[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2658 Engrossed in House (EH)]

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115th CONGRESS
  1st Session
                                H. R. 2658

_______________________________________________________________________

                                 AN ACT


 
To provide humanitarian assistance for the Venezuelan people, to defend 
   democratic governance and combat widespread public corruption in 
                   Venezuela, 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 ``Venezuela 
Humanitarian Assistance and Defense of Democratic Governance Act of 
2017''.
    (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. Sense of Congress.
Sec. 4. Requirement for strategy to provide humanitarian assistance to 
                            the people of Venezuela.
Sec. 5. Requirement for strategy to coordinate international 
                            humanitarian assistance.
Sec. 6. Support for efforts at the United Nations on the humanitarian 
                            and political crisis in Venezuela.
Sec. 7. Support for Organization of American States Inter-American 
                            Democratic Charter.
Sec. 8. Concerns and report on the involvement of Venezuelan officials 
                            in corruption and illicit narcotics 
                            trafficking.
Sec. 9. Sanctions on persons responsible for public corruption and 
                            undermining democratic governance in 
                            Venezuela.
Sec. 10. Concerns over PDVSA transactions with Rosneft.
Sec. 11. Report on activities of certain governments in Venezuela.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The deterioration of democratic governance and the 
        economic crisis in Venezuela have led to an unprecedented 
        humanitarian situation in which people are suffering from 
        severe shortages of essential medicines and basic food 
        products.
            (2) According to the World Health Organization, Venezuela 
        had a shortage of necessary medications and medical supplies 
        of--
                    (A) 55 percent in 2014;
                    (B) 67 percent in 2015; and
                    (C) 75 percent in 2016.
            (3) According to a Human Rights Watch 2016 report, it is 
        increasingly difficult for many Venezuelans, particularly those 
        in lower- or middle-income families, to obtain adequate 
        nutrition and there are reports of symptoms of malnutrition, 
        particularly in children.
            (4) Maternal deaths in Venezuela increased by 66 percent 
        from 2015 to 2016 while infant deaths increased by 30 percent.
            (5) There were 240,000 confirmed malaria cases in Venezuela 
        in 2016--a 76 percent increase over 2015.
            (6) A survey--conducted jointly by the Central University 
        of Venezuela, the Andres Bello Catholic University, and the 
        Simon Bolivar University--found that almost 75 percent of 
        Venezuelans lost an average of at least 19 pounds in 2016 as a 
        result of a lack of proper nutrition amidst the country's 
        economic crisis.
            (7) Despite massive shortages of basic foodstuffs and 
        essential medicines, Nicolas Maduro has rejected repeated 
        requests from the Venezuelan National Assembly and civil 
        society organizations to bring humanitarian aid into the 
        country.
            (8) The International Monetary Fund has estimated that in 
        Venezuela in 2016 the country's gross domestic product 
        contracted by 12 percent and inflation rate reached 720 
        percent, and has stated that Venezuela had the worst growth and 
        inflation performance in the world.
            (9) The International Monetary Fund has not convened an 
        Article IV Executive Board consultation for Venezuela since 
        September 13, 2004, which greatly limits the extent of 
        information available to the international community about the 
        severity of the Venezuelan economic crisis.
            (10) Venezuela's political, economic, and humanitarian 
        crisis is fueling social tensions that are resulting in growing 
        incidents of public unrest, looting, violence among citizens, 
        and an exodus of Venezuelans abroad.
            (11) These social distortions are taking place amidst an 
        alarming climate of criminal violence. According to the United 
        Nations Office on Drug and Crime, Caracas, Venezuela had the 
        highest per capita homicide rate of any capital city in the 
        world in 2015 at 120 murders per 100,000 citizens.
            (12) In 2016, 18,155 Venezuelans submitted asylum requests 
        in the United States, which was the greatest number of requests 
        by any nationality, according to U.S. Citizenship and 
        Immigration Services.
            (13) International and domestic human rights groups, such 
        as Foro Penal Venezolano, recognize more than 600 political 
        prisoners in Venezuela, including opposition leader and former 
        Chacao mayor Leopoldo Lopez, Judge Maria Lourdes Afiuni, 
        Caracas Mayor Antonio Jose Ledezma Diaz, National Assembly 
        Deputy Gilber Caro, and former San Cristobal mayor Daniel 
        Ceballos.
            (14) According to media accounts, over 125 people lost 
        their lives as the result of public demonstrations and protests 
        in Venezuela since April 2017.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) Nicolas Maduro should permit the delivery of 
        international humanitarian assistance to address the widespread 
        and deeply concerning shortages of essential medicines and 
        basic food products faced by the people of Venezuela;
            (2) it is in the best interest of the Venezuelan people for 
        the Government of Venezuela to engage with multilateral 
        institutions to ameliorate the effects of the country's ongoing 
        economic, social, and humanitarian crisis;
            (3) Nicolas Maduro should immediately release all political 
        prisoners and respect internationally recognized human rights 
        in order to facilitate the conditions for political 
        negotiations and dialogue in Venezuela;
            (4) Nicolas Maduro and the Supreme Tribunal of Justice of 
        Venezuela should take steps to reinstate the full powers and 
        authorities of the National Assembly of Venezuela in accordance 
        with the Constitution of the Bolivarian Republic of Venezuela;
            (5) Venezuela's National Electoral Council should establish 
        a specific timeline to hold national, regional, and municipal 
        elections in accordance with the Constitution of the Bolivarian 
        Republic of Venezuela and allow supervision of credible 
        international electoral observers; and
            (6) the United States should support meaningful efforts 
        towards a substantive dialogue through which all parties uphold 
        their commitments and agree to specific deadlines to restore 
        respect for Venezuela's constitutional mechanisms and resolve 
        the country's political, economic, and humanitarian crisis.

SEC. 4. REQUIREMENT FOR STRATEGY TO PROVIDE HUMANITARIAN ASSISTANCE TO 
              THE PEOPLE OF VENEZUELA.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of State, in coordination with the 
Administrator of the United States Agency for International 
Development, shall submit to the Committee on Foreign Affairs of the 
House of Representatives, the Committee on Foreign Relations of the 
Senate, the Committee on Appropriations of the House of Representatives 
and the Committee on Appropriations of the Senate a strategy to provide 
humanitarian assistance to the people of Venezuela through credible and 
independent nongovernmental organizations operating in Venezuela or in 
neighboring countries to alleviate the suffering of the Venezuelan 
people.
    (b) Matters to Be Included.--The strategy required under subsection 
(a) shall include the following:
            (1) A description of how and to what extent the following 
        assistance will be provided:
                    (A) Public health commodities for Venezuelan health 
                facilities and services, including medicines on the 
                World Health Organization's List of Essential Medicines 
                and basic medical supplies and equipment.
                    (B) Basic food commodities and nutritional 
                supplements needed to address growing malnutrition and 
                improve food security for the people of Venezuela, with 
                a specific emphasis on the most vulnerable populations.
                    (C) Technical assistance to ensure health and food 
                commodities are appropriately selected, procured, and 
                distributed, predominantly through local 
                nongovernmental organizations.
            (2) An identification of United States Agency for 
        International Development best practices in delivering 
        humanitarian assistance and how such best practices are being 
        utilized in providing humanitarian assistance to Venezuela.

SEC. 5. REQUIREMENT FOR STRATEGY TO COORDINATE INTERNATIONAL 
              HUMANITARIAN ASSISTANCE.

    (a) Sense of Congress.--It is the sense of Congress that the 
appropriate United Nations humanitarian agencies should conduct and 
publish an independent assessment on--
            (1) the extent and impact of the shortages of food and 
        medicine in Venezuela; and
            (2) the efforts needed to resolve such shortages.
    (b) Strategy.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of State, in consultation with the 
Administrator of the United States Agency for International 
Development, shall submit a multi-year strategy to the Committee on 
Foreign Relations of the Senate and the Committee on Foreign Affairs of 
the House of Representatives that--
            (1) describes how the United States will secure support 
        from international donors, including regional partners in Latin 
        America and the Caribbean, for the provision of humanitarian 
        assistance to the people of Venezuela; and
            (2) identifies governments that are willing to provide 
        financial and technical assistance for the provision of such 
        humanitarian assistance to the people of Venezuela and a 
        description of such assistance.

SEC. 6. SUPPORT FOR EFFORTS AT THE UNITED NATIONS ON THE HUMANITARIAN 
              AND POLITICAL CRISIS IN VENEZUELA.

    (a) Initial Efforts.--The President shall instruct the Permanent 
Representative of the United States to the United Nations to use the 
voice and vote of the United States to secure the necessary votes--
            (1) to place the humanitarian and political crisis in 
        Venezuela on the agenda at the United Nations; and
            (2) to secure a Presidential Statement from the United 
        Nations urging the Government of Venezuela to allow the 
        delivery of humanitarian relief and to lift bureaucratic 
        impediments or any other obstacles so that independent 
        nongovernmental organizations can provide the proper assistance 
        to the people of Venezuela without any interference by such 
        government.
    (b) Additional Efforts.--
            (1) In general.--If the Government of Venezuela refuses to 
        allow the delivery of humanitarian relief and lift bureaucratic 
        impediments and any other obstacles described in subsection 
        (a)(2), then beginning not later than 30 days after the 
        conclusion of the efforts of the United Nations described in 
        such subsection, the President shall instruct the Permanent 
        Representative of the United States to the United Nations to 
        use the voice and vote of the United States to secure the 
        adoption of a resolution described in paragraph (2).
            (2) Resolution described.--The resolution of the United 
        Nations described in paragraph (1) is a resolution--
                    (A) directing the Government of Venezuela to 
                promptly allow safe and unhindered access for 
                humanitarian agencies and their implementing partners, 
                including possible support from neighboring countries; 
                and
                    (B) calling on the Government of Venezuela to--
                            (i) allow the delivery of food and 
                        medicine;
                            (ii) end human rights violations;
                            (iii) agree to free, fair and transparent 
                        elections with credible international 
                        observers;
                            (iv) cease violence; and
                            (v) release all political prisoners.

SEC. 7. SUPPORT FOR ORGANIZATION OF AMERICAN STATES INTER-AMERICAN 
              DEMOCRATIC CHARTER.

    (a) Findings.--Congress makes the following findings:
            (1) Article 1 of the Inter-American Democratic Charter, 
        adopted by the Organization of American States in Lima on 
        September 11, 2001, affirms, ``The peoples of the Americas have 
        a right to democracy and their governments have an obligation 
        to promote and defend it.''.
            (2) Article 19 of the Inter-American Democratic Charter 
        states ``an unconstitutional interruption of the democratic 
        order or an unconstitutional alteration of the constitutional 
        regime that seriously impairs the democratic order in a member 
        state, constitutes, while it persists, an insurmountable 
        obstacle to its government's participation in sessions of the 
        General Assembly . . . and other bodies of the Organization.''.
            (3) Article 20 of the Inter-American Democratic Charter 
        provides--
                    (A) ``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.''; and
                    (B) ``The Permanent Council, depending on the 
                situation, may undertake the necessary diplomatic 
                initiatives, including good offices, to foster the 
                restoration of democracy.''.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) Nicolas Maduro, the National Electoral Council of 
        Venezuela, and the Supreme Tribunal of Justice of Venezuela 
        have carried out systematic efforts to undermine, block, and 
        circumvent the authorities and responsibilities of the 
        Venezuelan National Assembly as mandated in the Constitution of 
        the Bolivarian Republic of Venezuela;
            (2) such efforts by Nicolas Maduro and the Supreme Tribunal 
        of Justice of Venezuela amount to an unconstitutional 
        alternation of the constitutional regime that seriously impairs 
        the democratic order in Venezuela; and
            (3) the Secretary of State, working through the United 
        States Permanent Mission to the Organization of American 
        States, should take additional steps to support ongoing efforts 
        by the Secretary General of the Organization of American 
        States--
                    (A) to invoke the Inter-American Democratic 
                Charter;
                    (B) to advance a collective assessment of the 
                situation in Venezuela; and
                    (C) to promote diplomatic initiatives to foster the 
                restoration of Venezuelan democracy.

SEC. 8. CONCERNS AND REPORT ON THE INVOLVEMENT OF VENEZUELAN OFFICIALS 
              IN CORRUPTION AND ILLICIT NARCOTICS TRAFFICKING.

    (a) Findings.--Congress makes the following findings:
            (1) The deterioration of governance in Venezuela has been 
        exacerbated by the involvement of senior officials of the 
        Government of Venezuela, including members of the National 
        Electoral Council, the judicial system, and the Venezuelan 
        security forces, in acts of corruption and illicit narcotics 
        trafficking and related money laundering.
            (2) In March 2015, the Department of the Treasury's 
        Financial Crimes Enforcement Network determined that 
        approximately $2,000,000,000 had been siphoned from Venezuela's 
        public oil company, Petroleos de Venezuela S.A., in conjunction 
        with its designation of the Banca Privada d'Andorra as a 
        Foreign Financial Institution of Primary Money Laundering 
        Concern.
            (3) On August 1, 2016, General Nestor Reverol, Venezuela's 
        current Minister of Interior and former National Guard 
        commander, was indicted in a United States district court for 
        participating in an international cocaine trafficking 
        conspiracy.
            (4) On November 18, 2016, Franqui Francisco Flores de 
        Freitas and Efrain Antonio Campo Flores, nephews of Nicolas 
        Maduro and Venezuelan First Lady Cilia Flores, were convicted 
        in a United States district court on charges of conspiring to 
        import cocaine into the United States.
            (5) On February 13, 2017, the Department of the Treasury's 
        Office of Foreign Assets Control designated Tareck Zaidan El 
        Aissami Maddah for his involvement in illicit narcotics 
        trafficking, pursuant to the Foreign Narcotics Kingpin 
        Designation Act (21 U.S.C. 1901 et seq.; title VIII of Public 
        Law 106-120).
            (6) The Department of the Treasury's Office of Foreign 
        Assets Control has designated additional individuals and senior 
        Venezuelan officials for their involvement in illicit narcotics 
        trafficking, pursuant to such Act, including--
                    (A) Venezuelan national Samark Jose Lopez Bello, 
                who is the primary front man and money launderer for 
                Tareck Zaidan El Aissami Maddah;
                    (B) Hugo Armando Carvajal Barrios, who is the 
                current National Assembly Deputy and the former 
                Director of Venezuela's Military Intelligence 
                Directorate;
                    (C) Henry de Jesus Rangel Silva, who is the current 
                Governor of Trujillo State and the former Director of 
                Venezuela's Directorate of Intelligence and Prevention 
                Services;
                    (D) Ramon Emilio Rodriguez Chacin, who previously 
                served as the Minister of Interior; and
                    (E) Freddy Alirio Bernal Rosales, who previously 
                served as the Mayor of the Libertador municipality of 
                Caracas.
            (7) On September 12, 2017, Ambassador William Brownfield 
        testified before the Senate Caucus on International Narcotics 
        Control that drug trafficking organizations in Venezuela have 
        ``completely penetrated virtually every security, law 
        enforcement, and justice-related institution'' and that ``there 
        will be no long-term, democratic, prosperous and secure 
        solution in Venezuela until there is a solution to the drug 
        trafficking organization presence''.
    (b) Definitions.--In this section:
            (1) Corruption.--The term ``corruption'' means the extent 
        to which public power is exercised for private gain, including 
        by bribery, nepotism, fraud, or embezzlement.
            (2) Grand corruption.--The term ``grand corruption'' means 
        corruption committed at a high level of government that--
                    (A) distorts policies or the central functioning of 
                the country; and
                    (B) enables leaders to benefit at the expense of 
                the public good.
    (c) Reporting Requirement.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of State, acting 
        through the Bureau of Intelligence and Research, and in 
        consultation with the intelligence community (as defined in 
        section 3(4) of the National Security Act of 1947 (50 U.S.C. 
        3003(4))), shall submit a report to Congress that describes the 
        involvement of senior officials of the Government of Venezuela, 
        including members of the National Electoral Council, the 
        judicial system, and the Venezuelan security forces, in acts of 
        corruption in Venezuela, with a specific emphasis on acts of 
        grand corruption.
            (2) Additional elements.--The report submitted under 
        paragraph (1) shall--
                    (A) describe how the acts of corruption described 
                in the report pose direct challenges for United States 
                national security and international security;
                    (B) identify individuals that frustrate the ability 
                of the United States to combat illicit narcotics 
                trafficking; and
                    (C) include input from the Drug Enforcement 
                Administration, the Office of Foreign Assets Control, 
                and the Financial Crimes Enforcement Network.
            (3) Form.--The report under paragraph (1) shall be 
        submitted in unclassified form, but may include a classified 
        annex. The unclassified portion of the report shall be made 
        available to the public.

SEC. 9. SANCTIONS ON PERSONS RESPONSIBLE FOR PUBLIC CORRUPTION AND 
              UNDERMINING DEMOCRATIC GOVERNANCE IN VENEZUELA.

    (a) Finding.--Executive Order 13692 (50 U.S.C. 1701 note), which 
was signed on March 8, 2015, established sanctions against individuals 
responsible for undermining democratic processes and institutions and 
involved in acts of public corruption that were not included in the 
Venezuela Defense of Human Rights and Civil Society Act of 2014 (Public 
Law 113-278).
    (b) Sanctions.--Section 5 of the Venezuela Defense of Human Rights 
and Civil Society Act of 2014 (Public Law 113-278) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``or'' at the 
                end;
                    (B) by redesignating paragraph (3) as paragraph 
                (5);
                    (C) by inserting after paragraph (2) the following:
            ``(3) is responsible for, or complicit in, ordering, 
        controlling, or otherwise directing, significant actions or 
        policies that undermine democratic processes or institutions;
            ``(4) is a government official, or a senior associate of 
        such an official, that is responsible for, or complicit in, 
        ordering, controlling, or otherwise directing, acts of 
        significant corruption, including the expropriation of private 
        or public assets for personal gain, corruption related to 
        government contracts or the extraction of natural resources, 
        bribery, or the facilitation or transfer of the proceeds of 
        corruption to foreign jurisdictions; or''; and
                    (D) in paragraph (5) (as redesignated), by striking 
                ``paragraph (1) or (2)'' and inserting ``paragraph (1), 
                (2), (3), or (4)''; and
            (2) in subsection (e), by striking ``December 31, 2019'' 
        and inserting ``December 31, 2022''.
    (c) Sense of Congress.--It is the sense of Congress that the 
President and Secretary of State should seek to encourage partner 
countries of the Organization of American States, the European Union, 
and the United Nations to impose sanctions with respect to Venezuelan 
individuals that are similar to sanctions imposed by the United States 
with respect to such Venezuelan individuals.

SEC. 10. CONCERNS OVER PDVSA TRANSACTIONS WITH ROSNEFT.

    (a) Findings.--Congress makes the following findings:
            (1) In late 2016, Venezuelan state-owned oil company 
        Petroleos de Venezuela, S.A. (referred to in this section as 
        ``PDVSA''), through a no-compete transaction, secured a loan 
        from Russian government-controlled oil company Rosneft, using 
        49.9 percent of PDVSA's American subsidiary, CITGO Petroleum 
        Corporation, including its assets in the United States, as 
        collateral. As a result of this transaction, 100 percent of 
        CITGO is held as collateral by PDVSA's creditors.
            (2) CITGO, a wholly owned subsidiary of PDVSA, is engaged 
        in interstate commerce and owns and controls critical energy 
        infrastructure in 19 States in the United States, including an 
        extensive network of pipelines, 48 terminals, and 3 refineries, 
        with a combined oil refining capacity of 749,000 barrels per 
        day. CITGO's refinery in Lake Charles, Louisiana is the sixth 
        largest refinery in the United States.
            (3) The Department of the Treasury imposed sanctions on 
        Rosneft, which is controlled by the Russian Government, and its 
        Executive Chairman, Igor Sechin, following Russia's military 
        invasion of Ukraine and its illegal annexation of Crimea in 
        2014.
            (4) The Department of Homeland Security has designated the 
        energy sector as critical to United States infrastructure.
            (5) The growing economic crisis in Venezuela raises the 
        probability that the Government of Venezuela and PDVSA will 
        default on their international debt obligations, resulting in a 
        scenario in which Rosneft could come into control of CITGO's 
        United States energy infrastructure holdings.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) control of critical United States energy infrastructure 
        by Rosneft, a Russian government-controlled entity currently 
        under United States sanctions, would pose a significant risk to 
        United States national security and energy security;
            (2) the President should take all necessary steps to 
        prevent Rosneft from gaining control of critical United States 
        interstate energy infrastructure;
            (3) a default by PDVSA on its loan from Rosneft, resulting 
        in Rosneft coming into possession of PDVSA's United States 
        CITGO assets, would warrant careful consideration by the 
        Committee on Foreign Investment in the United States;
            (4) if PDVSA defaults on its debt obligations, the 
        Department of the Treasury's Office of Foreign Asset Control 
        should review CITGO's transactions with United States persons 
        to assess and ensure compliance with United States sanctions 
        policies and regulations; and
            (5) the Department of Homeland Security should conduct an 
        assessment of the security risks posed by foreign control of 
        CITGO's United States energy infrastructure holdings and keep 
        the relevant committees of Congress fully informed of its 
        findings and any subsequent strategy to address vulnerabilities 
        to United States energy security as a result.

SEC. 11. REPORT ON ACTIVITIES OF CERTAIN GOVERNMENTS IN VENEZUELA.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of State, acting through the 
Bureau of Intelligence and Research of the Department of State and in 
consultation with the intelligence community, shall submit to Congress 
a report that describes the full extent of cooperation by the 
Governments of the Russian Federation, the People's Republic of China, 
Cuba, and Iran with the Government of Venezuela and the Venezuelan 
armed forces.
    (b) Form.--The report under subsection (a) shall be submitted in 
unclassified form, but may include a classified annex. The unclassified 
portion of the report shall be made available to the public.
    (c) Definition.--In this section, the term ``intelligence 
community'' has the meaning given such term in section 3(4) of the 
National Security Act of 1947 (50 U.S.C. 3003(4)).

            Passed the House of Representatives December 7, 2017.

            Attest:

                                                                 Clerk.
115th CONGRESS

  1st Session

                               H. R. 2658

_______________________________________________________________________

                                 AN ACT

To provide humanitarian assistance for the Venezuelan people, to defend 
   democratic governance and combat widespread public corruption in 
                   Venezuela, and for other purposes.