[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3313 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  2d Session
                                S. 3313

To authorize assistance to Burma and to support a principled engagement 
strategy for a peaceful, prosperous, and democratic Burma that respects 
      the human rights of all its people, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 13, 2016

   Mr. Cardin (for himself, Mr. McCain, Mr. Durbin, and Mr. Schatz) 
introduced the following bill; which was read twice and referred to the 
                     Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
To authorize assistance to Burma and to support a principled engagement 
strategy for a peaceful, prosperous, and democratic Burma that respects 
      the human rights of all its people, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Burma Strategy Act 
of 2016''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Statement of policy.
Sec. 4. Definitions.
Sec. 5. Bilateral economic assistance.
Sec. 6. Multilateral assistance.
Sec. 7. Military cooperation.
Sec. 8. The Win Tin Burma-American Enterprise Fund.
Sec. 9. Eligibility of Burma for Generalized System of Preferences.
Sec. 10. Strategy for promoting transparency and good governance in 
                            Burma's jadeite and gemstone sector.
Sec. 11. Report on modifications to the JADE Act and certain Executive 
                            orders.
Sec. 12. Sense of Congress on criteria for removal of persons from SDN 
                            list for activities relating to Burma.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The United States policy of principled engagement since 
        1988 has fostered positive democratic reforms in Burma, which 
        have led to significant milestones on the road to full 
        democracy.
            (2) On November 8, 2015, Burma held historic elections in 
        which the National League for Democracy won a supermajority of 
        seats in the combined national parliament.
            (3) On March 30, 2016, Htin Kyaw was inaugurated as the 
        President of Burma, the country's first civilian President in 
        more than 50 years, and Aung Sann Suu Kyi assumed the office of 
        State Counselor. Aung San Suu Kyi, President of the National 
        League for Democracy, was barred from becoming President under 
        section 59(f) of the 2008 Constitution.
            (4) Aung San Suu Kyi's first acts as State Counselor after 
        her National League for Democracy party took office included 
        releasing more than 100 political prisoners, including well-
        known journalists and student activists held on politically 
        motivated charges. However, as of July 31, 2016, 118 political 
        prisoners remained in jails in Burma, and another 167 people 
        were awaiting trial for political expression.
            (5) Despite the important steps taken toward democracy in 
        Burma, there still remain important structural and systemic 
        impediments to the realization of a fully democratic civilian 
        government, including--
                    (A) reform of the 2008 Constitution;
                    (B) the disfranchisement of groups of people who 
                voted in previous elections; and
                    (C) social, political and economic conditions in 
                Rakhine State, particularly those faced by the Rohingya 
                population.
            (6) Actions of the military of Burma, known as the 
        Tatmadaw, including continuing assaults on personnel and 
        territory controlled by armed ethnic organizations, military 
        offenses immediately preceding the peace conference in 
        Naypyitaw, and alleged human rights abuses against noncombatant 
        civilians in conflict areas, undermine confidence in 
        establishing a credible nationwide cease-fire agreement ending 
        Burma's civil war.
            (7) The United States supports a peaceful, prosperous, and 
        democratic Burma that respects the human rights of all its 
        people. The inauguration of President Htin Kyaw, and the 
        formation of a democratically elected, civilian-led government 
        were momentous steps for the democratic transition of Burma and 
        the United States seeks to build and capitalize on that 
        success.
            (8) The United States supports Burma's political and 
        economic reforms, including efforts to--
                    (A) promote national reconciliation;
                    (B) build government transparency and 
                accountability and government institutions;
                    (C) empower local communities and civil society;
                    (D) promote responsible international engagement; 
                and
                    (E) strengthen respect for and protection of human 
                rights and religious freedom.
            (9) On March 17, 2016, the Department of State determined 
        that Burma remains designated as a country of particular 
        concern for religious freedom under section 402(b) of the 
        International Religious Freedom Act (22 U.S.C. 6442(b)), and 
        that ``members of the Rohingya community in particular 
        reportedly face abuses by the Government of Burma, including 
        those involving torture, unlawful arrest and detention, 
        restricted movement, restrictions on religious practices and 
        discrimination in employment and access to social services''.
            (10) On August 23, 2016, the Government of Burma announced 
        the establishment of the Advisory Commission on Rakhine State, 
        which will be chaired by former Secretary-General of the United 
        Nations Kofi Annan.
            (11) On May 17, 2016, the United States announced a 
        calibrated easing of sanctions with respect to Burma by 
        removing individuals and entities from the list of specially 
        designated nationals and blocked persons maintained by the 
        Office of Foreign Assets Control of the Department of the 
        Treasury and renewing authorities for sanctions with respect to 
        Burma as provided under the International Emergency Economic 
        Powers Act (50 U.S.C. 1701 et seq.).
            (12) In 2015, the nongovernmental campaign Global Witness 
        found that in 2014 the estimated value of official production 
        of jade equated up to 48 percent of the official gross domestic 
        product of Burma, but because of corruption and a lack of 
        transparency the economic gains of Burma are being pocketed by 
        notorious junta-era players, from former dictator Than Shwe to 
        United States-sanctioned drug lord Wei Hsueh Kang, and showed 
        how vested interests in jade are undermining prospects for 
        resolving the most intractable armed conflict in Burma.
            (13) In July 2016, the Government of Burma announced that 
        all remaining jade mining licenses will expire in 2018, and no 
        new permits will be granted until a reformed legal framework is 
        in place.
            (14) In July 2016, the Government of Burma also announced 
        that logging would be prohibited in major forested areas for 
        the rest of the year.
            (15) The people of Burma continue to suffer from a low 
        grade civil war between the Tatmadaw and nearly 20 armed ethnic 
        organizations.
            (16) Any prospects for a full democracy in Burma are 
        contingent on ending the civil war and finding a path toward 
        national reconciliation between Burma's Bamar majority and its 
        various ethnic minorities.
            (17) On August 31, 2016, the Government of Burma initiated 
        the Union Peace Conference 21st Century Panglong, where more 
        than 1,400 representatives of various concerned parties 
        attended a peace conference in Naypyitaw in an effort to begin 
        the process of ending Burma's civil war and discuss options in 
        forming a democratic state of Burma.

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States that--
            (1) the pursuit of a calibrated engagement strategy is 
        essential to support a peaceful, prosperous, and democratic 
        Burma that respects the human rights of all its people 
        regardless of ethnicity and religion;
            (2) the guiding principles of such a strategy to support 
        and complete the transition to democracy and genuine national 
        reconciliation include--
                    (A) support for Burma's political and economic 
                reforms;
                    (B) the establishment of a fully democratic and 
                representative political system based on free and fair 
                elections;
                    (C) the promotion of genuine national 
                reconciliation and conclusion of a credible and 
                sustainable nationwide cease-fire agreement;
                    (D) building government transparency and 
                accountability;
                    (E) the establishment of professional and 
                nonpartisan military, security, and police forces that 
                operate under civilian control;
                    (F) empowering local communities and civil society;
                    (G) promoting responsible international engagement; 
                and
                    (H) strengthening respect for and protection of 
                human rights and religious freedom; and
            (3) adjustments to trade, economic sanctions, visa 
        restrictions, and other limitations are essential elements of a 
        calibrated engagement strategy as Burma continues to progress 
        toward democratization, transparency, and genuine national 
        reconciliation to both support and recognize the positive steps 
        undertaken as of the date of the enactment of this Act and to 
        incentivize further reform.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Jadeite.--The term ``jadeite'' means any jadeite 
        classifiable under heading 7103 of the Harmonized Tariff 
        Schedule of the United States.
            (2) Ruby.--The term ``ruby'' means any ruby classifiable 
        under heading 7103 of the Harmonized Tariff Schedule of the 
        United States.

SEC. 5. BILATERAL ECONOMIC ASSISTANCE.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated $114,700,000 for fiscal year 2017 to provide assistance to 
Burma in accordance with this section.
    (b) Assistance to Burma.--Subject to subsection (c) and 
notwithstanding any other provision of law, funds authorized to be 
appropriated by subsection (a) for assistance to Burma may be used, 
among other things--
            (1) to strengthen civil society organizations in Burma, 
        including as core support for such organizations;
            (2) to implement the democracy and human rights strategy 
        required by section 7043(b)(3)(A) of the Department of State, 
        Foreign Operations, and Related Programs Appropriations Act, 
        2014 (division K of Public Law 113-76; 128 Stat. 534);
            (3) to support community-based organizations operating in 
        Thailand to provide food, medical, and other humanitarian 
        assistance to internally displaced persons in eastern Burma and 
        to refugees from Burma;
            (4) to support programs that focus on transparency and 
        initiatives against corruption, conflict risks, and adverse 
        environmental and human rights effects of the jade, timber, and 
        other extractive industries sectors;
            (5) to support programs that allow ethnic and civil society 
        groups in Burma to help sustain cease-fire agreements and 
        further prospects for reconciliation and peace, which may 
        include support to representatives of armed ethnic groups as 
        well as direct United States cease-fire support and monitoring, 
        as appropriate;
            (6) to support ethnic and civil society groups, including, 
        notwithstanding subsection (c)(1), support for meeting- and 
        hospitality-related expenses with respect to representatives of 
        the military of Burma or armed ethnic groups;
            (7) to support programs that promote ethnic and religious 
        tolerance, including tolerance in Rakhine State;
            (8) to support efforts to remove the military and military-
        owned enterprises from their dominant position in the economy;
            (9) to support programs that improve the lives of the 
        people of Burma through strengthening economic development;
            (10) to support programs that improve the lives of the 
        people of Burma by fostering healthy and resilient communities;
            (11) to support programs that support democratic 
        institutions through technical assistance and government 
        capacity building that focus on promoting the respect for the 
        rule of law and human rights, building transparency and 
        accountable governance systems, supporting independent media, 
        and fostering a vibrant tolerant civil society; and
            (12) to support programs of the Office of Transition 
        Initiatives of the United States Agency for International 
        Development that seek to deepen and sustain the reform progress 
        and foster a legitimate and inclusive peace-building process 
        that includes partnering with local women's organization and 
        local youth political participation organizations.
    (c) Prohibition on the Use of Funds.--
            (1) In general.--Funds authorized to be appropriated by 
        subsection (a) may not be provided to--
                    (A) the military of Burma or any individual or 
                organization credibly alleged to have committed gross 
                violations of human rights, including violations of the 
                human rights of the Rohingya and other minority groups; 
                or
                    (B) any individual or organization that the 
                Secretary of State determines, and reports to the 
                appropriate congressional committees, advocates 
                violence against ethnic or religious groups and 
                individuals in Burma, including such organizations as 
                Ma Ba Tha.
            (2) Waiver.--The Secretary of State may waive the 
        prohibition under paragraph (1) if the Secretary--
                    (A) determines that such a waiver is important to 
                the national security interests of the United States; 
                and
                    (B) consults with the appropriate congressional 
                committees on the justification and reasons for the 
                waiver.
    (d) Consultations.--Before initiating any new program or activity 
in Burma in fiscal year 2017 under this section, the Secretary of State 
shall consult with the appropriate congressional committees.
    (e) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on Foreign Affairs and the Committee on 
        Appropriations of the House of Representatives.

SEC. 6. MULTILATERAL ASSISTANCE.

    (a) In General.--The Secretary of the Treasury shall instruct the 
United States executive director of each international financial 
institution to use the voice and vote of the United States to support a 
project in Burma only if the project--
            (1) promotes accountability and transparency, including the 
        collection, verification, and publication of beneficial 
        ownership information related to extractive industries and on-
        site monitoring during the life of the project;
            (2) is developed and carried out in accordance with best 
        practices regarding--
                    (A) environmental conservation;
                    (B) the social and cultural protection and 
                empowerment of local populations, particularly ethnic 
                nationalities; and
                    (C) the extraction of resources, if applicable, 
                including jade and rubies;
            (3) does not promote the displacement of local populations 
        without appropriate consultation, harm mitigation, and 
        compensation;
            (4) does not incentivize or facilitate the forced migration 
        of indigenous communities;
            (5) does not partner with or otherwise involve military-
        owned enterprises or state-owned enterprises associated with 
        the military; and
            (6) is in accordance with the social and environmental 
        safeguards of the World Bank in effect on September 30, 2015, 
        and applicable to loans, grants, policies, or strategies.
    (b) International Financial Institution Defined.--In this section, 
the term ``international financial institution'' means--
            (1) each of the institutions specified in section 
        1701(c)(2) of the International Financial Institutions Act (22 
        U.S.C. 262r(c)(2)); and
            (2) the International Fund for Agricultural Development.

SEC. 7. MILITARY COOPERATION.

    (a) Defense Language Institute English Language Center.--From 
amounts available to carry out the Foreign Military Sales program, such 
sums as may be necessary for each of the fiscal years 2017 through 2019 
shall be available for assistance under chapter 5 of part II of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.; relating to 
international military education and training) for Burma for the 
purposes of English language training for the military of Burma under 
the Defense Language Institute English Language Center.
    (b) Exchange Program.--
            (1) In general.--The Secretary of State is authorized to 
        establish an exchange program between--
                    (A) military and civilian personnel of Burma; and
                    (B)(i) military and civilian personnel of countries 
                determined by the Secretary of State to be in the 
                process of consolidating and strengthening a democratic 
                form of government and demonstrating civilian oversight 
                of the military; or
                    (ii) military and civilian personnel of North 
                Atlantic Treaty Organization member countries, in order 
                to foster greater mutual respect for and understanding 
                of the principle of civilian rule of the military.
            (2) Elements of program.--The program authorized under 
        paragraph (1) may include conferences, seminars, exchanges, and 
        other events, distribution of publications, and reimbursements 
        of expenses of foreign military personnel participating in the 
        program, including transportation, translation and 
        administrative expenses.
            (3) Inclusion of ethnic armed organizations.--The exchange 
        program shall, as appropriate, include representatives of 
        Burma's ethnic armed organizations so as not to disadvantage or 
        otherwise undermine efforts to achieve a genuine national 
        cease-fire.
            (4) Leahy vetting.--Any participants in the exchange 
        program shall be subjected to the regular process for vetting 
        participants in United States-funded security assistance and 
        training programs, commonly known as ``Leahy vetting'', 
        pursuant to section 620M of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2378d).
            (5) Role of nongovernmental organizations.--Amounts 
        authorized to be appropriated to carry out this section for a 
        fiscal year are authorized to be made available for 
        nongovernmental organizations to facilitate the implementation 
        of the program authorized under paragraph (1).
            (6) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary for each of 
        the fiscal years 2017 through 2019 to carry out the program 
        established under this subsection.
    (c) Report.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Defense, in 
        concurrence with the Secretary of State, shall submit to the 
        appropriate congressional committees a report, in both 
        classified and unclassified form, on the strategy and plans for 
        military-to-military engagement between the United States Armed 
        Forces and the military of Burma.
            (2) Elements.--The report required under paragraph (1) 
        shall include the following elements:
                    (A) A description and assessment of the Government 
                of Burma's strategy for security sector reform.
                    (B) The United States strategy for the military-to-
                military relationship between the United States and 
                Burma's military forces, including the military of 
                Burma, the Myanmar Police Force, and armed ethnic 
                groups.
                    (C) An assessment of the progress of the military 
                of Burma towards implementing human rights reforms, 
                including cooperation with civilian authorities to 
                investigate and resolve cases of human rights 
                violations, including steps taken to demonstrate 
                respect for laws of war and human rights provisions and 
                a description of the elements of the military-to-
                military engagement between the United States and Burma 
                that promote such implementation.
                    (D) An assessment of progress on the peaceful 
                settlement of armed conflicts between the Government of 
                Burma and ethnic minority groups.
                    (E) A list of ongoing military-to-military 
                activities conducted by the United States Government, 
                including a description of each such activity.
                    (F) An update on activities that were listed in 
                previous reporting.
                    (G) A list of activities that are planned to occur 
                over the upcoming year, with a description of each.
                    (H) An assessment of progress on the peaceful 
                settlement of armed conflicts between the Government of 
                Burma and ethnic minority groups, including actions 
                taken by the military of Burma to adhere to cease-fire 
                agreements and withdraw forces from conflict zones, the 
                impact the armed conflict is having on the displacement 
                of the local population including women and children, 
                and an assessment of any enhancements of the Burmese 
                military's capabilities against ethnic minorities.
    (d) Civilian Channels.--Any program initiated under this section 
shall use appropriate civilian government channels with the 
democratically elected government of Burma.
    (e) Regular Consultations.--Any new program or activity in Burma 
initiated under this section shall be subject to prior consultation 
with the appropriate congressional committees.
    (f) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Relations, the Committee on 
        Armed Services, and the Committee on Appropriations of the 
        Senate; and
            (2) the Committee on Foreign Affairs, the Committee on 
        Armed Services, and the Committee on Appropriations of the 
        House of Representatives.

SEC. 8. THE WIN TIN BURMA-AMERICAN ENTERPRISE FUND.

    (a) Purposes.--The purposes of this section are--
            (1) to promote the private sector in Burma, including small 
        businesses, the agricultural sector, and joint ventures with 
        United States and Burmese participants;
            (2) to promote policies and practices conducive to the 
        private sector in Burma through loans, grants, equity 
        investments, feasibility studies, technical assistance, 
        training, insurance, guarantees, and other measures; and
            (3) to support and promote initiatives that--
                    (A) meet internationally recognized standards for 
                labor (as established by the International Labour 
                Organization), the environment, transparency, 
                corruption (as set forth in the United Nations 
                Convention against Corruption), and human rights;
                    (B) do not harm or displace local communities; and
                    (C) encourage policies and practices conducive to 
                sustainable, broad-based rural development and economic 
                opportunity for Burma's smallholder farmers, including 
                women and other marginalized groups, and rural small 
                businesses.
    (b) Designation of Burmese-American Enterprise Fund.--After 
consultation with the leadership of each House of Congress, the 
President may designate a private, nonprofit organization (to be known 
as the ``Win Tin Burma-American Enterprise Fund'') that the President 
determines has been established for the purposes specified in 
subsection (a) to receive financial assistance and support made 
available under this Act.
    (c) Ineligibility of Military-Owned Enterprises.--No military-owned 
enterprises shall be eligible for participation in programs or 
activities of the Win Tin Burma-American Enterprise Fund.
    (d) Board of Directors.--
            (1) Appointment.--The Win Tin Burma-American Enterprise 
        Fund shall be governed by a Board of Directors, which shall be 
        comprised of not less than 6 private citizens of the United 
        States or Burma appointed by the President, of which not more 
        than 2 may be citizens of Burma.
            (2) Qualifications.--Members of the Board of Directors 
        shall be selected from among people who have experience, 
        including experience that is similar to the experience of 
        individuals who previously served on the Board of Directors of 
        a successful Enterprise Fund established by the United States 
        Government on or after January 1, 1990, in one or more of the 
        following areas:
                    (A) A successful business career in private equity, 
                banking, or finance.
                    (B) A demonstrated commitment to sustainable rural 
                development.
                    (C) Engagement in supporting human rights, 
                democracy, and economic reform in Burma.
            (3) Additional board members.--Upon the recommendation of 
        the Board of Directors, the President may appoint up to 2 
        additional members to the Board (in addition to the Directors 
        appointed pursuant to paragraph (1)), of which not more than 1 
        may be a non-citizen of the United States.
            (4) Ex officio board members.--The Assistant Secretary of 
        State for Democracy, Human Rights, and Labor shall serve as an 
        ex officio member of the Board.
    (e) Grants.--
            (1) In general.--Notwithstanding any other provision of 
        law, amounts appropriated to the President pursuant to 
        subsection (i) shall be granted to the Win Tin Burma-American 
        Enterprise Fund by the United States Agency for International 
        Development to enable the Fund to carry out the purposes 
        specified in subsection (a) and for the administrative expenses 
        of the Fund.
            (2) Eligible programs and projects.--Grants awarded under 
        this section may only be used for programs and projects that 
        support the purposes set forth in subsection (a).
            (3) Compliance requirement.--
                    (A) In general.--Grants may not be awarded to the 
                Win Tin Burma-American Enterprise Fund under this 
                section unless the Fund agrees to comply with the 
                requirements under this section.
                    (B) Grant agreement.--The grant agreement between 
                the United States Agency for International Development 
                and the Win Tin Burma-American Enterprise Fund shall 
                state that the Fund shall end its reinvestment cycle 
                not later than December 31, 2025, unless the 
                Administrator of the United States Agency for 
                International Development determines, after 
                consultation with the appropriate congressional 
                committees, that the Fund should be extended.
                    (C) Prevention of money laundering, terrorist 
                financing, and corruption.--The grant agreement between 
                the United States Agency for International Development 
                and the Burma-American Enterprise Fund shall state that 
                the Fund shall comply with procedures specified by the 
                Secretary of State to ensure that grant funds are not 
                provided by the Fund to or through--
                            (i) any individual, private or government 
                        entity, or educational institution that 
                        advocates, plans, sponsors, engages in, or has 
                        engaged in, money laundering or terrorist 
                        activity;
                            (ii) any private entity or educational 
                        institution if a principal officer of its 
                        governing board is--
                                    (I) involved in or advocating money 
                                laundering or terrorist activity; or
                                    (II) a member of a designated 
                                foreign terrorist organization; or
                            (iii) any individual or entity that is 
                        responsible for, or complicit in ordering, 
                        directing, or participating in acts of 
                        significant corruption or facilitating or 
                        transferring the proceeds of corruption to 
                        foreign jurisdictions.
                    (D) Disposition of assets.--All assets of the Win 
                Tin Burma-American Enterprise Fund on the date on which 
                the Fund is dissolved shall be returned to the Treasury 
                of the United States for the purpose of deficit 
                reduction.
    (f) Notification.--
            (1) In general.--Not later than 15 days before designating 
        an organization to operate as the Burma-American Enterprise 
        Fund pursuant to subsection (b), the President shall provide 
        the information described in paragraph (2) to the Chairman and 
        Ranking Member of 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 Win Tin Burma-American 
                Enterprise Fund pursuant to subsection (b);
                    (B) the names and qualifications of the individuals 
                who will comprise the initial Board of Directors;
                    (C) the procedures referred to in subsection 
                (e)(3)(C) that will apply to the Win Tin Burma-American 
                Enterprise Fund for purposes of curtailing money 
                laundering and terrorist financing activities; and
                    (D) the size of the financial grant that shall be 
                made available to the Win Tin Burma-American Enterprise 
                Fund.
    (g) Reports.--
            (1) Administrative expenses.--Not later than one year after 
        the date of the enactment of this Act, and annually thereafter 
        until the Fund is dissolved, the Fund shall submit to the 
        appropriate congressional committees a report that details the 
        administrative expenses of the Fund.
            (2) GAO report.--Not later than 3 years after the date of 
        the enactment of this Act, and every 3 years thereafter until 
        the Fund is dissolved, the Comptroller General of the United 
        States shall submit a report to the appropriate congressional 
        committees that assesses the activities of the Fund in--
                    (A) achieving the stated goals of promoting private 
                sector investment and employment in Burma, including 
                encouraging policies and practices conducive to 
                sustainable, broad-based rural development and economic 
                opportunity for Burma's smallholder farmers, including 
                women and other marginalized groups, and rural small 
                businesses; and
                    (B) identifying those institutional or regulatory 
                constraints that inhibit a more effective application 
                of Fund resources.
    (h) Operation Provisions.--
            (1) Applicable provisions.--Subsections (d)(5), (g), (h), 
        (i), (k), (l), (m), (n), (o), and (p) of section 201 of the 
        Support for East European Democracy (SEED) Act of 1989 (22 
        U.S.C. 5421) shall apply with respect to the Win Tin Burma-
        American Enterprise Fund in the same manner as such provisions 
        apply to Enterprise Funds designated pursuant to subsection (d) 
        of such section.
            (2) Reinvestment.--Returns on investments of the Win Tin 
        Burma-American Enterprise Fund and other payments to the Fund 
        may be reinvested in projects carried out by the Fund without 
        further appropriation by Congress.
            (3) Best practices and procedures.--To the maximum extent 
        practicable, the Board of Directors of the Win Tin Burma-
        American Enterprise Fund should adopt the best practices and 
        procedures used by Enterprise Funds, including those for which 
        funding has been made available pursuant to section 201 of the 
        Support for East European Democracy (SEED) Act of 1989 (22 
        U.S.C. 5421).
            (4) Experience of other enterprise funds.--In implementing 
        this Act, the President shall ensure that the Articles of 
        Incorporation of the Win Tin Burma-American Enterprise Fund 
        (including provisions specifying the responsibilities of the 
        Board of Directors of the Fund), the terms of United States 
        Government grant agreements with the Fund, and United States 
        Government oversight of the 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 designated 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.
    (i) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the President such sums as may be necessary to provide funding 
        for grants to the Burma-American Enterprise Fund, which shall 
        be used for the purposes specified in subsection (a).
            (2) Availability of funds.--Amounts appropriated pursuant 
        to paragraph (1) shall remain available until expended.
    (j) Definitions.--In this section:
            (1) Appropriate congressional committees defined.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate; and
                    (B) the Committee on Foreign Affairs and the 
                Committee on Appropriations of the House of 
                Representatives.
            (2) Corrupt actor.--The term ``corrupt actor'' means--
                    (A) any foreign person or entity that is a 
                government official or government entity responsible 
                for, or complicit in--
                            (i) ordering or otherwise directing acts of 
                        significant corruption; or
                            (ii) facilitating or transferring the 
                        proceeds of corruption to foreign 
                        jurisdictions; or
                    (B) any entity, in which a person or entity 
                described in subparagraph (A) has a significant stake, 
                which is complicit in--
                            (i) directing or participating in 
                        significant corruption; or
                            (ii) facilitating or transferring the 
                        proceeds of corruption to foreign 
                        jurisdictions.
            (3) Corruption.--The term ``corruption'' means the extent 
        to which public power is exercised for private gain, including 
        by bribery, nepotism, fraud, or embezzlement.

SEC. 9. ELIGIBILITY OF BURMA FOR GENERALIZED SYSTEM OF PREFERENCES.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the eligibility of Burma for preferential tariff 
        treatment under the Generalized System of Preferences under 
        title V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.) 
        would--
                    (A) advance the goal of the United States of 
                increasing economic integration across Asia;
                    (B) further a constructive economic dialogue with 
                Burma; and
                    (C) serve as a catalyst for Burma--
                            (i) to abide by international trade norms, 
                        including internationally recognized core labor 
                        standards; and
                            (ii) to continue the process of economic 
                        liberalization;
            (2) strengthening trade ties between the United States and 
        Burma will have a meaningful impact on the people of the United 
        States and the people of Burma; and
            (3) Burma has met international core labor standards 
        established by the International Labour Organization and the 
        other criteria for eligibility for the Generalized System of 
        Preferences under title V of the Trade Act of 1974.
    (b) Engagement.--The United States Trade Representative, in 
coordination with the Secretary of State and the Secretary of the 
Treasury, should--
            (1) work with the Government of Burma to help Burma achieve 
        eligibility for the Generalized System of Preferences; and
            (2) actively engage with and urge other countries to 
        support the eligibility of Burma for the Generalized System of 
        Preferences.

SEC. 10. STRATEGY FOR PROMOTING TRANSPARENCY AND GOOD GOVERNANCE IN 
              BURMA'S JADEITE AND GEMSTONE SECTOR.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of State, in consultation with the 
appropriate officials of the Government of Burma, the Secretary of the 
Treasury, and the Administrator of the United States Agency for 
International Development, shall submit to the appropriate 
congressional committees a strategy to promote transparency and good 
governance in the jadeite, ruby, and gemstones sector of Burma in 
accordance with the decision of the Government of Burma on June 28, 
2016, relating to licenses and establishing a new legal framework.
    (b) Elements.--In order to support the efforts of Government of 
Burma, the strategy required by subsection (a) shall include the 
following elements:
            (1) A plan to develop stronger governance, transparency, 
        and economic institutions that can improve transparency and 
        reduce exploitation in the gemstones industry of Burma by 
        senior military figures and their associates (both directly and 
        indirectly), military-owned enterprises, external actors, 
        ethnic armed groups, and figures flagged by United States 
        counter-narcotics sanctions, and promote local and regional 
        economic development.
            (2) A plan to provide guidance to commercial entities 
        seeking to formalize their chain of custody and to exercise 
        risk-based due diligence on their gemstone supply chains, to 
        help such entities fulfil their responsibility to respect human 
        rights and avoid directly or indirectly contributing to 
        conflict through their sourcing decisions, including the choice 
        of their suppliers.
            (3) A plan to support the implementation of transparency 
        provisions in the gemstone industry in line with best practice 
        Extractive Industries Transparency Initiative requirements and 
        recommendations, including the publication of beneficial 
        ownership information, contract terms, and gemstone sales and 
        revenue payments broken down by project.
            (4) A plan to ensure licenses to export jadeite and rubies 
        contain adequate safeguards against conflicts of interest and 
        corruption and take into account bidder histories, including 
        credible allegations of links to the military junta, narcotics 
        trade, human rights abuses, or adverse social or environmental 
        impacts.
            (5) A plan to ensure that ethnic reconciliation and peace 
        negotiations include a process to achieve consensus over 
        resource sharing of jadeite, rubies, and other gemstones that 
        takes into account community concerns with respect to equity, 
        responsibility, and transparency management, and the 
        sustainability of production and environmental and social 
        impacts.
            (6) A plan to assist the Government of Burma in the 
        governance of the gemstones industry, including building 
        necessary capacity, legal structures, auditing and financial 
        structures, evaluation of remaining reserves, and other 
        elements as may be necessary to ensure the sustainable and 
        legal governance of the gemstones industry.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on Foreign Affairs and the Committee on 
        Appropriations of the House of Representatives.

SEC. 11. REPORT ON MODIFICATIONS TO THE JADE ACT AND CERTAIN EXECUTIVE 
              ORDERS.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of State, in consultation with the 
Secretary of the Treasury, shall submit to Congress a report--
            (1) assessing the advisability of modifying section 5(h) of 
        the Tom Lantos Block Burmese JADE (Junta's Anti-Democratic 
        Efforts) Act of 2008 (Public Law 110-286, 50 U.S.C. 1701 note) 
        (commonly referred to as the ``JADE Act'') relating to the 
        termination of sanctions under that Act;
            (2) assessing the advisability of modifying or rescinding 
        Executive Order 13448 (72 Fed. Reg. 60223; relating to blocking 
        property and prohibiting certain transactions related to 
        Burma), Executive Order 13464 (73 Fed. Reg. 24491; relating to 
        blocking property and prohibiting certain transactions related 
        to Burma), Executive Order 13619 (77 Fed. Reg. 41243; relating 
        to blocking property of persons threatening the peace, 
        security, or stability of Burma), and Executive Order 13651 (78 
        Fed. Reg. 48793; relating to prohibiting certain imports of 
        Burmese jadeite and rubies); and
            (3) making recommendations under subsection (b) for 
        criteria to be considered in modifying or eliminating sanctions 
        under the JADE Act and such Executive orders and formulating 
        United States policy after eliminating such sanctions.
    (b) Recommendations.--
            (1) In general.--The report required by subsection (a) 
        shall include--
                    (A) an explanation of how sanctions, or the 
                modification or elimination of sanctions, are 
                supportive of the overall strategy of the United States 
                toward Burma;
                    (B) recommendations with respect to the treatment 
                of military-owned enterprises; and
                    (C) recommendations on the advisability and 
                applicability of the benchmarks or conditions described 
                in paragraph (2) as criteria to be considered in 
                modifying or eliminating sanctions under the JADE Act 
                and the Executive orders specified in subsection (a)(2) 
                with respect to an entity, along with such other 
                conditions as the Secretary considers appropriate, and 
                an assessment of whether the military of Burma as 
                constructed as of the date of the report is covered or 
                has met those criteria.
            (2) Benchmarks and conditions.--The benchmarks or 
        conditions described in this paragraph are, with respect to an 
        entity that is a successor or affiliate of the military of 
        Burma or controlled by former members of the military of Burma, 
        that the entity--
                    (A) unconditionally releases all political 
                prisoners, including those awaiting trial or 
                sentencing;
                    (B) allows humanitarian access to populations 
                affected by armed conflict in all regions of Burma;
                    (C) supports the peace process and governance 
                reforms initiated by the 21st Century Panglong Peace 
                Conference, with the full and unfettered participation 
                of all the people of Burma and in a manner that 
                promotes and protects democratic development of Burma;
                    (D) enters into a substantive dialogue with 
                democratic forces led by the National League for 
                Democracy and the ethnic minorities of Burma on 
                transitioning to democratic government under the rule 
                of law;
                    (E) supports legal reforms for the jadeite, ruby, 
                and other extractive industries, which include 
                responsible, transparent, and accountable management in 
                manner that promotes peace and includes civil society 
                oversight and equitable resource sharing principles;
                    (F) supports an end to offensives against ethnic 
                nationalities and the creation of a peaceful Federal 
                union acceptable to the people of Burma;
                    (G) supports a meaningful and inclusive dialogue 
                toward national reconciliation; and
                    (H) completely ceases ties with North Korea.

SEC. 12. SENSE OF CONGRESS ON CRITERIA FOR REMOVAL OF PERSONS FROM SDN 
              LIST FOR ACTIVITIES RELATING TO BURMA.

    (a) In General.--It is the sense of Congress that the President 
should, in determining whether to remove a person from the SDN list if 
the person is on that list for activities relating to Burma, consider 
the following criteria:
            (1) The person is not aiding or indirectly participating in 
        any organization that promotes the repressive policies of the 
        military of Burma, including--
                    (A) any successor of the State Peace and 
                Development Council;
                    (B) any organization controlled by former State 
                Peace and Development Council members; or
                    (C) any military-controlled enterprise.
            (2) The person is not aiding or directly participating in 
        credible allegations of gross violations of human rights in 
        Burma, including against Rohingya and other minority groups.
            (3) The person is not advocating violence against ethnic or 
        religious groups and individuals in Burma, including through 
        membership in such organizations as the Association for the 
        Protection of Nationality and Religion (commonly known as ``Ma 
        Ba Tha'').
            (4) The person is not aiding or directly participating in 
        practices that would be prohibited by the Foreign Corrupt 
        Practices Act of 1977 (15 U.S.C. 78dd-3 et seq.) if such 
        practices were conducted in the United States or by a domestic 
        concern (as defined in section 104 of that Act (15 U.S.C. 78dd-
        3)).
            (5) The person is not aiding or directly participating in 
        facilitating military relations between the Government of Burma 
        and the Government of North Korea.
            (6) The person is not aiding or directly engaging in 
        business deals with narcotics traffickers under indictment by 
        the United States or other producers or traffickers of 
        narcotics.
            (7) The person is fulfilling any applicable domestic 
        requirements to produce environmental and social impact 
        assessments.
            (8) The person is complying with applicable domestic 
        processes to satisfactorily address community grievances and 
        concerns and a monitoring process to ensure proper 
        implementation of measures to address those grievances and 
        concerns.
            (9) The person is complying with international standards on 
        transparency, labor, the environment, and human rights with 
        respect to engaging in business deals in the jadeite, rubies, 
        or timber industries, including deals with businesses that 
        directly support those industries, including through the 
        provision of equipment, in accordance with the Government of 
        Burma's legal reforms in those sectors.
    (b) SDN List Defined.--In this section, the term ``SDN list'' means 
the list of specially designated nationals and blocked persons 
maintained by the Office of Foreign Assets Control of the Department of 
the Treasury.
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