hazard; and
(4) decline to insure, reinsure, guarantee, or finance any
investment in connection with a project that the Corporation
determines will negatively affect the human rights, employment,
living standard, social welfare, or culture of any persons in
the country where the project is to be located.
(b) Worker Rights.--
(1) Protection of worker rights.--The Corporation may
insure, reinsure, guarantee, or finance a project only if the
country in which the project is to be undertaken is taking
steps to adopt and implement laws that extend internationally
recognized worker rights, as defined in section 507(4) of the
Trade Act of 1974, to workers in that country (including any
designated zone in that country). The Corporation shall also
include the following language, in substantially the following
form, in all contracts that the Corporation enters into with
eligible investors to provide financial support under this
subtitle:
``The investor and all parties involved in the project
agree to protect the right of employees of the foreign
enterprise to exercise their right of association and their
right to organize and bargain collectively. The investor and
all parties involved in the project further agree to comply
with core labor standards of the International Labor
Organization and United Nations declarations on workers and
worker rights relating to a minimum age for employment of
children, acceptable conditions of work with respect to minimum
wages, hours of work, and occupational health and safety, and a
prohibition on the use of forced labor.''.
(2) Use of annual reports on workers rights.--The
Corporation shall, in making its determinations under paragraph
(1), use the reports submitted to the Congress pursuant to
section 504 of the Trade Act of 1974.
(3) Waiver.--Paragraph (1) shall not prohibit the
Corporation from providing any insurance, reinsurance,
guaranty, or financing with respect to a country if the
President determines that such activities by the Corporation
would be in the national economic or foreign policy interests
of the United States. Any such determination shall be reported
in writing to the Congress, together with the reasons for the
determination.
(c) Environmental Impact.--
(1) In general.--The Board of Directors of the Corporation
shall not consider or approve any action proposed to be taken
by the Corporation that is likely to have adverse environmental
impacts, unless for a period of at least 60 days before the
date of the vote--
(A) an environmental impact assessment, or initial
environmental audit, analyzing the environmental
impacts of the proposed action and of alternatives to
the proposed action has been completed by the project
applicant and made available to the Board of Directors;
and
(B) such assessment or audit has been made
available to the public of the United States, locally
affected groups in the host country, and host country
nongovernmental organizations.
(2) Compliance with extractive industries transparency
initiative.--The Board of Directors shall ensure that the
projects for which the Corporation provides insurance,
reinsurance, a guaranty, or financing are in compliance with
the Extractive Industries Transparency Initiative, or any
successor international standard.
SEC. 7103. CAPITAL OF THE CORPORATION.
The capital stock of the Corporation issued before the date of the
enactment of this Act and held by the Secretary of the Treasury as of
such date of enactment shall continue to be the capital stock of the
Corporation on and after such date of enactment.
SEC. 7104. ORGANIZATION AND MANAGEMENT.
(a) Structure of the Corporation.--The Corporation shall have a
Board of Directors, a President, an Executive Vice President, and such
other officers and staff as the Board of Directors may determine.
(b) Board of Directors.--
(1) In general.--All powers of the Corporation shall vest
in and be exercised by or under the authority of its Board of
Directors (hereinafter in this subtitle referred to as the
``Board''), which shall consist of 15 Directors, including the
Chairman, with 8 Directors constituting a quorum for the
transaction of business.
(2) Membership.--
(A) Presidential appointees.--Eight Directors shall
be appointed by the President of the United States, by
and with the advice and consent of the Senate, and may
not be officers or employees of the United States
Government. Two of the 8 Directors appointed under the
preceding sentence shall be experienced in
international development, 2 shall be experienced in
international labor and human rights, 2 shall be
experienced in environmental protection, and 2 shall be
experienced in insurance and international finance.
Each such Director shall be appointed for a term of not
more than 3 years. The terms of not more than 3 such
Directors may expire in any one year. Such Directors
shall serve until their successors are appointed and
qualified, and may be reappointed.
(B) Officers of the government.--The remaining
Directors shall be principal officers of the United
States Government, including the President of the
Corporation, the Administrator of the Agency for
International Development, and one such officer of the
Department of State, the Department of the Treasury,
the Environmental Protection Agency, the Department of
Labor, and the Department of Commerce, who are
designated by and serve at the pleasure of the
President of the United States.
(3) Chair and vice chair.--There shall be a Chair and a
Vice Chair of the Board, both of whom shall be designated by
the President of the United States from among the Directors of
the Board designated under paragraph (2)(B).
(4) Compensation.--All Directors who are not officers of
the Corporation or officers of the United States Government
shall be compensated at a rate equivalent to that of level IV
of the Executive Schedule under section 5315 of title 5, United
States Code, when actually engaged in the business of the
Corporation, and may be paid per diem in lieu of subsistence at
the applicable rate prescribed in the standardized Government
travel regulations, while away from their homes or usual places
of business.
(c) President of the Corporation.--The President of the Corporation
shall be appointed by the President of the United States, by and with
the advice and consent of the Senate, and shall serve at the pleasure
of the President. The President of the Corporation shall be its Chief
Executive Officer and shall be responsible for the operations and
management of the Corporation, subject to bylaws and policies
established by the Board.
(d) Officers and Staff.--
(1) In general.--The Executive Vice President of the
Corporation shall be appointed by the President of the United
States, by and with the advice and consent of the Senate, and
shall serve at the pleasure of the President. Other officers,
attorneys, employees, and agents shall be selected and
appointed by the Corporation, and shall be vested with such
powers and duties as the Corporation may determine.
(2) Applicability of civil service laws.--Of the persons
employed by the Corporation under paragraph (1), not more than
20 may be appointed, compensated, or removed without regard to
the civil service laws and regulations, except that under such
regulations as the President of the United States may
prescribe, officers and employees of the United States
Government who are appointed to any of such positions may be
entitled, upon removal from such position, except for cause, to
reinstatement to the position occupied at the time of
appointment or to a position of comparable grade and salary.
Such positions shall be in addition to those otherwise
authorized by law, including those authorized by section 5108
of title 5, United States Code.
(e) Inspector General.--The Board shall appoint and maintain an
Inspector General in the Corporation, in accordance with the Inspector
General Act of 1978 (5 U.S.C. App.).
SEC. 7105. INVESTMENT INSURANCE AND OTHER PROGRAMS.
(a) Investment Insurance.--
(1) In general.--The Corporation may issue insurance, upon
such terms and conditions as the Corporation may determine, to
eligible investors, assuring protection in whole or in part
against any or all of the following risks with respect to
projects which the Corporation has approved:
(A) Inability to convert into United States dollars
other currencies, or credits in such currencies,
received as earnings or profits from the approved
project, as repayment or return of the investment
therein, in whole or in part, or as compensation for
the sale or disposition of all or any part thereof.
(B) Loss of investment, in whole or in part, in the
approved project due to expropriation or confiscation
by action of a foreign government or any political
subdivision thereof.
(C) Loss due to war, revolution, insurrection, or
civil strife.
(D) Loss due to business interruption caused by any
of the risks set forth in subparagraphs (A), (B), and
(C).
(2) Shared liabilities.--Recognizing that major private
investments in less developed friendly countries or areas are
often made by enterprises in which there is multinational
participation, including significant United States private
participation, the Corporation may make arrangements with
foreign governments (including agencies, instrumentalities, or
political subdivisions thereof) or with multilateral
organizations and institutions for sharing liabilities assumed
under investment insurance for such investments and may in
connection therewith issue insurance to investors that do not
otherwise qualify as eligible investors, except that--
(A) liabilities assumed by the Corporation under
the authority of this paragraph shall be consistent
with the purposes of this subtitle; and
(B) the maximum share of liabilities so assumed may
not exceed the proportionate participation by eligible
investors in the project.
(3) Limitation on single investors.--Not more than 10
percent of the maximum contingent liability of investment
insurance that the Corporation is permitted to have outstanding
under section 7106(a)(1) may be issued to a single investor.
(4) Reports to congress on certain risks.--Before issuing
insurance for the first time for loss due to business
interruption, and in each subsequent instance in which a
significant expansion is proposed in the type of risk to be
insured under the definition of ``civil strife'' or ``business
interruption'', the Corporation shall, at least 60 days before
such insurance is issued, submit to the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs of
the House of Representatives a report with respect to such
insurance, including a thorough analysis of the risks to be
covered, anticipated losses, and proposed rates and reserves
and, in the case of insurance for loss due to business
interruption, an explanation of the underwriting basis upon
which the insurance is to be offered. Any such report with
respect to insurance for loss due to business interruption
shall be considered in accordance with the procedures
applicable to reprogramming notifications pursuant to section
9401 of this Act.
(b) Investment Guaranties.--The Corporation may issue to eligible
investors guaranties of loans and other investments made by such
investors assuring against loss due to such risks and upon such terms
and conditions as the Corporation may determine, subject to the
following:
(1) Such guaranties on other than loan investments may not
exceed 75 percent of such investment.
(2) Except for loan investments for credit unions made by
eligible credit unions or credit union associations, the
aggregate amount of investment (exclusive of interest and
earnings) so guaranteed with respect to any project may not
exceed, at the time of issuance of any such guaranty, 75
percent of the total investment committed to any such project
as determined by the Corporation, such determination to be
conclusive for purposes of the Corporation's authority to issue
any such guaranty.
(3) Not more than 15 percent of the maximum contingent
liability of investment guaranties that the Corporation is
permitted to have outstanding under section 7106(a)(1) may be
issued to a single investor.
(c) Direct Loans.--
(1) Authority.--The Corporation may make loans in United
States dollars repayable in dollars or loans in foreign
currencies (including, without regard to section 1306 of title
31, United States Code, such foreign currencies that the
Secretary of the Treasury may determine to be excess to the
normal requirements of the United States and the Director of
the Office of Management and Budget may allocate) to firms
privately owned or of mixed private and public ownership, upon
such terms and conditions as the Corporation may determine.
(2) Portion of loan for technologies and projects in the
united states.--The Corporation may designate up to 25 percent
of any loan under this subsection for use in the development or
adaptation in the United States of new technologies or new
products or services that are to be used in the project for
which the loan is made and are likely to contribute to the
economic or social development of less developed countries.
(3) Restriction on extraction of oil, gas, and minerals.--
No loan may be made under this subsection to finance any
operation for the extraction of oil or gas. The aggregate
amount of loans under this subsection to finance operations for
the mining or other extraction of any deposit of ore or other
nonfuel minerals may not in any fiscal year exceed $4,000,000.
(d) Investment Encouragement.--The Corporation may initiate and
support through financial participation, incentive grant, or otherwise,
and on such terms and conditions as the Corporation may determine, the
identification, assessment, surveying, and promotion of private
investment opportunities, using wherever feasible and effective the
facilities of private investors, except that--
(1) the Corporation may not finance any survey to ascertain
the existence, location, extent, or quality of, or to determine
the feasibility of undertaking operations for the extraction
of, oil or gas; and
(2) expenditures financed by the Corporation during any
fiscal year on surveys to ascertain the existence, location,
extent, or quality of, or to determine the feasibility of
undertaking operations for the extraction of, nonfuel minerals
may not exceed $200,000.
(e) Special Activities.--The Corporation may administer and manage
special projects and programs, including programs of financial and
advisory support that provide private technical, professional, or
managerial assistance in the development of human resources, skills,
technology, capital savings, and intermediate financial and investment
institutions and cooperatives and including the initiation of
incentives, grants, and studies for renewable energy and other small
business activities. The funds for such projects and programs may, with
the Corporation's concurrence, be transferred to it for such purposes
under the authority of section 11505(a) or from other sources, public
or private. Administrative funds may not be made available for
incentives, grants, and studies for renewable energy and other small
business activities.
(f) Other Insurance Functions.--
(1) Reinsurance, etc.--The Corporation may make and carry
out contracts of insurance or reinsurance, or agreements to
associate or share risks, with insurance companies, financial
institutions, any other persons, or groups thereof, and
employing such companies, institutions, persons, or groups
where appropriate, as its agent, or acting as their agent, in
the issuance and servicing of insurance, the adjustment of
claims, the exercise of subrogation rights, the ceding and
accepting of reinsurance, and in any other matter incident to
an insurance business, except that such agreements and
contracts shall be consistent with the purposes of the
Corporation set forth in section 7101 and shall be on equitable
terms.
(2) Risk sharing.--The Corporation may enter into pooling
or other risk-sharing agreements with multinational insurance
or financing agencies or groups of such agencies.
(3) Holding ownership interests.--The Corporation may hold
an ownership interest in any association or other entity
established for the purposes of sharing risks under investment
insurance.
(4) Reinsurance of certain liabilities.--The Corporation
may issue, upon such terms and conditions as it may determine,
reinsurance of liabilities assumed by other insurers or groups
thereof with respect to risks referred to in subsection (a)(1).
(5) Limit on reinsurance.--The amount of reinsurance of
liabilities under this subtitle that the Corporation may issue
may not in the aggregate exceed at any one time an amount equal
to the amount authorized for the maximum contingent liability
outstanding at any one time under section 7106(a)(1). All
reinsurance issued by the Corporation under this subsection
shall require that the reinsured party retain for that party's
own account specified portions of liability, whether first loss
or otherwise.
(g) Local Currency Guaranties for Eligible Investors.--The
Corporation may issue to eligible investors, or to local financial
institutions, guaranties, denominated in currencies other than United
States dollars, of loans and other investments made to projects
sponsored by or significantly involving eligible investors, assuring
against loss due to such risks and upon such terms and conditions as
the Corporation may determine, for projects that the Corporation
determines to have significant developmental effects or as the
Corporation determines to be necessary or appropriate to carry out the
purposes of this subtitle.
(h) Public Hearings.--
(1) Annual public hearings.--The Board shall hold at least
one public hearing each year in order to afford an opportunity
for any person to present views as to whether the Corporation
is carrying out its activities in accordance with section 7101
and this section or whether any investment in a particular
country should have been or should be extended insurance,
reinsurance, guaranties, or financing under this subtitle.
(2) Hearings in connection with board meetings.--In
conjunction with each meeting of its Board, 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. Such views shall be made part of the record.
SEC. 7106. ISSUING AUTHORITY; DIRECT LOAN AUTHORITY; DISCHARGE OF
LIABILITIES.
(a) Issuing Authority.--
(1) Maximum contingent liability.--The maximum contingent
liability outstanding at any one time pursuant to insurance
issued under section 7105(a), and the amount of financing
issued under subsections (b) and (c) of section 7105, may not
exceed in the aggregate $50,000,000,000.
(2) Payment of subsidy and administrative costs.--Subject
to spending authority provided in appropriations Acts pursuant
to section 504(b) of the Federal Credit Reform Act of 1990, the
Corporation may transfer such sums as are necessary from its
noncredit activities to pay for the subsidy and administrative
costs of the investment guaranties and direct loan programs
under subsections (b) and (c) of section 7105.
(b) Noncredit Account Revolving Fund.--There is established in the
Treasury of the United States a noncredit account revolving fund, which
shall be available for discharge of liabilities, as provided in
subsection (c), until such time as all such liabilities have been
discharged or have expired or until all of the fund has been expended
in accordance with the provisions of this section. Such fund shall be
funded by--
(1) the funds remaining, on the day before the date of the
enactment of this Act, in the noncredit account revolving fund
established under section 235(c) of the Foreign Assistance Act
of 1961;
(2) such sums as are appropriated pursuant to subsection
(d) for such purpose; and
(3) additional amounts as may be transferred to such fund
pursuant to section 7107.
(c) Order of Payments To Discharge Liabilities.--Any payment made
to discharge liabilities under investment insurance or reinsurance
issued under section 7105 or under similar predecessor guaranty
authority, shall be paid first out of the noncredit account revolving
fund, as long as such fund remains available, and thereafter out of
funds made available pursuant to subsection (d) of this section. Any
payments made to discharge liabilities under guaranties issued under
subsection (b) or (c) of section 7105 shall be paid in accordance with
the Federal Credit Reform Act of 1990.
(d) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Corporation, to remain available until expended, such
amounts as may be necessary from time to time to replenish or
increase the noncredit account revolving fund, to discharge the
liabilities under insurance, reinsurance, or guaranties issued
by the Corporation or issued under predecessor guaranty
authority, or to discharge obligations of the Corporation
purchased by the Secretary of the Treasury pursuant to this
subsection.
(2) Limitation on appropriations.--No appropriations may be
made to augment the noncredit account revolving fund until the
amount of funds in the noncredit account revolving fund is less
than $25,000,000. Any appropriations to augment the noncredit
account revolving fund shall then only be made either pursuant
to specific authorization enacted after the date of the
enactment of this Act, or to satisfy the full faith and credit
provision of section 7108(c).
(3) Issuance of treasury instruments.--In order to
discharge liabilities under investment insurance or
reinsurance, the Corporation may issue from time to time for
purchase by the Secretary of the Treasury its notes,
debentures, bonds, or other obligations, except that the
aggregate amount of such obligations outstanding at any one
time may not exceed $100,000,000. Any such obligation shall be
repaid to the Treasury within one year after the date of issue
of such obligation. Any such obligation shall bear interest at
a rate determined by the Secretary of the Treasury, taking into
consideration the current average market yield on outstanding
marketable obligations of the United States of comparable
maturities during the month preceding the issuance of the
obligation. The Secretary of the Treasury shall purchase any
obligation of the Corporation issued under this subsection, and
for such purchase the Secretary may use as a public debt
transaction the proceeds of the sale of any securities issued
under chapter 31 of title 31, United States Code (or the Second
Liberty Bond Act), after the date of the enactment of the
Overseas Private Investment Corporation Amendments Act of 1974.
The purpose for which securities may be issued under such
chapter shall include any such purchase.
SEC. 7107. INCOME AND REVENUES.
In order to carry out the purposes of the Corporation, all revenues
and income transferred to or earned by the Corporation, from whatever
source derived, shall be held by the Corporation and shall be available
to carry out its purposes, including without limitation--
(1) payment of all expenses of the Corporation, including
investment promotion expenses;
(2) transfers and additions to the insurance or guaranty
reserves, noncredit account revolving fund, and such other
funds or reserves as the Corporation may establish, at such
time and in such amounts as the Board may determine; and
(3) payment of dividends, on capital stock, which shall
consist of and be paid from net earnings of the Corporation
after payments, transfers, and additions under paragraphs (1)
and (2).
SEC. 7108. GENERAL PROVISIONS RELATING TO INSURANCE, GUARANTY, AND
FINANCING PROGRAM.
(a) Agreement With Host Country.--Insurance, guaranties, and
reinsurance issued under this subtitle shall cover investment made in
connection with projects in any less developed country with the
government to which the President of the United States has agreed to
institute a program for insurance, guaranties, or reinsurance.
(b) Protection of Interests of Corporation.--The Corporation shall
determine that suitable arrangements exist for protecting the interest
of the Corporation in connection with any insurance, guaranty, or
reinsurance issued under this subtitle, including arrangements
concerning ownership, use, and disposition of the currency, credits,
assets, or investments on account of which payment under such
insurance, guaranty, or reinsurance is to be made, and right, title,
claim, or cause of action existing in connection therewith.
(c) Full Faith and Credit of the United States.--All insurance,
reinsurance, and guaranties issued under this subtitle or predecessor
guaranty authority shall constitute obligations, in accordance with the
terms of such insurance, reinsurance, or guaranties, of the United
States of America and the full faith and credit of the United States of
America is hereby pledged for the full payment and performance of such
obligations.
(d) Fees.--
(1) In general.--Fees may be charged for providing
insurance, reinsurance, guaranties, financing, and other
services under this subtitle in amounts to be determined by the
Corporation. In the event fees charged for insurance,
reinsurance, guaranties, financing, or other services are
reduced, fees to be paid under existing contracts for the same
type of insurance, reinsurance, guaranties, financing, or
services and for similar guaranties issued under predecessor
guaranty authority may be reduced.
(2) Credit transaction costs.--Project-specific transaction
costs incurred by the Corporation relating to loan obligations
or loan guaranty commitments covered by the provisions of the
Federal Credit Reform Act of 1990, including the costs of
project-related travel and expenses for legal representation
provided by persons outside the Corporation and other similar
expenses that are charged to the borrower, shall be paid out of
the appropriate finance account established pursuant to section
505(b) of that Act.
(3) Noncredit transaction costs.--Fees paid for the
project-specific transaction costs and other direct costs
associated with services provided to specific investors or
potential investors pursuant to section 7105 (other than those
covered in paragraph (2)), including financing, insurance,
reinsurance, missions, seminars, conferences, and other
preinvestment services, shall be available for obligation for
the purposes for which they were collected, notwithstanding any
other provision of law.
(e) Limitation on Term of Assistance.--No insurance, guaranty, or
reinsurance of any equity investment may extend beyond 20 years from
the date of issuance.
(f) Limitation on Compensation.--
(1) In general.--Compensation for any insurance,
reinsurance, or guaranty issued under this subtitle may not
exceed the dollar value, as of the date of the investment, of
the investment made in the project with the approval of the
Corporation, plus interest, earnings, or profits actually
accrued on such investment to the extent provided by such
insurance, reinsurance, or guaranties, except that the
Corporation may provide that--
(A) appropriate adjustments in the insured dollar
value be made to reflect the replacement cost of
project assets;
(B) compensation for a claim of loss under
insurance of an equity investment may be computed on
the basis of the net book value attributable to such
equity investment on the date of loss; and
(C) compensation for loss due to business
interruption may be computed on a basis to be
determined by the Corporation that reflects amounts
lost.
(2) Limitation on risk of loss.--Notwithstanding paragraph
(1), the Corporation shall limit the amount of direct insurance
and reinsurance issued by it under section 7105 so that risk of
loss as to at least 10 percent of the total investment of the
insured and its affiliates in the project is borne by the
insured and such affiliates, except that limitation shall not
apply to direct insurance or reinsurance of loans by banks or
other financial institutions to unrelated parties.
(g) No Payment When Fraud Involved.--No payment may be made under
any guaranty, insurance, or reinsurance issued under this subtitle for
any loss arising out of fraud or misrepresentation for which the party
seeking payment is responsible.
(h) Limitation on Investment in Foreign Institutions.--Insurance,
guaranties, or reinsurance issued under this subtitle of a loan or
equity investment of an eligible investor in a foreign bank, finance
company, or other credit institution shall extend only to such loan or
equity investment and not to any individual loan or equity investment
made by such foreign bank, finance company, or other credit
institution.
(i) Settlement of Claims.--Claims arising as a result of insurance,
reinsurance, or guaranty operations under this subtitle or under
predecessor guaranty authority may be settled, and disputes arising as
a result thereof may be arbitrated with the consent of the parties, on
such terms and conditions as the Corporation may determine. Payment
made pursuant to any such settlement, or as a result of an arbitration
award, shall be final and conclusive, notwithstanding any other
provision of law.
(j) Presumption of Compliance of Contracts.--Each guaranty contract
executed by such officer or officers as may be designated by the Board
shall be conclusively presumed to be issued in compliance with the
requirements of this subtitle.
(k) Consideration of Effect on Balance of Payments.--In making a
determination to issue insurance, guaranties, or reinsurance under this
subtitle, the Corporation shall consider the possible adverse effect of
the dollar investment under such insurance, guaranty, or reinsurance
upon the balance of payments of the United States.
(l) Violation of Foreign Corrupt Practices Act.--
(1) In general.--No payment may be made under any insurance
or reinsurance that is issued under this subtitle for any loss
occurring with respect to a project, if the preponderant cause
of such loss was an act by the investor seeking payment under
this subtitle, by a person possessing majority ownership and
control of the investor at the time of the act, or by any agent
of such investor or controlling person, and a court of the
United States has entered a final judgment that such act
constituted a violation under the Foreign Corrupt Practices Act
of 1977 or section 30A of the Securities Exchange Act of 1934.
(2) Regulations to bar eligibility.--The Corporation shall
adopt regulations setting forth appropriate conditions under
which any person convicted under the Foreign Corrupt Practices
Act of 1977 or section 30A of the Securities Exchange Act of
1934 for an offense related to a project insured or otherwise
supported by the Corporation shall be suspended, for a period
of not more than 5 years, from eligibility to receive any
insurance, reinsurance, guaranty, loan, or other financial
support authorized by this subtitle.
(m) Notification of Host Country of Health, Safety, and
Environmental Standards.--
(1) Notification.--
(A) In general.--Before finally providing
insurance, reinsurance, guaranties, or financing under
this subtitle for any environmentally sensitive
investment in connection with a project in a country,
the Corporation shall notify appropriate government
officials of that country of--
(i) all guidelines and other standards
adopted by the International Bank for
Reconstruction and Development and any other
international organization relating to the
public health or safety or the environment that
are applicable to the project; and
(ii) to the maximum extent practicable, any
restriction under any law of the United States
relating to public health or safety or the
environment that would apply to the project if
the project were undertaken in the United
States.
(B) Contents of notification.--The notification
under the subparagraph (A) shall include a summary of
the guidelines, standards, and restrictions referred to
in clauses (i) and (ii) of subparagraph (A).
(2) Consideration of comments.--Before finally providing
insurance, reinsurance, guaranties, or financing for any
investment subject to paragraph (1), the Corporation shall take
into account any comments it receives on the project involved
that the Corporation considers relevant to such project.
(n) Penalties for Fraud.--Whoever knowingly makes any false
statement or report, or willfully overvalues any land, property, or
security, for the purpose of influencing in any way the action of the
Corporation with respect to any insurance, reinsurance, guaranty, loan,
equity investment, or other activity of the Corporation under section
7105, or any change or extension of any such insurance, reinsurance,
guaranty, loan, equity investment, or activity, by renewal, deferment
of action, or otherwise, or the acceptance, release, or substitution of
security therefor, shall be fined not more than $1,000,000 or
imprisoned not more than 30 years, or both.
(o) Use of Local Currencies.--Direct loans or investments made in
order to preserve the value of funds received in inconvertible foreign
currency by the Corporation as a result of activities conducted
pursuant to section 7105(a) shall not be considered in determining
whether the Corporation has made or has outstanding loans or
investments to the extent of any limitation on obligations and equity
investment imposed by or pursuant to this subtitle. The provisions of
section 504(b) of the Federal Credit Reform Act of 1990 shall not apply
to direct loan obligations made with funds described in this
subsection.
SEC. 7109. GENERAL PROVISIONS AND POWERS.
(a) Principal Office and Residence.--The Corporation shall have its
principal office in the District of Columbia and shall be deemed, for
purposes of venue in civil actions, to be resident thereof.
(b) Applicability of Title 31 Provisions.--
(1) In general.--The Corporation shall be subject to the
applicable provisions of chapter 91 of title 31, United States
Code, except as otherwise provided in this subtitle.
(2) Audits.--An independent certified public accountant
shall perform a financial and compliance audit of the financial
statements of the Corporation annually, in accordance with
generally accepted Government auditing standards for a
financial and compliance audit, as issued by the Comptroller
General. The independent certified public accountant shall
report the results of such audit to the Board. The financial
statements of the Corporation shall be presented in accordance
with generally accepted accounting principles. These financial
statements and the report of the accountant shall be included
in a report that contains, to the extent applicable, the
information identified in section 9106 of title 31, United
States Code, and that the Corporation shall submit to the
Congress not later than 3 months after the end of the last
fiscal year covered by the audit. The Comptroller General may
review the audit conducted by the accountant and the report to
the Congress in the manner and at such times as the Comptroller
General considers necessary.
(3) Audit by gao.--The Comptroller General shall, if the
Comptroller General considers it necessary or upon the request
of the Congress, audit the financial statements of the
Corporation in the manner provided in paragraph (2). The
Corporation shall reimburse the Government Accountability
Office for the full cost of any audit conducted under this
paragraph.
(4) Availability of opic records.--All books, accounts,
financial records, reports, files, workpapers, and property
belonging to or in use by the Corporation and the accountant
who conducts the audit under paragraph (2), that are necessary
for purposes of this subsection, shall be made available to the
representatives of the Government Accountability Office.
(c) General Authorities.--To carry out the purposes of this
subtitle, the Corporation may--
(1) adopt and use a corporate seal, which shall be
judicially noticed;
(2) sue and be sued in its corporate name;
(3) adopt, amend, and repeal bylaws governing the conduct
of its business and the performance of the powers and duties
granted to or imposed upon it by law;
(4) acquire, hold, or dispose of, upon such terms and
conditions as the Corporation may determine, any property,
real, personal, or mixed, tangible or intangible, or any
interest therein;
(5) invest funds derived from fees and other revenues in
obligations of the United States and use the proceeds
therefrom, including earnings and profits, as it considers
appropriate;
(6) indemnify directors, officers, employees, and agents of
the Corporation for liabilities and expenses incurred in
connection with their Corporation activities;
(7) require bonds of officers, employees, and agents and
pay the premiums therefor;
(8) notwithstanding any other provision of law, represent
itself or contract for representation in all legal and arbitral
proceedings;
(9) enter into limited-term contracts with nationals of the
United States for personal services to carry out activities in
the United States and abroad under subsections (d) and (e) of
section 7105;
(10) purchase, discount, rediscount, sell, and negotiate,
with or without its endorsement or guaranty, and guarantee
notes, participation certificates, and other evidence of
indebtedness (except that the Corporation may not issue its own
securities, except participation certificates for the purpose
of carrying out section 7101(b)(2)(C) or participation
certificates as evidence of indebtedness held by the
Corporation in connection with settlement of claims under
section 7108(i));
(11) make and carry out such contracts and agreements as
are necessary and advisable in the conduct of its business;
(12) exercise the priority of the United States Government
in collecting debts from bankrupt, insolvent, or decedents'
estates;
(13) determine the character of and the necessity for its
obligations and expenditures, and the manner in which they
shall be incurred, allowed, and paid, subject to provisions of
law specifically applicable to Government corporations;
(14) collect or compromise any obligations assigned to or
held by the Corporation, including any legal or equitable
rights accruing to the Corporation; and
(15) take such actions as may be necessary or appropriate
to carry out its powers.
(d) Development Impact Profiles.--In order to carry out the purpose
set forth in section 7101, the Corporation shall prepare and maintain
for each investment project it insures, finances, or reinsures, a
development impact profile consisting of data appropriate to measure
the projected and actual effects of such project on development.
Criteria for evaluating projects shall be developed in consultation
with the United States Agency for International Development.
(e) Human Rights.--The Corporation shall take into account in the
conduct of its programs in a country, in consultation with the
Secretary of State, all available information about observance of and
respect for human rights and fundamental freedoms in such country and
the effect the operation of such programs will have on human rights and
fundamental freedoms in such country.
(f) Taxation.--The Corporation, including its franchise, capital,
reserves, surplus, advances, intangible property, and income, shall be
exempt from all taxation at any time imposed by the United States, by
any territory, dependency, or possession of the United States, or by
any State, the District of Columbia, or any county, municipality, or
local taxing authority.
(g) Publication of Policy Guidelines.--The Corporation shall
publish, and make available to applicants for insurance, reinsurance,
guaranties, financing, or other assistance made available by the
Corporation under this subtitle, the policy guidelines of the
Corporation relating to its programs.
SEC. 7110. REPORTS TO THE CONGRESS.
(a) Annual Report.--Not later than 3 months after the end of each
fiscal year, the Corporation shall submit to the Congress a complete
and detailed report of its operations during such fiscal year. Such
report shall include--
(1) an assessment, based upon the development impact
profiles required by section 7109(d), of the economic and
social development impact and benefits of the projects with
respect to which such profiles are prepared, and of the extent
to which the operations of the Corporation complement or are
compatible with the development assistance programs of the
United States and other donors; and
(2) a description of any project for which the
Corporation--
(A) refused to provide any insurance, reinsurance,
guaranty, financing, or other financial support, on
account of information received under section 7109(e);
or
(B) notwithstanding such violations, provided such
insurance, reinsurance, guaranty, financing, or
financial support, on the basis of a determination that
the national security interest so requires.
(b) Projections on U.S. Employment.--
(1) In annual reports.--Each annual report required by
subsection (a) shall contain projections of the effects on
employment in the United States of all projects for which,
during the preceding fiscal year, the Corporation initially
issued any insurance, reinsurance, or guaranty or made any
direct loan. Each such report shall include projections of--
(A) the amount of United States exports to be
generated by those projects, both during the startup
phase and over a period of years;
(B) the final destination of the products to be
produced as a result of those projects; and
(C) the impact such production will have on the
production of similar products in the United States
with regard to both domestic sales and exports.
(2) Analysis of each project required.--The projections
required by this subsection shall be based on an analysis of
each of the projects described in paragraph (1).
(3) Information to be included.--
(A) In general.--In reporting the projections on
employment required by this subsection, the Corporation
shall specify, with respect to each project--
(i) any loss of jobs in the United States
caused by the project, whether or not the
project itself creates other jobs;
(ii) any jobs created by the project; and
(iii) the country in which the project is
located, and the economic sector involved in
the project.
(B) Protection of proprietary information.--No
proprietary information may be disclosed under
subparagraph (A).
(c) Records To Be Maintained by Corporation.--The Corporation shall
maintain as part of its records a copy of the analysis done of each
project in preparing the reports required by subsection (b).
(d) Protection of Confidential Information.--Subsection (b) does
not require the inclusion in any report submitted pursuant to that
subsection of any information that would not be required to be made
available to the public pursuant to section 552 of title 5, United
States Code (relating to freedom of information).
SEC. 7111. DEFINITIONS.
In this subtitle:
(1) Eligible investor.--The term ``eligible investor''
means--
(A) a United States citizen; and
(B) a corporation, partnership, or other
association, including a nonprofit association, that is
created under the laws of the United States, any State
or territory thereof, or the District of Columbia.
(2) Expropriation.--The term ``expropriation'' includes any
abrogation, repudiation, or impairment by a foreign government,
a political subdivision of a foreign government, or a
corporation owned or controlled by a foreign government, of its
own contract with an investor with respect to a project, if
such abrogation, repudiation, or impairment is not caused by
the investor's own fault or misconduct, and materially
adversely affects the continued operation of the project.
(3) Investment.--The term ``investment'' includes any
contribution or commitment of funds, commodities, services,
patents, processes, or techniques, in the form of--
(A) a loan or loans to an approved project;
(B) the purchase of a share of ownership in any
such project;
(C) participation in royalties, earnings, or
profits of any such project; and
(D) the furnishing of commodities or services
pursuant to a lease or other contract.
(4) Local financial institution.--The term ``local
financial institution''--
(A) means any bank or financial institution that is
organized under the laws of any country or area in
which the Corporation operates; but
(B) does not include a branch, however organized,
of a bank or other financial institution that is
organized under the laws of a country in which the
Corporation does not operate.
(5) Noncredit account revolving fund.--The term ``noncredit
account revolving fund'' means the noncredit account revolving
fund established under section 7106(b).
(6) Noncredit activities.--The term ``noncredit
activities'' means all activities of the Corporation other than
its loan guaranty program under section 7105(b) and its direct
loan program under section 7105(c).
(7) Predecessor guaranty authority.--The term ``predecessor
guaranty authority'' means prior guaranty authorities (other
than housing guaranty authorities) repealed by the Foreign
Assistance Act of 1969, section 202(b) and 413(b) of the Mutual
Security Act of 1954, section 111(b)(3) of the Economic
Cooperation Act of 1948 (exclusive of authority relating to
informational media guaranties), and authorities of the
Corporation under title IV of chapter 2 of part I of the
Foreign Assistance Act of 1961.
(8) United states person.--The term ``United States
person'' means--
(A) a United States citizen or national; and
(B) any other entity that qualifies as an eligible
investor.
Subtitle B--United States Trade and Development Agency
SEC. 7201. UNITED STATES TRADE AND DEVELOPMENT AGENCY.
(a) Purpose.--The United States Trade and Development Agency (in
this subtitle referred to as the ``Agency'') shall be an agency of the
United States under the policy guidance of the Secretary of State and
the Interagency Policy Committee on Global Development. The primary
purpose of the Agency is to facilitate United States private sector
participation in development projects in developing countries,
consistent with Country Development Cooperation Strategies prepared
under section 1018. The Agency may also utilize its authorities and
programs in other countries in furtherance of United States foreign
policy and economic interests.
(b) Authority To Provide Assistance.--
(1) Authority.--The Director of the Agency may, under the
direction of the Secretary of State and the Interagency Policy
Committee on Global Development, carry out this subtitle by
providing funds for technical assistance, feasibility studies,
architectural and engineering design, and other activities
related to the goals of the United States to attract and retain
private sector investment in countries that are receiving
United States development assistance under this Act and to
promote exports of United States-origin goods and services.
(2) Use of funds.--Funds under this section may be used to
provide support for feasibility studies for the planning,
development, and management of, and procurement for, bilateral
and multilateral development projects, including training
activities undertaken in connection with a project, for the
purpose of promoting the use of United States-origin goods and
services in such projects. Funds under this section may also be
used for architectural and engineering design, including--
(A) concept design, which establishes the basic
technical and operational criteria for a project, such
as architectural drawings for a proposed facility,
evaluation of site constraints, procurement
requirements, and equipment specifications;
(B) detail design, which sets forth specific
dimensions and criteria for structural, mechanical,
electrical, and architectural operations, and
identifies other resources required for project
operations; and
(C) technical assistance to facilitate the
attraction and retention of private sector investment
to sustain economic development.
(3) Information dissemination.--
(A) By the agency.--The Agency shall disseminate
information about its project activities to the private
sector.
(B) Cooperation of other agencies.--Other Federal
agencies shall cooperate with the Agency in order for
the Agency to provide more effectively informational
services to persons in the private sector concerning
trade development and export promotion related to
development projects.
(4) Contributions to costs.--The Agency shall, to the
maximum extent practicable, require corporations and other
entities to--
(A) share the costs of technical assistance,
feasibility studies, and other project planning
services funded under this section; and
(B) reimburse the Agency for those funds provided
under this section, if the corporation or entity
concerned succeeds in implementing the project.
(c) Director and Personnel.--
(1) Director.--There shall be at the head of the Agency a
Director who shall be appointed by the President, by and with
the advice and consent of the Senate.
(2) Officers and employees.--
(A) In general.--The Director may appoint such
officers and employees of the Agency as the Director
considers appropriate.
(B) Functions.--The officers and employees
appointed under this paragraph shall have such
functions as the Director may determine.
(C) Inapplicability of civil service laws.--Of the
officers and employees appointed under this paragraph,
2 may be appointed without regard to the provisions of
title 5, United States Code, governing appointments in
the competitive service, and may be compensated without
regard to the provisions of chapter 51 or subchapter
III of chapter 53 of such title.
(D) Reinstatement of certain employees.--Under such
regulations as the President may prescribe, any
individual appointed under subparagraph (C) may be
entitled, upon removal (except for cause) from the
position to which the appointment was made, to
reinstatement to the position occupied by that
individual at the time of appointment or to a position
of comparable grade and pay.
(d) Annual Report.--The President shall, not later than December 31
of each year, submit to the appropriate congressional committees a
report on the activities of the Agency during the preceding fiscal
year.
(e) Audits.--
(1) In general.--The Agency shall be subject to the
provisions of chapter 35 of title 31, United States Code,
except as otherwise provided in this section.
(2) Independent audit.--An independent certified public
accountant shall perform a financial and compliance audit of
the financial statements of the Agency each year, in accordance
with generally accepted Government auditing standards for a
financial and compliance audit, taking into consideration any
standards recommended by the Comptroller General. The
independent certified public accountant shall report the
results of such audit to the Director of the Agency. The
financial statements of the Agency shall be presented in
accordance with generally accepted accounting principles. These
financial statements and the report of the accountant shall be
included in a report that contains, to the extent applicable,
the information identified in section 3512 of title 31, United
States Code, and that the Agency shall submit to the Congress
not later than 6\1/2\ months after the end of the last fiscal
year covered by the audit. The Comptroller General may review
the audit conducted by the accountant and the report to the
Congress in the manner and at such times as the Comptroller
General considers necessary.
(3) Audit by comptroller general.--The Comptroller General
shall, if the Comptroller General considers it necessary or
upon the request of the Congress, audit the financial
statements of the Agency in the manner provided in paragraph
(2).
(4) Availability of information.--All books, accounts,
financial records, reports, files, workpapers, and property
belonging to or in use by the Agency and the accountant who
conducts the audit under paragraph (2), that are necessary for
purposes of this subsection, shall be made available to the
representatives of the Government Accountability Office
designated by the Comptroller General.
(f) Funding for Technical Assistance Grants by Multilateral
Development Banks.--
(1) In general.--The Agency, in carrying out its program,
may provide, as appropriate, funds to multilateral development
banks for technical assistance grants.
(2) Definitions.--As used in paragraph (1)--
(A) the term ``technical assistance grants'' means
funding by multilateral development banks of services
from the United States in connection with projects and
programs supported by such banks, including
engineering, design, and consulting services; and
(B) the term ``multilateral development bank'' has
the meaning given that term in section 1701(c) of the
International Financial Institutions Act (22 U.S.C.
262r(c)).
Subtitle C--Enterprise Funds
SEC. 7301. FINDINGS.
Congress makes the following findings:
(1) Enterprise funds are an effective mechanism to foster
economic growth in support of United States foreign policy and
development goals, by stimulating private capital flows and
expanding financing for free market-based private enterprise.
(2) Enterprise funds provide incentives for improvements in
legal systems, commercial and tax codes, and accounting
practices, as essential foundations for sustained economic
growth.
SEC. 7302. PURPOSES.
The purposes of this subtitle are--
(1) to promote the private sector of partner countries
while considering the development impact of investments and
profitability of those investments, particularly in small- and
medium-sized enterprises;
(2) to promote policies and practices conducive to
strengthening the private sector through loans, microloans,
equity investments, insurance, guaranties, grants, feasibility
studies, technical assistance, training for businesses
receiving investment capital, and other measures;
(3) to promote good corporate governance and transparency,
foster competition, catalyze productivity improvements in
existing businesses, and strengthen local capital markets;
(4) to promote stability and security through job creation
in the private sector and by fostering upward economic
mobility; and
(5) to promote fiscal sustainability through expanded
private sector adherence to tax codes and, where appropriate,
foster improvements in the tax code and regulatory environment
in order to support economic development.
SEC. 7303. AUTHORITY TO DESIGNATE ENTERPRISE FUNDS.
(a) Authority.--
(1) In general.--The Administrator is authorized to
designate private, nonprofit organizations to operate pursuant
to this subtitle as enterprise funds, as eligible to receive
funds and support pursuant to this subtitle after determining
that such organizations have been established for the purposes
specified in section 7302.
(2) Consultation.--The Administrator shall consult with the
appropriate congressional committees before designating an
organization under paragraph (1).
(b) Board of Directors.--
(1) Number and appointment.--Each enterprise fund shall be
governed by a board of directors. Subject to paragraph (3), the
board of directors shall be composed of 9 members appointed by
the Administrator as follows:
(A) Five individuals who are private citizens of
the United States.
(B) Three individuals who are private citizens of
the country in which the enterprise fund will operate,
to be appointed by the Administrator in consultation
with the government of such country.
(C) One individual who is an officer or employee of
the United States Agency for International Development.
(2) Qualifications.--Each member of the board of directors
appointed under paragraph (1) shall be selected from among
individuals who have demonstrated expertise in one or more of
the following areas: business development, commerce,
international markets, capital investment, banking, and
finance.
(3) Nonvoting members.--The Administrator may appoint not
more than 2 additional members of the board of directors, who
may not vote on matters before the board of directors. If
appointed, such additional members shall be representatives of
nongovernmental organizations that have demonstrated expertise
in the development needs of the country served by the
enterprise fund.
(c) Use of Amounts.--
(1) In general.--The Administrator may use funds
appropriated by Congress to carry out the purposes specified in
section 7302, including payment of the administrative expenses
of the enterprise fund.
(2) Grants.--The Administrator may use funds appropriated
by Congress to make grants to enterprise funds designated under
subsection (a), except that such appropriated funds may be used
only for the purposes set forth in section 7302.
(3) Compliance requirements.--
(A) In general.--The Administrator not award a
grant to an enterprise fund under paragraph (2) unless
the Administrator and enterprise fund enter into a
grant agreement under which the enterprise fund agrees
to comply with the requirements under this section.
(B) Termination date.--Such grant agreement shall
state that the enterprise fund shall liquidate its
assets and dissolve not later than a date determined by
the Administrator, unless the Administrator determines,
after consultation with the appropriate congressional
committees, that the enterprise fund should be
extended.
(C) Disposition of assets.--At the time the
enterprise fund is dissolved, the assets of the
enterprise fund shall be transferred to the General
Fund of the United States Treasury.
(d) Notification to Congress.--
(1) In general.--Not less than 15 days before designating
an organization to operate as an enterprise fund under
subsection (a), the Administrator shall provide the information
described in paragraph (2) to the appropriate congressional
committees.
(2) Information.--The information described in this
paragraph is--
(A) the identity of the organization to be
designated to operate as the enterprise fund under
subsection (a);
(B) the names and qualifications of the individuals
who will comprise the board of directors of the
enterprise fund; and
(C) a copy of the grant agreement between the
Administrator and the enterprise fund.
(e) Public Disclosure.--Not later than 1 year after the entry into
force of the grant agreement between the Administrator and an
enterprise fund under this section, and annually thereafter, the
enterprise fund shall prepare and make available to the public on an
Internet website administered by the enterprise fund a report on the
enterprise fund's activities during the previous year, including--
(1) a description of each investment supported by the
enterprise fund, including each type of assistance provided in
accordance with section 7303(c);
(2) the amounts invested by the enterprise fund in each
company or project;
(3) the amounts of additional private investments made in
each company or project;
(4) the amounts of any profits or losses realized by the
enterprise fund in connection with each such company or
project;
(5) the nature and amounts of administrative expenses
incurred by the enterprise fund; and
(6) the annual independent audit of the enterprise fund, as
required under this subtitle.
SEC. 7304. GAO REPORTS.
Not later than 3 years after the establishment of an enterprise
fund under this subtitle, and every 3 years thereafter until the
enterprise fund is dissolved, the Comptroller General of the United
States shall submit to the appropriate congressional committees a
report assessing the activities of the enterprise fund in achieving the
purposes of enterprise funds under this subtitle, identifying obstacles
to achieving such purposes, and recommending such operational
improvements in the enterprise fund that the Comptroller General
determines are necessary.
SEC. 7305. OPERATION PROVISIONS.
(a) Private Character of Enterprise Funds.--Nothing in this
subtitle shall be construed to make an enterprise fund an agency or
establishment of the United States Government, or to make the officers,
employees, or members of the board of directors of an enterprise fund
officers or employees of the United States for purposes of title 5,
United States Code.
(b) Matters To Be Considered by Enterprise Funds.--In carrying out
this subtitle, each enterprise fund shall take into account such
considerations as internationally recognized worker rights and other
internationally recognized human rights, environmental factors, United
States economic and employment effects, and the likelihood of
commercial viability of the activity receiving assistance from the
enterprise fund.
(c) Retention of Interest.--An enterprise fund may hold funds
granted to it pursuant to this subtitle in interest-bearing accounts,
prior to the disbursement of such funds for purposes specified in
section 7302, and may retain for such program purposes any interest
earned on such deposits without returning such interest to the Treasury
of the United States and without further appropriation by the Congress.
(d) Use of United States Private Venture Capital.--In order to
maximize the effectiveness of the activities of the enterprise funds,
each enterprise fund may conduct public offerings or private placements
for the purpose of soliciting and accepting United States venture
capital which may be used, separately or together with funds made
available pursuant to this subtitle, for any lawful investment purpose
that the board of directors of the enterprise fund may determine in
carrying out this subtitle. Financial returns on enterprise fund
investments that include a component of private venture capital may be
distributed, at such times and in such amounts as the board of
directors of the enterprise fund may determine, to the investors of
such capital.
(e) Nonapplicability of Other Laws.--Executive branch agencies may
conduct programs and activities and provide services in support of the
activities of the enterprise funds notwithstanding any other provision
of law.
(f) Limitation on Payments to Enterprise Fund Personnel.--
(1) Benefits barred.--No part of the funds of an enterprise
fund shall inure to the benefit of any board member, officer,
or employee of that enterprise fund, except as salary or
reasonable compensation for services, subject to paragraph (2).
(2) Ceratin compensation barred.--An enterprise fund may
not pay compensation for services to--
(A) any board member of the enterprise fund, except
for services as a board member; or
(B) any firm, association, or entity in which a
board member of the enterprise fund serves as partner,
director, officer, or employee.
(3) Exception for prior services.--Nothing in paragraph (2)
shall preclude payment for services performed before the date
of the enactment of this subsection, nor for arrangements
approved by the grantor and notified in writing to the
Committees on Appropriations of the House of Representatives
and the Senate.
(g) Independent Private Audits.--The accounts of each enterprise
fund shall be audited annually in accordance with generally accepted
auditing standards by independent certified public accountants or
independent licensed public accountants certified or licensed by a
regulatory authority of a State or other political subdivision of the
United States. The report of each such independent audit shall be
included in the annual report required by this section.
(h) GAO Audits.--The financial transactions undertaken pursuant to
this subtitle by each enterprise fund may be audited by the Government
Accountability Office in accordance with such principles and procedures
and under such rules and regulations as may be prescribed by the
Comptroller General of the United States, so long as the enterprise
fund is in receipt of United States Government grants.
(i) Recordkeeping Requirements.--The enterprise funds shall
ensure--
(1) that each recipient of assistance provided through the
enterprise funds under this subtitle keeps--
(A) separate accounts with respect to such
assistance;
(B) such records as may be reasonably necessary to
disclose fully the amount and the disposition by such
recipient of the proceeds of such assistance, the total
cost of the project or undertaking in connection with
which such assistance is given or used, and the amount
and nature of that portion of the cost of the project
or undertaking supplied by other sources; and
(C) such other records as will facilitate an
effective audit; and
(2) that the enterprise funds, or any of their duly
authorized representatives, have access for the purpose of
audit and examination to any books, documents, papers, and
records of the recipient that are pertinent to assistance
provided through the enterprise funds under this section.
(j) Annual Reports.--Each enterprise fund shall publish an annual
report, which shall include a comprehensive and detailed description of
the enterprise fund's operations, activities, financial condition, and
accomplishments under this subtitle for the preceding fiscal year. This
report shall be published not later than January 31 each year,
beginning in the calendar year after the calendar year in which the
enterprise fund is designated under this subtitle.
(k) Reinvestment.--Returns on investments of an enterprise fund and
other payments to the fund may be reinvested in projects carried out by
the fund without further appropriation by Congress.
SEC. 7306. BEST PRACTICES AND PROCEDURES.
To the maximum extent practicable, the board of directors of each
enterprise fund established under this subtitle should adopt the best
practices and procedures used by enterprise funds, including those for
which funding was made available pursuant to section 201 of the Support
for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5421).
SEC. 7307. EXPERIENCE OF OTHER ENTERPRISE FUNDS.
In implementing this subtitle, the Administrator shall ensure that
the articles of incorporation of each enterprise fund (including
provisions specifying the responsibilities of the board of directors of
the enterprise fund), the terms of United States Government grant
agreements with the enterprise fund, and United States Government
oversight of the enterprise fund are, to the maximum extent
practicable, consistent with the Articles of Incorporation of, the
terms of grant agreements with, and the oversight of the Enterprise
Funds established pursuant to section 201 of the Support for East
European Democracy (SEED) Act of 1989 (22 U.S.C. 5421) and comparable
provisions of law.
TITLE IX--STRATEGIC PLANNING, MONITORING AND EVALUATION, AND REPORTING
Subtitle A--Strategic Planning
SEC. 9101. QUADRENNIAL DIPLOMACY, DEVELOPMENT, AND SECURITY REVIEW.
(a) Review of Diplomacy, Development, and Security.--
(1) In general.--Not later than December 15, 2014, and
every 4 years thereafter, the Secretary and the Administrator
shall complete a comprehensive examination (to be known as a
``Quadrennial Diplomacy, Development, and Security Review'') of
United States diplomacy, development, and national security
efforts.
(2) Key elements of review.--The review described in
paragraph (1) shall include information on the following:
(A) The nature of the global challenges and
opportunities facing the United States and the changes
in such challenges and opportunities over the previous
four-year period.
(B) Key objectives and missions for United States
foreign policy and foreign assistance, including a
clear statement of United States objectives for
development assistance and for security assistance.
(C) The roles and responsibilities of Federal
agencies in carrying out United States diplomacy,
promoting global development, and protecting national
security, and the mechanisms for cooperation between
such agencies, including any reforms needed in such
agencies and mechanisms to adapt to changing
circumstances.
(D) The roles of international organizations and
multilateral institutions in advancing United States
diplomatic, development, and security objectives,
including the mechanisms for coordinating and
harmonizing development policies and programs with
partner countries and among donors.
(E) The requirements for overseas infrastructure
necessary to carry out United States diplomatic,
development, and security objectives, including major
changes in diplomatic presence and new investments in
technology and facilities.
(F) A plan, budget, and timetable for implementing
the recommendations of the review, including any
legislative requests and executive orders to be issued.
(3) Interagency coordination and consultation.--In
conducting each Quadrennial Diplomacy, Development, and
Security Review, the Secretary and the Administrator shall take
into account the views of the Secretary of Defense, the
Secretary of the Treasury, the Attorney General, and the heads
of all other Federal agencies carrying out international
policies and programs under this Act.
(b) Consultative Process.--In conducting the review required under
subsection (a), the Secretary and the Administrator shall consult
with--
(1) the appropriate congressional committees;
(2) a variety of civil society groups, including private
businesses, nongovernmental organizations involved in
diplomacy, development, and security, and experts at academic
institutions or institutions involved in the study of foreign
policy, international development, or national security; and
(3) appropriate international organizations and partner
countries.
(c) Report.--
(1) Additional elements.--The Secretary and the
Administrator shall transmit to the appropriate congressional
committees a report upon completion of each Quadrennial
Diplomacy, Development, and Security Review. The report shall
include, in addition to all the elements identified in
subsection (a)(2)--
(A) the assumptions used to inform the review,
including those regarding--
(i) key global challenges and opportunities
facing the United States over the next 10-year
period;
(ii) the capacity of United States
diplomatic, development, and security personnel
to respond to such challenges and
opportunities;
(iii) the cooperation and capacity of
partner countries and international
institutions in addressing such challenges and
opportunities;
(iv) the levels of engagement in operations
other than war and smaller-scale contingencies
and withdrawal from such operations and
contingencies;
(v) the intensity, duration, and military
and political end-states of conflicts and
smaller-scale contingencies that arise in the
diplomatic, development, and security context;
(vi) the anticipated roles and missions of
the reserve components available to civilian
agencies, including capabilities and resources
necessary to assure that such reserve
components can capably discharge such roles and
missions; and
(vii) the extent to which diplomatic,
development, and security personnel need to be
shifted to different regions to successfully
carry out the full range of missions called for
in the review;
(B) a description of the process by which the
review was conducted, including participation of
personnel of the Department of State and the United
States Agency for International Development,
coordination and consultation with other Federal
agencies, and consultations as required under
subsection (b); and
(C) lessons learned during the review process and
recommendations for improvements in future years.
(2) Public availability.--The report required under this
subsection shall be made publicly available on the Internet
upon transmission to the appropriate congressional committees.
SEC. 9102. COMPREHENSIVE WORKFORCE AND HUMAN RESOURCES STRATEGY.
(a) Plan Required.--The Administrator shall, not later than 1 year
after the date of the enactment of this Act and every 5 years
thereafter, develop a comprehensive workforce and human resources
strategy, or review and modify as necessary the existing strategy, to
strengthen the capacity of the Agency to carry out its mandate under
section 11201.
(b) Contents.--The strategy required under subsection (a) shall
include--
(1) an assessment of the implications of current
development strategies and foreign policy priorities for
technical and policy expertise;
(2) the number, types, and level of specialists and
generalists projected to be needed in each functional and
geographic area, including support, management, and
administrative functions;
(3) the number, types, and level of specialists and
generalists currently employed by the Agency, by bureau and
office and by employment category;
(4) an analysis of the workloads and competencies of
existing staff, by bureau and office and by employment
category;
(5) the impact on paragraphs (3) and (4) of projected
retirement and attrition rates over the next 5 years;
(6) the steps needed to recruit, retain, and develop the
necessary professional expertise, including through education
and training, details, fellowships, scholarships and exchanges;
(7) an assessment of the suitability of overseas
facilities, including security, space, health and safety,
physical integrity, access and location considerations;
(8) a prioritized plan for capital improvements;
(9) projected human resource challenges, including
bureaucratic and legislative constraints, and recommended
options for meeting such challenges; and
(10) the assumptions regarding program and policy
priorities and budget levels on which the strategy is based.
(c) Employment Category.--For the purposes of this section, the
term ``employment category'' means the statutory authority under which
an individual is employed, and includes civil service, Foreign Service,
excepted service, personal services contractors, detailees, and locally
employed staff.
(d) Transmission to Congress.--The plan required under subsection
(a) shall be transmitted to the appropriate congressional committees
not later than 180 days after the date of the enactment of this Act,
and every 5 years thereafter. Such plan may be updated at any time, and
such update shall be transmitted accordingly.
(e) Mid-Level Hiring Authority.--If the Administrator certifies
that such hiring is necessary to meet the workforce requirements of the
Agency as set forth in the plan required under subsection (a), the
Administrator is authorized, notwithstanding section 307 of the Foreign
Service Act of 1980, to hire up to 30 mid-career professionals, which
may include individuals currently employed as personal services
contractors, in each of the 3 fiscal years following the date of the
enactment of this Act.
Subtitle B--Monitoring and Evaluation
SEC. 9201. MONITORING AND EVALUATION OF FOREIGN ASSISTANCE.
(a) In General.--The President shall develop and implement a
rigorous system to evaluate the effectiveness and efficiency of foreign
assistance.
(b) Components of System.--In order to avoid duplication, ensure
comprehensive coverage, promote high and uniform standards, and
facilitate comparability of results and the development of a strong
body of evidence, the system required under subsection (a) shall
include--
(1) a method of coordinating evaluation activities among
all Federal agencies carrying out foreign assistance; and
(2) a process for consulting with relevant stakeholders and
subject matter experts, as appropriate, on the planning,
design, and implementation of evaluation activities and
dissemination of evaluation findings.
(c) Required Actions.--In carrying out subsection (a), the
President shall ensure that the head of each Federal agency takes the
following actions with regard to foreign assistance carried out by that
agency:
(1) Establish measurable and meaningful performance
objectives, including disaggregation by sex and age where
appropriate.
(2) Establish criteria for the selection of programs,
projects, and activities to be subject to various evaluation
methodologies, with a particular emphasis on impact evaluation.
(3) Establish or designate an organizational unit with
adequate staff and resources to oversee and provide technical
support for evaluation activities.
(4) Develop a plan for improving the capacity of the agency
to conduct rigorous, relevant, and objective program monitoring
and evaluation, including by--
(A) providing relevant education and training
opportunities;
(B) encouraging the adoption of improved
methodologies for data collection and analysis; and
(C) ensuring that best practices are shared within
and between agencies.
(5) Establish guidelines for enhancing, in cooperation with
other donors, the capacity of partner countries to monitor the
use of and evaluate the impact of donor assistance.
(6) Establish a process for applying the findings and
results of monitoring and evaluation activities, including
impact evaluation research, into future program planning,
budgeting, design, and implementation.
(7) Establish a policy for the publication of program
evaluations.
(8) Develop, in consultation with relevant stakeholders an
annual evaluation plan that describes how the agency will meet
the requirements of this section.
(9) Identify the source or mechanism of funding to conduct
monitoring and evaluation of foreign assistance carried out by
such agency.
(d) Submission of Evaluation Plans.--The President shall ensure
that the evaluation plans required by subsection (c)(8) are submitted
to the appropriate congressional committees each year along with the
annual budget presentation, and are published on a government Internet
website.
(e) Local Performance.--To the extent feasible and appropriate,
evaluation activities carried out pursuant to the requirements of this
section shall be carried out by, or with the participation of,
organizations in the partner country.
(f) Definitions.--In this section:
(1) Evaluation.--The term ``evaluation'' means the
systematic and objective determination and assessment of the
design, implementation, and results of an on-going or completed
program, project, or activity, including an explanation of the
reasons or causes for the observed results.
(2) Impact.--The term ``impact'' means a long-term effect
of a program, project, or activity, whether positive or
negative, direct or indirect, intended or unintended.
(3) Impact evaluation research.--The term ``impact
evaluation research'' means the application of research methods
and statistical analysis to measure the extent to which an
impact can be attributed to a foreign assistance program,
project, or activity rather than to other factors.
SEC. 9202. MONITORING AND EVALUATION OF HUMANITARIAN ASSISTANCE.
(a) Division of Responsibilities.--The Department of State shall be
responsible for monitoring and evaluating humanitarian assistance
carried out by the Department of State, and USAID shall be responsible
for monitoring and evaluating humanitarian assistance carried out by
USAID.
(b) Congressional Notification.--The Secretary or the
Administrator, as appropriate, shall notify the appropriate
congressional committees if assistance made available under this
subtitle is not sufficient to meet international humanitarian
standards. Such notification shall include a description of the
standards not being met, the resources that would be required to meet
such standards, and the reasons why such resources are not available.
(c) Role of the Office of Food for Peace.--The Office of Food for
Peace (FFP) of the Agency shall be responsible for tracking and
monitoring the nutritional outcomes of emergency food assistance
provided under this Act and title II of the Agricultural Trade
Development and Assistance Act of 1954 (Public Law 83-480).
(d) Monitoring and Evaluation Required.--The authorities of
sections 1904 and 1905 shall not be used to vitiate the requirement of
section 9201 for monitoring and evaluation of foreign assistance.
Subtitle C--Reporting Requirements
SEC. 9301. TRANSPARENCY AND ACCOUNTABILITY IN BUDGETING.
(a) In General.--The Secretary, the Administrator, and the Chief
Executive Officer of the Millennium Challenge Corporation shall
maintain an online database of information, easily accessible to the
public, which contains the information described in subsection (b) for
each project and activity within their respective areas of
responsibility, including for any project or activity for which funds
are transferred to another Federal agency for obligation.
(b) Database Requirements.--
(1) Content.--Each project and activity shall be identified
separately in such database, and for each project and activity
the database shall include, at a minimum--
(A) a brief description of the nature of the
project or activity;
(B) the geographic location or locations in which
the project or activity is being carried out;
(C) the specific objectives and timetable of the
project or activity;
(D) the indicators, which shall be quantitative
wherever possible and relevant, used to define the
successful achievement of the goals of the project or
activity;
(E) the number and demographic characteristics of
the intended beneficiaries of the project or activity;
(F) each sector, theme, goal and objective toward
which the project or activity will be counted;
(G) names and descriptions of the implementing
partners of the project or activity;
(H) the amount of United States foreign assistance
funds obligated for each such project or activity and
the source of those funds;
(I) expenditures of funds for the project or
activity on a quarterly basis;
(J) the contributions toward the project or
activity provided by the partner country;
(K) any conditions placed on the use of United
States Government funds obligated for the project or
activity, and whether those conditions have been met;
(L) the evaluation and monitoring plan for each
such project or activity;
(M) semiannual updates on results achieved to date
for each such project or activity; and
(N) if a project or activity has been extended,
suspended, terminated, or significantly modified, the
reasons for such action.
(2) Administrative costs.--In addition to the information
relating to specific projects and activities as required under
paragraph (1), the database shall contain, for each overseas
mission, information on all overhead and administrative costs,
including--
(A) for the previous fiscal year, numbers of staff
in each employment category, housing and facilities
operation and maintenance expenses, salaries and
benefits, travel and transportation expenses, and other
support costs; and
(B) for the coming fiscal year, planned capital
investments and projected staff increases or
reductions.
(3) Timing.--
(A) Existing projects and activities.--For each
project and activity in effect on the date of the
enactment of this Act, the database shall be operative
within 6 months of such date of enactment.
(B) New projects and activities.--For each project
and activity that has not received United States
Government funding as of the date of the enactment of
this Act, the department or agency (as the case may be)
shall enter into the database the information required
by paragraph (1) within 90 days from the date of the
initial obligation of funds for the project or
activity.
(4) Modifications.--In the event of any changes or
modifications in any of the elements of the database for a
project or activity, the database shall be updated as soon as
possible but in no event later than 30 days from the date on
which such changes or modifications have been approved and,
where applicable, agreed to by the partner country.
(5) Reports in lieu of inclusion.--If the Secretary, the
Administrator, or the Chief Executive Officer of the Millennium
Challenge Corporation, as the case may be, makes a
determination that the inclusion of a required item of
information in the database could reasonably be expected to
jeopardize the health or safety of a private partner or program
beneficiary or would be detrimental to the national interests
of the United States, such item of information may be submitted
to the appropriate congressional committees in a non-public
written report in lieu of including it in the database, along
the reasons for not including it in the database.
(6) Structure.--The database required under this section
shall be structured so that--
(A) data may be uploaded from overseas missions;
and
(B) users may search the data by word and sort the
data by field.
(c) Harmonization of Data.--The information contained in the
database required under subsection (b) shall include all information
provided to the Development Assistance Committee of the Organization
for Economic Cooperation and Development and the International Aid
Transparency Initiative, and should, to the maximum extent possible, be
harmonized with the types, categories and formats of information
requested by such organization and such initiative.
(d) Definition.--In this section, the terms ``project'' and
``activity'' mean a discrete assistance activity for which funds are
made available, including activities encompassed within a strategy,
compact, agreement, account or program of assistance.
SEC. 9302. CONGRESSIONAL BUDGET JUSTIFICATION.
(a) Requirement for Submission.--The President shall prepare, and
submit to the Congress not later than February 1 of each year, a report
justifying the resources requested for all foreign assistance programs.
(b) Materials To Be Included.--The report submitted pursuant to
subsection (a) shall include--
(1) a description of each planned country, regional, or
centrally funded program for the coming fiscal year, and the
rationale for each such program;
(2) the dollar amount of each program--
(A) as proposed for the coming fiscal year;
(B) as estimated for the current fiscal year; and
(C) as allocated for the previous fiscal year; and
(3) wherever possible, a description of the results
achieved for each such program in the previous 1 to 5 fiscal
years.
SEC. 9303. REPORT ON ALLOCATION OF ASSISTANCE UNDER THIS ACT.
(a) Report on Allocations of Assistance.--Not later than 30 days
after the date of the enactment of any law appropriating funds to carry
out any provision of this Act, the President shall notify Congress of--
(1) each foreign country, international organization,
regional program, and centrally funded program for which the
United States Government intends to provide any portion of the
funds under such law; and
(2) the amount of funds under such law, by category of
assistance, that the United States Government intends to
provide to each such country, organization, and program.
(b) Exception.--Subsection (a) does not apply with respect to any
law making continuing appropriations.
(c) Use of Special Authority.--The authority of section 10603 may
not be used to waive the provisions of this section.
SEC. 9304. SECURITY ASSISTANCE DATABASE.
(a) Database Required.--The Secretary shall maintain an online
database which contains the information described in subsection (b).
Such database may be combined with the database required under section
9301.
(b) Content.--The database required under subsection (a) shall
include--
(1) the type, dollar value, and quantity of defense
articles (including excess defense articles), defense services,
and international military education and training furnished by
the United States to each foreign country and international
organization;
(2) the provision of law under which such article, service,
and education or training was furnished;
(3) the dollar value, quantity, and end user of
semiautomatic assault weapons, or spare parts for such weapons,
the manufacture, transfer, or possession of which is unlawful
under section 922 of title 18, United States Code, receiving a
license for export; and
(4) for military education and training provided to foreign
military personnel, the type of training, the number of foreign
military personnel trained, their units of operation, and the
location of the training.
(c) Military Education and Training.--
(1) Recordkeeping.--With respect to military education and
training provided under subsection (b)(4), the Secretary of
Defense shall develop and maintain records, which shall not be
subject to the requirements for public availability in
subsection (e), for each foreign military and defense
participant in military education and training activities
conducted under this or any other Act. Such database shall be
made available to the Secretary of State and shall include the
type of instruction received, the dates and location of such
instruction, whether such instruction was completed
successfully, and, to the extent practicable, the person's
subsequent military or defense ministry career and current
position and location.
(2) Report on violations.--Not later than March 1 of each
year, the Secretary of State shall submit to the appropriate
congressional committees a report describing any involvement of
a foreign military or defense participant in military education
and training activities under this or any other Act in a
violation of internationally recognized human rights subsequent
to such participation. Such report shall be in unclassified
form, but may include a classified annex.
(3) Addition to database.--The Secretary of Defense shall
ensure that the database required under subsection (a) is
updated to include the information reported to Congress
pursuant to paragraph (2)
(d) Timing.--The Secretary shall ensure that the database required
under this section is operative not later than 180 days after the date
of the enactment of this Act, and shall prescribe such procedures as
are necessary to ensure that the required information is entered into
the database in a timely manner and continuously updated.
(e) Public Availability.--The database required under this section
shall be made publicly available on the Internet and shall be
structured so that users may search the data by word and sort the data
by field.
(f) Form.--The database described in subsection (a) shall be in
unclassified form and shall exclude any activity that is reportable
under title V of the National Security Act of 1947.
SEC. 9305. CLASSIFICATION OF REPORTS.
(a) In General.--Unless otherwise specifically provided by law, all
information contained in any report required to be provided to Congress
under this Act shall be in unclassified form and shall be made
available to the public.
(b) Exception.--If the President determines that publication of a
specific item of information in any such report would be detrimental to
the security of the United States, such item of information may be
provided to Congress in a supplemental report in classified form along
with an explanation of why publication of such specific item would be
detrimental to the security of the United States.
Subtitle D--Congressional Notification Procedures
SEC. 9401. NOTIFICATION OF PROGRAM CHANGES.
(a) Notification of Program Changes.--Unless the appropriate
congressional committees are notified at least 15 days in advance,
funds appropriated for a fiscal year to carry out this Act may not be
obligated for any assistance or contributions under this Act--
(1) for a Country Development Cooperation Strategy, or any
significant revision thereof, which has not been transmitted to
the appropriate congressional committees in accordance with
section 1018;
(2) for a country, international organization, regional
program, or centrally funded program for which assistance was
not included in a Country Development Cooperation Strategy, or
was not justified in congressional budget justification
documents for that fiscal year;
(3) more than 10 percent in excess of the amount allocated
pursuant to section 9303 for that country, international
organization, regional program, or centrally funded program for
that fiscal year;
(4) for a strategy or objective not justified to Congress
for that country, international organization, regional program,
or centrally funded program;
(5) for a nonproject assistance activity; or
(6) in the case of assistance administered through the
Department of Defense under this Act, for the provision of
major defense equipment (other than conventional ammunition) or
aircraft, ships, missiles, or combat vehicles not previously
justified to Congress, or more than ten percent in excess of
the quantities justified to Congress.
(b) Appropriations Subject to Requirements.--Subsection (a) applies
with respect to all funds appropriated for assistance and contributions
under this Act other than--
(1) subtitles A and B of title VII (relating to the
Overseas Private Investment Corporation and the Trade and
Development Agency, respectively);
(2) section 1131 (relating to the development credit
authority);
(3) section 2025 (relating to transition initiatives);
(4) section 2022 (relating to complex crisis,
stabilization, and prevention fund); and
(5) humanitarian assistance.
(c) Waiver.--The requirements of subsection (a) may be waived if
the President--
(1) determines that doing so is necessitated by emergency
circumstances;
(2) notifies the appropriate congressional committees as
early as practicable, but in no event later than three days
after taking the action to which such notification requirement
was applicable; and
(3) includes in such notification an explanation of the
circumstances necessitating the use of the authority of this
subsection.
SEC. 9402. CONGRESSIONAL NOTIFICATION PARITY.
The President shall ensure that the Committee on Foreign Affairs of
the House of Representatives and the Committee on Foreign Relations of
the Senate are notified to the same degree and with the same conditions
as the Committees on Appropriations are notified by the executive
branch regarding any matter relating to foreign assistance. The
requirements of this section are in addition to, and not in lieu of,
other congressional notification requirements.
SEC. 9403. PRESIDENTIAL FINDINGS AND DETERMINATIONS.
(a) Written Determinations.--In any case in which the President is
required to make a report to the Congress, or to any committee or
officer of either House of Congress, concerning any finding or
determination under any provision of this Act or related appropriations
Act, such finding or determination shall be reduced to writing and
signed by the President.
(b) Effective Date.--No action shall be taken pursuant to any such
finding or determination prior to the date on which that finding or
determination has been reduced to writing and signed by the President.
(c) Publication.--Each such finding or determination shall be
published on the Internet and in the Federal Register as soon as
practicable after it has been reduced to writing and signed by the
President. In any case in which the President concludes that such
publication would be harmful to the national security of the United
States, only a statement that a determination or finding has been made
by the President, including the name and section of the Act under which
it was made, shall be published.
TITLE X--POLICY RESTRICTIONS AND SPECIAL AUTHORITIES
Subtitle A--Policy Restrictions
SEC. 10001. DEFINITIONS.
In this title:
(1) Foreign terrorist organization.--The term ``foreign
terrorist organization'' means an organization designated as a
foreign terrorist organization by the Secretary of State in
accordance with section 219(a) of the Immigration and
Nationality Act (8 U.S.C. 1189(a)).
(2) Government.--
(A) In general.--The term ``government'', when used
with respect to a foreign country--
(i) means the national government of the
foreign country; and
(ii) includes--
(I) the government of any political
subdivision of the foreign country; and
(II) any agency or instrumentality
of the national government or
government of any political subdivision
of the foreign country.
(B) Agency or instrumentality defined.--For
purposes of subparagraph (A), the term ``agency or
instrumentality of the national government or
government of any political subdivision of the
country'' means an agency or instrumentality of a
foreign state as defined in section 1603(b) of title
28, United States Code, with each reference in such
section to ``a foreign state'' deemed to be a reference
to ``the foreign country''.
(3) Provide.--The term ``provide'' includes--
(A) the obligation and expenditure of funds; and
(B) the sale, lease, grant, transfer, stockpiling
and delivery of foreign assistance.
(4) State sponsor of drug trafficking.--The term ``state
sponsor of drug trafficking'' means a foreign government that
is the subject of a determination under section 10302(a) which
has not been waived or rescinded.
(5) State sponsor of terrorism.--The term ``state sponsor
of terrorism'' means a foreign government that is the subject
of a determination under section 10401(a) which has not been
waived or rescinded.
(6) International terrorism.--The term ``international
terrorism'' has the meaning given the term in section 2331 of
title 18, United States Code.
CHAPTER 1--HUMAN RIGHTS
SEC. 10101. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT ENGAGE IN
VIOLATIONS OF HUMAN RIGHTS.
(a) In General.--No foreign assistance may be provided, and no
licenses may be issued under the Export Administration Act of 1979 (as
continued in effect under the International Emergency Economic Powers
Act) for the export of crime control and detection instruments and
equipment, to a foreign government which the Secretary determines
engages in a consistent pattern of gross violations of internationally
recognized human rights, including--
(1) mass atrocities;
(2) torture or cruel, inhuman, or degrading treatment or
punishment;
(3) prolonged detention without charges and trial;
(4) causing the disappearance of persons by the abduction
and clandestine detention of those persons; or
(5) other flagrant denial of the right to life, liberty,
and the security of person.
(b) Expiration of Determinations.--A determination of the Secretary
under subsection (a) shall remain in effect until rescinded.
(c) Rescission of Determinations.--A determination of the Secretary
under subsection (a) with respect to a foreign government may not be
rescinded unless the President submits to the appropriate congressional
committees a report certifying that the government has substantially
improved its human rights record and no longer engages in any of the
actions described in subsection (a).
(d) Publication.--A determination made under subsection (a) or a
report submitted under subsection (c) shall be published in the Federal
Register and made available on the Internet website of the Department
of State.
(e) List.--The Secretary shall include in the annual report
required by section 9302 (relating to congressional budget
justification) a list of foreign governments for which determinations
under subsection (a) are currently in effect and the date on which each
such determination became effective.
(f) Considerations.--In determining whether or not a foreign
government meets the criteria described in subsection (a), the
Secretary shall consider--
(1) the extent of cooperation of the government in
permitting an unimpeded investigation of alleged violations of
internationally recognized human rights by appropriate
international organizations, including the International
Committee of the Red Cross, or groups or persons acting under
the authority of such organizations;
(2) specific actions which have been taken by the President
or Congress because of the human rights practices or policies
of the government; and
(3) whether the government has engaged in or tolerated
particularly severe violations of religious freedom (as such
term is defined in section 3 of the International Religious
Freedom Act of 1998).
(g) Waiver.--Assistance prohibited by subsection (a) may be
provided, and licenses may be issued, to a foreign government described
in that subsection if, at least 15 days before providing such
assistance, the President submits to the relevant congressional
committees--
(1) a certification that--
(A) extraordinary circumstances exist warranting
the provision of such assistance or the issuance of
such license; and
(B) the interests of providing such assistance or
issuing such license outweigh the interests of
protecting internationally recognized human rights; and
(2) a report describing--
(A) the types and amounts of assistance to be
provided or licenses to be issued pursuant to the
waiver;
(B) the justification for such waiver; and
(C) the time period for which such waiver will be
effective.
(h) Definitions.--In this section--
(1) the term ``genocide'' means an offense as described in
section 1091 of title 18, United States Code; and
(2) the term ``relevant congressional committees'' means--
(A) the appropriate congressional committees; and
(B) in the case of licenses to be issued under the
Export Administration Act of 1979 (as continued in
effect under the International Emergency Economic
Powers Act) for the export of crime control and
detection instruments and equipment, the Committee on
Banking, Housing, and Urban Affairs of the Senate.
SEC. 10102. PROHIBITION ON ASSISTANCE TO CERTAIN HUMAN RIGHTS
VIOLATORS.
(a) In General.--No foreign assistance may be provided to--
(1) any unit of the security forces of a foreign
government,
(2) any agency or instrumentality of a foreign government,
or
(3) a private partner,
if the Secretary has credible information that such unit, agency or
instrumentality, or private partner, as the case may be, has committed
a gross violation of internationally recognized human rights.
(b) Exception.--The prohibition in subsection (a) shall not apply
if the Secretary determines and reports to the appropriate
congressional committees that effective steps and corrective measures
are being taken to bring the responsible members of such unit, agency
or instrumentality, or private partner, as the case may be, to justice.
(c) Duty To Inform.--
(1) In general.--In the event that funds are withheld from
any unit pursuant to this section, the Secretary shall promptly
inform the foreign government of the basis for such action and
shall, to the maximum extent practicable, assist the government
in taking effective measures to bring the responsible members
of such unit to justice.
(2) Publication.--The Secretary shall make publicly
available on the Internet website of the Department of State
the identity of each unit for which there is credible
information that such unit has committed a gross violation of
internationally recognized human rights.
(3) Exception.--The requirements of paragraphs (1) and (2)
shall not apply if the Secretary determines such application
would compromise United States sources and methods or would
jeopardize the health, safety, or human rights of a witness or
informant.
(d) Credible Information.--The Secretary shall establish, and
periodically update, procedures to--
(1) maintain a current list of each foreign country with
respect to which the United States provides training,
equipment, or other types of assistance to any unit of the
security forces of the government of such country;
(2) facilitate receipt by the Department of State and
United States embassies of information from individuals and
organizations outside the United States Government about gross
violations of internationally recognized human rights by any
entity described in paragraph (1), (2), or (3) of subsection
(a);
(3) routinely request and obtain such information from the
Department of Defense, the Central Intelligence Agency, and
other United States Government sources departments and
agencies;
(4) synchronize information obtained from all sources;
(5) ensure that such information is evaluated and
preserved;
(6) ensure that when vetting an individual for eligibility
to receive United States training the individual's unit is also
vetted; and
(7) seek to identify the unit involved when credible
information of a gross violation of internationally recognized
human rights exists but the identity of the unit is lacking.
(e) Investigations.--
(1) In general.--The Secretary is authorized to use funds
made available under title III or title IV for purposes of
gathering, receiving, preserving, investigating, and evaluating
evidence of gross violations of internationally recognized
human rights by any entity described in paragraph (1), (2), or
(3) of subsection (a).
(2) Supplement not supplant.--Funds made available under
paragraph (1) are in addition to amounts otherwise made
available for the purposes described in paragraph (1).
(f) Definitions.--In this section--
(1) the term ``agency or instrumentality of a foreign
government'' means an agency or instrumentality of a foreign
state as defined in section 1603(b) of title 28, United States
Code; and
(2) the term ``unit'' means the smallest unit operating in
the field.
SEC. 10103. PROHIBITION ON ASSISTANCE TO GOVERNMENTS FOLLOWING COUPS
D'ETAT.
(a) In General.--No foreign assistance may be provided to a foreign
government whose duly elected leader the Secretary determines has been
deposed by violence or threat of violence.
(b) Exceptions.--The prohibition in subsection (a) shall not apply
with respect to a foreign government if the Secretary determines and
reports to the appropriate congressional committees that--
(1) the purpose and effect of the deposition was to restore
democratic governance; or
(2) subsequent to the deposition, a democratically elected
government has taken office.
(c) Publication.--A determination made under subsection (a) shall
be published in the Federal Register and made available on the Internet
website of the Department of State.
(d) Waiver.--Assistance prohibited by subsection (a) may be
provided to a foreign government described in that subsection if, at
least 15 days before providing assistance, the Secretary submits to the
appropriate congressional committees--
(1) a certification that providing assistance is important
to the national security interest of the United States; and
(2) a report describing--
(A) the types and amounts of assistance to be
provided pursuant to the waiver;
(B) the justification for the waiver; and
(C) the time period for which the waiver will be
effective.
SEC. 10104. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT PROHIBIT OR
IMPEDE DELIVERY OF HUMANITARIAN ASSISTANCE.
(a) In General.--No foreign assistance may be provided to a foreign
government which the Secretary determines prohibits or impedes the
delivery of humanitarian assistance.
(b) Publication.--A determination made under subsection (a) shall
be published in the Federal Register and made available on the Internet
website of the Department of State.
(c) Waiver.--Assistance prohibited by subsection (a) may be
provided to a foreign government described in that subsection if, at
least 15 days before providing assistance, the Secretary certifies and
reports to the appropriate congressional committees that to do so is in
the national security interest of the United States.
SEC. 10105. PROHIBITION ON USE OF FUNDS TO SUPPORT OR JUSTIFY TORTURE.
(a) In General.--No funds made available to carry out this Act may
be made available to support or justify the use of torture or cruel,
inhuman, or degrading treatment or punishment by any official or
contract employee of the United States Government.
(b) Reporting of Abuses.--The Secretary shall submit to the
appropriate congressional committees a report of any credible
information that an official or contract employee of the United States
Government has engaged in a violation of subsection (a).
SEC. 10106. PROHIBITION ON ASSISTANCE TO GOVERNMENTS ENGAGED IN
INTIMIDATION AND HARASSMENT AGAINST INDIVIDUALS IN THE
UNITED STATES.
(a) In General.--No foreign assistance may be provided to a foreign
government which the Secretary determines is engaged in a consistent
pattern of acts of intimidation or harassment directed against
individuals in the United States.
(b) Publication.--A determination made under subsection (a) shall
be published in the Federal Register and made available on the Internet
website of the Department of State.
(c) Determinations.--The Secretary shall report a determination
under section (a) to the appropriate congressional committees.
CHAPTER 2--NON-PROLIFERATION
SEC. 10201. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT TRANSFER
NUCLEAR ENRICHMENT EQUIPMENT, MATERIALS, OR TECHNOLOGY.
(a) In General.--No foreign assistance may be provided to a foreign
government which the Secretary determines has delivered or received
nuclear enrichment equipment, materials, or technology to or from any
other country on or after August 4, 1977.
(b) Exception.--The prohibition in subsection (a) shall not apply
with respect to a foreign government if--
(1) the receiving country had not been designated as a
state sponsor of terrorism before delivery of such equipment,
materials, or technology;
(2) the supplying and receiving countries have reached
agreement to place all such equipment, materials, or
technology, upon delivery, under multilateral auspices and
management when available;
(3) the transfers of all such equipment, materials, or
technology occur in compliance with the Guidelines of the
Nuclear Suppliers Group; and
(4) the receiving country has entered into an agreement
with the International Atomic Energy Agency (IAEA) to place all
such equipment, materials, technology, and all nuclear fuel and
facilities in the country under the safeguards system of the
IAEA, and is complying with such agreement.
(c) Expiration of Determinations.--A determination of the Secretary
under subsection (a) shall remain in effect until rescinded.
(d) Rescission of Determinations.--A determination of the Secretary
under subsection (a) with respect to a foreign government may not be
rescinded unless the President submits to the appropriate congressional
committees a report certifying that--
(1) there has been a fundamental change in the leadership
and policies of the government; or
(2) the government has entered into an agreement with the
IAEA to place all such equipment, materials, technology, and
all nuclear fuel and facilities in such country under the
safeguards system of the IAEA, and is complying with such
agreement.
(e) Publication.--A determination made under subsection (a) or a
report submitted under subsection (d) shall be published in the Federal
Register and made available on the Internet website of the Department
of State.
(f) List.--The Secretary shall include in the annual report
required by section 9302 (relating to congressional budget
justification) a list of governments for which determinations under
subsection (a) are currently in effect.
(g) Waiver.--Assistance prohibited by subsection (a) may be
provided to a foreign government described in that subsection if, at
least 15 days before providing such assistance, the President certifies
and reports to the appropriate congressional committees that--
(1) the termination of such assistance would have a serious
adverse effect on vital United States interests; and
(2) the President has received reliable assurances that the
government--
(A) if a government of a non-nuclear weapon state--
(i) will not acquire or develop nuclear
weapons or assist other countries in doing so;
and
(ii) will ensure that all past and future
transfers of such equipment, materials, or
technology shall be placed under an appropriate
safeguards system by the IAEA; and
(B) has taken or will take effective measures to
ensure any future transfers of such equipment,
materials, or technology are made in accordance with
the Guidelines of the Nuclear Suppliers Group.
(h) Resolution of Disapproval.--
(1) In general.--A rescission under subsection (d) or
waiver under subsection (g) of a determination under subsection
(a) shall cease to be effective if Congress enacts a joint
resolution disapproving the proposed rescission or waiver.
(2) Joint resolution described.--For the purposes of
paragraph (1), the term ``joint resolution'' means only a joint
resolution introduced not later than 30 days after the date of
receipt of a report under subsection (d) or (g), as the case
may be, the matter after the resolving clause of which is as
follows: ``That the proposed _____ submitted to Congress on
_____ under section 10201 of the Global Partnerships Act of
2012 is hereby prohibited.'', with the first blank space being
filled with ``rescission'' or ``waiver'', as appropriate, and
the second blank space being filled with the appropriate date.
(3) Congressional procedures.--A joint resolution described
in paragraph (2) and introduced within the appropriate 30-day
period shall be considered in the Senate and the House of
Representatives in accordance with paragraphs (3) through (7)
of section 8066(c) of the Department of Defense Appropriations
Act, 1985 (as contained in Public Law 98-473), except that
references in such paragraphs to the Committees on
Appropriations of the House of Representatives and the Senate
shall be deemed to be references to the Committee on Foreign
Affairs of the House of Representatives and the Committee on
Foreign Relations of the Senate, respectively.
SEC. 10202. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT TRANSFER
NUCLEAR REPROCESSING EQUIPMENT, MATERIALS, OR TECHNOLOGY
OR NUCLEAR EXPLOSIVE DEVICES.
(a) Prohibition.--
(1) In general.--No foreign assistance may be provided, and
no loans or credit by a United States bank or financial
institution extended, no goods subject to licensing by the
United States for national security or foreign policy reasons
exported, and no support by the United States given for any
loan or financial or technical assistance by an international
financial institution, to a government which the President
determines--
(A) transfers to a non-nuclear-weapon state a
nuclear explosive device, or any design information or
component which is determined by the President to be
important to, and known by the transferring government
to be intended by the recipient state for use in, the
development or manufacture of any nuclear explosive
device;
(B) is a non-nuclear-weapon state and--
(i) receives a nuclear explosive device;
(ii) detonates a nuclear explosive device;
(iii) seeks and receives any design
information or component which is determined by
the President to be important to, and intended
by the recipient state for use in, the
development or manufacture of any nuclear
explosive device; or
(iv) on or after August 8, 1985, exports
illegally (or attempts to export illegally)
from the United States any material, equipment,
or technology which would contribute
significantly to the ability of such country to
manufacture a nuclear explosive device, if the
President determines that the material,
equipment, or technology was to be used by such
country in the manufacture of a nuclear
explosive device, or
(C) delivers nuclear reprocessing equipment,
materials, or technology to any other country or
receives such equipment, materials, or technology from
any other country, on or after August 4, 1977.
(2) Rule of construction.--For purposes of paragraph
(1)(B)(4), an export (or attempted export) by a person who is
an agent of, or is otherwise acting on behalf of or in the
interests of, a country shall be considered to be an export (or
attempted export) by that country.
(b) Exception.--The prohibitions under subsection (a) shall not
apply--
(1) to any transaction subject to the reporting
requirements of title V of the National Security Act of 1947
(relating to congressional oversight of intelligence
activities);
(2) to medicines, medical equipment, and humanitarian
assistance; or
(3) to any credit, credit guarantee, or financial
assistance provided by the Department of Agriculture to support
the purchase of food or other agricultural commodity.
(c) Waiver.--
(1) In general.--Assistance prohibited by subsection (a)
may be provided to a government described in that subsection if
the President determines and certifies to the appropriate
congressional committees that the termination of such
assistance would be seriously prejudicial to the achievement of
United States nonproliferation objectives or otherwise
jeopardize the common defense and security.
(2) Special authority.--Assistance prohibited by subsection
(a)(1)(B)(ii) may be provided to a foreign government described
in that subsection if the President determines and certifies to
the appropriate congressional committees that the government
has taken a significant compensatory nonproliferation action,
such as the declaration of an unlimited moratorium on further
nuclear detonations, the signature and entry-into-force of a
legally binding international instrument prohibiting the
production of additional fissile nuclear material, or similar
action.
(3) Effective date.--A certification under paragraph (1) or
(2) shall not take effect until 30 days of continuous session
of Congress have elapsed after its submission. For purposes of
this paragraph, continuity of session of Congress is broken
only by an adjournment of Congress sine die and the days on
which either House is not in session because of an adjournment
of more than 3 days to a day certain are excluded in the
computation of any period of time in which Congress is in
continuous session.
(4) Non-delegation or transfer.--The President may not
delegate or transfer the President's power, authority, or
discretion to make or modify determinations under this
subsection.
(d) Resolution of Disapproval.--
(1) In general.--A waiver under subsection (c) of a
determination under subsection (a) shall cease to be effective
if Congress enacts a joint resolution disapproving the proposed
waiver.
(2) Joint resolution described.--For the purposes of
paragraph (1), the term ``joint resolution'' means only a joint
resolution introduced not later than 30 days of continuous
session of Congress (as described in subsection (c)(3)) after
receipt of a certification under subsection (c), the matter
after the resolving clause of which is as follows: ``That the
proposed waiver under section 10202(c) of the Global
Partnerships Act of 2012 is hereby prohibited.''.
(3) Congressional procedures.--A joint resolution described
in paragraph (2) and introduced within the appropriate period
shall be considered in the Senate and the House of
Representatives in accordance with paragraphs (3) through (7)
of section 8066(c) of the Department of Defense Appropriations
Act, 1985 (as contained in Public Law 98-473), except that
references in such paragraphs to the Committees on
Appropriations of the House of Representatives and the Senate
shall be deemed to be references to the Committee on Foreign
Affairs of the House of Representatives and the Committee on
Foreign Relations of the Senate, respectively.
(e) Definitions.--In this section--
(1) the term ``non-nuclear-weapon state'' has the meaning
given the term in section 830(5) of the Nuclear Proliferation
Prevention Act of 1994 (22 U.S.C. 6305(5)); and
(2) the term ``nuclear explosive device'' has the meaning
given that term in section 830(4) of the Nuclear Proliferation
Prevention Act of 1994 (22 U.S.C. 6305(4)).
SEC. 10203. SECURITY ASSISTANCE TO PAKISTAN.
(a) In General.--Security assistance may be provided to Pakistan
after the Secretary makes a certification in accordance with subsection
(b).
(b) Certification.--Not less than 15 days before providing security
assistance for Pakistan in a fiscal year, the Secretary shall transmit
a certification to the appropriate congressional committees that--
(1) the Government of Pakistan is continuing to safeguard
its nuclear weapons-related facilities, material, and
technology from theft and terrorist attack; and
(2) the Government of Pakistan during the preceding fiscal
year has demonstrated a sustained commitment to and is making
significant efforts towards combating terrorist groups, taking
into account the extent to which the Government of Pakistan has
made progress on matters such as--
(A) ceasing support, including by any elements
within the Pakistan military or its intelligence
agency, to extremist and terrorist groups, particularly
to any group that has conducted attacks against United
States or coalition forces in Afghanistan, or against
the territory or people of neighboring countries;
(B) preventing al Qaeda, the Taliban and associated
terrorist groups, such as Lashkar-e-Taiba, the Haqqani
Network and Jaish-e-Mohammed, from operating in the
territory of Pakistan, including by stopping cross-
border attacks into neighboring countries, closing
terrorist camps in the Federally Administered Tribal
Areas, dismantling terrorist bases of operations in
other parts of the country, including Quetta and
Muridke, and taking action when provided with
intelligence about high-level terrorist targets; and
(C) strengthening counterterrorism and anti-money
laundering laws.
(c) Waiver.--
(1) In general.--The Secretary may waive the requirement
contained in subsection (a) for a fiscal year if the Secretary
determines that is important to the national security interests
of the United States to do so.
(2) Prior notice of waiver.--The authority of paragraph (1)
may not be exercised until 7 days after the Secretary provides
to the appropriate congressional committees a written notice of
the intent to issue a waiver and the reasons therefor. The
notice may be submitted in classified or unclassified form, as
necessary.
(d) Effective Date.--The provisions of this section shall take
effect on the date on which section 203 of the Enhanced Partnership
with Pakistan Act of 2009 (Public Law 111-73) ceases to be effective.
CHAPTER 3--NARCOTICS
SEC. 10301. PROHIBITION ON ASSISTANCE TO DRUG TRAFFICKERS.
(a) In General.--The Secretary shall take all reasonable steps to
ensure that foreign assistance is not provided to or through any
individual or entity that the Secretary knows or has reason to
believe--
(1) has been convicted of a violation of, or a conspiracy
to violate, any law or regulation of the United States or a
foreign country relating to narcotic or psychotropic drugs or
other controlled substances; or
(2) is or has been an illicit trafficker in any such
controlled substance or is or has been a knowing assistor,
abettor, conspirator, or colluder with others in the illicit
trafficking in any such substance.
(b) Regulations.--The Secretary shall issue regulations to carry
out this section.
(c) Congressional Notification.--Regulations issued pursuant to
subsection (b) shall be submitted to the appropriate congressional
committees before they take effect.
(d) United States Defined.--In this section, the term ``United
States'' includes each State of the several States, the District of
Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, the
Commonwealth of the Northern Mariana Islands, the Virgin Islands of the
United States, and any other territory or possession of the United
States.
SEC. 10302. PROHIBITION ON ASSISTANCE TO STATE SPONSORS OF DRUG
TRAFFICKING.
(a) In General.--No foreign assistance may be provided to a foreign
government which the Secretary determines has expressly consented to,
or with knowledge, allowed, tolerated, or disregarded the recurring use
of any part of the land, waters, or airspace of the country for the
transit, production, or financing of illicit narcotics.
(b) Expiration of Determinations.--A determination of the Secretary
under subsection (a) shall remain in effect until rescinded.
(c) Rescission of Determinations.--A determination of the Secretary
under subsection (a) with respect to a government may not be rescinded
unless the President submits to the appropriate congressional
committees a report certifying that such government no longer expressly
consents to, or with knowledge, allows, tolerates, or disregards the
recurring use of any part of the land, waters, or airspace of the
country for the transit, production, or financing of illicit narcotics.
(d) Publication.--A determination made under subsection (a) and a
report submitted under subsection (c) shall be published in the Federal
Register and made available on the Internet website of the Department
of State.
(e) List.--The Secretary shall include in the annual report
required by section 9302 (relating to congressional budget
justification) a list of governments for which determinations under
subsection (a) are currently in effect and the date on which each
determination became effective.
(f) Waiver.--Assistance prohibited by subsection (a) may be
provided to a government described in that subsection if, at least 15
days before providing assistance, the President submits to the
appropriate congressional committees--
(1) a certification that national security interests or
humanitarian reasons justify such a waiver; and
(2) a report describing--
(A) the type and amount of assistance to be
provided pursuant to the waiver;
(B) the justification for such waiver; and
(C) the time period for which such waiver will be
effective.
SEC. 10303. PROHIBITION ON REIMBURSEMENTS FOR DRUG CROP ERADICATIONS.
No foreign assistance may be made available to reimburse persons in
foreign countries for the eradication of their illicit drug crops.
CHAPTER 4--TERRORISM
Subchapter A--General Provisions
SEC. 10401. PROHIBITION ON ASSISTANCE TO STATE SPONSORS OF TERRORISM.
(a) In General.--No foreign assistance may be provided to a foreign
government which the Secretary determines--
(1) has repeatedly provided support for acts of
international terrorism; or
(2) is controlled by an organization designated as a
terrorist organization under section 219 of the Immigration and
Nationality Act.
(b) Expiration of Determinations.--A determination of the Secretary
under subsection (a) shall remain in effect until rescinded.
(c) Rescission of Determinations.--A determination of the Secretary
under subsection (a) with respect to a government may not be rescinded
unless the President submits to the appropriate congressional
committees--
(1) before the proposed rescission would take effect, a
report certifying that--
(A) there has been a fundamental change in the
leadership and policies of the government;
(B) the government is not supporting acts of
international terrorism; and
(C) the government has provided assurances that it
will not support acts of international terrorism in the
future; or
(2) at least 45 days before the proposed rescission would
take effect, a report justifying the rescission and certifying
that--
(A) the government has not provided any support for
international terrorism during the preceding 6-month
period; and
(B) the government has provided assurances that it
will not support acts of international terrorism in the
future.
(d) Publication.--A determination made under subsection (a) or a
report submitted under subsection (c) shall be published in the Federal
Register and made available on the Internet website of the Department
of State.
(e) List.--The Secretary shall include in the annual report
required by section 9302 (relating to congressional budget
justification) a list of governments for which determinations under
subsection (a) are currently in effect.
(f) Waiver.--Assistance prohibited by subsection (a) may be
provided to a foreign government described in that subsection if, at
least 15 days before providing assistance, the President submits to the
appropriate congressional committees--
(1) a certification that national security interests or
humanitarian reasons justify a such a waiver; and
(2) a report describing--
(A) the type and amount of assistance to be
provided pursuant to the waiver;
(B) the justification for such waiver; and
(C) the time period for which such waiver will be
effective.
(g) Resolution of Disapproval.--
(1) In general.--A rescission under subsection (c)(2) or a
waiver under subsection (f) of a determination under subsection
(a) shall cease to be effective if Congress enacts a joint
resolution disapproving the proposed rescission or waiver.
(2) Joint resolution described.--For the purposes of
paragraph (1), the term ``joint resolution'' means only a joint
resolution introduced not later than 45 days after the date of
receipt of a report under subsection (c)(2) or not later than
15 days after receipt of a certification under subsection (f),
as the case may be, the matter after the resolving clause of
which is as follows: ``That the proposed _____ submitted to
Congress on _____ under section 10401 of the Global
Partnerships Act of 2012 is hereby prohibited.'', with the
first blank space being filled with ``rescission'' or
``waiver'', as appropriate, and the second blank space being
filled with the appropriate date.
(3) Congressional procedures.--A joint resolution described
in paragraph (2) and introduced within the appropriate period
shall be considered in the Senate and the House of
Representatives in accordance with paragraphs (3) through (7)
of section 8066(c) of the Department of Defense Appropriations
Act, 1985 (as contained in Public Law 98-473), except that
references in such paragraphs to the Committees on
Appropriations of the House of Representatives and the Senate
shall be deemed to be references to the Committee on Foreign
Affairs of the House of Representatives and the Committee on
Foreign Relations of the Senate, respectively.
(h) Definition.--In this section, the term ``support for acts of
international terrorism'' includes--
(1) expressly consenting to, or with knowledge, allowing,
tolerating, or disregarding the recurring use of any part of
the land, waters, or airspace of the country by a terrorist or
terrorist organization--
(A) to carry out terrorist activities, including
training, financing, and recruitment; or
(B) as a transit point;
(2) granting sanctuary from prosecution to any individual
or group which has committed an act of international terrorism;
or
(3) willfully aiding or abetting--
(A) the international proliferation of nuclear
explosive devices to individuals or groups;
(B) the acquisition by individuals or groups of
unsafeguarded special nuclear material; and
(C) the efforts of an individual or group to use,
develop, produce, stockpile, or otherwise acquire
chemical, biological, or radiological weapons.
SEC. 10402. PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS SUPPORTING
STATE SPONSORS OF TERRORISM.
(a) In General.--No foreign assistance may be provided to a foreign
government which the Secretary determines provides assistance (other
than humanitarian assistance) to, or transfers lethal military
equipment to, a state sponsor of terrorism.
(b) Applicability.--The prohibition in subsection (a) shall apply
only to assistance provided or transfers made after the date on which a
government was designated as a state sponsor of terrorism.
(c) Expiration of Determinations.--A determination of the Secretary
under subsection (a) shall remain in effect until rescinded.
(d) Rescission of Determinations.--A determination of the Secretary
under subsection (a) with respect to a government may not be rescinded
unless the President submits to the appropriate congressional
committees a report certifying that--
(1) the government has not provided assistance or
transferred lethal military equipment to a state sponsor of
terrorism during the preceding 12-month period;
(2) there has been a fundamental change in the leadership
and policies of the government; and
(3) the government has provided assurances that it will not
provide assistance or transfer lethal military equipment to a
state sponsor of terrorism in the future.
(e) Publication.--A determination made under subsection (a) and a
report submitted under subsection (d) shall be published in the Federal
Register and made available on the Internet website of the Department
of State.
(f) List.--The Secretary shall include in the annual report
required by section 9302 (relating to congressional budget
justification) a list of governments for which determinations under
subsection (a) are currently in effect.
(g) Waiver.--Assistance prohibited by subsection (a) may be
provided to a government described in that subsection if, at least 15
days before providing assistance, the President submits to the
appropriate congressional committees--
(1) a certification that providing foreign assistance to
the government is important to the national interests of the
United States; and
(2) a report describing--
(A) the type and amount of assistance to be
provided pursuant to the waiver;
(B) the justification for such waiver; and
(C) the time period for which such waiver will be
effective.
SEC. 10403. PROHIBITION ON TRANSACTIONS WITH STATE SPONSORS OF
TERRORISM.
(a) Prohibited Transactions by the United States Government.--The
following transactions by the United States Government are prohibited:
(1) Exporting or otherwise providing (by sale, lease or
loan, grant, or other means), directly or indirectly, any
munitions item to a country described in subsection (d) under
the authority of this Act or any other law (except as provided
in subsection (g)). In implementing this paragraph, the
President--
(A) shall suspend delivery to such country of any
such item pursuant to any such transaction which has
not been completed at the time the Secretary makes the
determination described in section 10401(a) with
respect to the government of the country; and
(B) shall terminate any lease or loan to such
country of any such item which is in effect at the time
the Secretary makes that determination.
(2) Providing credits, guarantees, or other financial
assistance under the authority of this Act or any other law
(except as provided in subsection (g)), with respect to the
acquisition of any munitions item by a country described in
subsection (d). In implementing this paragraph, the President
shall suspend expenditures pursuant to any such assistance
obligated before the Secretary makes the determination
described in section 10401(a) with respect to the government of
the country. The President may authorize expenditures otherwise
required to be suspended pursuant to the preceding sentence if
the President has determined, and reported to Congress, that
suspension of those expenditures causes undue financial
hardship to a supplier, shipper, or similar person and allowing
the expenditure will not result in any munitions item being
made available for use by such country.
(3) Consenting under this Act, or under any other law
(except as provided in subsection (g)), to any transfer of any
munitions item to a country described in subsection (d). In
implementing this paragraph, the President shall withdraw any
such consent, which is in effect at the time the Secretary
makes the determination described in section 10401(a) with
respect to the government of the country, except that this
sentence does not apply with respect to any item that has
already been transferred to such country.
(4) Providing any license or other approval under this Act
for any export or other transfer (including by means of a
technical assistance agreement, manufacturing licensing
agreement, or coproduction agreement) of any munitions item to
a country described in subsection (d). In implementing this
paragraph, the President shall suspend any such license or
other approval which is in effect at the time the Secretary
makes the determination described in section 10401(a) with
respect to the government of the country, except that this
sentence does not apply with respect to any item that has
already been exported or otherwise transferred to such country.
(5) Otherwise facilitating the acquisition of any munitions
item by a state sponsor of terrorism. This paragraph applies
with respect to activities undertaken--
(A) by any department, agency, or other
instrumentality of the United States Government;
(B) by any officer or employee of the United States
Government (including members of the United States
Armed Forces); or
(C) by any other person at the request or on behalf
of the United States Government.
The President may waive the requirements of the second sentence
of paragraph (1), the second sentence of paragraph (3), and the
second sentence of paragraph (4) to the extent that the
President determines, after consultation with Congress, that
unusual and compelling circumstances require that the President
not take the actions specified in that sentence.
(b) Prohibited Transactions by United States Persons.--
(1) In general.--A United States person may not take any of
the following actions:
(A) Exporting any munitions item to any country
described in subsection (d).
(B) Selling, leasing, loaning, granting, or
otherwise providing any munitions item to any country
described in subsection (d).
(C) Selling, leasing, loaning, granting, or
otherwise providing any munitions item to any recipient
which is not the government of or a person in a country
described in subsection (d) if the United States person
has reason to know that the munitions item will be made
available to any country described in subsection (d).
(D) Taking any other action which would facilitate
the acquisition, directly or indirectly, of any
munitions item by a state sponsor of terrorism, or any
person acting on behalf of that government, if the
United States person has reason to know that action
will facilitate the acquisition of that item by such a
government or person.
(2) Liability for actions of foreign subsidiaries, etc.--A
United States person violates this subsection if a corporation
or other person that is controlled in fact by that United
States person (as determined under regulations, which the
President shall issue), takes an action described in paragraph
(1) outside the United States.
(3) Applicability to actions outside the united states.--
Paragraph (1) applies with respect to actions described in that
paragraph which are taken either within or outside the United
States by a United States person described in subsection
(k)(2)(A) or (B). To the extent provided in regulations issued
under subsection (k)(2)(D), paragraph (1) applies with respect
to actions described in that paragraph which are taken outside
the United States by a person designated as a United States
person in those regulations.
(c) Transfers to Governments and Persons Covered.--This section
applies with respect to--
(1) the acquisition of munitions items by a state sponsor
of terrorism; and
(2) the acquisition of munitions items by any individual,
group, or other person within a country described in subsection
(d), except to the extent that subparagraph (D) of subsection
(b)(1) provides otherwise.
(d) Countries Covered by Prohibition.--The prohibitions contained
in this section apply with respect to any country that is the subject
of a determination under section 10401(a), which has not been waived or
rescinded.
(e) Publication of Determinations.--Each determination of the
Secretary under subsection (d) shall be published in the Federal
Register and made available on the Internet website of the Department
of State.
(f) Waiver.--
(1) In general.--The President may waive the prohibitions
contained in this section with respect to a specific
transaction if--
(A) the President determines that the transaction
is essential to the national security interests of the
United States; and
(B) not less than 15 days prior to the proposed
transaction, the President--
(i) consults with the Committee on Foreign
Affairs of the House of Representatives and the
Committee on Foreign Relations of the Senate;
and
(ii) submits to the appropriate
congressional committees a report containing--
(I) the name of any country
involved in the proposed transaction,
the identity of any recipient of the
items to be provided pursuant to the
proposed transaction, and the
anticipated use of those items;
(II) a description of the munitions
items involved in the proposed
transaction (including their market
value) and the actual sale price at
each step in the transaction (or if the
items are transferred by other than
sale, the manner in which they will be
provided);
(III) the reasons why the proposed
transaction is essential to the
national security interests of the
United States and the justification for
such proposed transaction;
(IV) the date on which the proposed
transaction is expected to occur; and
(V) the name of each United States
Government department, agency, or other
entity involved in the proposed
transaction, every foreign government
involved in the proposed transaction,
and every private party with
significant participation in the
proposed transaction.
(2) Form.--To the extent possible, the information
specified in paragraph (1)(B)(ii) shall be provided in
unclassified form, with any classified information provided in
an addendum to the report.
(g) Exemption for Transactions Subject to National Security Act
Reporting Requirements.--The prohibitions contained in this section do
not apply with respect to any transaction subject to reporting
requirements under title V of the National Security Act of 1947 (50
U.S.C. 413 et seq.; relating to congressional oversight of intelligence
activities).
(h) Relation to Other Laws.--
(1) In general.--With regard to munitions items controlled
pursuant to this Act, the provisions of this section shall
apply notwithstanding any other provisions of law, other than
section 10603.
(2) Waiver authority.--If the authority of section 10603(a)
is used to permit a transaction under this Act which is
otherwise prohibited by this section, the written policy
justification required by that section shall include the
information specified in subsection (f)(2)(B) of this section.
(i) Criminal Penalty.--Any person who willfully violates this
section shall be fined for each violation not more than $1,000,000,
imprisoned not more than 10 years, or both.
(j) Civil Penalties; Enforcement.--In the enforcement of this
section, the President is authorized to exercise the same powers
concerning violations and enforcement which are conferred upon
departments, agencies, and officials by sections 11(c), 11(e), 11(g),
and 12(a) of the Export Administration Act of 1979 (as continued in
effect under the International Emergency Economic Powers Act) (subject
to the same terms and conditions as are applicable to such powers under
that Act), except that section 11(c)(2)(B) of such Act shall not apply,
and instead, as prescribed in regulations issued under this section,
the Secretary of State may assess civil penalties for violations of
this Act and regulations prescribed thereunder and further may commence
a civil action to recover such civil penalties, and except further
that, notwithstanding section 11(c) of that Act, the civil penalty for
each violation of this section may not exceed $500,000.
(k) Definitions.--As used in this section--
(1) the term ``munitions item'' means any item enumerated
on the United States Munitions list (without regard to whether
the item is imported into or exported from the United States);
(2) the term ``United States person'' means--
(A) any citizen or permanent resident alien of the
United States;
(B) any sole proprietorship, partnership, company,
association, or corporation having its principal place
of business within the United States or organized under
the laws of the United States, any State, the District
of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, or any
territory or possession of the United States;
(C) any other person with respect to that person's
actions while in the United States; and
(D) to the extent provided in regulations issued by
the Secretary, any person that is not described in
subparagraph (A), (B), or (C) but--
(i) is a foreign subsidiary or affiliate of
a United States person described in
subparagraph (B) and is controlled in fact by
that United States person (as determined in
accordance with those regulations), or
(ii) is otherwise subject to the
jurisdiction of the United States,
with respect to that person's actions while outside the
United States;
(3) the term ``nuclear explosive device'' has the meaning
given that term in section 830(4) of the Nuclear Proliferation
Prevention Act of 1994 (22 U.S.C. 6305(4)); and
(4) the term ``unsafeguarded special nuclear material'' has
the meaning given that term in section 830(8) of the Nuclear
Proliferation Prevention Act of 1994 (22 U.S.C. 6305 (8)).
SEC. 10404. TRANSACTIONS WITH COUNTRIES NOT FULLY COOPERATING WITH
UNITED STATES COUNTERTERRORISM EFFORTS.
(a) Prohibited Transactions.--No defense article or defense service
may be sold or licensed for export under this Act in a fiscal year to a
foreign country whose government the Secretary determines and certifies
to Congress, by May 15 of the calendar year in which that fiscal year
begins, is not cooperating fully with United States counterterrorism
efforts.
(b) Waiver.--The President may waive the prohibition in subsection
(a) with respect to a specific transaction if the President determines
and reports to the appropriate congressional committees that the
transaction is important to the national interests of the United
States.
SEC. 10405. WITHHOLDING OF UNITED STATES PROPORTIONATE SHARE FOR
CERTAIN PROGRAMS OF INTERNATIONAL ORGANIZATIONS.
(a) In General.--No contributions by the United States shall be
made to any international organization for the United States
proportionate share for programs in countries determined to be state
sponsors of terrorism in accordance with section 10401(a).
(b) Proportionate Share.--The Secretary shall--
(1) review, at least annually, the budgets and accounts of
all international organizations receiving funds under this Act;
and
(2) report to the appropriate congressional committees the
amounts of funds expended by each such organization for the
purposes described in subsection (a) and the amount contributed
by the United States to each such organization.
(c) Exceptions.--The limitation in subsection (a) shall not apply
to contributions to the International Atomic Energy Agency or the
United Nations Children's Fund (UNICEF).
Subchapter B--Middle East Provisions
SEC. 10411. CONDITIONAL CONTRIBUTIONS TO CERTAIN INTERNATIONAL
ORGANIZATIONS.
(a) In General.--No contributions by the United States shall be
made to the United Nations Relief and Works Agency for Palestine
Refugees in the Near East.
(b) Exception.--The limitation in subsection (a) shall not apply if
the Secretary determines and reports to the appropriate congressional
committees that the United Nations Relief and Works Agency is taking
all possible measures to assure that no part of the United States
contribution shall be used to provide assistance to any refugee who is
receiving military training as a member of any terrorist group or
guerrilla-type organization or who has engaged in any act of terrorism.
SEC. 10412. LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY.
(a) Limitation.--Assistance may be provided under this Act to the
Hamas-controlled Palestinian Authority only during a period for which a
certification described in subsection (b) is in effect.
(b) Certification.--A certification described in subsection (a) is
a certification transmitted by the President to Congress that contains
a determination of the President that--
(1) no ministry, agency, or instrumentality of the
Palestinian Authority is effectively controlled by Hamas,
unless the Hamas-controlled Palestinian Authority has--
(A) publicly acknowledged the Jewish state of
Israel's right to exist; and
(B) committed itself and is adhering to all
previous agreements and understandings with the United
States Government, with the Government of Israel, and
with the international community, including agreements
and understandings pursuant to the Performance-Based
Roadmap to a Permanent Two-State Solution to the
Israeli-Palestinian Conflict (commonly referred to as
the ``Roadmap''); and
(2) the Hamas-controlled Palestinian Authority has made
demonstrable progress toward--
(A) completing the process of purging from its
security services individuals with ties to terrorism;
(B) dismantling all terrorist infrastructure within
its jurisdiction, confiscating unauthorized weapons,
arresting and bringing terrorists to justice,
destroying unauthorized arms factories, thwarting and
preempting terrorist attacks, and fully cooperating
with Israel's security services;
(C) halting all anti-American and anti-Israel
incitement in Palestinian Authority-controlled
electronic and print media and in schools, mosques, and
other institutions it controls, and replacing
educational materials, including textbooks, with
materials that promote peace, tolerance, and
coexistence with Israel;
(D) ensuring democracy, the rule of law, and an
independent judiciary, and adopting other reforms such
as ensuring transparent and accountable governance; and
(E) ensuring the financial transparency and
accountability of all government ministries and
operations.
(c) Recertifications.--Not later than 90 days after the date on
which the President transmits to Congress an initial certification
under subsection (b), and every six months thereafter--
(1) the President shall transmit to Congress a
recertification that the conditions described in subsection (b)
are continuing to be met; or
(2) if the President is unable to make such a
recertification, the President shall transmit to Congress a
report that contains the reasons therefor.
(d) Congressional Notification.--Assistance made available under
this Act to the Palestinian Authority may not be provided until 15 days
after the date on which the President has provided notice thereof to
the appropriate congressional committees in accordance with the
procedures applicable to reprogramming notifications under section
9401.
(e) National Security Waiver.--
(1) In general.--Subject to paragraph (2), the President
may waive subsection (a) with respect to--
(A) the administrative and personal security costs
of the Office of the President of the Palestinian
Authority;
(B) the activities of the President of the
Palestinian Authority to fulfill his or her duties as
President, including to maintain control of the
management and security of border crossings, to foster
the Middle East peace process, and to promote democracy
and the rule of law; and
(C) assistance for the judiciary branch of the
Palestinian Authority and other entities.
(2) Certification.--The President may only exercise the
waiver authority under paragraph (1) after--
(A) consulting with, and submitting a written
policy justification to, the appropriate congressional
committees; and
(B) certifying to the appropriate congressional
committees that--
(i) it is in the national security interest
of the United States to provide assistance
otherwise prohibited under subsection (a); and
(ii) the individual or entity for which
assistance is proposed to be provided is not a
member of, or effectively controlled by (as the
case may be), Hamas or any other foreign
terrorist organization.
(3) Report.--Not later than 10 days after exercising the
waiver authority under paragraph (1), the President shall
submit to the appropriate congressional committees a report
describing how the funds provided pursuant to such waiver will
be spent and detailing the accounting procedures that are in
place to ensure proper oversight and accountability.
(4) Treatment of certification as notification of program
change.--For purposes of this subsection, the certification
required under paragraph (2)(B) shall be deemed to be a
notification under section 9401 and shall be considered in
accordance with the procedures applicable to notifications
submitted pursuant to that section.
(f) Definition.--In this section, the term ``Palestinian
Authority'' means the interim Palestinian administrative organization
that governs part of the West Bank and all of the Gaza Strip (or any
successor Palestinian governing entity), including the Palestinian
Legislative Council.
SEC. 10413. LIMITATION ON ASSISTANCE FOR THE WEST BANK AND GAZA.
(a) Limitation.--Assistance may be provided under this Act to
nongovernmental organizations for the West Bank and Gaza only during a
period for which a certification described in section 10412(b) is in
effect with respect to the Palestinian Authority.
(b) Exceptions.--Subsection (a) shall not apply with respect to the
following:
(1) Assistance to meet basic human needs.--Assistance to
meet food, water, medicine, health, or sanitation needs, or
other assistance to meet basic human needs.
(2) Assistance to promote democracy.--Assistance to promote
democracy, human rights, freedom of the press, non-violence,
reconciliation, and peaceful coexistence, provided that such
assistance does not directly benefit Hamas or any other foreign
terrorist organization.
(3) Assistance for individual members of the palestinian
legislative council.--Assistance, other than funding of
salaries or salary supplements, to individual members of the
Palestinian Legislative Council who the President determines
are not members of Hamas or any other foreign terrorist
organization, for the purposes of facilitating the attendance
of such members in programs for the development of institutions
of democratic governance, including enhancing the transparent
and accountable operations of such institutions, and providing
support for the Middle East peace process.
(4) Other types of assistance.--Any other type of
assistance if the President--
(A) determines that the provision of such
assistance is in the national security interest of the
United States; and
(B) not less than 30 days prior to the obligation
of amounts for the provision of such assistance--
(i) consults with the appropriate
congressional committees regarding the specific
programs, projects, and activities to be
carried out using such assistance; and
(ii) submits to the appropriate
congressional committees a written memorandum
that contains the determination of the
President under subparagraph (A).
(c) Marking Requirement.--Assistance provided under this Act to
nongovernmental organizations for the West Bank and Gaza shall be
marked as assistance from the American people or the United States
Government unless the Secretary of State or, as appropriate, the
Administrator of the United States Agency for International
Development, determines that such marking will endanger the lives or
safety of persons delivering such assistance or would have an adverse
effect on the implementation of that assistance.
(d) Congressional Notification.--Assistance made available under
this Act to nongovernmental organizations for the West Bank and Gaza
may not be provided until 15 days after the date on which the President
has provided notice thereof to the appropriate congressional committees
in accordance with the procedures applicable to reprogramming
notifications under section 9401.
SEC. 10414. PALESTINIAN STATEHOOD.
(a) Limitation.--None of the funds made available under this Act
may be provided to support a Palestinian state unless the Secretary
determines and certifies to the appropriate congressional committees
that--
(1) the governing entity of a new Palestinian state--
(A) has demonstrated a firm commitment to peaceful
co-existence with the State of Israel; and
(B) is taking appropriate measures to counter
terrorism and terrorist financing in the West Bank and
Gaza, including the dismantling of terrorist
infrastructures, and is cooperating with appropriate
Israeli and other appropriate security organizations;
and
(2) the Palestinian Authority (or the governing entity of a
new Palestinian state) is working with other countries in the
region to vigorously pursue efforts to establish a just,
lasting, and comprehensive peace in the Middle East that will
enable Israel and an independent Palestinian state to exist
within the context of full and normal relationships, which
should include--
(A) termination of all claims or states of
belligerency;
(B) respect for and acknowledgment of the
sovereignty, territorial integrity, and political
independence of every state in the area through
measures including the establishment of demilitarized
zones;
(C) their right to live in peace within secure and
recognized boundaries free from threats or acts of
force;
(D) freedom of navigation through international
waterways in the area; and
(E) a framework for achieving a just settlement of
the refugee problem.
(b) Sense of Congress.--It is the sense of Congress that the
governing entity should enact a constitution assuring the rule of law,
an independent judiciary, and respect for human rights for its
citizens, and should enact other laws and regulations assuring
transparent and accountable governance.
(c) Waiver.--The President may waive the limitation on assistance
in subsection (a) if the President determines and reports to Congress
that it is important to the national security interests of the United
States to do so.
(d) Exemption.--The limitation in subsection (a) shall not apply to
assistance intended to help reform the Palestinian Authority and
affiliated institutions, or the governing entity, in order to help meet
the requirements of subsection (a), consistent with the provisions of
section 10418.
SEC. 10415. RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY.
(a) In General.--None of the funds made available under this Act
may be provided to create in any part of Jerusalem a new office of any
department or agency of the United States Government for the purpose of
conducting official United States Government business with the
Palestinian Authority over Gaza and Jericho or any successor
Palestinian governing entity provided for in the Israel-PLO Declaration
of Principles.
(b) Exception.--The restriction in subsection (a) shall not apply
to the acquisition of additional space for the existing Consulate
General in Jerusalem.
(c) Meeting Location.--Meetings between officers and employees of
the United States and officials of the Palestinian Authority, or any
successor Palestinian governing entity provided for in the Israel-PLO
Declaration of Principles, for the purpose of conducting official
United States Government business with such authority should continue
to take place in locations other than Jerusalem.
(d) Incidental Discussions.--Consistent with past practices,
officers and employees of the United States Government may continue to
meet in Jerusalem on other subjects with Palestinians (including those
who now occupy positions in the Palestinian Authority), have social
contacts, and have incidental discussions.
SEC. 10416. PROHIBITION ON ASSISTANCE TO THE PALESTINIAN BROADCASTING
CORPORATION.
None of the funds made available under this Act may be made
available to provide equipment, technical support, consulting services,
or any other form of assistance to the Palestinian Broadcasting
Corporation.
SEC. 10417. ASSISTANCE FOR THE WEST BANK AND GAZA.
(a) Oversight.--The Secretary shall ensure that procedures have
been established to assure the Comptroller General of the United States
has access to appropriate United States financial information in order
to review the uses of United States assistance for the West Bank and
Gaza.
(b) Vetting.--
(1) In general.--The Secretary shall take all appropriate
steps to ensure that assistance for the West Bank and Gaza is
not provided to or through any individual, private or
government entity, or educational institution that the
Secretary knows or has reason to believe advocates, plans,
sponsors, engages in, or has engaged in, terrorist activity
nor, with respect to private entities or educational
institutions, those that have as a principal officer of the
entity's governing board or governing board of trustees any
individual that has been determined to be involved in, or
advocating terrorist activity or determined to be a member of a
designated foreign terrorist organization.
(2) Procedures.--The Secretary shall, as appropriate,
establish procedures specifying the steps to be taken in
carrying out this subsection and shall terminate assistance to
any individual, entity, or educational institution which the
Secretary has determined to be involved in or advocating
terrorist activity.
(c) Prohibition.--None of the funds made available under this Act
for assistance to the West Bank and Gaza may be made available for the
purpose of recognizing or otherwise honoring individuals who commit, or
have committed acts of terrorism.
(d) Benchmarks.--Before providing assistance to the West Bank and
Gaza for a fiscal year, the Secretary shall report to the appropriate
congressional committees on the benchmarks that have been established
for security assistance for the West Bank and Gaza and the extent of
Palestinian compliance with such benchmarks.
(e) Audits.--
(1) In general.--The Administrator shall ensure that
Federal or non-Federal audits of all contractors and grantees,
and significant subcontractors and sub-grantees, under the West
Bank and Gaza Program, are conducted at least on an annual
basis to ensure, among other things, compliance with this
section.
(2) Audits, inspections, and other activities.--Of amounts
made available in a fiscal year for the Office of Inspector
General of the United States Agency for International
Development, up to $500,000 may be used for audits,
inspections, and other activities in furtherance of the
requirements of this subsection, in addition to funds otherwise
available for such purposes.
SEC. 10418. LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY.
(a) Limitation.--None of the funds made available under section
4103 may be provided to the Palestinian Authority.
(b) Waiver.--The prohibition in subsection (a) shall not apply if
the President certifies in writing to the Speaker of the House of
Representatives, the President pro tempore of the Senate, and the
appropriate congressional committees that waiving such prohibition is
important to the national security interests of the United States.
(c) Period of Waiver.--Any waiver issued pursuant to subsection (b)
shall be effective for no more than a period of 6 months.
(d) Report.--Whenever the waiver authority pursuant to subsection
(b) is exercised, the President shall submit to the appropriate
congressional committees a report detailing--
(1) the justification for the waiver;
(2) the purposes for which the funds will be spent;
(3) the accounting procedures in place to ensure that the
funds are properly disbursed; and
(4) the steps the Palestinian Authority has taken to arrest
terrorists, confiscate weapons, and dismantle the terrorist
infrastructure.
(e) Certification.--If the waiver authority pursuant to subsection
(b) is exercised, the Secretary shall certify and report to the
appropriate congressional committees, before providing assistance to
the Palestinian Authority, that--
(1) the Palestinian Authority has established a single
treasury account for all Palestinian Authority financing;
(2) all financing mechanisms flow through such account;
(3) no parallel financing mechanisms exist outside of such
account; and
(4) there is a single comprehensive civil service roster
and payroll.
(f) Prohibition on Assistance to Hamas and the Palestine Liberation
Organization.--
(1) In general.--None of the funds made available under
this Act may be provided for--
(A) salaries of personnel of the Palestinian
Authority located in Gaza;
(B) assistance to Hamas or any entity effectively
controlled by Hamas; or
(C) any power-sharing government of which Hamas is
a member, or that results from an agreement with Hamas
and over which Hamas exercises undue influence.
(2) Exception.--Notwithstanding paragraph (1), assistance
may be provided to a power-sharing government only if the
President certifies and reports to the appropriate
congressional committees that such government, including all of
its ministers or such equivalent, has publicly accepted and is
complying with the principles contained in subparagraphs (A)
and (B) of section 10412(b)(1).
(3) National security waiver.--The President may exercise
the authority in section 10412(e) with respect to this
subsection.
(4) Report.--Whenever the certification pursuant to
paragraph (2) is exercised, the Secretary shall submit to the
appropriate congressional committees a report not later than
120 days after the date of the certification and every quarter
thereafter on--
(A) whether such government, including all of its
ministers or such equivalent are continuing to comply
with the principles contained in subparagraph (A) and
(B) of section 10412(b)(1);
(B) the amount, purposes and delivery mechanisms
for any assistance provided pursuant to the
certification; and
(C) a full accounting of any direct support of such
government.
(5) Limitation on assistance to the plo.--None of the funds
made available under this Act may be used to provide assistance
for the Palestine Liberation Organization.
SEC. 10419. LIMITATION RELATING TO PALESTINIAN STATUS IN THE UNITED
NATIONS.
(a) Limitation.--None of the funds made available under section
4103 may be used to provide assistance for the Palestinian Authority if
the Palestinians obtain, after the date of the enactment of this Act,
the same standing as member states, enhanced observer status, or full
membership as a state in the United Nations or any specialized agency
thereof outside an agreement negotiated between Israel and the
Palestinians.
(b) Waiver by Secretary.--The Secretary may waive the limitation in
subsection (a) if the Secretary certifies to the appropriate
congressional committees that to do so is in the national security
interest of the United States and submits to the appropriate
congressional committees a report detailing how the waiver and the
continuation of assistance would assist in furthering Middle East
peace.
(c) Waivers by President.--
(1) In general.--The President may waive the provisions of
section 1003 of the Anti-Terrorism Act of 1987 (22 U.S.C. 5202)
if the President determines and certifies in writing to the
Speaker of the House of Representatives, the President pro
tempore of the Senate, and the appropriate congressional
committees that the Palestinians have not, after the date of
the enactment of this Act, obtained in the United Nations or
any specialized agency thereof the same standing as member
states, enhanced observer status, or full membership as a state
in the United Nations or any specialized agency thereof outside
an agreement negotiated between Israel and the Palestinians.
(2) Additional waiver.--Not less than 90 days after the
President is unable to make the certification pursuant to
paragraph (1), the President may waive section 1003 of the
Anti-Terrorism Act of 1987 if the President determines and
certifies in writing to the Speaker of the House of
Representatives, the President pro tempore of the Senate, and
the appropriate congressional committees that the Palestinians
have entered into direct and meaningful negotiations with
Israel relating to Palestinian statehood.
(3) Expiration of other waivers.--Any waiver of the
provisions of section 1003 of the Anti-Terrorism Act of 1987
under paragraph (1) or under previous provisions of law must
expire before a waiver under paragraph (2) may be exercised.
(4) Effective date.--Any waiver of the provisions of
section 1003 of the Anti-Terrorism Act of 1987 pursuant to
paragraph (1) or (2) shall be effective for not more than a
period of 6 months.
CHAPTER 5--TRADE AND COMMERCE
SEC. 10501. PROHIBITION ON ASSISTANCE FOR EXPORTING UNITED STATES JOBS.
(a) Incentives and Inducements.--No foreign assistance may be made
available to provide any financial incentive to a business enterprise
located in the United States for the purpose of inducing such
enterprise to relocate outside the United States, if such incentive or
inducement is likely to reduce the number of employees of such business
enterprise in the United States because United States production is
being replaced by such enterprise outside the United States.
(b) Workers' Rights.--No foreign assistance may be made available
for any program, project, or activity that contributes to the violation
of internationally recognized worker rights (as such term is defined in
section 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4))) of workers
in a partner country, including any designated zone or area in the
country.
(c) Micro and Small-Scale Enterprise.--The application of
subparagraph (D) or (E) of section 507(4) of the Trade Act of 1974 (19
U.S.C. 2467(4)) with respect to a partner country should be
commensurate with the level of development of the country and the
relevant economic sector of the country, and shall not preclude
assistance for the informal sector of the country, micro and small-
scale enterprise in the country, and smallholder agriculture in the
country.
SEC. 10502. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT EXPROPRIATE
UNITED STATES PROPERTY.
(a) In General.--No foreign assistance may be provided to a foreign
government which the Secretary determines has--
(1) on or after January 1, 1962--
(A) nationalized or expropriated or seized
ownership or control of property owned by any United
States citizen or by any corporation, partnership, or
association not less than 50 percent beneficially owned
by United States citizens;
(B) taken steps to repudiate or nullify existing
contracts or agreements with any United States citizen
or any corporation, partnership, or association not
less than 50 percent beneficially owned by United
States citizens; or
(C) imposed or enforced discriminatory taxes or
other exactions, or restrictive maintenance or
operational conditions, or has taken other actions,
which have the effect of nationalizing, expropriating,
or otherwise seizing ownership or control of property
so owned; and
(2) failed within a reasonable time to take appropriate
steps, which may include arbitration, to--
(A) discharge its obligations under international
law toward such citizen or entity, including speedy
compensation for such property in convertible foreign
exchange, equivalent to the full value thereof, as
required by international law; or
(B) provide relief from such taxes, exactions, or
conditions, as the case may be.
(b) ``Reasonable Time'' Defined.--For the purposes of subsection
(a)(2), the term ``reasonable time'' means--
(1) not more than six months after an action described in
subsection (a)(1); or
(2) in the event of a referral to the Foreign Claims
Settlement Commission of the United States, not more than
twenty days after the report of the Commission is received.
(c) Expiration of Determinations.--A determination of the Secretary
under subsection (a) shall remain in effect until rescinded.
(d) Rescission of Determinations.--A determination of the Secretary
under subsection (a) with respect to a foreign government shall not be
rescinded unless the President submits to the appropriate congressional
committees a report certifying that the government has taken
appropriate steps to--
(1) discharge its obligations under international law
toward such citizen or entity; or
(2) provide relief from the taxes, exactions, or
conditions, as the case may be.
(e) Publication.--A determination made under subsection (a) or a
report submitted under subsection (d) shall be published in the Federal
Register and made available on the Internet website of the Department
of State.
(f) List.--The Secretary shall include in the annual report
required by section 9302 (relating to congressional budget
justification) a list of foreign governments for which determinations
under subsection (a) are currently in effect.
(g) Waiver.--Assistance prohibited by subsection (a) may be
provided to a foreign government described in that subsection if, at
least 15 days before providing assistance, the President submits to the
appropriate congressional committees--
(1) a certification that such a waiver is important to the
national interests of the United States; and
(2) a report describing--
(A) the type and amount of assistance to be
provided pursuant to the waiver;
(B) the justification for such waiver; and
(C) the time period for which such waiver will be
effective.
(h) Foreign Claims Settlement Commission.--
(1) In general.--Upon request of the President (within 70
days after an action referred to in subsection (a)(1)), the
Foreign Claims Settlement Commission of the United States
(established pursuant to Reorganization Plan No. 1 of 1954, 68
Stat. 1279) is hereby authorized to evaluate expropriated
property, determining the full value of any property
nationalized, expropriated, or seized, or subject to
discriminatory or other actions as aforesaid, for purposes of
this section and to render an advisory report to the President
within 90 days after such request.
(2) Form of report.--Unless authorized by the President,
the Commission shall not publish its advisory report except to
the citizen or entity owning such property.
(3) Authorization of appropriations.--There is authorized
to be appropriated such amounts, to remain available until
expended, as may be necessary from time to time to enable the
Commission to carry out expeditiously its functions under this
subsection.
(i) Federal Act of State Doctrine.--
(1) In general.--Notwithstanding any other provision of
law, no court in the United States shall decline on the ground
of the Federal act of state doctrine to make a determination on
the merits giving effect to the principles of international law
in a case in which claim of title or other right to property is
asserted by any party, including a foreign state (or a party
claiming through such state), based upon (or traced through) a
confiscation or other taking after January 1, 1959, by an act
of that state in violation of the principles of international
law, including the principles of compensation and the other
standards set out in this section.
(2) Exceptions.--This subsection shall not be applicable--
(A) in any case in which an act of a foreign state
is not contrary to international law or with respect to
a claim of title or other right to property acquired
pursuant to an irrevocable letter of credit of not more
than 180 days duration issued in good faith prior to
the time of the confiscation or other taking; or
(B) in any case with respect to which the President
determines that application of the act of state
doctrine is required in that particular case by the
foreign policy interests of the United States and a
suggestion to this effect is filed on the President's
behalf in that case with the court.
SEC. 10503. PROHIBITION ON ASSISTANCE FOR COMPENSATION RELATING TO
EXPROPRIATED OR NATIONALIZED PROPERTY.
(a) Prohibition.--No foreign assistance may be provided to
compensate owners for expropriated or nationalized property and, upon
finding by the President that such assistance has been used by a
government for such purpose, no further assistance under this Act may
be provided to the government until appropriate reimbursement is made
to the United States.
(b) Exception.--The prohibition in subsection (a) shall not apply
to monetary assistance made available for use by a foreign government
to compensate nationals of that country in accordance with a land
reform program if the President determines that monetary assistance for
such land reform program will further the national interests of the
United States.
SEC. 10504. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT REFUSE
EXTRADITION REQUESTS.
(a) In General.--No assistance under this Act (other than
assistance under title V) may be provided to the central government of
a country which has notified the Department of State of its refusal to
extradite to the United States any individual indicted for a criminal
offense for which the maximum penalty is life imprisonment without the
possibility of parole or for killing a law enforcement officer, as
specified in a United States extradition request.
(b) Applicability.--The prohibition in subsection (a) shall only
apply to the central government of a country--
(1) with which the United States maintains diplomatic
relations; and
(2) which is violating the terms and conditions of its
extradition treaty with the United States.
(c) Waiver.--The Secretary may waive the prohibition in subsection
(a) on a case-by-case basis if the Secretary certifies and reports to
the appropriate congressional committees pursuant to section 9401 that
such waiver is important to the national interests of the United
States.
SEC. 10505. PROHIBITION ON TAXATION OF FOREIGN ASSISTANCE.
(a) In General.--No foreign assistance may be provided to a foreign
government under a bilateral agreement entered into after the date of
the enactment of this Act governing the terms and conditions under
which such assistance is to be provided unless such agreement includes
a provision stating that United States foreign assistance shall be
exempt from taxation or reimbursed by the foreign government.
(b) Reimbursement of Foreign Taxes.--In each fiscal year, the
Secretary shall reduce the amount of foreign assistance made available
under this Act to a government by an amount equivalent to the total
taxes assessed on United States foreign assistance, either directly or
through grantees, contractors and subcontractors, by such government in
the previous fiscal year, until such taxes have been reimbursed to the
United States.
(c) Transparency.--The Secretary shall include in each report on
allocations of assistance under section 9303 the amount of unreimbursed
taxes assessed by each government to which the United States Government
intends to provide funds.
(d) Definition.--In this section, the terms ``taxes'' and
``taxation'' refer to value-added taxes and customs duties imposed on
commodities financed with United States foreign assistance, and do not
include foreign taxes of a de minimis nature.
SEC. 10506. REIMBURSEMENT OF PARKING FINES AND REAL PROPERTY TAXES OWED
BY GOVERNMENTS.
(a) In General.--In each fiscal year, the Secretary shall reduce
the amounts made available to a foreign government under this Act by an
amount equivalent to 110 percent of the total amount of the unpaid
parking fines and unpaid property taxes owed by such government, until
such parking fines and property taxes are fully paid.
(b) Additional Amounts.--Amounts reduced under subsection (a) shall
be in addition to amounts withheld under any other provision of law.
(c) Waiver.--The Secretary may waive the requirements of subsection
(a) with respect to a government if the Secretary determines that it is
in the national interests of the United States to do so.
(d) Reports.--The Secretary shall--
(1) include in the annual report required by section 9302 a
list of governments for which waivers under subsection (c) have
been issued; and
(2) include in each report on allocations of assistance
under section 9303 the amount of unpaid parking fines and
unpaid property taxes owed by each foreign government to which
the United States Government intends to provide assistance.
(e) Definitions.--In this section--
(1) the term ``unpaid parking fines'' means fully
adjudicated parking fines, including penalties--
(A) which are incurred after April 1, 1997;
(B) which are owed to the District of Columbia or
New York, New York;
(C) for which the person to whom the vehicle is
registered--
(i) has not responded to the parking
violation summons; or
(ii) has not followed the appropriate
adjudication procedure to challenge the
summons; and
(D) for which the period of time for payment of or
challenge to the summons has lapsed; and
(2) the term ``unpaid property taxes'' means the amount of
unpaid taxes and interest determined to be owed by a foreign
country on real property in the District of Columbia or New
York, New York, in a court order or judgment entered against
such country by a court of the United States or any State or
subdivision thereof.
SEC. 10507. LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT.
No assistance made available under this Act may be made available
for new loans to the government of any country which is in default,
during a period in excess of six calendar months, in payment to the
United States of principal or interest on any loan made to such country
under this Act, unless--
(1) such country meets its obligations under the existing
loan; or
(2) the Secretary determines that new loans to such
government are in the national interest and notifies the
appropriate congressional committees of such determination.
SEC. 10508. PROHIBITION ON PROMOTION OF TOBACCO.
No foreign assistance may be made available to promote the sale or
export of tobacco or tobacco products, or to seek the reduction or
removal by any foreign country of restrictions on the marketing of
tobacco or tobacco products, except to ensure that restrictions are
applied equally to all tobacco or tobacco products of the same type.
SEC. 10509. PROHIBITION ON ASSISTANCE FOR OFFICIAL GIFTS.
No assistance made available under this Act may be used to pay for
a gift to an official of a foreign government.
Subtitle B--Policy Authorities
SEC. 10601. CONTINGENCIES.
(a) In General.--Notwithstanding any other provision of law, the
President is authorized to use funds made available to carry out any
provision of this Act in order to provide, for any unanticipated
contingencies, assistance authorized by title I, II or III in
accordance with the provisions applicable to the furnishing of such
assistance.
(b) Limitation.--The authority of subsection (a) may not be used to
authorize the use of more than $50,000,000 during any fiscal year.
(c) Report Required.--The President shall report in advance to the
extent practicable to the appropriate congressional committees each
time the President intends to exercise the authority of subsection (a).
SEC. 10602. TRANSFER BETWEEN ACCOUNTS.
(a) In General.--Whenever the President determines it to be
necessary for the purposes of this Act, not to exceed 10 percent of the
funds made available for any provision of this Act may be transferred
to, and consolidated with, the funds made available for any other
provision of this Act, and may be used for any of the purposes for
which such funds may be used, except that the total in the provision
for the benefit of which the transfer is made shall not be increased by
more than 20 percent of the amount of funds made available for such
provision.
(b) Exception.--The authority of subsection (a) shall not be used
to transfer funds made available for the purposes of titles I, II, or
III and consolidate them with funds made available for the purposes of
titles IV or V of this Act.
(c) Report Required.--The President shall report in advance to the
extent practicable to the appropriate congressional committees each
time the President intends to exercise the authority of subsection (a).
SEC. 10603. SPECIAL WAIVER AUTHORITY.
(a) Authority.--The President may authorize the taking of any
action (or the refraining from the taking of any action) under this Act
or any other Act relating to foreign assistance, notwithstanding any
provision of law, if the President determines--
(1) in cases relating to the transfer of defense articles
or defense services, that to do so is essential to the national
interests of the United States; and
(2) in any other cases, that to do so is important to the
national interests of the United States.
(b) Consultation With Congress.--Before exercising the authority of
subsection (a), the President shall consult with, and shall provide a
written policy justification to, the appropriate congressional
committees.
(c) Notification to Congress.--A determination under subsection (a)
shall not be effective until the President submits written notification
of that determination to the appropriate congressional committees.
(d) Annual Ceilings.--
(1) In general.--The authority of this section may not be
used in any fiscal year to authorize--
(A) more than $1,000,000,000 in sales or leases to
be made under subtitle C of title IV;
(B) the use of more than $500,000,000 of funds made
available for use under any other provision of this
Act; and
(C) the use of more than $100,000,000 of foreign
currencies accruing under this Act or any other law.
(2) Arms sales.--If the authority of this section is used
both to authorize a sale or lease under subtitle C of title IV
and to authorize funds to be used under this Act with respect
to the financing of that sale or lease, then the use of the
funds shall be counted against the limitation in paragraph
(1)(B) and the portion, if any, of the sale or lease which is
not so financed shall be counted against the limitation in
paragraph (1)(A).
(3) Leases.--For purposes of paragraph (1)(A), the
replacement cost, less any depreciation in the value, of the
defense articles authorized to be leased shall be counted
against the limitation in that paragraph.
(4) Country limits.--The following limitations shall apply
with respect to any one country in any fiscal year:
(A) Not more than $100,000,000 of the $500,000,000
limitation provided in paragraph (1)(B) may be
allocated to the country unless the country is a victim
of active aggression.
(B) Not more than $750,000,000 of the aggregate
limitation of $1,500,000,000 provided in paragraphs
(1)(A) and (1)(B) may be allocated to the country.
TITLE XI--ORGANIZATION, MANAGEMENT, AND HUMAN RESOURCES
SEC. 11001. DEFINITIONS.
In this title:
(1) Commodity.--The term ``commodity'' includes any
material, article, supply, goods, or equipment used for the
purposes of providing non-military assistance.
(2) Commodity restrictions.--The term ``commodity
restrictions'' means statutory and regulatory requirements that
apply to the procurement or transportation of commodities
financed under this Act, including--
(A) sections 11501 and 11503;
(B) section 901(b)(1) of the Merchant Marine Act of
1936;
(C) section 5 of the International Air
Transportation Fair Competitive Practice Act of 1974;
(D) section 644 of the Small Business Act;
(E) section 2711 of the Competition in Contracting
Act of 1984; and
(F) the Federal Property and Administrative
Services Act of 1949.
(3) Country of assignment.--The term ``country of
assignment'' means the foreign country in which an individual
serves an accredited representative of the United States
Government.
(4) Defense article and related terms.--The terms ``defense
article'', ``defense service'', ``defense information'',
``excess defense article'', ``major defense equipment'', and
``significant military equipment'' have the meanings given such
terms in section 4411.
(5) Federal employee.--The term ``Federal employee'' or
``employee'' has the meaning given the term ``employee'' in
section 2105(a) of title 5, United States Code.
(6) Federal officer.--The term ``Federal officer'' or
``officer'' has the meaning given the term ``officer'' in
section 2104 of title 5, United States Code.
(7) Federal personnel.--The term ``Federal personnel'' or
``personnel'' includes Federal employees, Federal officers,
personal services contractors, locally employed staff, foreign
national employees of the Foreign Service (as defined in
section 103(6) of the Foreign Service Act of 1980), and any
other individual employed by a Federal department or agency, as
defined under regulations prescribed by the President.
(8) Foreign service officer.--The term ``Foreign Service
Officer'' means a member of the Foreign Service as defined in
section 103 of the Foreign Service Act of 1980.
(9) Function.--The term ``function'' includes any duty,
obligation, power, authority, responsibility, right, privilege,
discretion, or activity.
(10) Gender analysis, equality, and integration.--The terms
``gender analysis'', ``gender equality'', and ``gender
integration'' have the meanings given such terms in section
1708.
(11) Local entity.--
(A) In general.--The term ``local entity'' means an
individual, corporation, nonprofit organization, or
another body of persons that--
(i) is located in a partner country;
(ii) is organized under the laws of the
partner country;
(iii) has as its principal place of
business or operations the partner country; and
(iv) is owned or controlled by citizens of
the partner country.
(B) Owned or controlled.--In subparagraph (iv), the
term ``owned or controlled'' means--
(i) in the case of a corporation, the
holding of at least 50 percent (by vote or
value) of the capital structure of the
corporation; or
(ii) in the case of any other kind of legal
entity, the holding of interests representing
at least 50 percent of the capital structure of
the entity.
(12) Service.--The term ``service'' includes any service,
repair, training, technical assistance, advice, or information
used for purposes of this Act.
Subtitle A--Organization
CHAPTER 1--EXERCISE AND COORDINATION OF FUNCTIONS
SEC. 11101. DELEGATIONS; REGULATIONS.
(a) Delegations by the President.--The President may exercise any
functions conferred upon the President by this Act through such Federal
agency or Federal officer as the President shall direct.
(b) Issue Regulations and Delegations by Agency Heads.--The head of
any such agency or any such officer exercising functions under this
Act--
(1) may from time to time promulgate such rules and
regulations as may be necessary to carry out such functions;
and
(2) may delegate authority, including the delegation to any
other agency, upon obtaining the concurrence of the head of
that agency, to perform any such functions, including, if the
delegating official shall so specify, the authority
successively to redelegate any such functions.
SEC. 11102. ROLE OF THE SECRETARY OF STATE.
(a) In General.--Under the direction of the President, the
Secretary shall be responsible for the continuous supervision, overall
coordination, and general direction of United States foreign
assistance, and for ensuring that the foreign policy of the United
States is best served thereby.
(b) Military Assistance.--The responsibility conferred upon the
Secretary in subsection (a) includes--
(1) all forms of military assistance; and
(2) determinations of whether to offer or deliver any form
of military assistance and the scope, types, amounts, and
conditions of such assistance.
SEC. 11103. ROLE OF THE CHIEF OF MISSION.
(a) In General.--The Chief of Mission shall be responsible for the
continuous supervision, overall coordination, and general direction of
all activities, resources, and programs of the United States Government
as they are carried out in the country of assignment.
(b) Exceptions.--The responsibility conferred upon the Chief of
Mission in subsection (a) shall not include authority over--
(1) Federal personnel under the command of a United States
area military commander; or
(2) Federal personnel specifically exempted by law or
designated by the President.
SEC. 11104. ROLE OF THE SECRETARY OF DEFENSE.
(a) Primary Responsibilities.--With respect to security assistance,
the Secretary of Defense shall have primary responsibility for--
(1) the determination of military end-item requirements;
(2) the procurement of military equipment in a manner that
permits its integration with service programs;
(3) the monitoring of military end-item use by the partner
countries;
(4) the supervision of the training of foreign military and
related civilian personnel;
(5) the movement and delivery of military end-items;
(6) the designation of defense articles as excess to United
States requirements; and
(7) the performance of any other related functions within
the Department of Defense.
(b) Regarding Military Equipment.--The establishment of priorities
in the procurement, delivery, and allocation of military equipment
shall be determined by the Secretary of Defense.
SEC. 11105. OFFICE FOR GLOBAL WOMEN'S ISSUES.
(a) Establishment.--There is established an Office for Global
Women's Issues (in this section referred to as the ``Office'') in the
Office of the Secretary of State in the Department of State. The Office
shall be headed by the Ambassador-at-Large (in this section referred to
as the ``Ambassador''), who shall report directly to the Secretary of
State.
(b) Purpose.--The Office shall coordinate efforts of the United
States Government regarding gender integration and women's empowerment
in United States foreign policy.
(c) Duties.--
(1) In general.--The Ambassador shall--
(A) coordinate and advise on activities, policies,
programs, and funding relating to gender integration
and women's empowerment internationally for all bureaus
and offices of the Department of State and in the
international programs of other Federal agencies;
(B) design, support, and as appropriate, implement,
limited projects regarding women's empowerment
internationally;
(C) actively promote and advance the full
integration of gender analysis into the programs,
structures, processes, and capacities of all bureaus
and offices of the Department of State and in the
international programs of other Federal agencies; and
(D) direct, as appropriate, United States
Government resources to respond to needs for gender
integration and women's empowerment in United States
Government foreign policies and international programs.
(2) Diplomatic representation.--Subject to the direction of
the President and the Secretary of State, the Ambassador is
authorized to represent the United States in matters relevant
to the status of women internationally.
(d) Reporting.--The heads of all bureaus and independent offices of
the Department of State, the United States Agency for International
Development, and the Millennium Challenge Corporation shall, as
appropriate, evaluate and monitor all women's empowerment programs
administered by such bureaus and offices and annually submit to the
Ambassador a report on such programs and on policies and practices to
integrate gender.
SEC. 11106. BUREAU FOR ENERGY RESOURCES.
(a) In General.--Section 931(a) of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17371(a)) is amended--
(1) in the subsection heading, by striking ``Coordinator
for'' and inserting ``Coordination of''; and
(2) in paragraph (2)--
(A) in the paragraph heading, by striking
``coordinator for'' and inserting ``coordination of'';
and
(B) by striking ``There is established within the
Office of the Secretary of State a Coordinator for
International Energy Affairs,'' and inserting in lieu
thereof the following: ``There is established within
the Department of State a Bureau for Energy Resources,
to be headed by an Assistant Secretary,''.
(b) Transfer Authority.--The Secretary of State may transfer any
authority, duty, or function assigned to the Coordinator for
International Energy Affairs or to the Office of International Energy
Affairs to the Assistant Secretary for Energy Resources or to the
Bureau for Energy Resources (as the case may be).
(c) Conforming Amendments.--(1) Section 1(c)(1) of the State
Department Basic Authorities Act of 1956 (22 U.S.C. 2651a), as amended
by this Act, is further amended by striking ``25'' and inserting
``26''.
(2) Section 5315 of title 5, United States Code, as amended by this
Act, is further amended in the item relating to Assistant Secretaries
of State, by striking ``(25)'' and inserting ``(26)''.
SEC. 11107. BUREAU OF OCEANS, ENVIRONMENT AND SCIENCE.
(a) Department of State Appropriations Authorization Act of 1973.--
Section 9 of the Department of State Appropriations Authorization Act
of 1973 (22 U.S.C. 2655a) is amended--
(1) in the section heading, by striking ``oceans and
international environmental and scientific affairs'' and
inserting ``oceans, environment and science'' ; and
(2) by striking ``Oceans and International Environmental
and Scientific Affairs'' each place it appears and inserting
``Oceans, Environment and Science''.
(b) Clean Air Act.--Section 617(a) of the Clean Air Act (42 U.S.C.
7671p(a)) is amended by striking ``Oceans and International
Environmental and Scientific Affairs'' and inserting ``Oceans,
Environment and Science''.
CHAPTER 2--UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
SEC. 11201. UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT.
(a) Establishment.--The United States Agency for International
Development shall be an agency of the United States whose programs
shall be under the continuous supervision, overall coordination, and
general direction of the Secretary of State.
(b) Mandate.--The mandate of the United States Agency for
International Development shall be to reduce global poverty and
alleviate human suffering.
(c) Statutory Officers.--
(1) Administrator.--The United States Agency for
International Development shall be headed by an Administrator,
who shall be appointed by the President, by and with the advice
and consent of the Senate.
(2) Deputy administrators.--The President may appoint, by
and with the advice and consent of the Senate, up to 2 Deputy
Administrators of the United States Agency for International
Development, who shall be compensated at the rate provided for
at level III of the Executive Schedule under section 5314 of
title 5, United States Code.
(3) Assistant administrators.--The President may appoint,
by and with the advice and consent of the Senate, up to 13
Assistant Administrators of the United States Agency for
International Development, who shall be compensated at the rate
provided for at level IV of the Executive Schedule under
section 5315 of title 5, United States Code. Among these shall
be--
(A) an Assistant Administrator for Policy,
Planning, and Learning;
(B) an Assistant Administrator for Food Security;
(C) an Assistant Administrator for Democratic and
Civic Development; and
(D) an Assistant Administrator for Economic Growth,
Environment, and Energy.
(4) Nominations of assistant administrators.--Whenever the
President submits to the Senate a nomination of an individual
for appointment to a position in the United States Agency for
International Development pursuant to paragraph (3), the
President shall designate the regional or functional bureau or
bureaus of the Agency with respect to which the individual
shall have responsibility.
(d) Conforming Amendments.--Title 5, United States Code, is amended
as follows:
(1) In section 5315, in the item relating to Assistant
Administrators, Agency for International Development--
(A) by inserting ``United States'' before
``Agency''; and
(B) by striking ``(6)'' and inserting ``(13)''.
(2) In section 7103(a)(2)(B)(iv), by inserting ``United
States'' before ``Agency for International Development''.
SEC. 11202. ROLE OF THE ADMINISTRATOR.
(a) In General.--The Administrator shall have the responsibility
for carrying out the mandate of the United States Agency for
International Development and for coordinating all United States
development-related activities.
(b) Chief Development Advisor.--The Administrator shall be the
chief development advisor to the Secretary of State.
(c) National Security Council Participation.--The President should
invite the Administrator to participate in all appropriate meetings of
the National Security Council.
(d) United Nations Development Agencies.--The Administrator should
be responsible for the coordination and direction of United States
policy regarding, and contributions to, all development-related
agencies of the United Nations, in consultation with the Assistant
Secretary of State for International Organization Affairs.
(e) Multilateral Development Banks.--The President should appoint
the Administrator to be the Alternate United States Governor of the
Asian Development Bank, the African Development Bank, and the Inter-
American Development Bank.
SEC. 11203. OVERSEAS MISSIONS.
(a) Authority To Maintain Overseas Missions.--
(1) In general.--The Administrator may maintain special
missions or staffs outside the United States in such countries
and for such periods of time as may be necessary to carry out
the purposes of this Act.
(2) Other locations.--To the degree permitted by security
and financial considerations, the Secretary should give
favorable consideration to requests by the Administrator that
the Secretary exercise authority under section 606(a)(2)(B) of
the Secure Embassy Construction and Counterterrorism Act of
1999 (22 U.S.C. 4865(a)(2)(B)) to waive certain requirements of
that Act in order to permit the United States Agency for
International Development to maintain such missions or staffs
at locations separate from the United States embassy.
(b) Appointment.--The Administrator may appoint a head, who shall
be known as the Mission Director, of each office or staff maintained
under subsection (a).
(c) Compensation and Allowances.--Each Mission Director may receive
such compensation and allowances as are authorized by the Foreign
Service Act of 1980, not to exceed those authorized for a chief of
mission (as defined in section 102(a)(3) of that Act), as the
Administrator deems appropriate.
(d) Role of Mission Director.--The Mission Director's
responsibilities shall include--
(1) serving as the primary development and humanitarian
advisor to the Chief of Mission;
(2) coordinating preparation of the Country Development
Cooperation Strategy; and
(3) supervising and directing United States development
cooperation with, and United States humanitarian operations in,
such country.
(e) Relationship to Foreign Assistance Coordinator.--The
responsibilities assigned to the Mission Director under subsection (d)
shall not preclude the Secretary of State from appointing an individual
to oversee and coordinate the full range of economic and security
assistance programs in a country.
SEC. 11204. CHAIRMAN OF OECD DEVELOPMENT ASSISTANCE COMMITTEE.
(a) Appointment.--The President may--
(1) appoint any United States citizen who is not a Federal
employee, or
(2) assign any United States citizen who is a Federal
employee,
to serve as Chairman of the Development Assistance Committee (DAC) or
any successor committee thereto of the Organization for Economic
Cooperation and Development, upon election thereto by members of said
Committee.
(b) Compensation and Allowances.--
(1) In general.--An individual appointed or assigned under
subsection (a) may receive such compensation and allowances as
are authorized by the Foreign Service Act of 1980, not to
exceed those authorized for a chief of mission (as defined in
section 102(a)(3) of that Act), as the President deems
appropriate.
(2) Additional provisions.--Such individual (if appointed
under subsection (a)(1)) shall be deemed to be a Federal
employee for purposes of chapters 81, 83, 84, 87, and 89 of
title 5, United States Code. Such individual may also, in the
President's discretion, receive any other benefits and
perquisites then available under this Act to a Chief of Mission
under section 11103.
SEC. 11205. RESPONSIBILITIES OF THE INSPECTOR GENERAL OF THE UNITED
STATES AGENCY FOR INTERNATIONAL DEVELOPMENT.
Section 8A of the Inspector General Act of 1978 (5 U.S.C. App. 3)
is amended--
(1) by redesignating subsections (b) through (f) as
subsections (c) through (g), respectively; and
(2) inserting after subsection (a) the following:
``(b) In addition to the other duties and responsibilities
specified in this Act, the Inspector General of the United States
Agency for International Development shall supervise, direct, and
control all audit and investigative activities relating to programs and
operations within the African Development Foundation, the Inter-
American Foundation, the Millennium Challenge Corporation, the Office
of the U.S. Global AIDS Coordinator of the Department of State, and the
United States Trade and Development Agency.''.
Subtitle B--Management and Program Administration
CHAPTER 1--OPERATING EXPENSES AND ADMINISTRATIVE AUTHORITIES
SEC. 11301. OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR
INTERNATIONAL DEVELOPMENT.
(a) Operating Expenses.--The Administrator is authorized to use up
to 10 percent of the total amount of funds managed by the United States
Agency for International Development in a fiscal year for operating
expenses of the United States Agency for International Development.
(b) Capital Investment Fund.--In addition to funds made available
under subsection (a), the Administrator is authorized to use up to 1
percent of the total amount of funds managed by the United States
Agency for International Development in a fiscal year for overseas
construction and related costs, and for the procurement and enhancement
of information technology and related capital investments. Amounts made
available under this subsection are authorized to remain available
until expended.
(c) Management of Funds.--The annual congressional budget
justification prepared pursuant to section 9302 of this Act shall
contain an estimate of the total funds managed by the United States
Agency for International Development, disaggregated by account, and a
detailed operating expenses budget.
(d) Status of Obligations.--The Administrator shall keep the
appropriate congressional committees currently informed of the status
of obligations of amounts made available under this section.
(e) Definitions.--In this section:
(1) Operating expenses.--The term ``operating expenses''
means a use of funds that is authorized under section 11302.
(2) Funds managed by agency.--The term ``funds managed by
the United States Agency for International Development'' means
all funds over which the Administrator has obligation
authority, including--
(A) appropriations to carry out this Act;
(B) allocations or transfers from any other Federal
agency, or from other appropriations, for functions
directly related to the purposes of this Act; and
(C) proceeds from the disposal of property acquired
under the authority of section 11302 (or predecessor
provisions of law).
SEC. 11302. AUTHORIZED USES OF FUNDS.
(a) Authorized Uses.--For purposes of section 11301(a), the
following costs shall be considered operating expenses of the United
States Agency for International Development and shall be included
within the percentage limitation contained in such section:
(1) All compensation, training and benefits for Agency
personnel, including personal services contractors, during the
time such personnel have Washington D.C. or other places in the
United States as their official duty station.
(2) Travel and transportation of Agency personnel described
in paragraph (1) and their dependents and possessions.
(3) Acquisition, rent, operation and maintenance in the
United States of motor vehicles, aircraft, and vessels.
(4) Acquisition, rent, operation and maintenance in the
United States of land and facilities.
(5) Furniture and equipment located in the United States,
including operation and maintenance.
(6) Utilities, insurance, communications, printing and
reproduction, and miscellaneous services and charges in the
United States.
(7) Subscriptions, supplies and materials for use in the
United States.
(8) Attendance at meetings and conferences of Agency
personnel described in paragraph (1).
(9) Commissions, councils, boards and similar groups
authorized by law primarily located in the United States.
(10) Security equipment and services in the United States.
(11) Institutional, administrative service, and any other
contract, including profit and overhead, for work to be
performed primarily in the United States.
(12) Representation and entertainment expenses in the
United States.
(b) Compliance With Federal Law.--All new facilities constructed
under the authorities of this section, whether inside or outside the
United States, shall comply with all relevant Federal codes and
standards requiring access for persons with disabilities.
SEC. 11303. OPERATING EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL.
(a) In General.--The President is authorized to pay for the
necessary operating expenses of the Office of the Inspector General of
the United States Agency for International Development to the extent
and in the amounts authorized and appropriated for such purposes in any
fiscal year.
(b) Additional Amounts.--There are authorized to be appropriated to
the President such amounts as may be necessary for increases in
compensation, retirement, and other personnel benefits authorized by
law, and for other nondiscretionary costs of the Office.
SEC. 11304. ADMINISTRATIVE AUTHORITIES OF THE DEPARTMENT OF DEFENSE.
(a) In General.--Funds allocated to the Department of Defense for
the purpose of providing assistance under this Act shall be available
for the following:
(1) Administrative, extraordinary (not to exceed $300,000
in any fiscal year), and operating expenses incurred in
furnishing assistance under this Act administered through the
Department of Defense, including the purchase of passenger
motor vehicles for replacement only for use outside of the
United States.
(2) Reimbursement of actual expenses of military officers
detailed or assigned as tour directors in connection with
orientation visits of foreign military and related civilian
personnel, in accordance with the provisions of section 5702 of
title 5, United States Code, applicable to Federal employees.
(3) Maintenance, repair, alteration, and furnishing of
United States-owned facilities in the District of Columbia or
elsewhere for the training of foreign military and related
civilian personnel without regard to the provisions of section
6303 of title 41, United States Code, or other provision of law
requiring a specific authorization or specific appropriation
for such public contracts.
(b) Military Officer.--The term ``military officer'' means a
commissioned, warrant, or non-commissioned officer of the United States
Armed Forces.
SEC. 11305. WORKING CAPITAL FUND.
(a) Establishment.--The Administrator is authorized to establish a
Working Capital Fund (in this section referred to as the ``Fund'').
(b) Purpose.--Amounts deposited during any fiscal year in the Fund
shall be available without fiscal year limitation and used, in addition
to other funds available for such purposes, for administrative costs
resulting from Agency implementation and procurement reform efforts,
the administration of this Fund, and administrative contingencies
designated by the Administrator.
(c) Deposits Into the Fund.--There may be deposited in any fiscal
year in the Fund up to 1 percent of the total value of obligations
entered into by the Agency from appropriations available to the Agency
and any appropriation made available for the purpose of providing
capital. Receipts from the disposal of, or payments for the loss or
damage to, property held in the Fund, rebates, reimbursements, refunds
and other credits applicable to the operation of the Fund may be
deposited into the Fund.
(d) Refunds.--At the close of each fiscal year the Administrator
shall transfer out of the Fund and into the Emergency Humanitarian
Response Fund established under section 1905 of this Act amounts in
excess of $100,000,000 and any other amounts that the Administrator
determines to be in excess of the needs of the Fund.
SEC. 11306. SUSPENSION AND DEBARMENT.
(a) Eligibility To Receive Funds.--The President shall issue and
enforce regulations determining the eligibility of any person to
receive funds made available under this Act.
(b) Suspension.--The regulations described in subsection (a) shall
provide for the suspension of eligibility of a person for a temporary
period pending the completion of an investigation and any resulting
judicial or debarment proceedings, upon cause for belief that such
person or an affiliate thereof probably has undertaken conduct which
constitutes a cause for debarment.
(c) Debarment.--A person may be debarred from further receipt of
funds made available under this Act, and from participating in any
contract or agreement regarding the use of funds made available under
this Act, for--
(1) conviction of or civil judgment for--
(A) commission of fraud or a criminal offense in
connection with obtaining, attempting to obtain, or
performing a public or private agreement or
transaction;
(B) violation of Federal or State antitrust
statutes, including those proscribing price fixing
between competitors, allocation of customers between
competitors, and bid rigging;
(C) commission of embezzlement, theft, forgery,
bribery, falsification or destruction of records,
making false statements, tax evasion, receiving stolen
property, making false claims or obstruction of
justice; or
(D) commission of any other offense indicating a
lack of business integrity or business honesty;
(2) violation of the terms of a public agreement or
transaction so serious as to affect the integrity of a program
under this Act, such as--
(A) a willful failure to perform in accordance with
the terms of one or more public agreements or
transactions;
(B) a history of failure to perform or of
unsatisfactory performance of one or more public
agreements or transactions; or
(C) a willful violation of a statutory or
regulatory provision or requirement applicable to a
public agreement or transaction; or
(3) any of the following causes:
(A) knowingly doing business with an ineligible
person;
(B) failure to pay a single substantial debt, or a
number of outstanding debts, owed to any Federal agency
or instrumentality; or
(C) any other cause of a serious or compelling
nature.
(d) Reinstatement.--Reinstatement of eligibility in each particular
case shall be subject to such conditions as the President shall direct.
SEC. 11307. FALSE CLAIMS AND INELIGIBLE COMMODITIES.
(a) In General.--Any person who makes or causes to be made or
presents or causes to be presented to any bank or other financial
institution or to any officer, agent, or employee of any agency of the
United States Government a claim for payment from funds made available
under this Act for the purposes of furnishing assistance and who knows
the claim to be false, fraudulent, or fictitious or to cover a
commodity or commodity-related service determined by the President to
be ineligible for payment from funds made available under this Act, or
who uses to support such claim any certification, statement, or entry
on any contract, bill of lading, Government or commercial invoice, or
Government form, which such person knows, or in the exercise of prudent
business management should know, to contain false, fraudulent, or
fictitious information, or who uses or engages in any other fraudulent
trick, scheme, or device for the purpose of securing or obtaining, or
aiding to secure or obtain, for any person any benefit or payment from
funds so made available under this Act in connection with the
negotiation, procurement, award, or performance of a contract financed
with funds so made available under this Act, and any person who enters
into an agreement, combination or conspiracy to do so--
(1) shall pay to the United States an amount equal to 25
per centum of any amount thereby sought to be wrongfully
secured or obtained but not actually received;
(2) shall forfeit and refund any payment, compensation,
loan, commission, or advance received as a result thereof; and
(3) shall, in addition, pay to the United States for each
such act--
(A) the sum of $2,000 and double the amount of any
damage which the United States may have sustained by
reason thereof; or
(B) an amount equal to 50 per centum of any such
payment, compensation, loan, commission, or advance so
received, whichever is the greater, together with the
costs of suit.
(b) Judicial Proceeding and Withholding of Funds.--
(1) In general.--In order to secure recovery under this
section, the President may, as the President deems
appropriate--
(A) institute suit in the United States district
court for any judicial district in which the person
alleged to have performed or participated in an act
described by this section may reside or may be found;
and
(B) upon posting by registered mail to such person
a notice of claim describing the basis therefor and
identifying the funds to be withheld, withhold from
funds owed by any agency of the United States
Government to such person an amount equal to the
refund, damages, liquidated damages, and exemplary
damages claimed by the United States under this
section.
(2) Effect of withholding.--Any such withholding of funds
from any person shall constitute a final determination of the
rights and liabilities of such person under this section with
respect to the amount so withheld, unless within one year of
receiving the notice of claim such person brings suit for
recovery, which is hereby authorized, against the United States
in any United States district court.
(c) Person Defined.--For purposes of this section, the term
``person'' includes any individual, corporation, partnership,
association, or other legal entity.
SEC. 11308. TERMINATION EXPENSES.
(a) Termination Expenses.--
(1) In general.--Funds made available under this Act, the
former authority of the Foreign Assistance Act of 1961, the
former authority of section 23 of the Arms Export Control Act,
or other predecessor provisions of law shall remain available
for obligation for a period not to exceed 8 months from the
date of any termination of assistance under such Acts for the
necessary expenses of winding up programs related to such
termination and may remain available until expended.
(2) Treatment of obligated funds.--Funds obligated under
the authority of such Acts prior to the effective date of the
termination of assistance may remain available for expenditure
for the necessary expenses of winding up programs related to
such termination notwithstanding any provision of law
restricting the expenditure of funds.
(3) Completion of training or studies.--In order to ensure
the effectiveness of such assistance, such expenses for orderly
termination of programs may include the obligation and
expenditure of funds to complete the training or studies
outside their countries of origin of students whose course of
study or training program began before assistance was
terminated.
(b) Liability to Contractors.--For the purpose of making an
equitable settlement of termination claims under extraordinary
contractual relief standards, the President is authorized to adopt as a
contract or other obligation of the United States Government, and
assume (in whole or in part) any liabilities arising thereunder, any
contract with a United States or third-country contractor that had been
funded with assistance under the Acts referred to in subsection (a)
prior to the termination of assistance.
(c) Reobligation of Amounts Terminated.--Amounts obligated for
assistance and subsequently terminated by the President, or by any
provision of law, shall continue to remain available and may be
reobligated to meet any necessary expenses arising from the termination
of such assistance.
(d) Guaranty Programs.--No provision of this Act or any other Act
requiring the termination of assistance under this Act or any other Act
shall be construed to require the termination of guarantee commitments
that were entered into prior to the effective date of the termination
of assistance.
(e) Relation to Other Provisions.--Unless specifically made
inapplicable by another provision of law, the provisions of this
section shall be applicable to the termination of assistance pursuant
to any provision of law.
SEC. 11309. PROHIBITION ON CERTAIN FIRST-CLASS TRAVEL.
None of the funds made available under this Act may be used for
first-class travel by Federal personnel of agencies funded by this Act
in contravention of sections 301-10.122 through 301-10.124 of title 41,
Code of Federal Regulations.
CHAPTER 2--ASSISTANCE AUTHORITIES AND PROGRAM EXPENSES
SEC. 11401. GENERAL ASSISTANCE AUTHORITIES.
(a) Terms of Assistance.--Except as otherwise specifically
prohibited in this Act, assistance under this Act may be furnished on a
grant, loan, or guaranty basis, or on such terms, including cash,
credit, or other terms of repayment (including repayment in foreign
currencies or by transfer to the United States Government of articles),
as may be determined to be best suited to the achievement of the
purposes of this Act.
(b) Terms and Conditions.--The President, the Secretary, and the
Administrator, as the case may be, may furnish assistance under this
Act on such terms and conditions (consistent with other provisions of
law) as he or she deems appropriate, and, consistent with the
provisions of this Act, may charge such fees for guarantees and loans
under this Act as he or she deems appropriate. Credit assistance shall
be consistent with the provisions of the Federal Credit Reform Act of
1990. In the case of contributions or other assistance provided for an
international organization or arrangement under this or any other Act,
such organization or arrangement may utilize its own procurement,
administrative, accounting, and audit rules and procedures.
(c) Implementation.--In furtherance of the purposes and subject to
the limitations of this Act, the President, the Secretary, and the
Administrator, in providing assistance under this Act, may make loans
(in conformity with the provisions of the Federal Credit Reform Act of
1990), advances, and grants to, make and perform agreements and
contracts with, or enter into other transactions with, any person,
corporation, or other body of persons, any government or government
agency, and any international organization or arrangement.
(d) Gifts.--The President, the Secretary, and the Administrator may
accept and use in furtherance of the purposes of this Act, money,
funds, property, and services of any kind made available by gift,
devise, bequest, grant, or otherwise for such purpose.
(e) Insurance.--
(1) Foreign participants.--Any Federal agency is authorized
to pay the cost of health and accident insurance for foreign
participants in any program of furnishing assistance
administered by such agency while such participants are absent
from their homes for the purpose of participation in such
program.
(2) Foreign personnel.--Any Federal agency is authorized to
pay the cost of health and accident insurance for foreign
personnel of that agency while such personnel are absent from
their places of employment abroad for purposes of training or
other official duties.
(f) Admission to United States.--Alien participants in any program
of furnishing assistance under this Act may be admitted to the United
States if otherwise qualified as nonimmigrants under section 101(a)(15)
of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)), for such
time and under such conditions as may be prescribed by regulations
promulgated by the Secretary of State and the Attorney General.
(g) Assistance Authorities.--In furnishing and administering
assistance under this Act, the President, the Secretary, and the
Administrator--
(1) may issue letters of credit and letters of commitment;
(2) may collect, compromise, reschedule or otherwise settle
any obligations assigned to, or held by, and any legal or
equitable rights accruing to, the United States and may (as he
or she deems appropriate) refer any such obligations or rights
to the Attorney General for suit or collection;
(3) may--
(A) acquire and dispose of (upon such terms and
conditions as he or she deems appropriate) any
property, including any instrument evidencing
indebtedness or ownership; and
(B) guarantee payment against any such instrument;
(4) may establish the character of, and decide the
necessity for, obligations and expenditures of funds used in
furnishing and administering such assistance and the manner in
which such obligations and expenditures shall be incurred,
allowed, and paid, subject to provisions of law specifically
applicable to corporations of the United States Government; and
(5) shall cause to be maintained an integral set of
accounts which shall be audited by the Government
Accountability Office in accordance with principles and
procedures applicable to commercial corporate transactions as
provided by chapter 91 of title 31, United States Code.
(h) Guarantees.--Guarantees issued to carry out the purposes of
this Act shall be subject to the following:
(1) Full faith and credit.--The full faith and credit of
the United States may be pledged for the full payment and
performance of guarantees issued under this Act or predecessor
Acts.
(2) Charges.--The President may charge appropriate fees or
interest in connection with the activities carried out under
such authority.
(3) Relationship to other provisions of law.--Guarantees
may be provided under this Act without regard to commodity
restrictions.
(4) Denomination of liability.--The losses guaranteed may
be in dollars or in other currencies. In the case of losses
guaranteed in currencies other than dollars, the guarantees
issued shall be subject to an overall payment limitation
expressed in dollars.
(i) Loan Guarantees to Israel Program.--Notwithstanding section
12201(1), section 226 of the Foreign Assistance Act of 1961 (22 U.S.C.
2186; relating to Loan Guarantees to Israel Program), shall not be
repealed and shall remain in effect as on the day before the date of
the enactment of this Act.
(j) Subsidy Cost of Guarantees and Loans.--The President, the
Secretary, and the Administrator, as the case may be, may use funds
made available under this Act to pay the cost (as defined in section
13201 of the Budget Enforcement Act of 1990) of direct loans and loan
guarantees made or entered into (and associated administrative costs)
in furtherance of the purposes of this Act. Funds appropriated to pay
the cost (as defined in section 13201 of the Budget Enforcement Act of
1990) of direct loans and loan guarantees made or entered into to carry
out the provisions of this Act shall be provided in conformity with
section 504(b)(1) of the Federal Credit Reform Act of 1990.
(k) Claims Relating to Guarantees.--Claims arising as a result of
any guarantee program authorized by this Act may be settled, and
disputes arising as the result thereof may be arbitrated with the
consent of the parties, on such terms and conditions as the President
may direct. Payment made pursuant to any such settlement, or as a
result of an arbitration award, shall be final and conclusive
notwithstanding any other provision of law.
(l) Financial Transactions With Foreign Governments in Default of
Obligations to the United States.--Section 955 of title 18, United
States Code, shall not apply to any person--
(1) who acts for or participates in any operation or
transaction arising under this Act; or
(2) who acquires any obligation issued in connection with
any operation or transaction arising under this Act.
(m) Educational Institutions.--Any cost-type contract or agreement
(including grants) entered into with an institution of higher education
for the purpose of carrying out programs authorized by this Act may
provide for the payment of the reimbursable indirect costs of that
institution on the basis of predetermined fixed-percentage rates
applied to the total or an element thereof, of the reimbursable direct
costs incurred.
(n) Per Diem.--Funds made available under this Act may be used for
payment of per diem in lieu of subsistence to foreign participants
engaged in any program under this Act while such participants are away
from their homes in countries other than the United States, at rates
not in excess of those prescribed by the standardized Government travel
regulations, notwithstanding any other provision of law.
(o) Multiyear Commitments.--Except as otherwise provided in this
Act, a contract or agreement which entails commitments for the
expenditure of funds under this Act may, subject to any future action
of the Congress, extend at any time for not more than 5 years.
(p) Program and Management Oversight.--The Administrator may use
funds made available under title I to provide program and management
oversight for activities that are funded under that title and that are
conducted in countries in which the Agency does not have a field
mission or office.
SEC. 11402. AUTHORITY TO CONDUCT REIMBURSABLE PROGRAMS.
(a) General Authority.--Whenever the President considers it
consistent with and within the limitations of this Act, any Federal
agency is authorized to furnish services and articles on an advance-of-
funds or reimbursement basis to partner countries, international
organizations and arrangements, and nongovernmental organizations.
(b) Personal Service Contracts.--
(1) In general.--When any Federal agency provides services
on an advance-of-funds or reimbursable basis under this
section, such agency may contract with individuals for personal
service abroad or in the United States--
(A) to perform such services; or
(B) to replace, in a manner otherwise permitted by
law, Federal employees who are assigned by the agency
to provide such services.
(2) Rule of construction.--Such individuals shall not be
regarded as Federal employees for the purpose of any law
administered by the Office of Personnel Management.
(c) Use of Payments.--Advances and reimbursements received under
this section shall be credited to the currently applicable
appropriation, account, or fund of the agency concerned and shall be
available for the purposes for which such appropriation, account, or
fund is authorized to be used.
SEC. 11403. RETENTION OF INTEREST.
(a) General Authority.--The Administrator may, for the purpose of
carrying out the provisions of title I, enter into agreements with
international organizations and with local entities that provide for
the retention by such organizations and entities, without deposit in
the Treasury of the United States and without further appropriation by
Congress, of interest earned on the advance of funds.
(b) Use of Interest.--Any interest earned on the advance of funds
made available under subsection (a) shall be used only for the purposes
for which the agreement is made.
(c) Audits.--The Administrator shall audit, on a regular and
recurring basis, interest earned on advance funds to ensure that the
requirements of subsection (a) are strictly observed.
(d) Limitation.--The authorities of this section may be used only
for agreements with a value of $5,000,000 or less.
(e) Transparency.--The Administrator shall make publicly available
on the Internet website of the Agency information about each agreement
made under the authority of this section, including the name of the
organization or entity and the amount and the purpose of the agreement.
SEC. 11404. MARKING AND BRANDING OF ECONOMIC AND HUMANITARIAN
ASSISTANCE.
(a) Requirement.--Economic assistance and humanitarian assistance
implemented with funds made available to any agency to carry out the
purposes of this or any other Act, and to any contractor or grantee
thereof, shall be identified as being ``From the American People'' and
only as follows:
(1) The site or article, as appropriate, shall not include
any reference to a particular Federal agency or division
thereof.
(2) The identification of the assistance shall include only
a representation of the American flag, and shall not include
any logo of a particular Federal agency or division thereof.
(b) Relationship to Other Provisions of Law and Regulations.--The
provisions of this section shall be applicable notwithstanding any
other provision of this or any other Act, and notwithstanding any
Federal regulation, agency guidance, or procedure to the contrary.
(c) Applicability.--The provisions of this section shall be
applicable to all--
(1) articles; and
(2) program, project and activity sites.
(d) Ongoing Programs.--To the extent it is feasible and cost
effective to do so, the marking and branding of articles and sites
financed pursuant to ongoing agreements, including grants, contracts,
and cooperative agreements, shall be conformed to meet the requirements
of this section.
(e) Exceptions.--The requirements of subsection (a) shall not
apply--
(1) if the Chief of Mission or the relevant Assistant
Secretary of State determines that the marking of a particular
program, project, or activity would--
(A) jeopardize the health, safety or human rights
of a private partner or intended beneficiary; or
(B) be detrimental to the achievement of overall
United States foreign policy objectives in such
country;
(2) if the Secretary determines that the marking of
economic assistance or humanitarian assistance in such country
would be detrimental to the achievement of overall United
States foreign policy objectives in such country; or
(3) to office space occupied by the implementing partner,
or to housing, personal vehicles or other personal property of
employees thereof.
(f) Exemption From Determination.--A determination under subsection
(e)(2) shall not preclude the Secretary from requiring that specific
articles or sites financed by the United States Government in such
country be subject to the requirements of subsection (a).
(g) Co-Branding.--The requirements of subsection (a) shall not
prohibit the identification of economic assistance or humanitarian
assistance provided through a private partner with such partner's own
organizational brand or logo, subject to any standards or regulations
that the President may establish.
SEC. 11405. REDUCTIONS IN DESIGNATED FUNDS.
(a) Designated Funds Defined.--For the purposes of this section,
the term ``designated funds'' means amounts within an account that are
authorized or appropriated to be available only for a particular
country, organization, or purpose during a specified fiscal period.
(b) Proportional Reductions.--If the amount appropriated for a
fiscal period to carry out any provision of this Act (including
rescissions and reductions required by law) is less than the amount
authorized to be appropriated to carry out such provision, then the
President is authorized to make a proportionate reduction in designated
funds, notwithstanding the provision of law making such designation.
(c) Reprogrammings.--Notwithstanding a provision of law providing
for designated funds, the President may reprogram such designated funds
to other programs within the same account under the same terms and
conditions as originally provided, if--
(1) compliance with such provision of law is made
impossible by operation of law; or
(2) the President determines that a significant change in
circumstances relating to the particular country, organization,
or purpose makes it unlikely that the designated funds can be
obligated during the original period of availability.
(d) Congressional Notification.--A reprogramming pursuant to
subsection (c) shall be subject to the regular notification procedures
under section 9401.
SEC. 11406. REQUIREMENT FOR AUTHORIZATION OF APPROPRIATIONS.
(a) Requirement for Authorization.--Funds appropriated to carry out
this Act shall not be available for obligation or expenditure--
(1) unless the appropriation thereof has been specifically
authorized by law; or
(2) in excess of the amount authorized by law.
(b) Subsequent Authorizations.--To the extent that legislation
enacted after the making of an appropriation for foreign assistance
authorizes the obligation or expenditure thereof, the limitation
contained in subsection (a) shall not apply.
(c) Relation to Other Provisions.--The provisions of this section
shall not be superseded except by a provision of law that specifically
repeals or modifies the provisions of this section.
SEC. 11407. UNEXPENDED BALANCES.
Unexpended balances of funds made available pursuant to the Foreign
Assistance Act of 1961 (as in effect on the day before the date of the
enactment of this Act) are authorized to remain available for the
general purposes for which appropriated and may be consolidated with
appropriations made available for the same general purposes under the
authority of this Act.
SEC. 11408. AUTHORITY FOR EXTENDED PERIOD OF AVAILABILITY OF
APPROPRIATIONS.
Unless otherwise specified, amounts appropriated to carry out this
Act are authorized to remain available until expended.
SEC. 11409. SUPPORT FOR REGIONAL, INTERNATIONAL AND NONGOVERNMENTAL
ORGANIZATIONS.
In carrying out the goals and objectives of this Act, the
Administrator is authorized to support programs, projects, and
activities of, and to provide technical assistance to, regional,
international, and nongovernmental organizations.
SEC. 11410. PROTECTION OF PATENTS AND TECHNICAL INFORMATION.
(a) Inventions and Discoveries.--Whenever, in connection with the
furnishing of assistance under this Act--
(1) an invention or discovery covered by a patent issued by
the United States Government is practiced within the United
States without the authorization of the owner, or
(2) information, which is (A) protected by law, and (B)
held by the United States Government subject to restrictions
imposed by the owner, is disclosed by the United States
Government or any of its officers, employees, or agents in
violation of such restrictions,
the exclusive remedy of the owner, except as provided in subsection
(b), is to sue the United States Government for reasonable and entire
compensation for such practice or disclosure in the district court of
the United States for the district in which such owner is a resident,
or in the United States Court of Federal Claims within six years after
the cause of action arises. Any period during which the United States
Government is in possession of a written claim under subsection (b)
before mailing a notice of denial of that claim does not count in
computing the six years. In any such suit, the United States Government
may plead any defense that may be pleaded by a private person in such
an action. The last paragraph of section 1498(a) of title 28 of the
United States Code shall apply to inventions and information covered by
this section.
(b) Remedy.--Before suit against the United States Government has
been instituted, the head of the agency of the United States Government
concerned may settle and pay any claim arising under the circumstances
described in subsection (a). No claim may be paid under this subsection
unless the amount tendered is accepted by the claimant in full
satisfaction.
(c) Pharmaceutical Products.--No assistance under this Act may be
made available for the acquisition of any drug product or
pharmaceutical product manufactured outside the United States, if the
manufacture of such drug product or pharmaceutical product in the
United States would involve the use of, or be covered by, an unexpired
patent of the United States which has not previously been held invalid
by an unappealed or unappealable judgment or decree of a court of
competent jurisdiction, unless--
(1) such manufacture is expressly authorized by the owner
of such patent; or
(2) the President determines, on a case-by-case basis, that
the application of this subsection would significantly reduce
the ability of the United States to save lives and alleviate
human suffering in a developing country.
SEC. 11411. PRIVATE AND VOLUNTARY ORGANIZATIONS AND COOPERATIVES.
Prohibitions on assistance to countries contained in this or any
other Act shall not be construed to prohibit assistance by the Agency
in support of programs of private and voluntary organizations and
cooperatives already being supported prior to the date such prohibition
becomes applicable, if the President determines, and reports to the
appropriate congressional committees within 15 days of making such
determination, that continuation of support for such programs is in the
national interest of the United States, along with the reasons for such
continuation.
CHAPTER 3--PROCUREMENT, DISPOSITION, TRANSPORTATION AND VALUATION OF
ARTICLES
SEC. 11501. PROCUREMENT STANDARDS AND PROCEDURES.
(a) Limitations on Procurement Outside the United States.--Funds
made available for assistance under this Act may be used by the
President for procurement--
(1) only in the United States, the recipient country, or
developing countries; or
(2) in any other country but only if--
(A) the provision of such assistance requires
articles or services of a type that are not produced in
and available for purchase in any country specified in
paragraph (1); or
(B) the President determines that procurement in
such other country is necessary--
(i) to meet unforeseen circumstances, such
as emergency situations, where it is important
to permit procurement in a country not
specified in paragraph (1); or
(ii) to promote efficiency in the use of
United States foreign assistance resources,
including to avoid impairment of foreign
assistance objectives.
(b) Bulk Commodities.--No funds made available under this Act shall
be used for the purchase in bulk of any commodities at prices higher
than the market price prevailing in the United States at the time of
purchase, adjusted for differences in the cost of transportation to
destination, quality, and terms of payment, except to meet unforeseen
circumstances, such as emergency situations.
(c) Surplus Commodities.--None of the funds made available under
this Act shall be used to establish or expand production of any
commodity or extraction of any mineral for export by a foreign country
if--
(1) the commodity or mineral is likely to be in surplus on
world markets at the time the resulting productive or
extractive capacity is expected to become operative; and
(2) the assistance will cause substantial injury to United
States producers of the same, similar, or competing commodity
or mineral.
(d) Exceptions.--The prohibition contained in subsection (c) shall
not apply--
(1) if the President determines that--
(A) the benefits to industry and employment in the
United States are likely to outweigh the injury to
United States producers of the same, similar, or
competing commodity or mineral; or
(B) the foreign country is a low-income country for
which production of the commodity or extraction of the
mineral would contribute substantially to the reduction
of poverty;
(2) to activities in a low-income country that does not
export on a consistent basis the commodity or mineral with
respect to which assistance is provided; or
(3) to activities in a country which the President
determines is recovering from widespread conflict, a
humanitarian crisis, or a complex emergency.
(e) Notification.--The President shall notify the appropriate
congressional committees of a determination under this section, in
accordance with the procedures set forth in section 9401.
(f) Low-Income Country Defined.--In this section, the term ``low-
income country'' means a country that is eligible for assistance from
the International Development Association but is not eligible for
assistance from the International Bank for Reconstruction and
Development.
SEC. 11502. LOCAL PROCUREMENT.
(a) Limited Competition.--The Administrator is authorized, using
funds made available under title I, to award contracts and other
instruments in which competition is limited to local entities.
(b) Amount of Awards.--The authority provided in subsection (a) may
not be used to make awards in excess of $5,000,000.
(c) Procurements.--The requirements of section 11501 and similar
provisions of law relating to the procurement of goods and services
shall not apply to procurements made under agreements entered into
under the authority of this section.
SEC. 11503. UNITED STATES COMPETITIVENESS.
In order to ensure maximum competition for contracts receiving
funding under this Act, the President shall establish procedures to
ensure that--
(1) all solicitations under this Act for contracts over
$5,000,000, regardless of the location where the contract is to
be performed, are made publicly available on a single,
centralized Internet website;
(2) in countries with nonconvertible or highly unstable
currencies--
(A) solicitations may be bid in United States
dollars; and
(B) contracts awarded to United States firms may be
paid in United States dollars;
(3) United States diplomatic and consular posts assist
United States firms in obtaining local licenses and permits;
and
(4) United States firms are not disadvantaged during the
solicitation and bid evaluation process.
SEC. 11504. SMALL BUSINESS.
(a) In General.--Insofar as practicable and to the maximum extent
consistent with the accomplishment of the purposes of this Act, the
President shall assist United States small business to participate
equitably in the provision of commodities, articles, and services
(including defense articles and defense services) financed with funds
made available under this Act--
(1) by causing to be made available to suppliers in the
United States, and particularly to small independent
enterprises, information, as far in advance as possible, with
respect to purchases proposed to be financed with such funds;
(2) by causing to be made available to prospective
purchasers in partner countries information as to such
commodities, articles, and services produced by small
independent enterprises in the United States; and
(3) by providing for additional services to give small
business better opportunities to participate in the provision
of such commodities, articles, and services financed with such
funds.
(b) Office of Small and Disadvantaged Business Utilization.--There
shall be an Office of Small and Disadvantaged Business Utilization
within the Agency, and similar offices within such other agencies as
the President may direct, to assist in carrying out the provisions of
subsection (a).
(c) Department of Defense Purchases.--The Secretary of Defense
shall ensure that there is made available to suppliers in the United
States, and particularly to small independent enterprises, information
with respect to purchases made by the Department of Defense pursuant to
title IV, such information to be furnished as far in advance as
possible.
SEC. 11505. ALLOCATION OR TRANSFER OF FUNDS AND REIMBURSEMENT AMONG
AGENCIES.
(a) Allocations or Transfers to Agencies.--The President, or with
respect to funds appropriated to any Federal agency, the head of such
agency, as the case may be, may allocate or transfer to any Federal
agency any funds available for providing assistance under this Act,
including any advance to the United States Government by any country or
international organization for the procurement of articles or services.
Such funds shall be available for obligation and expenditure for the
purposes for which authorized, in accordance with the authority
pursuant to which they were made available or the authority governing
the activities of the agency to which such funds are allocated or
transferred.
(b) Procurement From Other Agencies.--
(1) Authority.--Any officer of the United States Government
carrying out functions under this Act may utilize any facility
of, and may procure any article or service from, any Federal
agency as the President shall direct, or with the consent of
the head of such agency.
(2) Separate account.--Funds allocated pursuant to this
subsection to any such agency may be established in separate
appropriation accounts on the books of the Treasury of the
United States.
(c) Reimbursement to Agencies.--
(1) In general.--In the case of any facility utilized by,
or any article or service procured from, any Federal agency to
carry out any provision of this Act (except as otherwise
specifically provided in this Act), reimbursement or payment
shall be made to such agency from funds available to carry out
that provision.
(2) Amount of reimbursement.--Such reimbursement or payment
shall be at--
(A) replacement cost;
(B) if required by law, actual cost;
(C) in the case of defense articles procured from
the Department of Defense, value as defined in section
4412, or, if required by law, actual costs;
(D) in the case of services procured from the
Department of Defense, the amount of the additional
costs incurred by the Department of Defense in
providing such services, or, if required by law, actual
costs; or
(E) at any other cost agreed to by the owning or
disposing agency.
(3) Crediting of reimbursement.--The amount of any such
reimbursement or payment shall either be credited to current
applicable appropriations, funds, or accounts of such agency,
to be available for the same purposes and for the same time
period as the appropriation, fund or account to which
transferred, or any such credited funds shall remain available
for such purposes until expended.
(d) Reimbursement to the Department of Defense.--Reimbursement or
payment to the Department of Defense under subsection (c) shall exclude
salaries of members of the United States Armed Forces (other than the
Coast Guard) and unfunded estimated costs of civilian retirement and
other benefits, unless otherwise required by law.
(e) Establishment of Accounts.--
(1) Authority to establish; uses.--In furnishing assistance
under this Act, accounts may be established on the books of any
Federal agency or, on terms and conditions approved by the
Secretary of the Treasury, in banking institutions in the
United States--
(A) against which letters of commitment may be
issued which shall constitute recordable obligations of
the United States Government, and moneys due or to
become due under such letters of commitment shall be
assignable under the last sentence of section 3727(b)
and section 3727(c) of title 31, United States Code,
and paragraphs (5) and (6) of section 6305(b) of title
41, United States Code; and
(B) from which disbursements may be made to, or
withdrawals may be made by, recipient countries or
agencies, organizations, or persons upon presentation
of contracts, invoices, or other appropriate
documentation.
(2) Accounting for expenditures.--Expenditure of funds that
have been made available through accounts established under
paragraph (1) shall be accounted for on standard documentation
required for expenditure of funds of the United States
Government.
(f) Responsibility of Agencies.--
(1) In general.--The agency to which funds are transferred
or allocated pursuant to the authority of subsection (a), or
any comparable provision of law, shall be the agency
responsible for the management and use of such funds.
(2) Audit.--Any agreement for the transfer or allocation of
such funds shall expressly provide that the Office of the
Inspector General for the agency receiving the transfer or
allocation shall perform periodic program and financial audits
of the use of those funds. Funds transferred or allocated
pursuant to subsection (a) may be used for the cost of such
audits.
SEC. 11506. RETENTION AND USE OF CERTAIN ITEMS AND FUNDS.
(a) Retention and Use of Certain Articles.--
(1) Authority to retain, transfer, and use.--Any articles
procured to carry out this Act shall be retained by, or (upon
reimbursement) transferred to and for the use of, such Federal
agency as the President deems appropriate in lieu of being
disposed of to a foreign country or international organization,
whenever in the judgment of the President the best interests of
the United States will be served thereby.
(2) Laws governing disposal of government property.--Any
articles so retained may be disposed of without regard to
provisions of law relating to the disposal of property owned by
the United States Government, when necessary to prevent
spoilage or wastage of such articles or to conserve their
usefulness.
(3) Proceeds credited to appropriations.--Funds realized
from any disposal or transfer of any articles shall revert to
the respective appropriation, fund, or account used to procure
such articles or to the appropriation, fund, or account
currently available for the same general purpose, and shall
remain available until expended.
(b) Articles Received as Payment.--Whenever articles are
transferred to the United States Government as repayment of assistance
under this Act or the Foreign Assistance Act of 1961 (as in effect on
the day before the date of the enactment of this Act), such articles
may be used in furtherance of the purposes and within the limitations
of this Act.
(c) Failed Transactions.--Funds realized as a result of any failure
of a transaction financed under this Act to conform to the requirements
of this Act, to applicable rules and regulations of the United States
Government, or to the terms of any agreement or contract entered into
under this Act, shall revert to the respective appropriation, fund, or
account used to finance such transaction or to the appropriation, fund,
or account currently available for the same general purpose.
(d) Disposal of Defense Articles.--Funds realized by the United
States Government from the sale, transfer, or disposal of defense
articles furnished under chapter 2 of part II of the Foreign Assistance
Act of 1961 (as in effect on the day before the date of the enactment
of this Act), and no longer needed for the purposes for which
furnished, shall be credited to the respective appropriation, fund, or
account currently available for the same general purpose.
SEC. 11507. FOREIGN AND DOMESTIC EXCESS PROPERTY.
(a) Policy Regarding Use of Excess and Other Available Property.--
In furnishing assistance under this Act--
(1) excess personal property, or
(2) if a substantial savings would occur, other property
already owned by a Federal agency,
may be utilized wherever practicable in lieu of or supplementary to the
procurement of new items for United States-assisted projects and
programs.
(b) Authority To Use Certain Property for Assistance Purposes.--The
President is authorized to use funds made available under this Act to
acquire--
(1) property classified as domestic or foreign excess
pursuant to the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 471 and following),
(2) any property available from a Federal agency, or
(3) other property,
for use of such property as assistance in furtherance of the purposes
of this Act. Property acquired pursuant to this section may be
furnished pursuant to any provision of this Act for which funds are
authorized for the furnishing of assistance, and shall be subject to
the same conditions and restrictions that apply to funds so authorized.
(c) Separate Account.--
(1) In general.--The President is authorized for purposes
described in subsection (b) to maintain in a separate account
funds made available under this Act, free from fiscal year
limitations (notwithstanding section 1535(d) of title 31,
United States Code) to pay costs (including personnel costs) of
acquisition and storage (including in advance of known
requirements), renovation and rehabilitation, packing, crating,
handling, transportation, and related costs of handling and
providing such property as assistance.
(2) Repayment.--The separate account established pursuant
to this section may be repaid from funds made available
pursuant to any provision of this Act for which funds are
authorized for the furnishing of assistance for all costs
incurred.
(d) Conditions on Use of Excess Property.--
(1) Limitation.--Government-owned excess property may not
be made available for use under this Act unless approval is
given and a determination is made in accordance with paragraph
(2)--
(A) before the shipment of such property for use in
a specified country; or
(B) if the property is already in such country,
before the transfer of the property.
(2) Determination.--A shipment or transfer subject to
paragraph (1) may take place only after the President approves
the shipment or transfer and makes a written determination--
(A) that there is a need for such property in the
quantity requested and that such property is suitable
for the purpose requested;
(B) that the designated end-user has agreed to use
and maintain such property effectively, and has the
ability to do so; and
(C) that the residual value, serviceability, and
appearance of such property would not reflect
unfavorably on the image of the United States and would
justify the costs of packing, crating, handling,
transportation, and other accessorial costs, and that
the residual value at least equals the total of these
costs.
(e) Nonapplicability to Department of Defense.--This section shall
not apply--
(1) with respect to excess defense articles; and
(2) with respect to funds made available for assistance
under this Act that is administered through the Department of
Defense.
SEC. 11508. OCEAN FREIGHT DIFFERENTIAL.
(a) Shipping Differential.--For purposes of facilitating
implementation of section 901(b) of the Merchant Marine Act, 1936 (46
U.S.C. app. 1241(b)), funds made available for the purposes of this Act
may be used to pay for all or any portion of the differential between
United States and foreign-flag vessel charter or freight rates.
(b) Determinations.--The amount of the differential between United
States and foreign-flag vessel charter or freight rates shall be
determined by the Secretary of Transportation, or in the case of food
assistance, by the Secretary of Transportation in consultation with the
Secretary of Agriculture and the Administrator.
(c) Use of Foreign Currencies.--Payments under this section shall
be made in United States-owned foreign currencies wherever feasible.
(d) Certain Laws Not Applicable.--The ocean transportation between
foreign countries of commodities purchased with foreign currencies made
available or derived from funds made available under this Act or the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1691 and following), or any predecessor Acts, and transfers of fresh
fruit and fresh fruit products under this Act, shall not be governed by
section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. app.
1241(b)), or any other law relating to the ocean transportation of
commodities on United States flag vessels.
SEC. 11509. USE OF AIRCRAFT FOR ADDITIONAL PURPOSES.
(a) Transfer Authority.--
(1) In general.--Aircraft procured for narcotics control
purposes with funds made available under this Act, the Foreign
Assistance Act of 1961 (as in effect on the day before the date
of the enactment of this Act), or any Act making appropriations
for the Department of State, foreign operations, and related
programs, may be used for any other program, country or region,
including for the transportation of Civilian Response Corps
personnel and equipment during a deployment.
(2) Rule of construction.--The authority of paragraph (1)
may be exercised notwithstanding section 5207 or any other
provision of law precluding the use of aircraft described in
paragraph (1).
(b) Determination Required.--The authority provided in subsection
(a) may be exercised only if the Secretary determines that--
(1) the such aircraft is no longer required to meet
programmatic purposes in the originally designated program,
country, or region, or
(2) there is an emergency need for such aircraft in another
program, country or region.
(c) Notification.--The appropriate congressional committees shall
be notified--
(1) of a determination under subsection (b); and
(2) prior to a transfer under subsection (a).
(d) Aircraft Coordination and Use.--
(1) In general.--Aircraft purchased or leased by the
Department of State or the United States Agency for
International Development under this Act, the Foreign
Assistance Act of 1961 (as in effect on the day before the date
of the enactment of this Act), or any Act making appropriations
for the Department of State, foreign operations, and related
programs shall be--
(A) coordinated by the relevant Chief of Mission;
(B) made available for the transportation of
personnel supporting the programs and activities of the
Department of State or the United States Agency for
International Development, as the case may be; and
(C) made available for official travel for other
agencies for other purposes on a reimbursable basis, or
without reimbursement when traveling on a space-
available basis.
(2) Rule of construction.--The authority of paragraph (1)
may be exercised notwithstanding section 5207 or any other
provision of law precluding the use of aircraft described in
paragraph (1).
SEC. 11510. STREAMLINING AND REVIEW OF PROCUREMENT PROCESS.
(a) Streamlining Procedures.--To streamline the process for making
awards, the Administrator should--
(1) create simplified solicitations, structured scopes of
work, standardized proposals and assistance templates, and
joint funding models under which multiple offices and agencies
can fund integrated programs;
(2) consider pre-qualification short-lists to reduce award
time;
(3) improve training for contracting and procurement
personnel;
(4) increase transparency on anticipated activities;
(5) improve consultation with the public and with private
partners; and
(6) establish an office to advocate on behalf of small
nongovernmental organizations.
(b) Acquisitions and Assistance.--To ensure the appropriate balance
and use of acquisitions and assistance instruments, the Administrator
shall--
(1) issue a policy and guidelines regarding the use and
application of each type of instrument, including the
responsibility of personnel of the Agency with respect to the
administration of each type of instrument;
(2) make such guidelines public;
(3) ensure that Agency personnel receive adequate training
on the use and application of each type of instrument; and
(4) review and update, as necessary, such policy and
guidelines in light of recommendations received by the
committee established under subsection (c).
(c) Operational Issues Review Committee.--The Administrator should
convene an Advisory Committee, pursuant to the Federal Advisory
Committee Act, to--
(1) assist in updating Agency procedures and regulations to
improve speed, transparency, and relevance;
(2) review the procedures, policy and guidelines developed
under subsections (a) and (b); and
(3) provide advice and guidance on other operational
issues, as appropriate.
(d) Harmonization of Procurement Rules.--The Administrator shall
convene a working group, incorporating representatives of all Federal
agencies carrying out activities under title I, to harmonize rules,
regulations, policies and practices regarding procurement.
(e) Rulemaking Procedures.--The Administrator shall apply the same
rulemaking procedures to policies regarding assistance instruments as
are applied to policies regarding acquisition instruments, and shall
ensure that all such procedures are carried out in compliance with
section 533 of title 5, United States Code.
SEC. 11511. OVERSEAS PROCUREMENT FLEXIBILITY.
Section 3 of the State Department Basic Authorities Act of 1956 (22
U.S.C. 2670) is amended by--
(1) in subsection (l), by striking ``and'' at the end;
(2) in subsection (m), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subsection:
``(n) make and carry out contracts for procurement outside the
United States of goods or services needed for the operation of United
States diplomatic and consular posts and related facilities outside the
United States, provided that--
``(1) laws of the United States relating to the
negotiation, making, contents or performance of government
contracts for goods or services, and advance payments and
indemnification in relation to such contracts shall apply with
respect to such contracts except to the extent that the
Secretary determines (other than for purposes of chapter 21 of
title 41, United States Code) that the Secretary could not
reasonably meet the need of a post or facility for such goods
and services by use of authority available to the Secretary
under a law under this subsection;
``(2) the Secretary shall--
``(A) issue guidance addressing use of this
authority; and
``(B) require written approval to waive specific
laws or procurement regulations under this authority by
the Procurement Executive (without further delegation);
and
``(3) no individual contract action entered into under this
authority shall exceed $2,000,000 unless approved in writing by
the Chief Acquisition Officer of the Department (without
further delegation).''.
SEC. 11512. LOCAL GUARD CONTRACTS ABROAD.
Section 136(c)(3) of the Foreign Relations Authorization Act,
Fiscal Years 1990 and 1991 (22 U.S.C. 4864(c)(3)) is amended to read as
follows:
``(3) in evaluating proposals for such contracts, award
contracts to technically acceptable firms offering the lowest
evaluated price, except that--
``(A) the Secretary may grant authorization to
award contracts on the basis of best value as
determined by a cost-technical tradeoff analysis; and
``(B) proposals received from United States persons
and qualified United States joint venture persons (as
defined in subsection (d) of this section) shall be
evaluated by reducing the bid price by 10 percent.''.
SEC. 11513. AUTHORITY TO PAY TRANSPORTATION COSTS.
(a) In General.--In order to further the efficient use of United
States voluntary contributions for alleviating human suffering, the
Administrator is authorized to use funds made available for the
purposes of title I to pay transportation charges on shipments of
humanitarian goods by United States private and voluntary
organizations.
(b) Reimbursements.--Reimbursement under this section may be
provided for transportation charges on shipments from United States
ports, or in the case of excess or surplus property supplied by the
United States from foreign ports, to ports of entry abroad or to points
of entry abroad in cases--
(1) of landlocked countries;
(2) where ports cannot be used effectively because of
natural or other disturbances;
(3) where carriers to a specified country are unavailable;
or
(4) where a substantial savings in costs or time can be
effected by the utilization of points of entry other than
ports.
(c) Defraying Transportation Costs.--Where practicable, the
President shall make arrangements with the receiving country for free
entry of such shipments and for the making available by the country of
local currencies for the purpose of defraying the transportation costs
of such shipments from the port or point of entry of the receiving
country to the designated shipping point of the consignee.
CHAPTER 4--USE OF FOREIGN CURRENCIES
SEC. 11601. SEPARATE ACCOUNTS FOR LOCAL CURRENCIES.
(a) In General.--The Administrator shall require that any local
currencies generated as a result of agreements with a foreign
government regarding the use of economic assistance or development
assistance are deposited in a separate account established by that
government.
(b) Agreements.--A separate account under subsection (a) shall be
established pursuant to an agreement between the United States Agency
for International Development and the foreign government which sets
forth--
(1) the amount of the local currencies to be generated;
(2) the terms and conditions under which the currencies so
deposited may be utilized, consistent with this section; and
(3) the responsibilities of the Agency and the foreign
government to monitor and account for deposits into and
disbursements from the separate account.
(c) Uses of Local Currencies.--Local currencies deposited in a
separate account pursuant to subsection (a), or an equivalent amount of
local currencies, shall be used only--
(1) to further the goals and objectives of title I; or
(2) for the administrative requirements of the United
States Government.
(d) Termination of Assistance Programs.--Upon termination of
economic assistance to a country, any unencumbered balances of funds
which remain in a separate account established pursuant to subsection
(a) shall be disposed of for such purposes as may be agreed to by the
government of that country and the United States Government.
(e) Reporting Requirement.--The Administrator shall include in the
annual congressional budget justification documents submitted pursuant
to section 9302 a report on the amounts and uses of local currency (and
United States dollar equivalent) in each applicable country.
SEC. 11602. USE OF CERTAIN FOREIGN CURRENCIES.
(a) Authority To Use Foreign Currencies for Assistance Programs.--
Except as otherwise provided in this Act or other provisions of law,
foreign currencies described in subsection (b) that are owned by the
United States Government are authorized to be appropriated for use in
providing assistance under this Act.
(b) Foreign Currencies That May Be Used for Assistance.--The
foreign currencies that may be used under subsection (a) are any
foreign currencies received as a result of the furnishing of assistance
under this Act (or any predecessor Acts authorizing non-military
assistance), other than assistance administered through the Department
of Defense, that are in excess of--
(1) the amounts reserved under authority of section 105(d)
of the Mutual Educational and Cultural Exchange Act of 1961 or
any other Act relating to educational and cultural exchanges;
and
(2) the amounts required for payment by the agencies of the
United States Government of their obligations outside the
United States, as such requirements may be established from
time to time by the President.
(c) Payment of Obligations of Government Agencies.--Foreign
currencies described in subsection (b) that are in excess of the
amounts described in paragraph (1) of that subsection may be sold by
the Secretary of the Treasury to agencies of the United States
Government for payment of their obligations outside the United States.
(d) Use of Foreign Currencies Not Owned by the United States
Government.--With the concurrence of the relevant inspector general,
the use of foreign currencies that accrue or are otherwise available as
a result of assistance provided under this Act (including predecessor
Acts) that are not owned by the United States Government, shall be the
responsibility of the government owning such currencies to audit.
SEC. 11603. ACCOUNTING AND VALUATION OF FOREIGN CURRENCIES.
(a) Responsibility of Secretary of the Treasury.--Under the
direction of the President, the Secretary of the Treasury shall have
responsibility for valuation and central accounting with respect to
foreign credits (including currencies) owed to or owned by the United
States. In order to carry out such responsibility, the Secretary shall
issue regulations binding upon all agencies of the United States
Government.
(b) Sole Authority.--The Secretary of the Treasury shall have sole
authority to establish for all foreign currencies or credits the
exchange rates at which such currencies are to be reported by all
agencies of the Government.
Subtitle C--Human Resources
CHAPTER 1--PERSONNEL AND BENEFITS
SEC. 11701. EMPLOYMENT OF PERSONNEL.
(a) Authority.--Any Federal agency or Federal officer carrying out
functions under this Act is authorized to employ such Federal personnel
as the President deems necessary to carry out the provisions and
purposes of this Act.
(b) Assistance Functions in the United States.--
(1) Appointments and removal without regard to certain
civil service laws.--Not more than 110 employees of the United
States Agency for International Development in the United
States may be appointed or removed without regard to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and may be compensated
without regard to the provisions of chapter 51 or subchapter
III of chapter 53 of such title, subject to paragraph (2) of
this subsection.
(2) Compensation.--Of the employees appointed under
paragraph (1), 51 may be compensated at rates higher than those
payable for GS-15 of the General Schedule under section 5332 of
title 5, United States Code, but not in excess of the highest
rate payable under section 5376 of such title.
(3) Reinstatement rights.--Under such regulations as the
President may prescribe, any individual employed under
paragraph (1) may be entitled, upon removal (except for cause)
from the position to which the appointment was made, to
reinstatement to the position occupied by that individual at
the time of appointment or to a position of comparable grade
and pay.
(c) Department of Defense Functions in the United States.--Of the
personnel employed in the United States by the Department of Defense to
carry out this Act not to exceed 8 may be compensated at rates higher
than those payable for GS-15 of the General Schedule under section 5332
of title 5, United States Code, but not in excess of the highest rate
payable under section 5376 of such title. Such positions shall be in
addition to those authorized by law to be filled by Presidential
appointment, and in addition to the number authorized by section 5108
of title 5, United States Code.
(d) Performance of Functions Outside the United States.--
(1) Authority to employ or assign.--For the purpose of
performing functions under this Act outside the United States,
the President may--
(A) employ or assign individuals; or
(B) authorize the employment or assignment of
Federal employees that are not authorized to utilize
the Foreign Service personnel system.
(2) Compensation.--Individuals employed or assigned under
paragraph (1) shall receive compensation at any of the rates
provided for under section 402 or section 403 of the Foreign
Service Act of 1980, or under chapter 53 of title 5, United
States Code, or at any other rate authorized by law, together
with allowances and benefits under the Foreign Service Act of
1980.
(3) Reemployment rights.--Individuals so employed or
assigned shall be entitled to the same benefits as are provided
by section 310 of the Foreign Service Act of 1980 for
individuals appointed to the Foreign Service, except to the
extent that the President may specify otherwise in cases in
which the period of employment or assignment exceeds 30 months.
SEC. 11702. EXPERTS AND CONSULTANTS.
(a) Authority To Employ.--Experts and consultants or organizations
thereof may, in accordance with section 3109 of title 5, United States
Code, be employed for the performance of functions under this Act.
(b) Rates of Compensation.--Individuals employed under the
authority of subsection (a) may be compensated at rates not in excess
of the daily equivalent of the highest rate payable under section 5332
of title 5, United States Code, and while away from their homes or
regular places of business, they may be paid actual travel expenses and
per diem in lieu of subsistence at rates not in excess of those
prescribed by the standardized Government travel regulations.
(c) Mandatory Retirement Age Not Applicable.--The service of an
individual as an expert or consultant under subsection (a) shall not be
considered to be employment or holding of office or position for
purposes of applying the provisions of section 3323(a) of title 5,
United States Code, to the individual.
(d) Employment of Certain Persons Without Compensation.--Persons of
outstanding experience and ability may be employed without compensation
by any Federal agency for the performance of functions under this Act
in accordance with the provisions of section 710(b) of the Defense
Production Act of 1950 (50 U.S.C. App. 2160(b)), and regulations issued
thereunder.
SEC. 11703. PROHIBITION OF DISCRIMINATION AGAINST FEDERAL PERSONNEL.
(a) Assignment of Personnel.--
(1) In general.--The President shall not take into account,
in assigning Federal personnel to carry out the provisions of
this Act, the individual's race, sex, religion, national
origin, sexual orientation, or gender identity. Such
assignments shall be made solely on the basis of ability and
relevant experience.
(2) Prohibition on consideration of exclusionary policies
or practices.--No agency performing functions under this Act
shall, in employing or assigning Federal personnel to
participate in the performance of any such function, whether in
the United States or abroad, take into account the exclusionary
policies or practices of any foreign government where such
policies or practices are based upon race, sex, religion,
national origin, sexual orientation or gender identity.
(3) Contracts.--Each contract entered into by any such
agency for the performance of any function under this Act shall
contain a provision to the effect that no person, partnership,
corporation, or other entity performing functions pursuant to
such contract, shall, in employing or assigning personnel to
participate in the performance of any such function, whether in
the United States or abroad, take into account the exclusionary
policies or practices of any foreign government where such
policies or practices are based upon race, sex, religion,
national origin, sexual orientation, or gender identity.
(b) Exclusion by Foreign Countries.--Except as provided in
subsection (c), no assistance may be provided under this Act to any
government or organization that excludes, as a matter of law,
regulation, policy or practice, any United States person (as defined in
section 7701(a)(30) of the Internal Revenue Code of 1986) from
participating in the furnishing of assistance under this Act on the
basis of sex, race, religion, national origin, sexual orientation or
gender identity.
(c) Exception.--The President may provide assistance
notwithstanding the prohibition in subsection (b) if the President--
(1) determines that, notwithstanding such exclusion,--
(A) extraordinary circumstances exist which
necessitate the provision of such assistance; and
(B) it is in the national interest of the United
States to provide such assistance; and
(2) transmits to the appropriate congressional committees,
prior to providing such assistance, a report detailing--
(A) the facts and circumstances of such exclusion;
(B) the response thereto on the part of the United
States Government or any agency or personnel thereof;
(C) the result of such response, if any;
(D) the extraordinary circumstances which
necessitate the provision of such assistance; and
(E) the nature and amount of the assistance to be
provided notwithstanding such exclusion.
SEC. 11704. FOREIGN SERVICE LIMITED APPOINTMENTS.
(a) Authority To Hire and Employ.--The Administrator is authorized
to hire and employ up to 200 individuals in the United States and
overseas on a limited appointment basis pursuant to the authority of
sections 308 and 309 of the Foreign Service Act of 1980.
(b) Conditions.--The authority of subsection (a) may only be used
to the extent that an equivalent number of positions that are filled by
personal services contractors or other nondirect hire personnel of the
United States Agency for International Development are eliminated.
(c) Priority Sectors.--In exercising the authority of this section,
primary emphasis shall be placed on enabling the United States Agency
for International Development to meet personnel needs in technical
skill areas currently encumbered by personal services contractors or
other non-direct hire personnel.
(d) Extensions.--Individuals hired and employed by the United
States Agency for International Development pursuant to the authority
of section 309 of the Foreign Service Act of 1980 may be extended for a
period of up to 4 years notwithstanding the limitation set forth in
such section.
SEC. 11705. TECHNICAL ADVISORS.
The Administrator is authorized to use funds made available to
carry out title I to reimburse Federal agencies, agencies of State
governments, institutions of higher education, and private and
voluntary organizations for the full cost of individuals (including for
the personal services of such individuals) detailed or assigned to, or
contracted by, as the case may be, the United States Agency for
International Development for the purpose of carrying out this Act.
SEC. 11706. PERSONAL SERVICES CONTRACTORS FOR USAID.
(a) Employment Outside the United States.--The Administrator is
authorized to employ personal services contractors outside the United
States to carry out the purposes of this Act.
(b) Employment in the United States.--The Administrator is
authorized to employ up to 40 personal services contractors in the
United States, notwithstanding any other provision of law, for the
purpose of providing direct, interim support for new or expanded
overseas programs and activities managed by the United States Agency
for International Development until permanent direct hire personnel are
hired and trained.
(c) Considered as Operating Expenses.--The salaries and expenses of
individuals hired under the authority of subsection (b) shall be
considered as operating expenses of the United States Agency for
International Development and subject to the limitations of section
11301, except that the Administrator may use funds made available to
carry out title II of the Agricultural Trade Development and Assistance
Act of 1954 for personal services contractors assigned to the Office of
Food for Peace.
(d) Not Regarded as Federal Employees.--Individuals hired under the
authority of this section shall not be regarded as Federal employees
for the purpose of any law administered by the Office of Personnel
Management.
SEC. 11707. PERSONAL SERVICES CONTRACTORS FOR THE DEPARTMENT OF STATE.
(a) In General.--In addition to other authorities that may be
available, the Secretary of State may establish a pilot program (in
this section referred to as the ``program'') for the purpose of hiring
United States citizens or aliens as personal services contractors, for
service in the United States, or for service both in the United States
and abroad, to respond to new or emerging needs or to augment current
services.
(b) Conditions.--The Secretary is authorized to use the authority
of subsection (a), subject to the following conditions:
(1) The Secretary determines that existing personnel
resources are insufficient.
(2) The contract length, including options, may not exceed
2 years, unless the Secretary makes a finding that exceptional
circumstances justify an extension of up to one additional
year.
(3) Not more than a total of 200 United States citizens or
aliens are employed at any one time as personal services
contractors under this section.
(4) This authority may only be used to obtain specialized
skills or experience or to respond to urgent needs.
(c) Status of Personal Service Contractors.--
(1) In general.--An individual hired as a personal service
contractor pursuant to this section shall not, by virtue of
such hiring, be considered to be an employee of the United
States Government for purposes of any law administered by the
Office of Personnel Management.
(2) Applicable laws.--An individual hired as a personal
service contractor pursuant to this section shall be covered,
in the same manner as a similarly situated employee, by--
(A) the Ethics in Government Act of 1978;
(B) chapter 21 of title 41, United States Code; and
(C) chapter 73 of title 5, sections 201, 203, 205,
207, 208, and 209 of title 18, and section 1346 and
chapter 171 of title 28, United States Code.
(3) Exception.--This subsection shall not affect the
determination as to whether an individual hired as a personal
service contractor pursuant to this section is an employee of
the United States Government for purposes of any Federal law
not specified in paragraphs (1) and (2).
(d) Termination of Authority.--The authority to award personal
services contracts under the program authorized by this section shall
terminate on September 30, 2014. A contract entered into prior to the
termination date under this subsection may remain in effect until
expiration.
SEC. 11708. HIRING AUTHORITY OF INSPECTOR GENERAL OF THE UNITED STATES
AGENCY FOR INTERNATIONAL DEVELOPMENT.
(a) In General.--Subject to the requirements and limitations of
this section, the Inspector General of the United States Agency for
International Development is authorized to employ personal services
contractors outside the United States.
(b) Number.--The number of contractors hired under the authority of
subsection (a) may not exceed 5 percent of the total authorized
workforce of the Office of the Inspector General.
(c) Contract Length.--A contractor hired under the authority of
subsection (a) shall have a contract period of not longer than 2 years,
unless the Inspector General determines, on a case-by-case basis, that
exceptional circumstances justify the extension of a contract for up to
1 additional year.
(d) Certification.--The authority provided in subsection (a) may be
exercised only if the Inspector General determines that it is
impractical to recruit a sufficient number of direct-hire employees to
perform necessary overseas work, and reports such determination to the
appropriate congressional committees, along with the reasons such
recruitment is impractical.
(e) Status of Employment.--Individuals employed under the authority
of this section shall not be considered Federal employees for purposes
of the Foreign Service Act of 1980 or any law administered by the
Office of Personnel Management.
SEC. 11709. PUBLIC AVAILABILITY OF CONSULTING CONTRACTS.
Any contract for consulting services issued with funds made
available under this Act shall be a matter of public record and subject
to public inspection, unless otherwise specifically provided under law.
SEC. 11710. SENIOR FOREIGN SERVICE REQUIREMENT.
Section 305 of the Foreign Service Act of 1980 (22 U.S.C. 3945) is
amended by adding at the end the following:
``(e) Requirement.--Beginning 3 years from the date of enactment of
this subsection, a Foreign Service Officer may not be promoted into the
Senior Foreign Service of the Department of State or the United States
Agency for International Development without having served at least one
domestic rotation in a bureau or office that does not have a regional
jurisdiction.''.
SEC. 11711. PAY PARITY FOR CRIMINAL INVESTIGATORS.
Section 5541(2)(C)(xiv) of title 5, United State Code, is amended
to read as follows:
``(xiv) a Foreign Service officer, except
that a Foreign Service officer serving as a
criminal investigator in the Office of the
Inspector General of the United States Agency
for International Development shall be eligible
for and receive availability pay on the same
terms as a criminal investigator under section
5545a.''.
CHAPTER 2--DETAILS, FELLOWSHIPS, AND EXCHANGES
SEC. 11801. DETAILS TO FOREIGN GOVERNMENTS AND INTERNATIONAL
ORGANIZATIONS.
(a) Details to Foreign Governments.--When consistent with and in
furtherance of the purposes of this Act, the head of any Federal agency
is authorized to detail any Federal employee of that agency to any
office or position with any foreign government or foreign government
agency, where acceptance of such office or position does not involve
the taking of an oath of allegiance to another government or acceptance
of compensation or other benefits from any foreign country by such
employee.
(b) Details to International Organizations.--When consistent with
and in furtherance of the purposes of this Act, the head of any Federal
agency is authorized to detail to any international organization or
arrangement, any Federal employee of that agency to serve with, or as a
member of, the international staff of such organization, or to render
any technical, scientific, or professional advice or service to, or in
cooperation with, such organization.
(c) Status of Federal Employees Detailed.--
(1) Retention of benefits.--Any Federal employee, while
detailed under this section--
(A) shall be considered a Federal employee and of
the Federal agency from which detailed for the purpose
of preserving his or her allowances, privileges,
rights, seniority, and other benefits as such; and
(B) shall continue to receive compensation,
allowances, and benefits from funds appropriated to
that agency or made available to that agency under this
Act, or may be detailed on a leave without pay status.
(2) Allowances.--Any Federal employee assigned, detailed,
or appointed under this section, section 11203(b), section
11204 or section 11702, may receive (under such regulations as
the President may prescribe) representation allowances similar
to those allowed under section 905 of the Foreign Service Act
of 1980. The authorization of such allowances and other
benefits and the payment thereof out of any appropriations
available therefor shall be considered as meeting all the
requirements of section 5536 of title 5, United States Code.
(d) Terms of Detail.--Details may be made under this section or
section 408 of the Mutual Security Act of 1954 in accordance with any
of the following:
(1) Without reimbursement to the United States Government
by the foreign government or international organization.
(2) Upon agreement by the foreign government or
international organization to reimburse the United States
Government for compensation, travel expenses, benefits, and
allowances, or any part thereof, payable to the Federal
employee concerned during the period of detail. Such
reimbursements (including foreign currencies) shall be credited
to the appropriation, fund, or account utilized for paying such
compensation, travel expenses, benefits, or allowances, or to
the appropriation, fund, or account currently available for
such purposes.
(3) Upon an advance of funds, property, or services by the
foreign government or international organization to the United
States Government accepted with the approval of the President
for specified uses in furtherance of the purposes of this Act.
Funds so advanced may be established as a separate fund in the
Treasury of the United States Government, to be available for
the specified uses, and to be used for reimbursement of
appropriations or direct expenditure subject to the provisions
of this Act. Any unexpended balance of such account shall be
returned to the foreign government or international
organization.
(4) Subject to the receipt by the United States Government
of a credit to be applied against the payment by the United
States Government of its share of the expenses of the
international organization to which the Federal employee is
detailed, such credit to be based upon the compensation, travel
expenses, benefits and allowances, or any part thereof, payable
to such employee during the period of detail in accordance with
subsection (c).
SEC. 11802. DETAILS TO UNITED STATES GOVERNMENT AGENCIES.
(a) Authority To Detail.--The head of any Federal agency is
authorized to detail Federal employees of that agency (hereinafter
known as the ``detailing agency'') to any office or position in any
other Federal agency (hereinafter known as the ``receiving agency''),
for the purposes set out in subsection (b).
(b) Purposes of Detail.--A detail under subsection (a) is
authorized for the purposes of--
(1) improving cooperation and collaboration between the
detailing agency and receiving agency,
(2) rendering any technical, scientific, or professional
advice or service to the receiving agency, or
(3) providing training and professional development to
employees of the detailing agency,
when such detail is consistent with and in furtherance of the purposes
of this Act.
(c) Congressional Detail.--The Secretary and the Administrator are
each authorized to detail up to 5 employees of the Department of State
and the United States Agency for International Development,
respectively, each fiscal year to individual members and committees of
Congress, notwithstanding the requirement for reimbursement in
subsection (d). Such detailees shall be known as ``Congressional
Fellows''.
(d) Requirement for Reimbursement.--The receiving agency shall
reimburse the detailing agency for the salary and allowances of each
Federal employee for the period of the detail, unless--
(1) the detail is for a period of less than two years;
(2) a substantially equivalent number of Federal employees
are detailed to and from each agency in a fiscal year; or
(3) not more than 15 Federal employees are detailed from a
single agency in a fiscal year.
(e) Personnel Limitations.--Personnel detailed under this section
shall not be counted for purposes of any limitation established by the
Office of Management and Budget on the maximum number of personnel
allowable for the detailing agency.
(f) Waiver.--The Secretary and the Administrator are authorized to
waive the requirement for reimbursement in subsection (d) for the
detail of an employee of the Department of State or the Agency,
respectively, for a period of up to 5 years if the receiving agency is
the National Security Council.
(g) Detail Defined.--In this section, the term ``detail'' means to
detail, assign, or otherwise make available an employee to another
agency, office, or organization.
SEC. 11803. SCIENCE AND TECHNOLOGY FELLOWSHIP PROGRAMS.
Section 504 of the Foreign Relations Authorization Act, Fiscal Year
1979 (22 U.S.C. 2656d) is amended by adding at the end the following:
``(e)(1) The Secretary is authorized to make grants or enter into
cooperative agreements related to Department of State science and
technology fellowship programs, including for assistance in recruiting
fellows and the payment of stipends, travel, and other appropriate
expenses to fellows.
``(2) Payment of stipends under the authority of paragraph (1)
shall not be considered to be compensation for purposes of section 209
of title 18, United States Code.
``(3) The total amount of grants made under the authority of
paragraph (1) may not exceed $1,000,000 in any fiscal year.''.
SEC. 11804. FOREIGN RELATIONS EXCHANGE PROGRAMS.
(a) In General.--The Secretary may establish exchange programs
under which employees of the Department of State, including individuals
appointed under title 5, United States Code, and members of the Foreign
Service, may be assigned, for a period not to exceed 1 year, to a
position with any foreign government or international entity that
permits an employee of the foreign government or international entity,
as the case may be, to be assigned to a position with the Department of
State.
(b) Department of State Employees.--During a period in which an
employee of the Department of State is participating in an exchange
program authorized under subsection (a), such employee shall, for the
purposes of receiving salary and benefits, be treated as an employee
detailed under section 11801.
(c) Foreign Employees.--The salary and benefits of an employee of a
foreign government or international entity participating in a program
established under this section shall be paid by such government or
entity during the period in which such employee is participating in the
program, and shall not be reimbursed by the Department of State.
(d) Rule of Construction.--Nothing in this section shall be
construed to authorize the appointment as a Federal employee of--
(1) an individual whose allegiance is to any country,
government, or foreign or international entity other than the
United States; or
(2) an individual who has not met the requirements of
sections 3331, 3332, 3333, and 7311 of title 5, United States
Code, or any other provision of law concerning eligibility for
appointment, and continuation of employment, as a Federal
employee.
SEC. 11805. GUIDELINES FOR ROTATIONAL ASSIGNMENTS.
(a) Career Guidelines.--The Administrator shall establish career
guidelines for Foreign Service officers and civil service officers that
incorporate interagency, intergovernmental, or international
organization rotational assignments. The guidelines established under
this subsection shall include--
(1) selection;
(2) professional education and training;
(3) types of relevant interagency, intergovernmental, and
international organization assignments; and
(4) such other matters as the Administrator considers
appropriate.
(b) Promotions to Senior Ranks.--Not later than 2 years after the
date of the enactment of this Act, the Administrator shall establish
additional guidelines that consider participation by relevant employees
in at least 1 interagency, intergovernmental, or international
organizational rotational assignment of at least 6 months as a factor
for promotion into the ranks of the Senior Foreign Service or Senior
Executive Service.
(c) Promotion Precepts.--The Administrator shall ensure that
promotion precepts and promotion panels do not penalize employees who
have been assigned to interagency, intergovernmental, or international
organizations.
CHAPTER 3--TRAINING AND PROFESSIONAL DEVELOPMENT
SEC. 11901. TRAINING OF FEDERAL PERSONNEL.
(a) Authority To Conduct Training.--The head of each Federal agency
carrying out activities under this Act is authorized to use funds made
available under this Act to pay the costs, in accordance with
subsection (b), of providing training for Federal personnel, through
interchange or otherwise, at any State or local unit of government,
public or private nonprofit institution, trade, labor, agricultural, or
scientific association or organization, or commercial firm.
(b) Payment of Costs.--Training costs shall be paid--
(1) from funds made available to the employing agency;
(2) for individuals performing functions within the United
States, from funds available for administrative expenses; and
(3) for individuals performing functions outside the United
States, from funds available for the program, project, or
activity being carried out by such individual.
(c) Limitation on Dual Employment.--Training under this section
shall not be considered employment or holding of office under section
5533 of title 5, United States Code.
(d) Acceptance of Certain Payments.--Any payments or contributions
in connection with training under this section may, as deemed
appropriate by the head of the Federal agency authorizing such
training, be made by private or public sources and be accepted by any
trainee, or may be accepted by and credited to the current applicable
appropriation of such agency. Any such payments or contributions shall
be in lieu, or in reduction, of compensation received from the United
States Government.
SEC. 11902. CAREER DEVELOPMENT.
(a) Comprehensive Program.--The Secretary and the Administrator
shall implement and maintain a comprehensive career-long program of
professional training for the personnel of the Department of State and
the United States Agency for International Development, respectively.
(b) Participation Levels.--The Secretary and the Administrator
shall ensure that in each fiscal year not less than 10 percent of
personnel of the Department of State and the United States Agency for
International Development receive professional training or participate
in details, exchanges, fellowships, scholarships or other opportunities
for professional development.
(c) Institution for Training.--Section 701(b) of the Foreign
Service Act of 1980 (22 U.S.C. 4021(b)) is amended to read as follows:
``(b)(1) The Secretary of State shall ensure that training offered
by the institution--
``(A) meets the training needs of all foreign affairs
agencies;
``(B) is made available on an equal basis to personnel of
all foreign affairs agencies, including access to child care
facilities, travel, per diem, and reimbursements;
``(C) is responsive to requests by the heads of other
agencies for the development and implementation of specialized
training courses; and
``(D) is evaluated regularly for cost-effectiveness and for
results.
``(2) Other agencies shall avoid duplicating the facilities and
training provided by the Secretary of State through the institution and
otherwise.''.
(d) Training Support Services.--Section 704(a)(4)(B) of the Foreign
Service Act of 1980 (22 U.S.C. 4024(a)(4)(B)) is amended by striking
``language instructors, linguists, and other academic and training
specialists'' and inserting ``education and training specialists,
including language instructors and linguists, and other specialists who
perform work directly relating to the design, delivery, oversight, or
coordination of training delivered by the institution''.
(e) Requirements for Promotion.--The Secretary and the
Administrator shall each establish a set of mandatory training
requirements for promotion into the Senior Foreign Service.
(f) Evaluation of Effectiveness.--The Secretary and the
Administrator shall evaluate the effectiveness of all training and
professional development programs for the personnel of the Department
of State and the United States Agency for International Development,
respectively, not later than 2 years after the date of the enactment of
this Act, and not less than once every 5 years after thereafter. The
results of such evaluations shall be made publicly available on the
Internet.
SEC. 11903. LANGUAGE SKILLS DEVELOPMENT.
(a) Development of System.--The Secretary and the Administrator
shall develop a system for increasing the number and percentage of
Foreign Service Officers at the Department of State and the United
States Agency for International Development, respectively, who are
proficient in the official language of the country of assignment.
(b) Elements of System.--Such system shall include--
(1) methods for identifying emerging areas of foreign
language shortfalls and projected language needs;
(2) designation of Foreign Service positions for which a
minimum level of certified language proficiency is required, to
be known as ``language designated positions'';
(3) designation of languages for which there is a critical
unmet need, to be known as ``critical languages'';
(4) development of policies and procedures relating to
assignments, length of rotations, recruitment, retention,
training, and promotion to--
(A) ensure that there are a sufficient number of
Foreign Service officers able and available to fill
language designated positions; and
(B) remedy shortfalls in critical languages;
(5) establishment of clear and measurable performance goals
and objectives; and
(6) requirements for monitoring and evaluation of progress.
(c) Transmission to Congress.--The Secretary and the Administrator
shall transmit to the appropriate congressional committees, not later
than 1 year after the date of the enactment of this Act, a report on
the system developed under subsection (a) and a plan for its
implementation, including any budgetary implications.
(d) Implementation Reports.--One year after the date on which the
report is transmitted pursuant to subsection (c), and each of the next
2 years thereafter, the Secretary and the Administrator shall transmit
to the appropriate congressional committees a report on the status of
implementation of the system developed under subsection (a).
(e) Repeal of Duplicative Report.--Section 702 of the Foreign
Service Act of 1980 (22 U.S.C. 4022) is amended by striking subsection
(c).
(f) Availability of Funds.--Notwithstanding section 11302, amounts
made available to the Agency to carry out this section shall not be
considered to be operating expenses.
TITLE XII--AMENDMENTS AND REPEALS
Subtitle A--Amendments
SEC. 12101. AMENDMENTS RELATING TO ASSISTANCE TO COMBAT HIV/AIDS,
TUBERCULOSIS, AND MALARIA.
(a) Assistance To Combat HIV/AIDS.--Subtitle A of title III of the
United States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act
of 2003 (22 U.S.C. 7631 et seq.) is amended--
(1) by redesignating section 301 as section 301A;
(2) in the heading of section 301A (as redesignated), by
inserting ``other provisions relating to'' before
``assistance''; and
(3) by inserting before section 301A (as redesignated) the
following new section:
``SEC. 301. ASSISTANCE TO COMBAT HIV/AIDS.
``(a) Finding.--Congress recognizes that the alarming spread of
HIV/AIDS in countries in sub-Saharan Africa, the Caribbean, Central
Asia, Eastern Europe, Latin America and other developing countries is a
major global health, national security, development, and humanitarian
crisis.
``(b) Policy.--
``(1) Objectives.--It is a major objective of the foreign
assistance program of the United States to provide assistance
for the prevention and treatment of HIV/AIDS and the care of
those affected by the disease. It is the policy objective of
the United States, by 2013, to--
``(A) assist partner countries to--
``(i) prevent 12,000,000 new HIV infections
worldwide;
``(ii) support--
``(I) the increase in the number of
individuals with HIV/AIDS receiving
antiretroviral treatment above the goal
established under section 402(a)(3) and
increased pursuant to paragraphs (1)
through (3) of section 403(d); and
``(II) additional treatment through
coordinated multilateral efforts;
``(iii) support care for 12,000,000
individuals infected with or affected by HIV/
AIDS, including 5,000,000 orphans and
vulnerable children affected by HIV/AIDS, with
an emphasis on promoting a comprehensive,
coordinated system of services to be integrated
throughout the continuum of care;
``(iv) provide at least 80 percent of the
target population with access to counseling,
testing, and treatment to prevent the
transmission of HIV from mother-to-child;
``(v) provide care and treatment services
to children with HIV in proportion to their
percentage within the HIV-infected population
of a given partner country; and
``(vi) train and support retention of
health care professionals, paraprofessionals,
and community health workers in HIV/AIDS
prevention, treatment, and care, with the
target of providing such training to at least
140,000 new health care professionals and
paraprofessionals with an emphasis on training
and in country deployment of critically needed
doctors and nurses;
``(B) strengthen the capacity to deliver primary
health care in developing countries, especially in sub-
Saharan Africa;
``(C) support and help countries in their efforts
to achieve staffing levels of at least 2.3 doctors,
nurses, and midwives per 1,000 population, as called
for by the World Health Organization; and
``(D) help partner countries to develop
independent, sustainable HIV/AIDS programs.
``(2) Coordinated global strategy.--The United States and
other countries with the sufficient capacity should provide
assistance to countries in sub-Saharan Africa, the Caribbean,
Central Asia, Eastern Europe, and Latin America, and other
countries and regions confronting HIV/AIDS epidemics in a
coordinated global strategy to help address generalized and
concentrated epidemics through HIV/AIDS prevention, treatment,
care, monitoring and evaluation, and related activities.
``(3) Priorities.--The United States Government's response
to the global HIV/AIDS pandemic and the Government's efforts to
help countries assume leadership of sustainable campaigns to
combat their local epidemics should place high priority on--
``(A) the prevention of the transmission of HIV;
``(B) moving toward universal access to HIV/AIDS
prevention counseling and services;
``(C) meaningful cost-sharing assurances by the
partner country; and
``(D) the inclusion of transition strategies to
ensure sustainability of such programs and activities,
including health care systems, under other
international donor support, or budget support by
respective foreign governments.
``(c) Authorization.--
``(1) In general.--Consistent with section 1321 of the
Global Partnerships Act of 2012, the President is authorized to
furnish assistance, on such terms and conditions as the
President may determine, for HIV/AIDS, including to prevent,
treat, and monitor HIV/AIDS, and carry out related activities,
in countries in sub-Saharan Africa, the Caribbean, Central
Asia, Eastern Europe, Latin America, and other countries and
areas, particularly with respect to refugee populations or
those in postconflict settings in such countries and areas with
significant or increasing HIV incidence rates.
``(2) Role of ngos.--It is the sense of Congress that the
President should provide an appropriate level of assistance
under paragraph (1) through nongovernmental organizations
(including faith-based and community-based organizations) in
countries in sub-Saharan Africa, the Caribbean, Central Asia,
Eastern Europe, Latin America, and other countries and areas
affected by the HIV/AIDS pandemic, particularly with respect to
refugee populations or those in post-conflict settings in such
countries and areas with significant or increasing HIV
incidence rates.
``(3) Coordination of assistance efforts.--The President
shall coordinate the provision of assistance under paragraph
(1) with the provision of related assistance by the Joint
United Nations Programme on HIV/AIDS (UNAIDS), the United
Nations Children's Fund (UNICEF), the World Health Organization
(WHO), the United Nations Development Programme (UNDP), the
Global Fund to Fight AIDS, Tuberculosis and Malaria and other
appropriate international organizations (such as the
International Bank for Reconstruction and Development),
relevant regional multilateral development institutions,
national, state, and local governments of partner countries,
other international actors, appropriate governmental and
nongovernmental organizations, and relevant executive branch
agencies within the framework of the principles of the Three
Ones.
``(d) Activities Supported.--Assistance provided under subsection
(c) shall, to the maximum extent practicable, be used to carry out the
following activities:
``(1) Prevention.--Prevention of HIV/AIDS through
activities including--
``(A) programs and efforts that are designed or
intended to impart knowledge with the exclusive purpose
of helping individuals avoid behaviors that place them
at risk of HIV infection, including integration of such
programs into health programs and the inclusion in
counseling programs of information on methods of
avoiding infection of HIV, including delaying sexual
debut, abstinence, fidelity and monogamy, reduction of
casual sexual partnering and multiple concurrent sexual
partnering, reducing sexual violence and coercion,
including child marriage, widow inheritance, and
polygamy, and where appropriate, use of male and female
condoms;
``(B) assistance to establish and implement
culturally appropriate HIV/AIDS education and
prevention programs that are designed with local input
and focus on helping individuals avoid infection of
HIV/AIDS, implemented through nongovernmental
organizations, including faith-based and community-
based organizations, particularly those locally based
organizations that utilize both professionals and
volunteers with appropriate skills, experience, and
community presence;
``(C) assistance for the purpose of encouraging men
to be responsible in their sexual behavior, child
rearing, and to respect women;
``(D) assistance for the purpose of providing
voluntary testing and counseling (including the
incorporation of confidentiality protections with
respect to such testing and counseling) and promoting
the use of provider-initiated or `opt-out' voluntary
testing in accordance with World Health Organization
guidelines;
``(E) assistance for the purpose of preventing
mother-to-child transmission of the HIV infection,
including medications to prevent such transmission and
access to infant formula and other alternatives for
infant feeding;
``(F) assistance to--
``(i) achieve the goal of reaching 80
percent of pregnant women for prevention and
treatment of mother-to-child transmission of
HIV in countries in which the United States is
implementing HIV/AIDS programs by 2013; and
``(ii) promote infant feeding options and
treatment protocols that meet the most recent
criteria established by the World Health
Organization;
``(G) medical male circumcision programs as part of
national strategies to combat the transmission of HIV/
AIDS;
``(H) assistance to ensure a safe blood supply and
sterile medical equipment;
``(I) assistance to help avoid substance abuse and
intravenous drug use that can lead to HIV infection;
``(J) assistance for the purpose of increasing
women's access to employment opportunities, income,
productive resources, and microfinance programs, where
appropriate; and
``(K) assistance for counseling, testing,
treatment, care, and support programs, including--
``(i) counseling and other services for the
prevention of reinfection of individuals with
HIV/AIDS;
``(ii) counseling to prevent sexual
transmission of HIV, including--
``(I) life skills development for
practicing abstinence and faithfulness;
``(II) reducing the number of
sexual partners;
``(III) delaying sexual debut; and
``(IV) ensuring correct and
consistent use of condoms;
``(iii) assistance to engage underlying
vulnerabilities to HIV/AIDS, especially those
of women and girls;
``(iv) assistance for appropriate HIV/AIDS
education programs and training targeted to
prevent the transmission of HIV among men who
have sex with men;
``(v) assistance to provide male and female
condoms;
``(vi) diagnosis and treatment of other
sexually transmitted infections;
``(vii) strategies to address the stigma
and discrimination that impede HIV/AIDS
prevention efforts; and
``(viii) assistance to facilitate
widespread access to microbicides for HIV
prevention, if safe and effective products
become available, including financial and
technical support for culturally appropriate
introductory programs, procurement,
distribution, logistics management, program
delivery, acceptability studies, provider
training, demand generation, and
postintroduction monitoring.
``(2) Treatment.--The treatment and care of individuals
with HIV/AIDS, including--
``(A) assistance to establish and implement
programs to strengthen and broaden indigenous health
care delivery systems and the capacity of such systems
to deliver HIV/AIDS pharmaceuticals and otherwise
provide for the treatment of individuals with HIV/AIDS,
including clinical training for indigenous
organizations and health care providers;
``(B) assistance to strengthen and expand hospice
and palliative care programs to assist patients
debilitated by HIV/AIDS, their families, and the
primary caregivers of such patients, including programs
that utilize faith-based and community-based
organizations;
``(C) assistance for the purpose of the care and
treatment of individuals with HIV/AIDS through the
provision of pharmaceuticals, including antiretrovirals
and other pharmaceuticals and therapies for the
treatment of opportunistic infections, pain management,
nutritional support, and other treatment modalities;
``(D) as part of care and treatment of HIV/AIDS,
assistance (including prophylaxis and treatment) for
common HIV/AIDS-related opportunistic infections for
free or at a rate at which it is easily affordable to
the individuals and populations being served; and
``(E) as part of care and treatment of HIV/AIDS,
assistance or referral to available and adequately
resourced service providers for nutritional support,
including counseling and where necessary the provision
of commodities, for persons meeting malnourishment
criteria and their families.
``(3) Preventative intervention education and
technologies.--(A) With particular emphasis on specific
populations that represent a particularly high risk of
contracting or spreading HIV/AIDS, including those exploited
through the sex trade, victims of rape and sexual assault,
individuals already infected with HIV/AIDS, and in cases of
occupational exposure of health care workers, assistance with
efforts to reduce the risk of HIV/AIDS infection including
post-exposure pharmaceutical prophylaxis, and necessary
pharmaceuticals and commodities, including test kits, condoms,
and, when proven effective, microbicides.
``(B) Bulk purchases of available test kits, condoms, and,
when proven effective, microbicides that are intended to reduce
the risk of HIV/AIDS transmission and for appropriate program
support for the introduction and distribution of these
commodities, as well as education and training on the use of
the technologies.
``(4) Monitoring.--The monitoring of programs, projects,
and activities carried out pursuant to paragraphs (1) through
(3), including--
``(A) monitoring to ensure that adequate controls
are established and implemented to provide HIV/AIDS
pharmaceuticals and other appropriate medicines to poor
individuals with HIV/AIDS;
``(B) appropriate evaluation and surveillance
activities;
``(C) monitoring to ensure that appropriate
measures are being taken to maintain the sustainability
of HIV/AIDS pharmaceuticals (especially
antiretrovirals) and ensure that drug resistance is not
compromising the benefits of such pharmaceuticals;
``(D) monitoring to ensure appropriate law
enforcement officials are working to ensure that HIV/
AIDS pharmaceuticals are not diminished through illegal
counterfeiting or black market sales of such
pharmaceuticals;
``(E) carrying out and expanding program
monitoring, impact evaluation research and analysis,
and operations research and disseminating data and
findings through mechanisms to be developed by the
Coordinator of United States Government Activities to
Combat HIV/AIDS Globally, in coordination with the
Director of the Centers for Disease Control, in order
to--
``(i) improve accountability, increase
transparency, and ensure the delivery of
evidence-based services through the collection,
evaluation, and analysis of data regarding
gender-responsive interventions, disaggregated
by age and sex;
``(ii) identify and replicate effective
models; and
``(iii) develop gender indicators to
measure outcomes and the impacts of
interventions; and
``(F) establishing appropriate systems to--
``(i) gather epidemiological and social
science data on HIV; and
``(ii) evaluate the effectiveness of
prevention efforts among men who have sex with
men, with due consideration to stigma and risks
associated with disclosure.
``(5) Pharmaceuticals.--
``(A) Procurement.--The procurement of HIV/AIDS
pharmaceuticals, antiviral therapies, and other
appropriate medicines, including medicines to treat
opportunistic infections.
``(B) Mechanisms for quality control and
sustainable supply.--Mechanisms to ensure that such
HIV/AIDS pharmaceuticals, antiretroviral therapies, and
other appropriate medicines are quality-controlled and
sustainably supplied.
``(C) Mechanism to ensure cost-effective drug
purchasing.--Subject to subparagraph (B), mechanisms to
ensure that safe and effective pharmaceuticals,
including antiretrovirals and medicines to treat
opportunistic infections, are purchased at the lowest
possible price at which such pharmaceuticals may be
obtained in sufficient quantity on the world market,
provided that such pharmaceuticals are approved,
tentatively approved, or otherwise authorized for use
by--
``(i) the Food and Drug Administration;
``(ii) a stringent regulatory agency
acceptable to the Secretary of Health and Human
Services; or
``(iii) a quality assurance mechanism
acceptable to the Secretary of Health and Human
Services.
``(D) Distribution.--The distribution of such HIV/
AIDS pharmaceuticals, antiviral therapies, and other
appropriate medicines (including medicines to treat
opportunistic infections) to qualified national,
regional, or local organizations for the treatment of
individuals with HIV/AIDS in accordance with
appropriate HIV/AIDS testing and monitoring
requirements and treatment protocols and for the
prevention of mother-to-child transmission of the HIV
infection.
``(6) Related and coordinated activities.--The conduct of
related activities, including--
``(A) the care and support of children who are
orphaned by the HIV/AIDS pandemic, including services
designed to care for orphaned children in a family
environment which rely on extended family members;
``(B) improved infrastructure and institutional
capacity to develop and manage education, prevention,
and treatment programs, including training and the
resources to collect and maintain accurate HIV
surveillance data to target programs and measure the
effectiveness of interventions;
``(C) vaccine research and development partnership
programs with specific plans of action to develop a
safe, effective, accessible, preventive HIV vaccine for
use throughout the world;
``(D) coordinated or referred activities to--
``(i) enhance the clinical impact of HIV/
AIDS care and treatment; and
``(ii) ameliorate the adverse social and
economic costs often affecting AIDS-impacted
families and communities through the direct
provision, as necessary, or through the
referral, if possible, of support services,
including--
``(I) nutritional and food support;
``(II) safe drinking water and
adequate sanitation;
``(III) nutritional counseling;
``(IV) income-generating activities
and livelihood initiatives;
``(V) maternal and child health
care;
``(VI) primary health care;
``(VII) the diagnosis and treatment
of other infectious or sexually
transmitted diseases;
``(VIII) substance abuse and
treatment services; and
``(IX) legal services;
``(E) coordinated or referred activities to link
programs addressing HIV/AIDS with programs addressing
gender-based violence in areas of significant HIV
prevalence to assist countries in the development and
enforcement of women's health, children's health, and
HIV/AIDS laws and policies that--
``(i) prevent and respond to violence
against women and girls;
``(ii) promote the integration of screening
and assessment for gender-based violence into
HIV/AIDS programming;
``(iii) promote appropriate HIV/AIDS
counseling, testing, and treatment into gender-
based violence programs; and
``(iv) assist governments to develop
partnerships with civil society organizations
to create networks for psychosocial, legal,
economic, or other support services;
``(F) coordinated or referred activities to--
``(i) address the frequent coinfection of
HIV and tuberculosis, in accordance with World
Health Organization guidelines;
``(ii) promote provider-initiated or `opt-
out' HIV/AIDS counseling and testing and
appropriate referral for treatment and care to
individuals with tuberculosis or its symptoms,
particularly in areas with significant HIV
prevalence; and
``(iii) strengthen programs to ensure that
individuals testing positive for HIV receive
tuberculosis screening and to improve
laboratory capacities, infection control, and
adherence; and
``(G) activities to--
``(i) improve the effectiveness of national
responses to HIV/AIDS;
``(ii) strengthen overall health systems in
high-prevalence countries, including support
for workforce training, retention, and
effective deployment, capacity building,
laboratory development, equipment maintenance
and repair, and public health and related
public financial management systems and
operations;
``(iii) encourage fair and transparent
procurement practices among partner countries;
and
``(iv) promote in-country or intra-regional
pediatric training for physicians and other
health professionals, preferably through
public-private partnerships involving colleges
and universities, with the goal of increasing
pediatric HIV workforce capacity.
``(7) Comprehensive hiv/aids public-private partnerships.--
The establishment and operation of public-private partnership
entities within countries in sub-Saharan Africa, the Caribbean,
and other countries affected by the HIV/AIDS pandemic that are
dedicated to supporting the national strategy of such countries
regarding the prevention, treatment, and monitoring of HIV/
AIDS. Each such public-private partnership should--
``(A) support the development, implementation, and
management of comprehensive HIV/AIDS plans in support
of the national HIV/AIDS strategy;
``(B) operate at all times in a manner that
emphasizes efficiency, accountability, and results-
driven programs;
``(C) engage both local and foreign development
partners and donors, including businesses, government
agencies, academic institutions, nongovernmental
organizations, foundations, multilateral development
agencies, and faith-based organizations, to assist the
country in coordinating and implementing HIV/AIDS
prevention, treatment, and monitoring programs in
accordance with its national HIV/AIDS strategy;
``(D) provide technical assistance, consultant
services, financial planning, monitoring and
evaluation, and research in support of the national
HIV/AIDS strategy; and
``(E) establish local human resource capacities for
the national HIV/AIDS strategy through the transfer of
medical, managerial, leadership, and technical skills.
``(8) Compacts and framework agreements.--The development
of compacts or framework agreements, tailored to local
circumstances, with national governments or regional
partnerships in countries with significant HIV/AIDS burdens to
promote host government commitment to deeper integration of
HIV/AIDS services into health systems, contribute to health
systems overall, and enhance sustainability, including--
``(A) meaningful cost-sharing assurances by the
partner country; and
``(B) transition strategies to ensure
sustainability of such programs and activities,
including health care systems, under other
international donor support, or budget support by
respective foreign governments.
``(e) Compacts and Framework Agreements.--
``(1) Findings.--Congress makes the following findings:
``(A) The congressionally mandated Institute of
Medicine report entitled `PEPFAR Implementation:
Progress and Promise' states: `The next strategy [of
the U.S. Global AIDS Initiative] should squarely
address the needs and challenges involved in supporting
sustainable country HIV/AIDS programs, thereby
transitioning from a focus on emergency relief.'.
``(B) One mechanism to promote the transition from
an emergency to a public health and development
approach to HIV/AIDS is through compacts or framework
agreements between the United States Government and
each participating nation.
``(2) Elements.--Compacts on HIV/AIDS authorized under
subsection (d)(8) shall include the following elements:
``(A) Compacts whose primary purpose is to provide
direct services to combat HIV/AIDS are to be made
between--
``(i) the United States Government; and
``(ii)(I) national or regional entities
representing low-income countries served by an
existing United States Agency for International
Development or Department of Health and Human
Services presence or regional platform; or
``(II) countries or regions--
``(aa) experiencing significantly
high HIV prevalence or risk of
significantly increasing incidence
within the general population;
``(bb) served by an existing United
States Agency for International
Development or Department of Health and
Human Services presence or regional
platform; and
``(cc) that have inadequate
financial means within such country or
region.
``(B) Compacts whose primary purpose is to provide
limited technical assistance to a country or region
connected to services provided within the country or
region--
``(i) may be made with other countries or
regional entities served by an existing United
States Agency for International Development or
Department of Health and Human Services
presence or regional platform;
``(ii) shall require significant
investments in HIV prevention, care, and
treatment services by the host country;
``(iii) shall be time-limited in terms of
United States contributions; and
``(iv) shall be made only upon prior
notification to Congress--
``(I) justifying the need for such
compacts;
``(II) describing the expected
investment by the country or regional
entity; and
``(III) describing the scope,
nature, expected total United States
investment, and time frame of the
limited technical assistance under the
compact and its intended impact.
``(C) Compacts shall include provisions to--
``(i) promote local and national efforts to
reduce stigma associated with HIV/AIDS; and
``(ii) work with and promote the role of
civil society in combating HIV/AIDS.
``(D) Compacts shall take into account the overall
national health and development and national HIV/AIDS
and public health strategies of each country.
``(E) Compacts shall contain--
``(i) consideration of the specific
objectives that the country and the United
States expect to achieve during the term of a
compact;
``(ii) consideration of the respective
responsibilities of the country and the United
States in the achievement of such objectives;
``(iii) consideration of regular benchmarks
to measure progress toward achieving such
objectives;
``(iv) an identification of the intended
beneficiaries, disaggregated by gender and age,
and including information on orphans and
vulnerable children, to the maximum extent
practicable;
``(v) consideration of the methods by which
the compact is intended to--
``(I) address the factors that put
women and girls at greater risk of HIV/
AIDS; and
``(II) strengthen elements such as
the economic, educational, and social
status of women, girls, orphans, and
vulnerable children and the inheritance
rights and safety of such individuals;
``(vi) consideration of the methods by
which the compact will--
``(I) strengthen the health care
capacity, including factors such as the
training, retention, deployment,
recruitment, and utilization of health
care workers;
``(II) improve supply chain
management; and
``(III) improve the health systems
and infrastructure of the partner
country, including the ability of
compact participants to maintain and
operate equipment transferred or
purchased as part of the compact;
``(vii) consideration of proposed
mechanisms to provide oversight;
``(viii) consideration of the role of civil
society in the development of a compact and the
achievement of its objectives;
``(ix) a description of the current and
potential participation of other donors in the
achievement of such objectives, as appropriate;
and
``(x) consideration of a plan to ensure
appropriate fiscal accountability for the use
of assistance.
``(F) For regional compacts, priority shall be
given to countries that are included in regional funds
and programs in existence as of the date of the
enactment of the Tom Lantos and Henry J. Hyde United
States Global Leadership Against HIV/AIDS,
Tuberculosis, and Malaria Reauthorization Act of 2008.
``(G) Amounts made available for compacts described
in subparagraphs (A) and (B) shall be subject to the
inclusion of--
``(i) meaningful cost-sharing assurances by
the partner country; and
``(ii) transition strategies to ensure
sustainability of such programs and activities,
including health care systems, under other
international donor support, and budget support
by respective foreign governments.
``(3) Local input.--In entering into a compact on HIV/AIDS
authorized under subsection (d)(8), the Coordinator of United
States Government Activities to Combat HIV/AIDS Globally shall
seek to ensure that the government of a country--
``(A) takes into account the local perspectives of
the rural and urban poor, including women, in each
country; and
``(B) consults with private and voluntary
organizations, including faith-based organizations, the
business community, and other donors in the country.
``(4) Congressional and public notification after entering
into a compact.--Not later than 10 days after entering into a
compact authorized under subsection (d)(8), the Global AIDS
Coordinator shall--
``(A) submit a report containing a detailed summary
of the compact and a copy of the text of the compact
to--
``(i) the Committee on Foreign Relations of
the Senate;
``(ii) the Committee on Appropriations of
the Senate;
``(iii) the Committee on Foreign Affairs of
the House of Representatives; and
``(iv) the Committee on Appropriations of
the House of Representatives; and
``(B) publish such information in the Federal
Register and on the Internet website of the Office of
the Global AIDS Coordinator.
``(f) Annual Report.--
``(1) In general.--Not later than January 31 of each year,
the President shall submit to the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs of
the House of Representatives a report on the implementation of
this section for the prior fiscal year.
``(2) Report elements.--Each report shall include--
``(A) a description of efforts made by each
relevant executive branch agency to implement the
policies set forth in this section, section 302, and
section 303;
``(B) a description of the programs established
pursuant to such sections;
``(C) a detailed breakdown of funding allocations,
by program and by country, for prevention activities;
and
``(D) a detailed assessment of the impact of
programs established pursuant to such sections,
including--
``(i)(I) the effectiveness of such programs
in reducing--
``(aa) the transmission of
HIV, particularly in women and
girls;
``(bb) mother-to-child
transmission of HIV, including
through drug treatment and
therapies, either directly or
by referral; and
``(cc) mortality rates from
HIV/AIDS;
``(II) the number of patients receiving
treatment for AIDS in each country that
receives assistance under this Act;
``(III) an assessment of progress towards
the achievement of annual goals set forth in
the timetable required under the 5-year
strategy established under section 101 and, if
annual goals are not being met, the reasons for
such failure; and
``(IV) retention and attrition data for
programs receiving United States assistance,
including mortality and loss to follow-up
rates, organized overall and by country;
``(ii) the progress made toward--
``(I) improving health care
delivery systems (including the
training of health care workers,
including doctors, nurses, midwives,
pharmacists, laboratory technicians,
and compensated community health
workers, and the use of codes of
conduct for ethical recruiting
practices for health care workers);
``(II) advancing safe working
conditions for health care workers; and
``(III) improving infrastructure to
promote progress toward universal
access to HIV/AIDS prevention,
treatment, and care by 2013;
``(iii) a description of coordination
efforts with relevant executive branch agencies
to link HIV/AIDS clinical and social services
with non-HIV/AIDS services as part of the
United States health and development agenda;
``(iv) a detailed description of integrated
HIV/AIDS and food and nutrition programs and
services, including--
``(I) the amount spent on food and
nutrition support;
``(II) the types of activities
supported; and
``(III) an assessment of the
effectiveness of interventions carried
out to improve the health status of
persons with HIV/AIDS receiving food or
nutritional support;
``(v) a description of efforts to improve
harmonization, in terms of relevant executive
branch agencies, coordination with other public
and private entities, and coordination with
partner countries' national strategic plans as
called for in the `Three Ones';
``(vi) a description of--
``(I) the efforts of partner
countries that were signatories to the
Abuja Declaration on HIV/AIDS,
Tuberculosis, and Other Related
Infectious Diseases to adhere to the
goals of such Declaration in terms of
investments in public health, including
HIV/AIDS; and
``(II) a description of the HIV/
AIDS investments of partner countries
that were not signatories to such
Declaration;
``(vii) a detailed description of any
compacts or framework agreements reached or
negotiated between the United States and any
partner countries, including a description of
the elements of compacts described in
subsection (e);
``(viii) a description of programs serving
women and girls, including--
``(I) HIV/AIDS prevention programs
that address the vulnerabilities of
girls and women to HIV/AIDS;
``(II) information on the number of
individuals served by programs aimed at
reducing the vulnerabilities of women
and girls to HIV/AIDS and data on the
types, objectives, and duration of
programs to address these issues;
``(III) information on programs to
address the particular needs of
adolescent girls and young women; and
``(IV) programs to prevent gender-
based violence or to assist victims of
gender based violence as part of, or in
coordination with, HIV/AIDS programs;
``(ix) a description of strategies, goals,
programs, and interventions to--
``(I) address the needs and
vulnerabilities of youth populations;
``(II) expand access among young
men and women to evidence-based HIV/
AIDS health care services and HIV
prevention programs, including
abstinence education programs; and
``(III) expand community-based
services to meet the needs of orphans
and of children and adolescents
affected by or vulnerable to HIV/AIDS
without increasing stigmatization;
``(x) a description of--
``(I) the specific strategies
funded to ensure the reduction of HIV
infection among injection drug users;
``(II) the number of injection drug
users, by country, reached by such
strategies; and
``(III) medication-assisted drug
treatment for individuals with HIV or
at risk of HIV;
``(xi) a detailed description of program
monitoring, operations research, and impact
evaluation research, including--
``(I) the amount of funding
provided for each research type;
``(II) an analysis of cost-
effectiveness models; and
``(III) conclusions regarding the
efficiency, effectiveness, and quality
of services as derived from previous or
ongoing research and monitoring
efforts;
``(xii) building capacity to identify,
investigate, and stop nosocomial transmission
of infectious diseases, including HIV and
tuberculosis; and
``(xiii) a description of staffing levels
of United States Government HIV/AIDS teams in
countries with significant HIV/AIDS programs,
including whether or not a full-time
coordinator was on staff for the year.
``(g) Funding Limitation.--Of the funds made available to carry out
this section in any fiscal year, not more than 7 percent may be used
for the administrative expenses of the United States Agency for
International Development in support of activities described in this
section, section 302, and section 303. Such amount shall be in addition
to other amounts otherwise available for such purposes.
``(h) Definitions.--In this section:
``(1) AIDS.--The term `AIDS' means acquired immune
deficiency syndrome.
``(2) HIV.--The term `HIV' means the human immunodeficiency
virus, the pathogen that causes AIDS.
``(3) HIV/AIDS.--The term `HIV/AIDS' means, with respect to
an individual, an individual who is infected with HIV or living
with AIDS.
``(4) Relevant executive branch agencies.--The term
`relevant executive branch agencies' means the Department of
State, the United States Agency for International Development,
the Department of Health and Human Services (including its
agencies and offices), and any other department or agency of
the United States that participates in international HIV/AIDS
activities pursuant to the authorities of such department or
agency or this Act.''.
(b) Assistance To Combat Tuberculosis.--Subtitle A of title III of
the United States Leadership Against HIV/AIDS, Tuberculosis and Malaria
Act of 2003 (22 U.S.C. 7631 et seq.) is amended--
(1) by redesignating section 302 as section 302A;
(2) in the heading of section 302A (as redesignated), by
inserting ``other provisions relating to'' before
``assistance''; and
(3) by inserting before section 302A (as redesignated) the
following new section:
``SEC. 302. ASSISTANCE TO COMBAT TUBERCULOSIS.
``(a) Findings.--Congress makes the following findings:
``(1) Congress recognizes the growing international problem
of tuberculosis and the impact its continued existence has on
those countries that had previously largely controlled the
disease.
``(2) Congress further recognizes that the means exist to
control and treat tuberculosis through expanded use of the DOTS
(Directly Observed Treatment Short-course) treatment strategy,
including DOTS-Plus to address multi-drug resistant
tuberculosis, and adequate investment in newly created
mechanisms to increase access to treatment, including the
Global Tuberculosis Drug Facility established in 2001 pursuant
to the Amsterdam Declaration to Stop TB and the Global Alliance
for TB Drug Development.
``(b) Policy.--It is a major objective of the foreign assistance
program of the United States to control tuberculosis. In all countries
in which the Government of the United States has established
development programs, particularly in countries with the highest burden
of tuberculosis and other countries with high rates of tuberculosis,
the United States should support the objectives of the Global Plan to
Stop TB, including through achievement of the following goals:
``(1) Reduce by half the tuberculosis death and disease
burden from the 1990 baseline.
``(2) Sustain or exceed the detection of at least 70
percent of sputum smear-positive cases of tuberculosis and the
successful treatment of at least 85 percent of the cases
detected in countries with established United States Agency for
International Development tuberculosis programs.
``(3) In support of the Global Plan to Stop TB, the
President shall establish a comprehensive, 5-year United States
strategy to expand and improve United States efforts to combat
tuberculosis globally, including a plan to support--
``(A) the successful treatment of 4,500,000 new
sputum smear tuberculosis patients under DOTS programs
by 2013, primarily through direct support for needed
services, commodities, health workers, and training,
and additional treatment through coordinated
multilateral efforts; and
``(B) the diagnosis and treatment of 90,000 new
multiple drug resistant tuberculosis cases by 2013, and
additional treatment through coordinated multilateral
efforts.
``(c) Authorization.--To carry out this section and consistent with
section 1321 of the Global Partnerships Act of 2012, the President is
authorized to furnish assistance, on such terms and conditions as the
President may determine, for the prevention, treatment, control, and
elimination of tuberculosis.
``(d) Coordination.--In carrying out this section, the President
shall coordinate with the World Health Organization, the Global Fund to
Fight AIDS, Tuberculosis, and Malaria, and other organizations with
respect to the development and implementation of a comprehensive
tuberculosis control program.
``(e) Priority To Stop TB Strategy.--In furnishing assistance under
subsection (c), the President shall give priority to--
``(1) direct services described in the Stop TB Strategy,
including expansion and enhancement of Directly Observed
Treatment Short-course (DOTS) coverage, rapid testing,
treatment for individuals infected with both tuberculosis and
HIV, and treatment for individuals with multi-drug resistant
tuberculosis (MDR-TB), strengthening of health systems, use of
the International Standards for Tuberculosis Care by all
providers, empowering individuals with tuberculosis, and
enabling and promoting research to develop new diagnostics,
drugs, and vaccines, and program-based operational research
relating to tuberculosis; and
``(2) funding for the Global Tuberculosis Drug Facility,
the Stop Tuberculosis Partnership, and the Global Alliance for
TB Drug Development.
``(f) Assistance for the World Health Organization and the Stop
Tuberculosis Partnership.--In carrying out this section, the President,
acting through the Administrator of the United States Agency for
International Development, is authorized to provide increased resources
to the World Health Organization and the Stop Tuberculosis Partnership
to improve the capacity of countries with high rates of tuberculosis
and other affected countries to implement the Stop TB Strategy and
specific strategies related to addressing multiple drug resistant
tuberculosis (MDR-TB) and extensively drug resistant tuberculosis (XDR-
TB).
``(g) Annual Report.--The President shall submit an annual report
to Congress that describes the impact of United States foreign
assistance on efforts to control tuberculosis, including--
``(1) the number of tuberculosis cases diagnosed and the
number of cases cured in countries receiving United States
bilateral foreign assistance for tuberculosis control purposes;
``(2) a description of activities supported with United
States tuberculosis resources in each country, including a
description of how those activities specifically contribute to
increasing the number of people diagnosed and treated for
tuberculosis;
``(3) in each country receiving bilateral United States
foreign assistance for tuberculosis control purposes, the
percentage provided for direct tuberculosis services in
countries receiving United States bilateral foreign assistance
for tuberculosis control purposes;
``(4) a description of research efforts and clinical trials
to develop new tools to combat tuberculosis, including
diagnostics, drugs, and vaccines supported by United States
bilateral assistance;
``(5) the number of persons who have been diagnosed and
started treatment for multidrug-resistant tuberculosis in
countries receiving United States bilateral foreign assistance
for tuberculosis control programs;
``(6) a description of the collaboration and coordination
of United States anti-tuberculosis efforts with the World
Health Organization, the Global Fund, and other major public
and private entities within the Stop TB Strategy;
``(7) the constraints on implementation of programs posed
by health workforce shortages and capacities;
``(8) the number of people trained in tuberculosis control;
and
``(9) a breakdown of expenditures for direct patient
tuberculosis services, drugs and other commodities, drug
management, training in diagnosis and treatment, health systems
strengthening, research, and support costs.
``(h) Definitions.--In this section:
``(1) DOTS.--The term `DOTS' or `Directly Observed
Treatment Short-course' means the World Health Organization-
recommended strategy for treating tuberculosis, including--
``(A) low-cost and effective diagnosis, treatment,
and monitoring of tuberculosis;
``(B) a reliable drug supply;
``(C) a management strategy for public health
systems;
``(D) health system strengthening;
``(E) promotion of the use of the International
Standards for Tuberculosis Care by all care providers;
``(F) bacteriology under an external quality
assessment framework;
``(G) short-course chemotherapy; and
``(H) sound reporting and recording systems.
``(2) DOTS-Plus.--The term `DOTS-Plus' means a
comprehensive tuberculosis management strategy that is built
upon and works as a supplement to the standard DOTS strategy,
and which takes into account specific issues (such as use of
second line anti-tuberculosis drugs) that need to be addressed
in areas where there is high prevalence of multidrug resistant
tuberculosis.
``(3) Global alliance for tuberculosis drug development.--
The term `Global Alliance for Tuberculosis Drug Development'
means the public-private partnership that brings together
leaders in health, science, philanthropy, and private industry
to devise new approaches to tuberculosis and to ensure that new
medications are available and affordable in high tuberculosis
burden countries and other affected countries.
``(5) Stop tb strategy.--The term `Stop TB Strategy' means
the 6-point strategy to reduce tuberculosis developed by the
World Health Organization, which is described in the Global
Plan to Stop TB 2006-2015: Actions for Life, a comprehensive
plan developed by the Stop TB Partnership that sets out the
actions necessary to achieve the millennium development goal of
cutting tuberculosis deaths and disease burden in half by 2015.
``(6) Stop tuberculosis partnership.--The term `Stop
Tuberculosis Partnership' means the partnership of the World
Health Organization, donors including the United States, high
tuberculosis burden countries, multilateral agencies, and
nongovernmental and technical agencies committed to short- and
long-term measures required to control and eventually eliminate
tuberculosis as a public health problem in the world.''.
(c) Assistance To Combat Malaria.--Subtitle A of title III of the
United States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act
of 2003 (22 U.S.C. 7631 et seq.) is amended--
(1) by redesignating section 303 as section 303A;
(2) in the heading of section 303A (as redesignated), by
inserting ``other provisions relating to'' before
``assistance''; and
(3) by inserting before section 303A (as redesignated) the
following new section:
``SEC. 303. ASSISTANCE TO COMBAT MALARIA.
``(a) Finding.--Congress finds that malaria kills more people
annually than any other communicable disease except tuberculosis, that
more than 90 percent of all malaria cases are in sub-Saharan Africa,
and that children and women are particularly at risk. Congress
recognizes that there are cost-effective tools to decrease the spread
of malaria and that malaria is a curable disease if promptly diagnosed
and adequately treated.
``(b) Policy.--It is a major objective of the foreign assistance
program of the United States to provide assistance for the prevention,
control, treatment, and cure of malaria.
``(c) Authorization.--To carry out this section and consistent with
section 1321 of the Global Partnerships Act of 2012, the President is
authorized to furnish assistance, on such terms and conditions as the
President may determine, for the prevention, treatment, control, and
elimination of malaria.
``(d) Coordination.--In carrying out this section, the President
shall coordinate with the World Health Organization, the Global Fund to
Fight AIDS, Tuberculosis, and Malaria, the Department of Health and
Human Services (the Centers for Disease Control and Prevention and the
National Institutes of Health), and other organizations with respect to
the development and implementation of a comprehensive malaria control
program.''.
(d) Technical and Conforming Amendments.--The United States
Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 2003 (22
U.S.C. 7601 et seq.) is amended--
(1) in section 3(12), by striking ``Foreign Assistance Act
of 1961'' and inserting ``Global Partnerships Act of 2012'';
(2) in section 101(f)(1)(A), by inserting at the end before
the period the following: ``(as such sections were in effect on
the day before the date of the enactment of the Global
Partnerships Act of 2012)'';
(3) in section 202(d)(4)(B)--
(A) in clause (iii), by striking ``section 104A of
the Foreign Assistance Act of 1961 (as added by section
301 of this Act)'' and inserting ``section 301 of this
Act''; and
(B) in clause (iv), by striking ``sections 104A,
104B, and 104C of the Foreign Assistance Act of 1961
(as added by title III of this Act)'' and inserting
``sections 301, 302, and 303 of this Act'';
(4) in section 204(b)(1), by striking ``section 129 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2152)'' and inserting
``section 1132 of the Global Partnerships Act of 2012'';
(5) in section 301A (as redesignated)--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) by striking ``section 104(c) of
the Foreign Assistance Act of 1961 (22
U.S.C. 2151b(c))'' and inserting
``section 1304 of the Global
Partnerships Act of 2012''; and
(II) by striking ``section 104A of
the Foreign Assistance Act of 1961, as
added by subsection (a)'' and inserting
``section 301''; and
(ii) in paragraph (3), by striking
``section 104A(d)(4) of the Foreign Assistance
Act of 1961 (as added by subsection (a))'' and
inserting ``section 301(d)(5)''; and
(B) in subsection (d), by striking ``under section
104A of the Foreign Assistance Act of 1961'' and
inserting ``under section 1304 of the Global
Partnerships Act of 2012'';
(6) in section 302A(b)(1) (as redesignated)--
(A) by striking ``section 104(c) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2151b(c))'' and
inserting ``section 1304 of the Global Partnerships Act
of 2012''; and
(B) by striking ``section 104B of the Foreign
Assistance Act of 1961, as added by subsection (a)''
and inserting ``section 302''; and
(7) in section 303A(b)(1) (as redesignated)--
(A) by striking ``section 104(c) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2151b(c))'' and
inserting ``section 1304 of the Global Partnerships Act
of 2012''; and
(B) by striking ``section 104C of the Foreign
Assistance Act of 1961, as added by subsection (a)''
and inserting ``section 303'';
(8) in section 304A (as redesignated)--
(A) in subsection (e), by striking ``section 104C
of the Foreign Assistance Act of 1961 (22 U.S.C. 2151b-
4)'' and inserting ``section 303''; and
(B) in subsection (f), by striking ``section
104C'';
(9) in section 312(c)(4)(C)(ii), by striking ``104A(f) of
the Foreign Assistance Act of 1961'' and inserting ``section
301(f)''; and
(10) in section 403--
(A) in subsection (a)(4), by striking ``section
104A(e) of the Foreign Assistance Act of 1961 (22
U.S.C. 2151b-2(e))'' and inserting ``section 301(e) of
this Act''; and
(B) in subsection (d)(4), by striking ``section
104A(b)(1)(A) of the Foreign Assistance Act of 1961 (22
U.S.C. 2151b-2(b)(1)(A))'' and inserting ``section
301(b)(1)(A) of this Act''.
(e) Clerical Amendment.--The table of contents in section 1(b) of
the United States Leadership Against HIV/AIDS, Tuberculosis and Malaria
Act of 2003 (22 U.S.C. 7601 note) is amended by striking the items
relating to sections 301 through 303 and inserting the following new
items:
``Sec. 301. Assistance to combat HIV/AIDS.
``Sec. 301A. Other provisions relating to assistance to combat HIV/
AIDS.
``Sec. 302. Assistance to combat tuberculosis.
``Sec. 302A. Other provisions relating to assistance to combat
tuberculosis.
``Sec. 303. Assistance to combat malaria.
``Sec. 303A. Other provisions relating to assistance to combat
malaria.''.
(f) Transfer of Prior Year Funds.--Unobligated balances of funds
made available under sections 104A, 104B and 104C of the Foreign
Assistance Act of 1961 (as in effect on the day before the date of the
enactment of this Act) shall be transferred to, merged with, and made
available for the same purposes as funds made available under sections
301, 302 and 303, respectively, of the United States Leadership Against
HIV/AIDS, Tuberculosis and Malaria Act of 2003 (as added by this
section).
SEC. 12102. AMENDMENTS TO THE MILLENNIUM CHALLENGE ACT OF 2003.
(a) Extension of Compacts.--Section 609(j) of the Millennium
Challenge Act of 2003 (22 U.S.C. 7708(j)) is amended to read as
follows:
``(j) Extension of Compact.--
``(1) In general.--Except as provided under paragraph (2),
the duration of a Compact shall not exceed 5 years.
``(2) Exception.--The duration of a Compact may be extended
beyond 5 years if--
``(A) the Compact was signed prior to the date of
enactment of the Global Partnerships Act of 2012;
``(B) the Board determines that a project included
in the Compact cannot be completed in 5 years or less;
``(C) the Board approves an extension of the
Compact that does not extend the total duration of the
Compact beyond 7 years; and
``(D) the appropriate congressional committees are
notified in accordance with subsection (i).''.
(b) Concurrent and Subsequent Compacts.--
(1) In general.--Section 609(k) of the Millennium Challenge
Act of 2003 (22 U.S.C. 7708(k)) is amended to read as follows:
``(k) Concurrent and Subsequent Compacts.--
``(1) In general.--Subject to paragraph (2), and in
accordance with the requirements of this title, an eligible
country and the United States--
``(A) may enter into and have in effect more than
one Compact at any given time; and
``(B) may enter into subsequent Compacts after the
expiration of existing Compacts.
``(2) Requirements.--An eligible country and the United
States may enter into concurrent or subsequent Compacts if the
Board determines that such country--
``(A) is making or has made significant, consistent
progress in implementing the terms of any existing or
prior Compact; and
``(B) will contribute, in the case of a candidate
country as defined in section 606(a), not less than 7.5
percent of the total amount agreed upon for a
subsequent Compact, or in the case of a candidate
country as defined in section 606(b), not less than 15
percent of the total amount agreed upon for a
subsequent Compact.
``(3) Funding.--The Corporation shall commit any funding
for a concurrent Compact at the time it funds the Compact.
``(4) Timing.--A concurrent Compact shall be signed not
later than 2 years after the signing of the earlier Compact.
``(5) Limitation.--The Corporation may provide not more
than 15 years of Compact funding to any country.''.
(2) Effective date.--The amendment made by paragraph (1)
applies with respect to Compacts entered into between the
United States and an eligible country under the Millennium
Challenge Act of 2003 (22 U.S.C. 7701 et seq.) before, on, or
after the date of the enactment of this Act.
(c) Maintaining Candidate Status for Purposes of Income Category.--
Section 606 of the Millennium Challenge Act of 2003 (22 U.S.C. 7705) is
amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in the heading, by striking ``Fiscal
year 2004'' and inserting ``In general'';
(ii) in the matter preceding subparagraph
(A), by striking ``for fiscal year 2004'' and
inserting ``for a fiscal year'';
(iii) in subparagraph (A) to read as
follows:
``(A) the country--
``(i) has a per capita income that is not
greater than the World Bank's lower middle
income country threshold for such fiscal year;
and
``(ii) is among the 75 lowest per capita
income countries, as identified by the World
Bank; and''; and
(iv) in subparagraph (B), by striking
``subject to paragraph (3)'' and inserting
``subject to paragraph (2)'';
(B) by striking paragraph (2); and
(C) by redesignating paragraph (3) as paragraph
(2);
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A), by striking ``for fiscal year 2006 or a
subsequent fiscal year'' and inserting ``for a
fiscal year''; and
(ii) by striking subparagraphs (A) and (B)
and inserting the following:
``(A) has a per capita income that is not greater
than the World Bank's lower middle income country
threshold for such fiscal year;
``(B) is not among the 75 lowest per capita income
countries as identified by the World Bank; and
``(C) meets the requirements under subsection
(a)(1)(B).''; and
(B) in paragraph (2)--
(i) by striking ``for fiscal year 2006 or
any subsequent fiscal year'' and inserting
``for a fiscal year''; and
(ii) by striking ``for fiscal year 2006 or
the subsequent fiscal year, as the case may
be'' and inserting ``for such fiscal year'';
(3) by redesignating existing subsection (c) as subsection
(d); and
(4) by inserting after subsection (b) the following:
``(c) Maintaining Candidate Status.--Any candidate country whose
per capita income changes in a given fiscal year such that the
country's income classification as `low income' or `lower middle
income' changes, shall retain its candidacy at the former income
category for the year of such transition and for the two subsequent
fiscal years.''.
(d) Conforming Amendments.--The Millennium Challenge Act of 2003 is
amended--
(1) in section 603(1)(A) (22 U.S.C. 7702(1)(A)), by
striking ``International Relations'' and inserting ``Foreign
Affairs'';
(2) in section 605(e)(4) (22 U.S.C. 7704(e)(4))--
(A) by striking ``The prohibitions on use of funds
contained in paragraphs (1) through (3) of section
104(f) of the Foreign Assistance Act of 1961 (22 U.S.C.
2151b(f)(1)-(3))'' and inserting ``The principles and
restrictions on use of funds contained in section 1305
of the Global Partnerships Act of 2012''; and
(B) by striking ``part I'' and inserting ``title
I'';
(3) in section 606(a)(1)(B) (22 U.S.C. 7705(a)(1)(B))--
(A) by striking ``part I of the Foreign Assistance
Act of 1961'' and inserting ``title I of the Global
Partnerships Act of 2012''; and
(B) by striking ``any provision of the Foreign
Assistance Act of 1961'' and inserting ``any provision
of the Global Partnerships Act of 2012''; and
(4) in section 614(d) (22 U.S.C. 7713(d)), by striking
``Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.)'' and
inserting ``Global Partnerships Act of 2012''.
SEC. 12103. AMENDMENTS TO THE MIGRATION AND REFUGEE ASSISTANCE ACT OF
1962.
Section 2(c) of the Migration and Refugee Assistance Act of 1962
(22 U.S.C. 2601(c)) is amended--
(1) in paragraph (1), by striking ``President'' and
inserting ``Secretary of State''; and
(2) in paragraph (2), by striking ``$100,000,000'' and
inserting ``$200,000,000''.
SEC. 12104. AMENDMENTS TO THE FULBRIGHT-HAYS ACT.
The Mutual Educational and Cultural Exchange Act of 1961 (commonly
known as the ``Fulbright-Hays Act'') is amended--
(1) in section 102(b)(3) (22 U.S.C. 2452(b)(3)), by
inserting ``, hospital centers for medical education and
research, and other'' after ``operation of schools''; and
(2) in section 112(a)(5) (22 U.S.C. 2460(a)(5)) to read as
follows:
``(5) the American Schools and Hospitals Abroad Program
which provides financial assistance to the operations of
American-sponsored schools, hospital centers for medical
education and research, and other institutions of learning
abroad;''.
Subtitle B--Repeals
SEC. 12201. REPEAL OF LAWS INCORPORATED IN THIS ACT.
The following provisions of law are hereby repealed:
(1) The Foreign Assistance Act of 1961 (Public Law 87-195).
(2) The Arms Export Control Act (Public Law 90-629).
(3) Sections 664 and 665 of the Foreign Relations
Authorization Act, Fiscal Year 2003 (Public Law 107-228).
(4) Sections 2121 and 2122 of the ADVANCE Democracy Act of
2007 (title XXI of Public Law 110-53).
(5) Section 7307 of title 10, United States Code.
(6) Section 12001 of the Department of Defense
Appropriations Act, 2005 (Public Law 108-287).
SEC. 12202. REPEAL OF LAWS INCONSISTENT WITH THIS ACT.
Sections 1511, 1522, and 1523(d) of the Foreign Affairs Reform and
Restructuring Act of 1998 (division G of Public Law 105-277) are hereby
repealed.
SEC. 12203. REPEAL OF OBSOLETE PROVISIONS OF LAW.
The following provisions of law are hereby repealed:
(1) The Trafficking Victims Protection Reauthorization Act
of 2003 (Public Law 108-193).
(2) The Torture Victims Relief Reauthorization Act of 2003
(Public Law 108-179).
(3) The HELP Commission Act (section 637 of division B of
Public Law 108-99).
(4) The International Anti-Corruption and Good Governance
Act of 2000 (Public Law 106-309).
(5) The Iraq Liberation Act of 1998 (Public Law 105-338).
(6) The Agriculture Export Relief Act of 1998 (Public Law
105-194).
(7) Title I of the International Narcotics Control
Corrections Act of 1994 (Public Law 103-447).
(8) The South African Democratic Transition Support Act of
1993 (Public Law 103-149).
(9) Public Law 102-270 (relating to the peace process in
Liberia).
(10) Title III of the Conventional Forces in Europe Treaty
Implementation Act of 1991.
(11) The Emergency Supplemental Persian Gulf Refugee
Assistance Act of 1991 (Public Law 102-45).
(12) The Emergency Supplemental Assistance for Israel Act
of 1991 (Public Law 102-21).
(13) The Urgent Assistance for Democracy in Panama Act of
1990 (Public Law 101-243).
(14) The Survival Assistance to Victims of Civil Strife in
Central America (Public Law 101-215).
(15) The Bangladesh Disaster Assistance Act of 1988 (Public
Law 100-576).
(16) The International Cooperation to Protect Biological
Diversity (Public Law 100-530).
(17) The Overseas Private Investment Corporation Amendments
Act of 1988 (Public Law 100-461).
(18) The American Aid to Poland Act of 1988 (Part II of
Public Law 100-418).
(19) Public Law 100-276 (relating to peace, democracy and
reconciliation in Central America).
(20) The Special Foreign Assistance Act of 1986 (Public Law
99-529).
(21) The Jordan Supplemental Economic Assistance
Authorization Act of 1985 (Public Law 99-88).
(22) The African Famine Relief and Recovery Act of 1985
(Public Law 99-8).
(23) The International Security and Development Assistance
Authorizations Act of 1983 (Public Law 98-151).
(24) The Lebanon Emergency Assistance Act of 1983 (Public
Law 98-43).
(25) The International Security and Development Cooperation
Act of 1981 (Public Law 97-113).
(26) The International Security and Development Cooperation
Act of 1980 (Public Law 96-533), other than section 110 and
title V of such Act.
(27) The International Development Cooperation Act of 1979
(Public Law 96-92).
(28) The International Security Assistance Act of 1979
(Public Law 96-53).
(29) The Special International Security Assistance Act of
1979 (Public Law 96-35).
(30) The International Development and Food Assistance Act
of 1978 (Public Law 95-424).
(31) The International Security Assistance Act of 1978
(Public Law 95-384).
(32) The International Security Assistance Act of 1977
(Public Law 95-92).
(33) The International Development and Food Assistance Act
of 1977 (Public Law 95-88), other than sections 1, 132, and 133
of such Act.
(34) The International Security Assistance and Arms Export
Control Act of 1976 (Public Law 94-329), except for section
601.
(35) The International Development and Food Assistance Act
of 1975 (Public Law 94-161).
(36) The Foreign Assistance Act of 1974 (Public Law 93-
559).
(37) The Emergency Security Assistance Act of 1973 (Public
Law 93-199).
(38) The Foreign Assistance Act of 1973 (Public Law 93-
189).
(39) The Foreign Assistance Act of 1971 (Public Law 92-
226).
(40) The Act entitled, ``An Act to Amend the Foreign
Military Sales Act, and for other purposes,'' approved January
12, 1971 (Public Law 91-672).
(41) The Special Foreign Assistance Act of 1971 (Public Law
91-652).
(42) The Foreign Assistance Act of 1968 (Public Law 90-
554).
(43) The Foreign Assistance Act of 1964 (Public Law 88-
633).
(44) The Latin American Development Act (Public Law 86-
735).
SEC. 12204. REPEAL OF UNNECESSARY REPORTING REQUIREMENTS.
The following provisions of law are repealed:
(1) Section 560(g) of Public Law 103-87.
(2) Section 104 of Public Law 102-511.
(3) Section 1012(c) of Public Law 103-337.
(4) Subsections (c)(4) and (c)(5) of section 601 of Public
Law 96-465.
(5) Section 585 of division A of Public Law 104-208.
(6) Section 8 of Public Law 107-245.
(7) Section 807 of Public Law 98-164.
Subtitle C--Savings Provisions
SEC. 12301. REFERENCES TO FORMER AUTHORITIES.
(a) In General.--Effective beginning on the date of the enactment
of this Act--
(1) any reference to part I of the Foreign Assistance Act
of 1961 shall be deemed to be a reference to title I of this
Act;
(2) any reference to section 104(f) of the Foreign
Assistance Act of 1961 shall be deemed to be a reference to
section 1305 of this Act;
(3) any reference to section 104A, 104B, or 104C of the
Foreign Assistance Act of 1961 shall be deemed to be a
reference to section 301, 302, or 303, respectively, of the
United States Leadership Against HIV/AIDS, Tuberculosis and
Malaria Act of 2003 (as added by this Act);
(4) any reference to section 109 or 610 of the Foreign
Assistance Act of 1961 shall be deemed to be a reference to
section 10602 of this Act;
(5) any reference to section 116(a) or 502B of the Foreign
Assistance Act of 1961 shall be deemed to be a reference to
section 10101 of this Act;
(6) any reference to section 116(d) of the Foreign
Assistance Act of 1961 shall be deemed to be a reference to
section 3102 of this Act;
(7) any reference to section 451 of the Foreign Assistance
Act of 1961 shall be deemed to be a reference to section 10601
of this Act;
(8) any reference to chapter 4 of part II of the Foreign
Assistance Act of 1961 shall be deemed to be a reference to
subtitle A of title IV of this Act;
(9) any reference to section 614 of the Foreign Assistance
Act of 1961 shall be deemed to be a reference to section 10603
of this Act;
(10) any reference to section 620A of the Foreign
Assistance Act of 1961 shall be deemed to be a reference to
section 10401 of this Act;
(11) any reference to section 620H of the Foreign
Assistance Act of 1961 shall be deemed to be a reference to
section 10402 of this Act;
(12) any reference to section 620M of the Foreign
Assistance Act of 1961 shall be deemed to be a reference to
section 10102 of this Act;
(13) any reference to section 632 of the Foreign Assistance
Act of 1961 shall be deemed to be a reference to section 11504
of this Act;
(14) any reference to section 634 of the Foreign Assistance
Act of 1961 shall be deemed to be a reference to section 9302
of this Act;
(15) any reference to section 634A of the Foreign
Assistance Act of 1961 shall be deemed to be a reference to
section 9401 of this Act; and
(16) any reference to section 653 of the Foreign Assistance
Act of 1961 shall be deemed to be a reference to section 9303
of this Act.
(b) United States Agency for International Development.--References
in any provision of law to the ``Agency for International Development''
shall be deemed to be a reference to the ``United States Agency for
International Development''.
SEC. 12302. REPEAL OF PROVISIONS AMENDING OTHER LAWS.
Except as otherwise provided in this Act, the repeal by this Act of
any provision of law that amended or repealed another provision of law
does not affect in any way that amendment or repeal.
SEC. 12303. SAVINGS PROVISIONS.
(a) In General.--Except as may be expressly provided to the
contrary in this Act, all determinations, authorizations, regulations,
orders, contracts, agreements, and other actions issued, undertaken, or
entered into under authority of any provision of law repealed by this
Act shall continue in full force and effect until modified by
appropriate authority.
(b) Conditions.--Wherever provisions of this Act establish
conditions which must be complied with before use may be made of
authority contained in, or funds made available to carry out the
provisions of, this Act, compliance with, or satisfaction of,
substantially similar conditions under provisions repealed by this Act
shall be deemed to constitute compliance with the conditions
established by this Act.
(c) Availability of Funds.--Funds made available pursuant to
provisions of law repealed by this Act shall, unless otherwise
authorized or provided by law, remain available for their original
purposes in accordance with the provisions of law originally applicable
thereto, or in accordance with the provisions of law currently
applicable to those purposes.
(d) References.--References in law to provisions repealed by this
Act may hereafter be deemed to be references to corresponding
provisions of this Act, on a case-by-case basis as may be appropriate.
(e) Certain Presidential Appointees.--The repeal by this Act of any
provision of the Foreign Assistance Act of 1961 providing for the
appointment of an individual to a position by the President, by and
with the advice and consent of the Senate, and the reenactment by this
Act of that provision in substantively identical form does not require
the reappointment of the individual holding that position on the
effective date of this Act.
(f) Guarantees and Loans Under Former Authority.--Guarantees
committed or outstanding under the former authorities of sections 108,
222, and 222A of the Foreign Assistance Act of 1961, as in effect on
the day before the date of the enactment of this Act, loans obligated
under section 108 on or before such date, the fees and interest
collected in connection with such guarantees and loans, and income on
claims receivable with respect to such guarantees and loans, shall
continue to be subject to provisions of such Act originally applicable
to those guarantees and loans and the Federal Credit Reform Act of
1990.
(g) Severability.--If any provision of this Act, or the application
of such provision to any person or circumstance, shall be held invalid,
the validity of the remainder of this Act, and of the applicability of
such provision to other persons or circumstances, shall not be affected
thereby.
SEC. 12304. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on
the date of the enactment of this Act.
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