Findings

Congress finds the following: (1)Article 3 of the Inter-American Democratic Charter of the Organization of American States (OAS) states that, Essential elements of representative democracy include, inter alia, respect for human rights and fundamental freedoms, access to and the exercise of power in accordance with the rule of law, the holding of periodic, free, and fair elections based on secret balloting and universal suffrage as an expression of the sovereignty of the people, the pluralistic system of political parties and organizations, and the separation of powers and independence of the branches of government.. (2)Article 4 of the Inter-American Democratic Charter states that Transparency in government activities, probity, responsible public administration on the part of governments, respect for social rights, and freedom of expression and of the press are essential components of the exercise of democracy. The constitutional subordination of all state institutions to the legally constituted civilian authority and respect for the rule of law on the part of all institutions and sectors of society are equally essential to democracy.. (3)Article 20 of the Inter-American Democratic Charter states that In the event of an unconstitutional alteration of the constitutional regime that seriously impairs the democratic order in a member state, any member state or the Secretary General may request the immediate convocation of the Permanent Council to undertake a collective assessment of the situation and to take such decisions as it deems appropriate. The Permanent Council, depending on the situation, may undertake the necessary diplomatic initiatives, including good offices, to foster the restoration of democracy.. (4)In December 2010, Venezuela’s President, Hugo Chavez, in coordination with a pliant legislature, passed a package of laws, including the Enabling Act or Enabling Law, which fundamentally altered the Venezuelan Constitution. (5)As a result of the legislation, essential freedoms are impaired, including the freedom of speech through restrictions on the internet and television, a breakdown in strong, independent, and pluralistic political parties through electoral reform that expels from parliament politicians who change parties, vote against certain legislation, or align with ideologically opposed ideas or people, separation of powers and subordination of the state to the people through the removal of the municipal and regional governments’ constitutional mandate, and fundamentally altering the ability of the people to govern themselves, in addition to the president’s ability to rule by decree for eighteen months in nine broad areas such as social, economic, territorial, and national security, and respect for social rights through changes to the education sector by controlling curriculum and ideology in universities. (6)The package of laws, including the Enabling Act, therefore violate essential elements of the exercise of democracy as stated in Articles 3 and 4 of the Inter-American Democratic Charter. (7)Secretary General Jose Miguel Insulza stated in an interview with Associated Press that he believed the Enabling Act in Venezuela was anti-democratic, unconstitutional and a violation of the Inter-American Charter,. (8)Assistant Secretary of State for the Western Hemisphere, Arturo Valenzuela, reiterated the description of the Enabling Law as undemocratic. (9)The most recent Worldwide Threat Assessment by the Director of National Intelligence found that at the end of the legislature’s lame duck term, Chavez and his allies passed legislation that gives more resources to his loyal community councils, allowing Chavez to claim that he is both bolstering participatory democracy and creating new means of funneling resources to supporters.. (10)According to the Inter-American Democratic Charter, invocation of Article 20 may be made by the Secretary General or any member state of the Organization of the American States in the event of an unconstitutional alteration of the constitutional regime that seriously impairs the democratic order in a member state. (11)Also, according to the Inter-American Democratic Charter, invocation of Article 20 signifies the calling of the Permanent Council to determine next steps, through diplomatic initiatives, to foster the restoration of democracy in a member state. If such initiatives fail to restore democracy, Article 21 is employed to call a special session of the General Assembly in order to take the decision to suspend such member state from the exercise of its right to participate in the OAS by an affirmative vote of two-thirds of the member states in accordance with the Charter of the OAS. The suspension shall take effect immediately.

Invocation of Article 20 of the Inter-American Democratic Charter

(a)

Withholding of contributions

For every Permanent Council meeting of the Organization of American States (OAS) that, beginning after the date of the enactment of this Act, meets without the invocation of Article 20 of the Inter-American Democratic Charter and the ensuing discussion with regard to Venezuela’s violation of such Charter, as guaranteed in such Charter, the Secretary of State shall withhold 20 percent of assessed and voluntary United States contributions to the OAS for the fiscal year in which each such meeting begins (or, if 20 percent is not available for withholding in such fiscal year, the Secretary shall withhold the highest percentage possible in such fiscal year and the remaining percentage in the subsequent fiscal year). (b)

Resumption of contributions

The Secretary of State shall resume making assessed and voluntary United States contributions to the OAS upon the invocation of Article 20 and the discussion of Venezuela’s violation of the Inter-American Democratic Charter at a meeting of the Permanent Council. (c)

Deficit reduction

Amounts withheld pursuant to subsection (a) shall be applied to reduce the Federal budget deficit, or, for any fiscal year for which there is no Federal budget deficit, to reduce the Federal debt.