[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4697 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4697

   To amend the Foreign Assistance Act of 1961 to ensure that United 
 States assistance programs promote good governance by assisting other 
   countries to combat corruption throughout society and to promote 
transparency and increased accountability for all levels of government 
                   and throughout the private sector.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 2000

 Mr. Gejdenson (for himself, Mr. Lantos, Mr. Berman, Mr. Smith of New 
   Jersey, Mr. Ackerman, Mr. Payne, and Mr. Rothman) introduced the 
 following bill; which was referred to the Committee on International 
                               Relations

_______________________________________________________________________

                                 A BILL


 
   To amend the Foreign Assistance Act of 1961 to ensure that United 
 States assistance programs promote good governance by assisting other 
   countries to combat corruption throughout society and to promote 
transparency and increased accountability for all levels of government 
                   and throughout the private sector.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``International Anti-Corruption and 
Good Governance Act of 2000''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) Widespread corruption endangers the stability and 
        security of societies, undermines democracy, and jeopardizes 
        the social, political, and economic development of a society.
            (2) Corruption facilitates criminal activities, such as 
        money laundering, hinders economic development, inflates the 
        costs of doing business, and undermines the legitimacy of the 
        government and public trust.
            (3) In January 1997 the United Nations General Assembly 
        adopted a resolution urging member states to carefully consider 
        the problems posed by the international aspects of corrupt 
        practices and to study appropriate legislative and regulatory 
        measures to ensure the transparency and integrity of financial 
        systems.
            (4) The United States was the first country to criminalize 
        international bribery through the enactment of the Foreign 
        Corrupt Practices Act of 1977 and United States leadership was 
        instrumental in the passage of the Organization for Economic 
        Cooperation and Development (OECD) Convention on Combatting 
        Bribery of Foreign Public Officials in International Business 
        Transactions.
            (5) The Vice President, at the Global Forum on Fighting 
        Corruption in 1999, declared corruption to be a direct threat 
        to the rule of law and the Secretary of State declared 
        corruption to be a matter of profound political and social 
        consequence for our efforts to strengthen democratic 
        governments.
            (6) The Secretary of State, at the Inter-American 
        Development Bank's annual meeting in March 2000, declared that 
        despite certain economic achievements, democracy is being 
        threatened as citizens grow weary of the corruption and 
        favoritism of their official institutions and that efforts must 
        be made to improve governance if respect for democratic 
        institutions is to be regained.
            (7) In May 1996 the Organization of American States (OAS) 
        adopted the Inter-American Convention Against Corruption 
        requiring countries to provide various forms of international 
        cooperation and assistance to facilitate the prevention, 
        investigation, and prosecution of acts of corruption.
            (8) Independent media, committed to fighting corruption and 
        trained in investigative journalism techniques, can both 
        educate the public on the costs of corruption and act as a 
        deterrent against corrupt officials.
            (9) Competent and independent judiciary, founded on a 
        merit-based selection process and trained to enforce contracts 
        and protect property rights, is critical for creating a 
        predictable and consistent environment for transparency in 
        legal procedures.
            (10) Independent and accountable legislatures, responsive 
        political parties, and transparent electoral processes, in 
        conjunction with professional, accountable, and transparent 
        financial management and procurement policies and procedures, 
        are essential to the promotion of good governance and to the 
        combat of corruption.
            (11) Transparent business frameworks, including modern 
        commercial codes and intellectual property rights, are vital to 
        enhancing economic growth and decreasing corruption at all 
        levels of society.
            (12) The United States should attempt to improve 
        accountability in foreign countries, including by--
                    (A) promoting transparency and accountability 
                through support for independent media, promoting 
                financial disclosure by public officials, political 
                parties, and candidates for public office, open 
                budgeting processes, adequate and effective internal 
                control systems, suitable financial management systems, 
                and financial and compliance reporting;
                    (B) supporting the establishment of audit offices, 
                inspectors general offices, and anti-corruption 
                agencies;
                    (C) promoting responsive, transparent, and 
                accountable legislatures that ensure legislative 
                oversight and whistle-blower protection;
                    (D) promoting judicial reforms that criminalize 
                corruption and promoting law enforcement that 
                prosecutes corruption;
                    (E) fostering business practices that promote 
                transparent, ethical, and competitive behavior in the 
                private sector through the development of an effective 
                legal framework for commerce, including anti-bribery 
                laws, commercial codes that incorporate international 
                standards for business practices, and protection of 
                intellectual property rights; and
                    (F) promoting free and fair national, state, and 
                local elections.
    (b) Purpose.--The purpose of this Act is to ensure that United 
States assistance programs promote good governance by assisting other 
countries to combat corruption throughout society and to improve 
transparency and accountability at all levels of government and 
throughout the private sector.

SEC. 3. DEVELOPMENT ASSISTANCE POLICIES.

    (a) General Policy.--Section 101(a) of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151(a)) is amended in the fifth sentence--
            (1) by striking ``four'' and inserting ``five'';
            (2) in paragraph (3), by striking ``and'' at the end;
            (3) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(5) the promotion of good governance through combating 
        corruption and improving transparency and accountability.'' .
    (b) Development Assistance Policy.--Paragraph (4) of the third 
sentence of section 102(b) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151-1(b)) is amended--
            (1) in subparagraph (E), by striking ``and'' at the end;
            (2) in subparagraph (F), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(G) progress in combating corruption and 
                improving transparency and accountability in the public 
                and private sector.''.

SEC. 4. DEPARTMENT OF THE TREASURY TECHNICAL ASSISTANCE PROGRAM FOR 
              DEVELOPING COUNTRIES.

    Section 129(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151aa(b)) is amended by adding at the end the following:
            ``(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 mechanisms and, to the extent 
        applicable, privatization procedures.''.

SEC. 5. AUTHORIZATION OF GOOD GOVERNANCE PROGRAMS.

    (a) In General.--Chapter 1 of part I of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151 et seq.) is amended by adding at the end the 
following:

``SEC. 131. PROGRAMS TO ENCOURAGE GOOD GOVERNANCE.

    ``(a) Establishment of Programs.--
            ``(1) In general.--The President is authorized to establish 
        programs that combat corruption, improve transparency and 
        accountability, and promote other forms of good governance in 
        countries described in paragraph (2).
            ``(2) Countries described.--A country described in this 
        paragraph is a country that is eligible to receive assistance 
        under this part (including chapter 4 of part II of this Act) or 
        the Support for East European Democracy (SEED) Act of 1989.
            ``(3) Priority.--In carrying out paragraph (1), the 
        President shall give priority to establishing programs in 
        countries that received a significant amount of United States 
        foreign assistance for the prior fiscal year, or in which the 
        United States has a significant economic interest, and that 
        continue to have the most persistent problems with public and 
        private corruption. In determining which countries have the 
        most persistent problems with public and private corruption 
        under the preceding sentence, the President shall take into 
        account criteria such as the Transparency International Annual 
        Corruption Perceptions Index, standards and codes set forth by 
        the International Bank for Reconstruction and Development and 
        the International Monetary Fund, and other relevant criteria.
            ``(4) Requirement.--Assistance provided for countries under 
        programs established pursuant to paragraph (1) may be made 
        available notwithstanding any other provision of law that 
        restricts assistance to foreign countries.
    ``(b) Specific Projects and Activities.--The programs established 
pursuant to subsection (a) shall include, to the extent appropriate, 
projects and activities that--
            ``(1) support responsible independent media to promote 
        oversight of public and private institutions;
            ``(2) implement financial disclosure among public 
        officials, political parties, and candidates for public office, 
        open budgeting processes, and transparent financial management 
        systems;
            ``(3) establish audit offices, inspectors general, and 
        anti-corruption agencies;
            ``(4) promote responsive, transparent, and accountable 
        legislatures that ensure legislative oversight and whistle-
        blower protection;
            ``(5) promote legal and judicial reforms that criminalize 
        corruption and law enforcement reforms and development that 
        encourage prosecutions of criminal corruption;
            ``(6) assist in the development of a legal framework for 
        commercial transactions that fosters business practices that 
        promote transparent, ethical, and competitive behavior in the 
        economic sector, such as commercial codes that incorporate 
        international standards and protection of intellectual property 
        rights;
            ``(7) promote free and fair national, state, and local 
        elections;
            ``(8) foster public participation in the legislative 
        process and public access to government information; and
            ``(9) engage civil society in the fight against corruption.
    ``(c) Conduct of Projects and Activities.--Projects and activities 
under the programs established pursuant to subsection (a) may include, 
among other things, training and technical assistance (including 
drafting of anti-corruption, privatization, and competitive statutory 
and administrative codes), drafting of anti-corruption, privatization, 
and competitive statutory and administrative codes, support for 
independent media and publications, financing of the program and 
operating costs of nongovernmental organizations that carry out such 
projects or activities, and assistance for travel of individuals to the 
United States and other countries for such projects and activities.
    ``(d) Annual Report.--
            ``(1) In general.--The President shall prepare and transmit 
        to the Committee on International Relations of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate an annual report on--
                    ``(A) projects and activities carried out under 
                programs established under subsection (a) for the prior 
                year in priority countries identified pursuant to 
                subsection (a)(3); and
                    ``(B) projects and activities carried out under 
                programs to combat corruption, improve transparency and 
                accountability, and promote other forms of good 
                governance established under other provisions of law 
                for the prior year in such countries.
            ``(2) Required contents.--The report required by paragraph 
        (1) shall contain the following information with respect to 
        each country described in paragraph (1):
                    ``(A) A description of all United States 
                Government-funded programs and initiatives to combat 
                corruption and improve transparency and accountability 
                in the country.
                    ``(B) A description of United States diplomatic 
                efforts to combat corruption and improve transparency 
                and accountability in the country.
                    ``(C) An analysis of major actions taken by the 
                government of the country to combat corruption and 
                improve transparency and accountability in the country.
    ``(e) Funding.--Amounts made available to carry out the other 
provisions of this part (including chapter 4 of part II of this Act) 
and the Support for East European Democracy (SEED) Act of 1989 shall be 
made available to carry out this section.''.
    (b) Deadline for Initial Report.--The initial annual report 
required by section 131(d)(1) of the Foreign Assistance Act of 1961, as 
added by subsection (a), shall be transmitted not later than 180 days 
after the date of the enactment of this Act.
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