[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2121 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2121

  To make available funds under the Foreign Assistance Act of 1961 to 
expand democracy, good governance, and anti-corruption programs in the 
   Russian Federation in order to promote and strengthen democratic 
government and civil society in that country and to support independent 
                                 media.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2001

  Mr. Lantos introduced the following bill; which was referred to the 
                  Committee on International Relations

_______________________________________________________________________

                                 A BILL


 
  To make available funds under the Foreign Assistance Act of 1961 to 
expand democracy, good governance, and anti-corruption programs in the 
   Russian Federation in order to promote and strengthen democratic 
government and civil society in that country and to support independent 
                                 media.

    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 ``Russian Democracy Act of 2001''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress makes the following findings:
            (1) Since the dissolution of the Soviet Union, the 
        leadership of the Russian Federation has publicly committed 
        itself to building--
                    (A) a society with democratic political 
                institutions and practices, observance of universally 
                recognized standards of human rights and religious and 
                press freedom; and
                    (B) a market economy, based on internationally 
                accepted principles of transparency, accountability, 
                and the rule of law.
            (2) In order to facilitate this transition, the 
        international community provided multilateral and bilateral 
        technical assistance, and the United States contributions to 
        these efforts played an important role in influencing the 
        Government of the Russian Federation to abandon expansionist 
        and confrontational policies of the former Soviet Union and 
        start developing new institutions built on democratic and 
        liberal economic foundations and the rule of law.
            (3)(A) Since 1992, United States Government democratic 
        reform programs and public diplomacy programs, including 
        training, small grants, and technical assistance to independent 
        television, radio, and print media across the Russian 
        Federation, has strengthened nongovernment-owned media, 
        provided access to and training in the use of the Internet, 
        brought nearly 40,000 Russian citizens to the United States and 
        has led to the establishment of over 65,000 nongovernmental 
        organizations, thousands of vibrant independent media outlets 
        and numerous political parties.
            (B) These efforts also contributed to the conduct of 
        substantially free and fair Russian parliamentary elections in 
        1995 and 1999 and Presidential elections in 1996 and 2000.
            (4) The United States has also assisted Russian efforts to 
        dismantle its centrally planned state-controlled economy and 
        helped create institutions and infrastructure for a market 
        economy by encouraging transparent privatization of state-owned 
        enterprises, and two-thirds of the Russian Federation's 
        domestic product is now generated by the private sector.
            (5)(A) The United States fostered grassroots 
        entrepreneurship in the Russian Federation by focusing United 
        States economic assistance on small- and medium-sized 
        businesses and by providing training, consulting services, and 
        small loans to more than 250,000 Russian entrepreneurs.
            (B) There are now more than 900,000 small businesses in the 
        Russian Federation, producing 12-15 percent of the gross 
        domestic product of the Russian Federation.
            (C) United States-funded programs help to fight corruption 
        and financial crimes, such as money laundering, by helping to 
        establish a commercial legal infrastructure, develop an 
        independent judiciary, support the drafting of a new criminal 
        code, civil code, and bankruptcy law, develop legal and 
        regulatory framework for the Russian Federation's equivalent of 
        the United States Securities and Exchange Commission, support 
        Russian law schools, create legal aid clinics, and bolster law-
        related activities of nongovernmental organizations.
            (6)(A) Despite these successes, political and economic 
        freedoms in the Russian Federation remain tenuous. Since the 
        election of President Putin in May 2000, the Government of the 
        Russian Federation has launched administrative and political 
        reforms that run counter to the democratic achievements of the 
        past 8 years, restrict political plurality, threaten the 
        nongovernmental sector, and call into question the Government's 
        commitment to freedom of the press, including the concerted 
        campaign by Russian authorities against independent television 
        station NTV and its founder, Vladimir Guzinsky.
            (B) The Department of State's Country Reports on Human 
        Rights Practices for 2000 concluded that during 2000 ``the 
        [Russian Federation] Government's record on media freedom 
        worsened and significant problems persist'' and that ``[t]here 
        was persistent evidence of government pressure on the media.''.
            (7)(A) Furthermore, despite the Russian economic recovery 
        of 1999 and 2000 due to higher oil prices and due in part 
        because of the failure of President Putin to carry through with 
        his promise to implement genuine economic reform, except for 
        the approval of important tax code reform legislation, the 
        Russian economy also remains highly resistant to reform and 
        continues to be plagued with corruption and organized crime.
            (B) This corruption and crime is estimated to cost the 
        Russian economy $15,000,000,000 annually, and the Government of 
        the Russian Federation has not yet genuinely addressed the 
problems of crime, corruption, violation of property and investor 
rights, weak rule of law, absence of an independent judiciary, and the 
lack of transparency in corporate governance.
            (8) In addition, while the Government of the Russian 
        Federation allowed for elections in Chechnya to establish the 
        Chechen civilian administration, the perilous economic, social, 
        and political situation in Chechnya and the transfer of the 
        responsibility for the conduct of the Chechen operation from 
        the Russian military to the Russian security services threatens 
        to undermine indigenous Chechen authorities and increase human 
        rights abuses.
            (9) These developments and actions by the Government of the 
        Russian Federation led more than 1,000 civic and human rights 
        activists representing 430 groups from throughout the Russian 
        Federation to meet in Moscow in January 2001 to take the 
        unprecedented step of declaring a human rights emergency in 
        response to what they see as the growing threat to civil 
        liberties.
            (10) Because the capability of Russian democratic forces 
        and the civil society to organize and defend democratic gains 
        without international support is uncertain, and because the 
        gradual integration of the Russian Federation into the global 
        order of free-market democratic nations will further Russian 
        cooperation with the United States on a wide-range of 
        political, economic, and security issues, the success of 
        democracy in Russia is in the national security interest of the 
        United States and the United States Government needs to develop 
        a far-reaching and flexible strategy aimed at rejuvenating 
        Russian society's support for democracy and market economy, 
        particularly by enhancing Russian democratic institutions and 
        education, promoting the rule of law, and supporting Russian 
        independent media.
    (b) Purposes.-- The purposes of this Act are--
            (1) to strengthen and advance institutions of democratic 
        government and free and independent media and to sustain the 
        development of the independent civil society in the Russian 
        Federation based on religious and ethnic tolerance, 
        internationally recognized human rights, and internationally 
        recognized rule of law; and
            (2) to target United States foreign assistance to the 
        political and economic reality in the Russian Federation, and, 
        to the extent possible, to focus United States foreign 
        assistance programs on using local expertise and giving local 
        organizations a greater role in designing and implementing such 
        programs, while maintaining appropriate oversight and 
        monitoring.

SEC. 3. UNITED STATES POLICY TOWARD THE RUSSIAN FEDERATION.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States Government should--
            (1) consider the transition undertaken by the Russian 
        Federation to be a work in progress, where the influence and 
        the prominence of the United States can be a persuasive factor 
        in gradual Russian integration in Western institutions;
            (2) recognize that a democratic and economically stable 
        Russian Federation is inherently less confrontational and 
        destabilizing in its foreign policy and therefore promotion of 
        democracy in Russia is in the national security interests of 
        the United States;
            (3) continue and increase assistance to the democratic 
        forces in the Russian Federation, including to independent 
        media, progressive regional administrations, democratic 
        political parties, and nongovernmental organizations; and
            (4) express its opposition to antidemocratic and 
        authoritarian tendencies in countries with important 
        relationships with the United States.
    (b) Statement of Policy.--It shall be the policy of the United 
States--
            (1) to engage the Government of Russian Federation and 
        Russian society to strengthen democratic reform and 
        institutions, and to promote good governance principles based 
        on the internationally recognized norms of transparency in 
        business practices, the rule of law, religious freedom, and 
        human rights;
            (2) to advance a dialogue between United States Government 
        officials and private sector individuals and representatives of 
        the Government of the Russian Federation on Russian integration 
        into the western community of nations;
            (3) to encourage United States Government officials and 
        private sector individuals to meet regularly with democratic 
        activists, human rights activists, representatives of the 
        independent media, representatives of nongovernmental 
        organizations, civic organizers, and reform-minded politicians 
        from Moscow and the various regions of the Russian Federation;
            (4) to incorporate democratic reforms, independent media, 
        and economic reforms in the broad United States agenda with the 
        Government of the Russian Federation;
            (5) to encourage the Government of the Russian Federation 
        to address cross-border issues, including environment, crime, 
        trafficking, and corruption in a cooperative and transparent 
        manner consistent with internationally recognized and accepted 
        principles of the rule of law;
            (6) to consult with the Government of the Russian 
        Federation and the Russian Parliament on adoption of economic 
        and social reforms necessary to sustain Russian economic growth 
        since 1999;
            (7) to persuade the Government of the Russian Federation to 
        honor its commitments made to the Organization for Security and 
        Cooperation in Europe (OSCE) at the November 1999 Istanbul 
        Conference and to conduct a genuine good neighbor policy toward 
        the other independent states of the former Soviet Union in the 
        spirit of internationally accepted principles of regional 
        cooperation; and
            (8) to encourage the G-7 partners and international 
        financial institutions, including the World Bank, the 
        International Monetary Fund, and the European Bank for 
Reconstruction and Development, to develop financial safeguards and 
transparency practices in lending to the Russian Federation.

SEC. 4. SENSE OF CONGRESS REGARDING POLICY OF THE RUSSIAN FEDERATION.

    It is the sense of Congress that--
            (1) the Government of the Russian Federation and Russian 
        President Putin should resolve outstanding taxation issues that 
        hinder deliverance of United States assistance programs and to 
        completely fulfill its obligations under existing bilateral 
        agreements; and
            (2) the Parliament of the Russian Federation should adopt 
        necessary legislation and procedures for the exemption of 
        United States assistance from all forms of taxation and customs 
        duties.

SEC. 5. AMENDMENTS TO THE FOREIGN ASSISTANCE ACT OF 1961.

    (a) Amendments.--
            (1) Democracy and rule of law.--Section 498(2) of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2295(2)) is amended--
                    (A) in the heading, by striking ``Democracy'' and 
                inserting ``Democracy and rule of law'';
                    (B) by striking subparagraphs (E) and (G);
                    (C) by redesignating subparagraph (F) as 
                subparagraph (I);
                    (D) by inserting after subparagraph (D) the 
                following:
                    ``(E) development and support of grass-roots and 
                nongovernmental organizations promoting democracy, rule 
                of law, transparency, and accountability in the 
                political process, including grants in small amounts to 
                such organizations;
                    ``(F) international exchanges to promote greater 
                understanding by Russian Federation citizens on how 
                democracy, public policy process, market institutions, 
                and independent judiciary function in Western 
                societies;
                    ``(G) political parties committed to promoting 
                democracy, human rights, and economic reforms;
                    ``(H) support for civic organizations committed to 
                promoting human rights; and''; and
                    (E) by adding at the end the following:
                    ``(J) strengthened administration of justice 
                through programs and activities carried out in 
                accordance with section 498B(e), including--
                            ``(i) support for nongovernmental 
                        organizations, civic organizations, and 
                        political parties that favor a strong and 
                        independent judiciary based on merit;
                            ``(ii) support for local organizations that 
                        work with judges and law enforcement officials 
                        in efforts to achieve a reduction in the number 
                        of pretrial detainees; and
                            ``(iii) support for the creation of Russian 
                        legal associations or groups that provide 
                        training in human rights and advocacy, public 
                        education with respect to human rights-related 
                        laws and proposed legislation, and legal 
                        assistance to persons subject to improper 
                        government interference.''.
            (2) Independent media.--Section 498 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2295) is amended--
                    (A) by redesignating paragraphs (3) through (13) as 
                paragraphs (4) though (14), respectively; and
                    (B) by inserting after paragraph (2) the following:
            ``(3) Independent media.--Developing a free and independent 
        media, including--
                    ``(A) supporting all forms of nonstate-owned media 
                reporting, including print, radio, and television;
                    ``(B) providing special support for, and 
                unrestricted public access to, nongovernmental 
                Internet-based sources of information, dissemination 
                and reporting, including providing technical and other 
                support for web radio services, providing computers and 
                other necessary resources for Internet connectivity and 
                training new Internet users in nongovernmental and 
                other civic organizations on methods and uses of 
                Internet-based media; and
                    ``(C) training in journalism, including 
                investigative journalism techniques which educate the 
                public on the costs of corruption and act as a 
                deterrent against corrupt officials.''.
    (b) Conforming Amendment.--Section 498B(e) of such Act is amended 
by striking ``paragraph (2)(G)'' and inserting ``paragraph (2)(J)''.

SEC. 6. ACTIVITIES TO SUPPORT THE RUSSIAN FEDERATION.

    (a) Assistance Programs.--In providing assistance to the Russian 
Federation under chapter 11 of part I of the Foreign Assistance Act of 
1961 (22 U.S.C. 2295 et seq.), the President is authorized to carry out 
the following specific activities:
            (1) Work with the Government of the Russian Federation, the 
        Duma, and representatives of the Russian Federation judiciary 
        to help implement a revised and improved code of criminal 
        procedure and other laws.
            (2) Establish civic education programs relating to 
        democracy, public policy, rule of law, and the importance of 
        the independent media, including the establishment of 
        ``American Centers'' and public policy schools at Russian 
        universities and programs by universities in the United States 
        to offer courses through Internet-based off-site learning 
        centers at Russian universities.
            (3) Support the Regional Investment Initiatives (RII) 
        program, which provides targeted assistance in those regions of 
        the Russian Federation that have demonstrated commitment to 
        reform, democracy, and rule of law, and promote the concept of 
        such program as a model for all regions of the Russian 
        Federation.
    (b) Radio Free Europe/Radio Liberty and Voice of America.--Radio 
Free Europe/Radio Liberty and the Voice of America should use new and 
innovative techniques, in cooperation with local independent media 
sources and to the extent possible, to disseminate information 
throughout the Russian Federation relating to democracy, free-market 
economics, rule of law, and human rights.

SEC. 7. AUTHORIZATION OF ASSISTANCE FOR DEMOCRACY, INDEPENDENT MEDIA, 
              AND THE RULE OF LAW.

    Of the amounts made available to carry out the provision of chapter 
11 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et 
seq.) and the Freedom for Russia and Emerging Eurasian Democracies and 
Open Markets Support Act of 1992 for fiscal year 2002, not less than 
$50,000,000 is authorized to be available for the activities authorized 
by paragraphs (2) and (3) of section 498 of the Foreign Assistance Act 
of 1961, as amended by section 5(a) of this Act.
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