[Congressional Record Volume 143, Number 68 (Wednesday, May 21, 1997)]
[Senate]
[Pages S4879-S4898]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. MURKOWSKI:
  S. 771. A bill to regulate the transmission of unsolicited commercial 
electronic mail, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.


     The Unsolicited Commercial Electronic Mail Choice Act of 1977

  Mr. MURKOWSKI. Mr. President, I rise today to introduce legislation 
that will address one of the major complaints of Internet users--the 
proliferation of unsolicited e-mail advertisements, junk e-mail, or so-
called spam.
  Mr. President, in the span of 5 years, an entirely new method of 
commerce and communication--electronic mail on the Internet--has spread 
around the world. Along with the benefits of this revolutionary 
technology, there are some negative byproducts that can only damage the 
integrity of this new communications medium.
  Because of technological advances, Internet e-mail has also become a 
very inexpensive means of distributing endless e-mails solicitations 
that not only annoy but can also defraud recipients. Moreover, the 
growth of junk e-mail can clog e-mail distribution networks and overtax 
the ability of service providers to distribute legitimate 
communications.
  With a minimal equipment investment, any individual or business has 
the capability to transmit unsolicited advertisements to thousands of 
people nationwide each hour with the click of a mouse. As technology 
advances, thousands will turn into millions, and junk e-mail could 
overwhelm cyberspace.
  Junk e-mail is known in the trade by the derisive term of ``spam.'' 
Based upon the content of many of these e-mails, I'd be insulted if I 
were an employee of Hormel, the creator of the real Spam.
  Mr. President, not only is junk e-mail an annoyance, but for many 
Americans, especially citizens living in rural States like Alaska, 
there is a real out-of-pocket cost they must pay to receive these 
unsolicited advertisements. When an on-line subscriber in rural Alaska 
or Montana, logs on to a network server, such as America OnLine, to 
check to see if there is e-mail, the subscriber often must pay a long 
distance charge. If there is no e-mail in his on-line mailbox, the 
subscriber's long distance charge may only cover 1 minute. However, if 
there are 25 messages in his mailbox, 24 of which are unsolicited e-
mail ads, his long distance charges could triple or quadruple.
  So what the rural on-line user is forced to do is to pay for the 
privilege of receiving junk e-mail and then having to waste his time 
hitting his delete button to empty this junk out of his mail box.
  Mr. President, we ought to do something to end this practice. In 
1991, Congress passed the Automated Telephone Consumer Protection Act 
that contained a provision which banned unsolicited fax transmissions. 
In the bill I am introducing today, the Unsolicited Commercial 
Electronic Mail Choice Act of 1997, I have not chosen to take such a 
sweeping and unilateral approach because the Internet is about choices, 
not outright bans.

  What my bill does is to require the use of the word ``Advertisement'' 
in the subject line of any unsolicited commercial e-mail, along with 
the sender's real address, real e-mail address, and telephone number in 
the body of the message. This requirement will empower Internet users 
to filter out messages that they do not want to receive.
  Spam generators who refuse to abide by this requirement could face 
legal action from private citizens, state attorneys general, and/or the 
Federal Trade Commission. FTC or state action could result in civil 
penalties of up to $11,000 per incident and, more importantly, cease 
and desist orders. Private citizens bringing suit could recover $5,000 
plus reasonable attorney's fees.
  Internet users can also choose not to unilaterally block all 
unsolicited commercial e-mails. Instead, they can send removal requests 
to specific mailing lists with further transmissions required to end 
within 48 hours.
  Moreover, Internet Service Providers, such as America Online or 
Microsoft Network, would be required to filter out all e-mails with the 
word ``Advertisement'' in the subject line when a consumer so requests. 
Large service providers would have 1 year, from the date of enactment, 
to implement this requirement. Smaller Internet Service Providers would 
have 2 years to meet this requirement. Internet Service Providers would 
also be required to cut off service to those who use their services to 
send out unsolicited commercial e-mails in violation of the provisions 
of the act.
  Mr. President, I want to point out what this bill does not attempt to 
do. It does not ban unsolicited commercial e-mails as some have 
suggested. I have not chosen an outright ban because I support the 
business practices of those who flood inboxes with sales pitches for 
worthless vitamin products and multilevel marketing schemes. Quite the 
contrary, I abhor such solicitations.
  But I do not want to set a precedent in banning commercial speech on 
the Internet. Although these unsolicited advertisements are annoying, I 
do not believe that is a basis for an outright ban. A better approach 
is to simply ignore them by filtering them out. If enough Americans 
choose to filter out such e-mail messages, I seriously doubt that 
anyone will bother to send out such e-mails in the future since the 
cyberspace market will no longer be there.
  I would also note that this bill does not impact automated mailing 
lists, e-mails between friends, or e-mails between businesses and their 
customers when there is a preexisting business relationship.
  Mr. President, the Internet is about choices, not bans. The 
Unsolicited

[[Page S4880]]

Commercial Electronic Mail Message Choice Act of 1997 should restore to 
consumers and businesses the right to be free from endless e-mail 
solicitations. It will be up to the consumer to decide if he or she 
wants to receive such messages. That is the way I believe Americans 
want it. They don't want government telling them what they can receive, 
but they want right to decide for themselves.
  Mr. President, as I said earlier, this is a very new technology and 
it is not my intention to hinder it's development nor interfere with 
legitimate commerce transacted on the Internet. I look forward to 
working with my colleagues to pass legislation that resolves this 
problem.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 771

       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 ``Unsolicited Commercial 
     Electronic Mail Choice Act of 1997''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The Internet is a worldwide network of information that 
     growing numbers of Americans use on a regular basis for 
     educational and personal activities.
       (2) Electronic mail messages transmitted on the Internet 
     constitute an increasing percentage of communications in the 
     United States.
       (3) Solicited commercial electronic mail is a useful and 
     cost-effective means for Americans to receive information 
     about a business and its products.
       (4) The number of transmissions of unsolicited commercial 
     electronic mail advertisements has grown exponentially over 
     the past several years as the technology for creating and 
     transmitting such advertisements in bulk has made the costs 
     of distribution of such advertisements minimal.
       (5) Individuals have available no effective means of 
     differentiating between unsolicited commercial electronic 
     mail advertisements and other Internet communications.
       (6) The transmitters of unsolicited commercial electronic 
     mail advertisements can easily move from State to State.
       (7) Individuals and businesses that receive unsolicited 
     commercial electronic mail advertisements often pay for the 
     costs of such receipt, including the costs of Internet access 
     and long distance telephone charges.
       (8) Unsolicited commercial electronic mail can be used to 
     advertise legitimate services and goods but is also used for 
     fraudulent and deceptive purposes in violation of Federal and 
     State law.
       (9) Individuals and companies that use unsolicited 
     commercial electronic mail for fraudulent and deceptive 
     purposes often use fraudulent identification information in 
     such electronic mail, making it impossible for a recipient to 
     request to be removed from the mailing list or for law 
     enforcement authorities to identify the sender.
       (10) The inability of recipients of unsolicited commercial 
     electronic mail to identify the senders of such electronic 
     mail or to prevent its receipt impedes the flow of commerce 
     and communication on the Internet and threatens the integrity 
     of commerce on the Internet.
       (11) Internet service providers are burdened by the cost of 
     equipment necessary to process unsolicited commercial 
     electronic mail.
       (12) To facilitate the development of commerce and 
     communication on the Internet, unsolicited commercial 
     electronic mail should be readily identifiable and filterable 
     by individuals and Internet service providers.

     SEC. 3. REQUIREMENTS RELATING TO TRANSMISSIONS OF UNSOLICITED 
                   COMMERCIAL ELECTRONIC MAIL.

       (a) Information on Advertisement.--
       (1) Requirement.--Unless otherwise authorized pursuant to a 
     provision of section 7, a person who transmits an electronic 
     mail message as part of the transmission of unsolicited 
     commercial electronic mail shall cause to appear in each 
     electronic mail message transmitted as part of such 
     transmission the information specified in paragraph (3).
       (2) Placement.--
       (A) Advertisement.--The information specified in 
     subparagraph (A) of paragraph (3) shall appear as the first 
     word of the subject line of the electronic mail message 
     without any prior text or symbol.
       (B) Other information.--The information specified in 
     subparagraph (B) of that paragraph shall appear prominently 
     in the body of the message.
       (3) Covered information.--The following information shall 
     appear in an electronic mail message under paragraph (1):
       (A) The term ``advertisement''.
       (B) The name, physical address, electronic mail address, 
     and telephone number of the person who initiates transmission 
     of the message.
       (b) Routing Information.--All Internet routing information 
     contained within or accompanying an electronic mail message 
     described in subsection (a) shall be valid according to the 
     prevailing standards for Internet protocols.
       (c) Effective Date.--The requirements in this section shall 
     take effect 30 days after the date of enactment of this Act.

     SEC. 4. FEDERAL REGULATION OF UNSOLICITED COMMERCIAL 
                   ELECTRONIC MAIL.

       (a) Transmissions.--
       (1) In general.--Upon notice from a person of the person's 
     receipt of electronic mail in violation of a provision of 
     section 3 or 7, the Commission--
       (A) may conduct an investigation to determine whether or 
     not the electronic mail was transmitted in violation of the 
     provision; and
       (B) if the Commission determines that the electronic mail 
     was transmitted in violation of the provision, may--
       (i) impose upon the person initiating the transmission a 
     civil fine in an amount not to exceed $11,000;
       (ii) commence in a district court of the United States a 
     civil action to recover a civil penalty in an amount not to 
     exceed $11,000 against the person initiating the 
     transmission; or
       (iii) both impose a fine under clause (i) and commence an 
     action under clause (ii).
       (2) Deadline.--The Commission may not take action under 
     paragraph (1)(B) with respect to a transmission of electronic 
     mail more than 2 years after the date of the transmission.
       (b) Administration.--
       (1) Notice by electronic means.--The Commission shall 
     establish an Internet web site with an electronic mail 
     address for the receipt of notices under subsection (a).
       (2) Information on enforcement.--The Commission shall make 
     available through the Internet web site established under 
     paragraph (2) information on the actions taken by the 
     Commission under subsection (a)(1)(B).
       (3) Assistance of federal communications commission.--The 
     Federal Communications Commission may assist the Commission 
     in carrying out its duties this section.

     SEC. 5. ACTIONS BY STATES.

       (a) In General.--Whenever an attorney general of any State 
     has reason to believe that the interests of the residents of 
     that State have been or are being threatened or adversely 
     affected because any person is engaging in a pattern or 
     practice of the transmission of electronic mail in violation 
     of a provision of section 3 or 7, the State, as parens 
     patriae, may bring a civil action on behalf of its residents 
     to enjoin such transmission, to enforce compliance with the 
     provision, to obtain damages or other compensation on behalf 
     of its residents, or to obtain such further and other relief 
     as the court considers appropriate.
       (b) Notice to Commission.--
       (1) Notice.--The State shall serve prior written notice of 
     any civil action under this section upon the Commission and 
     provide the Commission with a copy of its complaint, except 
     that if it is not feasible for the State to provide such 
     prior notice, the State shall serve written notice 
     immediately upon instituting such action.
       (2) Rights of commission.--Upon receiving a notice with 
     respect to a civil action under paragraph (1), the Commission 
     shall have the right--
       (A) to intervene in the action;
       (B) upon so intervening, to be heard in all matters arising 
     therein; and
       (C) to file petitions for appeal.
       (c) Actions by Commission.--Whenever a civil action has 
     been instituted by or on behalf of the Commission for 
     violation of a provision of section 3 or 7, no State may, 
     during the pendency of such action, institute a civil action 
     under this section against any defendant named in the 
     complaint in such action for violation of any provision as 
     alleged in the complaint.
       (d) Construction.--For purposes of bringing a civil action 
     under subsection (a), nothing in this section shall prevent 
     an attorney general from exercising the powers conferred on 
     the attorney general by the laws of the State concerned to 
     conduct investigations or to administer oaths or affirmations 
     or to compel the attendance of witnesses or the production of 
     documentary or other evidence.
       (e) Venue; Service of Process.--Any civil action brought 
     under subsection (a) in a district court of the United States 
     may be brought in the district in which the defendant is 
     found, is an inhabitant, or transacts business or wherever 
     venue is proper under section 1391 of title 28, United States 
     Code. Process in such an action may be served in any district 
     in which the defendant is an inhabitant or in which the 
     defendant may be found.
       (f) Actions by Other State Officials.--Nothing in this 
     section may be construed to prohibit an authorized State 
     official from proceeding in State court on the basis of an 
     alleged violation of any civil or criminal statute of the 
     State concerned.
       (g) Definition.--In this section, the term ``attorney 
     general'' means the chief legal officer of a State.

     SEC. 6. INTERNET SERVICE PROVIDERS.

       (a) Exemption for Certain Transmissions.--The provisions of 
     this Act shall not apply to a transmission of electronic mail 
     by an interactive computer service provider unless the 
     provider initiates the transmission.
       (b) Notice of Transmissions from Commission.--Not later 
     than 72 hours after receipt

[[Page S4881]]

     from the Commission of notice that its computer equipment may 
     have been used by another person to initiate a transmission 
     of electronic mail in violation of a provision of section 3 
     or 7, an interactive computer service provider shall--
       (1) provide the Commission such information as the 
     Commission requires in order to determine whether or not the 
     computer equipment of the provider was used to initiate the 
     transmission; and
       (2) if the Commission determines that the computer 
     equipment of the provider was used to initiate the 
     transmission, take appropriate actions to terminate the use 
     of its computer equipment by that person.
       (c) Notice of Transmissions from Private Individuals.--
       (1) In general.--Subject to paragraph (2), not later than 
     14 days after receipt from a private person of notice that 
     its computer equipment may have been used by another person 
     to initiate a transmission of electronic mail in violation of 
     a provision of section 3 or 7, an interactive computer 
     service provider shall--
       (A) transmit the notice to the Commission together with 
     such information as the Commission requires in order to 
     determine whether or not the computer equipment of the 
     provider was used to initiate the transmission; and
       (B) if the Commission determines that the computer 
     equipment of the provider was used to initiate the 
     transmission, take appropriate actions to terminate the use 
     of its computer equipment by that person.
       (2) Minimum notice requirement.--An interactive computer 
     service provider shall transmit a notice under paragraph (1) 
     with respect to a particular transmission of electronic mail 
     only if the provider receives notice with respect to the 
     transmission from more than 100 private persons.
       (d) Blocking Systems.--
       (1) Requirement.--Each interactive computer service 
     provider shall make available to subscribers to such service 
     a system permitting such subscribers, upon the affirmative 
     electronic request of such subscribers, to block the receipt 
     through such service of any electronic mail that contains the 
     term ``advertisement'' in its subject line.
       (2) Notice of availability.--Upon the applicability of this 
     subsection to an interactive computer service provider, the 
     provider shall--
       (A) notify each current subscriber, if any, to the service 
     of the blocking system provided for under paragraph (1); and
       (B) notify any new subscribers to the service of the 
     blocking system.
       (3) Blocking by provider.--An interactive computer service 
     provider may, upon its own initiative, block the receipt 
     through its service of any electronic mail that contains the 
     term ``advertisement'' in its subject line.
       (4) Applicability.--The requirements in paragraphs (1) and 
     (2) shall apply--
       (A) beginning 1 year after the date of enactment of this 
     Act, in the case of an interactive computer service provider 
     having more than 25,000 or more subscribers; and
       (B) beginning 2 years after that date, in the case of an 
     interactive computer service provider having less than 25,000 
     subscribers.
       (e) Records.--An interactive computer service provider 
     shall retain records of any action taken on a notice received 
     under this section for not less than 2 years after the date 
     of receipt of the notice.
       (f) Construction.--Nothing in this section may be construed 
     to require an interactive computer service provider to 
     transmit or otherwise deliver any electronic mail message 
     containing the term ``advertisement'' in its subject line.
       (g) Definition.--In this section, the term ``interactive 
     computer service provider'' has the meaning given that term 
     in section 230(e)(2) of the Communications Act of 1934 (47 
     U.S.C. 230(e)(2)).

     SEC. 7. RECEIPT OF TRANSMISSIONS BY PRIVATE PERSONS.

       (a) Termination of Transmissions.--
       (1) Request.--A person who receives a transmission of 
     unsolicited commercial electronic mail not otherwise 
     authorized under this section may request, by electronic mail 
     to the same electronic mail address from which the 
     transmission originated, the termination of transmissions of 
     such mail by the person initiating the transmission.
       (2) Deadline.--A person receiving a request for the 
     termination of transmissions of electronic mail under this 
     subsection shall cease initiating transmissions of electronic 
     mail to the person submitting the request not later than 48 
     hours after receipt of the request.
       (b) Affirmative Authorization of Transmissions Without 
     Information.--
       (1) In general.--Subject to paragraph (2), a person may 
     authorize another person to initiate transmissions to the 
     person of unsolicited commercial electronic mail without 
     inclusion in such transmissions of the information required 
     by section 3.
       (2) Termination.--
       (A) Notice.--A person initiating transmissions of 
     electronic mail under paragraph (1) shall include, with each 
     transmission of such mail to a person authorizing the 
     transmission under that paragraph, notice that the person 
     authorizing the transmission may request at any time the 
     recommencement of the inclusion in such transmissions of the 
     information required by section 3.
       (B) Deadline.--A person receiving a request under this 
     paragraph shall include the information required by section 3 
     in all transmissions of unsolicited commercial electronic 
     mail to the person making the request beginning not later 
     than 48 hours after receipt of the request.
       (c) Constructive Authorization of Transmissions Without 
     Information.--
       (1) In general.--Subject to paragraph (2), a person who 
     secures a good or service from, or otherwise responds 
     electronically to, an offer in a transmission of unsolicited 
     commercial electronic mail shall be deemed to have authorized 
     transmissions of such mail without inclusion of the 
     information required under section 3 from the person who 
     initiates the transmission providing the basis for such 
     authorization.
       (2) Termination.--
       (A) Request.--A person deemed to have authorized the 
     transmissions of electronic mail under paragraph (1) may 
     request at any time the recommencement of the inclusion in 
     such transmissions of the information required by section 3.
       (B) Deadline.--A person receiving a request under this 
     paragraph shall include the information required by section 3 
     in all transmissions of unsolicited commercial electronic 
     mail to the person making the request beginning not later 
     than 48 hours after receipt of the request.
       (d) Effective Date of Termination Requirements.--
     Subsections (a), (b)(2), and (c)(2) shall take effect 30 days 
     after the date of enactment of this Act.

     SEC. 8. ACTIONS BY PRIVATE PERSONS.

       (a) In General.--Any person adversely affected by a 
     violation of a provision of section 3 or 7, or an authorized 
     person acting on such person's behalf, may, within 1 year 
     after discovery of the violation, bring a civil action in a 
     district court of the United States against a person who has 
     violated the provision. Such an action may be brought to 
     enjoin the violation, to enforce compliance with the 
     provision, to obtain damages, or to obtain such further and 
     other relief as the court considers appropriate.
       (b) Damages.--
       (1) In general.--The amount of damages in an action under 
     this section for a violation specified in subsection (a) may 
     not exceed $5,000 per violation.
       (2) Relationship to other damages.--Damages awarded for a 
     violation under this subsection are in addition to any other 
     damages awardable for the violation under any other provision 
     of law.
       (c) Cost and Fees.--The court, in issuing any final order 
     in any action brought under subsection (a), may award costs 
     of suit and reasonable attorney fees and expert witness fees 
     for the prevailing party.
       (d) Venue; Service of Process.--Any civil action brought 
     under subsection (a) in a district court of the United States 
     may be brought in the district in which the defendant is 
     found, is an inhabitant, or transacts business or wherever 
     venue is proper under section 1391 of title 28, United States 
     Code. Process in such an action may be served in any district 
     in which the defendant is an inhabitant or in which the 
     defendant may be found.

     SEC. 9. RELATION TO STATE LAWS.

       (a) State Law Applicable Unless Inconsistent.--The 
     provisions of this Act do not annul, alter, or affect the 
     applicability to any person, or otherwise exempt from the 
     applicability to any person, of the laws of any State with 
     respect to the transmission of unsolicited commercial 
     electronic, except to the extent that those laws are 
     inconsistent with any provision of this Act, and then only to 
     the extent of the inconsistency.
       (b) Requirement Relating to Determination of 
     Inconsistency.--The Commission may not determine that a State 
     law is inconsistent with a provision of this Act if the 
     Commission determines that such law places greater 
     restrictions on the transmission of unsolicited commercial 
     electronic mail than are provided for under such provision.

     SEC. 10. DEFINITIONS.

       In this Act:
       (1) Commercial electronic mail.--The term ``commercial 
     electronic mail'' means any electronic mail that--
       (A) contains an advertisement for the sale of a product or 
     service;
       (B) contains a solicitation for the use of a toll-free 
     telephone number or a telephone number with a 900 prefix the 
     use of which connects the user to a person or service that 
     advertises the sale of or sells a product or service; or
       (C) contains a list of one or more Internet sites that 
     contain an advertisement referred to in subparagraph (A) or a 
     solicitation referred to in subparagraph (B).
       (2) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (3) State.--The term ``State'' means any State of the 
     United States, the District of Columbia, Puerto Rico, Guam, 
     American Samoa, the United States Virgin Islands, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, the 
     Republic of Palau, and any possession of the United States.
                                 ______
                                 
      By Mr. SPECTER (for himself, Mr. Coverdell and Mr. Hutchinson):
  S. 772. A bill to establish an Office of Religious Persecution 
Monitoring, to provide for the imposition of sanctions against 
countries engaged in a pattern of religious persecution, and for other

[[Page S4882]]

purposes; to the Committee on Foreign Relations.


           The Freedom from Religious Persecution Act of 1997

  Mr. SPECTER. Mr. President, I have sought recognition today to once 
again address the subject of religious persecution. I have stood here 
before describing the horrible tragedies occurring in many parts of the 
world. Sadly, very little has been done to combat the problem. That is 
why I am introducing the Freedom From Religious Persecution Act of 
1997.
  Religious persecution is a subject of great personal interest. Both 
of my parents, my father from the Ukraine, my mother from a small town 
on the Polish-Russian border, came to this country to avoid religious 
persecution. Freedom from religious persecution is a concept 
fundamental to the ideals of this country and to peoples everywhere.
  Christians and other religious minorities have been and continue to 
be the victims of discrimination, rape, torture, enslavement, 
imprisonment, and even murder, because of their religious beliefs. This 
persecution continues today, often without diplomatic or other 
consequences for the offending regime. Christians are not the only ones 
being persecuted. Muslims and followers of other religions are also 
singled out for their beliefs.
  In January 1996, the White House promised that a new senior advisor 
position would be created in the Office of the President dedicated 
specifically to the issue of religious persecution overseas. No such 
position was ever created. Instead, President Clinton established a 
committee in the State Department that will report to the Secretary of 
State and will advise the Secretary on violations of religious freedoms 
abroad. The committee has since met, months have gone by, but still no 
action has been taken. Mr. President, I and many of my colleagues agree 
that the time for action is now. We do not need more reviews and 
studies or more advice on the subject. The instances of religious 
persecution are well documented. We need action.

  At the end of the 104th Congress, I introduced Senate Resolution 283, 
which discussed the need for quick, decisive action and called upon the 
President to appoint a White House advisor on religious persecution. 
After that, I worked with Senators Nickles, Nunn, and Coats on a 
broader Senate Concurrent Resolution, 71, which included my provisions 
on a White House Senior Advisor on religious persecution. Senate 
Concurrent Resolution 71, which I cosponsored, passed the Senate by 
voice vote but there was insufficient time remaining in the 104th 
Congress to secure passage in the House.
  So today, the persecution of Christians and other religious 
minorities continues to grow, often without diplomatic or other 
consequences for the offending regime. In countries such as Saudi 
Arabia, Sudan, China, and Ethiopia, Christians are systematically 
denied their religious liberties. Muslims have also been singled out 
for persecution in countries such as Burma, where Muslims are forced to 
relocate to undesirable areas and where Muslims are often denied 
educational opportunities.
  Several examples illustrate the gravity of the problem. The Sudanese 
Government continues to essentially wage a war against its Christian 
population. Reports detail the forced enslavement and conversion of the 
Christian populations from the southern regions of Sudan. The 
Government bombs and burns Christians villages, has taken more than 
30,000 Christian children as slaves in the last 6 years, and tortures 
Christian worshipers and their priests.
  In Pakistan in February of this year, thousands of Christians were 
attacked, many houses and six churches were set on fire. Nearly 1,000 
families were living in tents after being driven from their homes by 
rioters. Where was the Government to stop this terror? Where were the 
police?
  Persecution of Christians is by no means limited to the Islamic 
world. China continues to be one of the worst offenders. At least 75 
million Christians live in China but cannot practice their religion. 
Roman Catholics and Protestant Chinese are imprisoned and tortured for 
holding worship, preaching, or distributing bibles without permission.
  This past August 1996, I traveled to China and met with Chinese Vice-
Premier Qian Qichen to express my strong concerns about religious 
persecution in his country. On September 12, 1996, however, Chinese 
Premier Li Ping released a statement warning the Chinese people that 
the free exercise of their religious faith could result in harsh 
retribution.
  In August 1996 I also visited Saudi Arabia and met with Crown Prince 
Abdullah to discuss the restrictions that country has on religious 
practices. I was deeply troubled by the fact that United States troops 
stationed in Saudi Arabia are not permitted to exercise their religious 
beliefs or even fly the American flag. According to the Pueblo Program 
on Religious Freedom of Freedom House, the Saudi Government has even 
insisted that the United States Government restrict Christian worship 
by American citizens on United States Embassy grounds in Saudi Arabia. 
American officials have apparently acquiesced to some of these demands 
by, for example, restricting Christian services at the Embassy in 
Riyadh and prohibiting Christmas services for United States troops 
defending Saudi interests during the gulf war.
  Other examples of such persecution of Christians and other religious 
minorities abound. Earlier this year, I discussed the broad issue of 
religious persecution on the ``Capitol Enlightenment'' radio show in 
Virginia with host Bill Fenton and Jim Jacobson, president of Christian 
Solidarity International, and on ``The Diner'' cable television show in 
Pittsburgh, hosted by Tom Hinkling. The public response to these 
programs and my legislative efforts to combat religious persecution has 
been overwhelming. People from across the country have contacted me to 
urge me to continue the fight until Christians, Muslims, Jews, and 
others can practice their faith in any country without fear of 
reprisal.

  The time has come for the United States to stand up for the right of 
all people to enjoy the fundamental freedom of religious faith. That is 
why I am introducing legislation with Congressman Wolf that will 
establish the position of Senior Advisor to the President dedicated to 
combating religious persecution overseas.
  This legislation will also define degrees of religious persecution 
and will impose sanctions on offending entities. Degrees of religious 
persecution are defined by two categories of activity. The first is 
when religious persecution is ongoing and widespread and is carried out 
by the government or with the government's support. The second is when 
there is religious persecution that is not carried out with government 
support, but where the government fails to take serious efforts to 
eliminate the persecution.
  The legislation will ban exports to the specific foreign government 
entity that carries out the persecution. These sanctions would take 
effect immediately upon the identification of the relevant entities and 
products. Additional sanctions would take effect after 90 days or 1 
year depending on the level of persecution. In addition, the 
legislation includes immediate sanctions against Sudan, a country where 
religious persecution is particularly egregious.
  This legislation requests more than just another report by the State 
Department. It is serious and it is tough. This legislation commits the 
United States to real action. There is no more time for talk.
  Mr. President, I ask unanimous consent that the full text of the bill 
be inserted into the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 772

       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 ``Freedom From Religious 
     Persecution Act of 1997''.

     SEC. 2. FINDINGS.

       The Congress makes the following findings:
       (1) Governments have a primary responsibility to promote, 
     encourage, and protect respect for the fundamental and 
     internationally recognized right to freedom of religion.
       (2) The right to freedom of religion is recognized by 
     numerous international agreements and covenants, including 
     the following:
       (A) Article 18 of the Universal Declaration of Human Rights 
     states that ``Everyone has the right to freedom of thought, 
     conscience and religion; this right includes freedom to

[[Page S4883]]

     change his religion or belief, and freedom, either alone or 
     in community with others and in public or private, to 
     manifest his religion or belief in teaching, practice, 
     worship and observance''.
       (B) Article 18 of the Covenant on Civil and Political 
     Rights declares that ``Everyone shall have the right to 
     freedom of thought, conscience, and religion . . .'' and 
     further delineates the privileges under this right.
       (3) Persecution of religious believers, particularly Roman 
     Catholic and evangelical Protestant Christians, in Communist 
     countries, such as Cuba, Laos, the People's Republic of 
     China, North Korea, and Vietnam, persists and in some cases 
     is increasing.
       (4) In many Islamic countries and regions thereof, 
     governments persecute non-Muslims and religious converts from 
     Islam using means such as ``blasphemy'' and ``apostasy'' 
     laws, and militant movements seek to corrupt a historically 
     tolerant Islamic faith and culture through the persecution of 
     Baha'is, Christians, and other religious minorities.
       (5) The militant, Islamic Government of Sudan is waging a 
     self-described religious war against Christian, non-Muslim, 
     and moderate Muslim persons by using torture, starvation, 
     enslavement, and murder.
       (6) In Tibet, where Tibetan Buddhism is inextricably linked 
     to the Tibetan identity, the Government of the People's 
     Republic of China has intensified its control over the 
     Tibetan people by perverting the selection of the Panchen 
     Lama, propagandizing against the religious authority of the 
     Dalai Lama, restricting religious study and traditional 
     religious practices, and increasing the persecution of monks 
     and nuns.
       (7) The United States Government is committed to the right 
     to freedom of religion and its policies and relations with 
     foreign governments should be consistent with the commitment 
     to this principle.
       (8) The 104th Congress recognized the facts set forth in 
     this section and stated clearly the sense of the Senate and 
     the House of Representatives regarding these matters in 
     approving--
       (A) H. Res. 515, expressing the sense of the House of 
     Representatives with respect to the persecution of Christians 
     worldwide;
       (B) S. Con. Res. 71, expressing the sense of the Senate 
     with respect to the persecution of Christians worldwide;
       (C) H. Con. Res. 102, concerning the emancipation of the 
     Iranian Baha'i community; and
       (D) section 1303 of H.R. 1561, the Foreign Relations 
     Authorization Act, Fiscal Years 1996 and 1997.

     SEC. 3. DEFINITIONS.

       As used in this Act:
       (1) Director.--The term ``Director'' means the Director of 
     the Office of Religious Persecution Monitoring established 
     under section 5.
       (2) Persecuted community.--The term ``persecuted 
     community'' means any religious group or community identified 
     in section 4.
       (3) Persecution facilitating products, goods, and 
     services.--The term ``persecution facilitating products, 
     goods, and services'' means those products, goods, and 
     services which are being used or determined to be intended 
     for use directly and in significant measure to facilitate the 
     carrying out of acts of religious persecution.
       (4) Religious persecution.--
       (A) In general.--The term ``religious persecution'' means 
     widespread and ongoing persecution of persons because of 
     their membership in or affiliation with a religion or 
     religious denomination, whether officially recognized or 
     otherwise, when such persecution includes abduction, 
     enslavement, killing, imprisonment, forced mass resettlement, 
     rape, or crucifixion or other forms of torture.
       (B) Category 1 religious persecution.--Category 1 religious 
     persecution is religious persecution that is conducted with 
     the involvement or support of government officials or its 
     agents, or as part of official government policy.
       (C) Category 2 religious persecution.--Category 2 religious 
     persecution is religious persecution that is not conducted 
     with the involvement or support of government officials or 
     its agents, or as part of official government policy, but 
     which the government fails to undertake serious and sustained 
     efforts to eliminate.
       (5) Responsible entities.--The term ``responsible 
     entities'' means the specific government departments, 
     agencies, or units which directly carry out acts of religious 
     persecution.
       (6) Sanctioned country.--The term ``sanctioned country'' 
     means a country on which sanctions have been imposed under 
     section 7.
       (7) United states assistance.--The term ``United States 
     assistance'' means--
       (A) any assistance under the Foreign Assistance Act of 1961 
     (including programs under title IV of chapter 2 of part I of 
     that Act, relating to the Overseas Private Investment 
     Corporation), other than--
       (i) assistance under chapter 8 of part I of that Act;
       (ii) any other narcotics-related assistance under part I of 
     that Act, (including chapter 4 of part II of that Act), but 
     any such assistance provided under this clause shall be 
     subject to the prior notification procedures applicable to 
     reprogrammings pursuant to section 634A of that Act;
       (iii) disaster relief assistance, including any assistance 
     under chapter 9 of part I of that Act;
       (iv) assistance which involves the provision of food 
     (including monetization of food) or medicine; and
       (v) assistance for refugees;
       (B) sales, or financing on any terms, under the Arms Export 
     Control Act;
       (C) the provision of agricultural commodities, other than 
     food, under the Agricultural Trade Development and Assistance 
     Act of 1954; and
       (D) financing under the Export-Import Bank Act of 1945.
       (8) United states person.--Except as provided in section 
     12(b)(1), the term ``United States person'' means--
       (A) any United States citizen or alien lawfully admitted 
     for permanent residence into the United States; and
       (B) any corporation, partnership, or other entity organized 
     under the laws of the United States or of any State, the 
     District of Columbia, or any territory or possession of the 
     United States.

     SEC. 4. APPLICATION AND SCOPE.

       (a) Scope.--The provisions of this Act shall apply to all 
     persecuted religious groups and communities, and all 
     countries and regions thereof, referred to in the resolutions 
     and bill set forth in paragraph (8) of section 2 or referred 
     to in paragraphs (3) through (6) of section 2, and to any 
     community within any country or region thereof that the 
     Director finds, by a preponderance of the evidence, is the 
     target of religious persecution.
       (b) Designation of Additional Countries and Regions 
     Thereof.--The Congress may designate additional countries or 
     regions to which this Act applies by enacting legislation 
     specifically citing the authority of this section.

     SEC. 5. OFFICE OF RELIGIOUS PERSECUTION MONITORING.

       (a) Establishment.--There is established in the Executive 
     Office of the President the Office of Religious Persecution 
     Monitoring (hereafter in this Act referred to as the 
     ``Office'').
       (b) Appointment.--The head of the Office shall be a 
     Director who shall be appointed by the President, by and with 
     the advice and consent of the Senate. The Director shall 
     receive compensation at the rate of pay in effect for level 
     IV of the Executive Schedule under section 5315 of title 5, 
     United States Code.
       (c) Removal.--The Director shall serve at the pleasure of 
     the President.
       (d) Barred From Other Federal Positions.--No person shall 
     serve as Director while serving in any other position in the 
     Federal Government.
       (e) Responsibilities of Director.--The Director shall do 
     the following:
       (1) Consider the facts and circumstances of violations of 
     religious freedom presented in the annual reports of the 
     Department of State on human rights under sections 116(d) and 
     502B(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2151n(d) and 2304(b)).
       (2) Consider the facts and circumstances of violations of 
     religious freedom presented by independent human rights 
     groups and nongovernmental organizations.
       (3) In consultation with the Secretary of State, make 
     policy recommendations to the President regarding the 
     policies of the United States Government toward governments 
     which are determined to be engaged in religious persecution.
       (4) Prepare and submit the annual report described in 
     section 6, including the determination whether a particular 
     country is engaged in category 1 or category 2 religious 
     persecution, and identify the responsible entities within 
     such countries. This information shall be published in the 
     Federal Register.
       (5) Maintain the lists of persecution facilitating 
     products, goods, and services, and the responsible entities 
     within countries determined to be engaged in religious 
     persecution, described in paragraph (4), adding to the list 
     as information becomes available. This information shall be 
     published in the Federal Register.
       (6) Coordinate with the Secretary of State, the Attorney 
     General, the Secretary of Commerce, and the Secretary of the 
     Treasury to ensure that the provisions of this Act are fully 
     and effectively implemented.
       (f) Administrative Matters.--
       (1) Personnel.--The Director may appoint such personnel as 
     may be necessary to carry out the functions of the Office.
       (2) Services of other agencies.--The Director may use the 
     personnel, services, and facilities of any other department 
     or agency, on a reimbursable basis, in carrying out the 
     functions of the Office.

     SEC. 6. REPORTS TO CONGRESS.

       (a) Annual Reports.--Not later than April 30 of each year, 
     the Director shall submit to the Committees on Foreign 
     Relations, Finance, the Judiciary, and Appropriations of the 
     Senate and to the Committees on International Relations, Ways 
     and Means, the Judiciary, and Appropriations of the House of 
     Representatives a report described in subsection (b).
       (b) Contents of Annual Report.--The annual report of the 
     Director shall include the following:
       (1) Determination of religious persecution.--With respect 
     to each country or region thereof described in section 4, the 
     Director shall include his or her determination, with respect 
     to each persecuted community, whether there is category 1 
     religious persecution or category 2 religious persecution.
       (2) Identification of persecution facilitating products, 
     goods, and services.--

[[Page S4884]]

     With respect to each country or region thereof which the 
     Director determines is engaged in either category 1 or 
     category 2 religious persecution, the Director, in 
     consultation with the Secretary of State and the Secretary of 
     Commerce, shall identify and list the persecution 
     facilitating products, goods, and services.
       (3) Identification of responsible entities.--With respect 
     to each country determined by the Director to be engaged in 
     category 1 religious persecution, the Director, in 
     consultation with the Secretary of State, shall identify and 
     list the responsible entities within that country that are 
     engaged in religious persecution. Such entities shall be 
     defined as narrowly as possible.
       (4) Other reports.--The Director shall include the reports 
     submitted to the Director by the Attorney General under 
     section 9 and by the Secretary of State under section 10.
       (c) Interim Reports.--The Director may submit interim 
     reports to the Congress containing such matters as the 
     Director considers necessary.

     SEC. 7. SANCTIONS.

       (a) Prohibition on Exports Relating to Religious 
     Persecution.--
       (1) Actions by responsible departments and agencies.--With 
     respect to any country in which--
       (A) the Director finds the occurrence of category 1 
     religious persecution, the Director shall so notify the 
     relevant United States departments and agencies, and such 
     departments and agencies shall--
       (i) prohibit all exports to the responsible entities listed 
     under section 6(b)(3) or in any supplemental list of the 
     Director; and
       (ii) prohibit the export to such country of the persecution 
     facilitating products, goods, and services listed under 
     section 6(b)(2) or in any supplemental list of the Director; 
     or
       (B) the Director finds the occurrence of category 2 
     religious persecution, the Director shall so notify the 
     relevant United States departments and agencies, and such 
     departments and agencies shall prohibit the export to such 
     country of the persecution facilitating products, goods, and 
     services listed under section 6(b)(2) or in any supplemental 
     list of the Director.
       (2) Prohibitions on u.s. persons.--(A) With respect to any 
     country or region thereof in which the Director finds the 
     occurrence of category 1 religious persecution, no United 
     States person may--
       (i) export any item to the responsible entities listed 
     under section 6(b)(3) or in any supplemental list of the 
     Director; and
       (ii) export to that country any persecution facilitating 
     products, goods, and services listed under section 6(b)(2) or 
     in any supplemental list of the Director.
       (B) With respect to any country in which the Director finds 
     the occurrence of category 2 religious persecution, no United 
     States person may export to that country any persecution 
     facilitating products, goods, and services listed under 
     section 6(b)(2) or in any supplemental report of the 
     Director.
       (3) Penalties.--Any person who violates the provisions of 
     paragraph (2) shall be subject to the penalties set forth in 
     subsections (a) and (b)(1) of section 16 of the Trading With 
     the Enemy Act (50 U.S.C. App. 16(a) and (b)(1)) for 
     violations under that Act.
       (4) Effective date of prohibitions.--The prohibitions on 
     exports under paragraph (1) shall take effect with respect to 
     a country 90 days after the finding of category 1 or category 
     2 religious persecution in that country or region thereof, 
     except as provided in section 11.
       (b) United States Assistance.--
       (1) Category 1 religious persecution.--No United States 
     assistance may be provided to the government of any country 
     which the Director determines is engaged in category 1 
     religious persecution, effective 90 days after the date on 
     which the Director submits the report in which the 
     determination is included.
       (2) Category 2 religious persecution.--No United States 
     assistance may be provided to the government of any country 
     which the Director determines is engaged in category 2 
     religious persecution, effective 1 year after the date on 
     which the Director submits the report in which the 
     determination is included, if the Director, in the next 
     annual report of the Director under section 6, determines 
     that the country is engaged in either category 1 or category 
     2 religious persecution.
       (c) Multilateral Assistance.--
       (1) Category 1 religious persecution.--With respect to any 
     country which the Director determines is engaged in category 
     1 religious persecution, the President shall instruct the 
     United States Executive Director of each multilateral 
     development bank and of the International Monetary Fund to 
     vote against, and use his or her best efforts to deny, any 
     loan or other utilization of the funds of their respective 
     institutions (other than for humanitarian assistance) to that 
     country, effective 90 days after the Director submits the 
     report in which the determination is included.
       (2) Category 2 religious persecution.--With respect to any 
     country which the Director determines is engaged in category 
     2 religious persecution, the President shall instruct the 
     United States Executive Director of each multilateral 
     development bank and of the International Monetary Fund to 
     vote against, and use his or her best efforts to deny, any 
     loan or other utilization of the funds of their respective 
     institutions (other than for humanitarian assistance) to that 
     country, effective 1 year after the date on which the 
     Director submits the report in which the determination is 
     included, if the Director, in the next annual report of the 
     Director under section 6, determines that the country is 
     engaged in either category 1 or category 2 religious 
     persecution.
       (3) Reports to director.--If a country described in 
     paragraph (1) or (2) is granted a loan or other utilization 
     of funds notwithstanding the objection of the United States 
     under this subsection, the Executive Director of the 
     institution that made the grant shall report to the President 
     and the Congress on the efforts made to deny loans or other 
     utilization of funds to that country, and shall include in 
     the report specific and explicit recommendations designed to 
     ensure that such loans or other utilization of funds are 
     denied to that country in the future.
       (4) Definition.--As used in this subsection, the term 
     ``multilateral development bank'' means any of the 
     multilateral development banks as defined in section 
     1701(c)(4) of the International Financial Institutions Act 
     (22 U.S.C. 262r(c)(4)).
       (d) Votes for WTO Membership.--In casting any vote 
     concerning the membership of a country in the World Trade 
     Organization, the President shall consider as a significant 
     factor the fact that the country is listed in the Director's 
     report as a country which is engaged in either category 1 or 
     category 2 religious persecution.
       (e) Denial of Visas.--The Secretary of State shall deny the 
     issuance of a visa to, and the Attorney General shall exclude 
     from the United States, any alien who the Director determines 
     carried out or is responsible for carrying out acts of 
     religious persecution.

     SEC. 8. WAIVER OF SANCTIONS.

       (a) Waiver Authority.--Subject to subsection (b), the 
     President may waive the imposition of any sanction against a 
     country under section 7 for periods of not more than 12 
     months each, if the President, for each waiver--
       (1) determines that national security interests justify 
     such a waiver; and
       (2) provides to the Committees on Foreign Relations, 
     Finance, the Judiciary, and Appropriations of the Senate and 
     to the Committees on International Relations, Ways and Means, 
     the Judiciary, and Appropriations of the House of 
     Representatives a written notification of the President's 
     intention to waive any such sanction.

     The justification shall contain an explanation of the reasons 
     why the President considers the waiver to be necessary, the 
     type and amount of goods, services, or assistance to be 
     provided pursuant to the waiver, and the period of time 
     during which such a waiver will be effective.
       (b) Taking Effect of Waiver.--
       (1) In general.--Subject to paragraph (2), a waiver under 
     subsection (a) shall take effect 45 days after its submission 
     to the Congress.
       (2) In emergency conditions.--The President may waive the 
     imposition of sanctions against a country under subsection 
     (b) or (c) of section 7 to take effect immediately if the 
     President, in the written notification of intention to waive 
     the sanctions, certifies that emergency conditions exist that 
     make an immediate waiver necessary.
       (3) Computation of 45-day period.--The 45-day period 
     referred to in this subsection shall be computed by 
     excluding--
       (A) the days on which either House of Congress is not in 
     session because of an adjournment of more than 3 days to a 
     day certain or an adjournment of the Congress sine die; and
       (B) any Saturday and Sunday, not excluded under paragraph 
     (1), when either House is not in session.

     SEC. 9. MODIFICATION OF IMMIGRATION POLICY.

       (a) Credible Fear of Persecution Defined.--Section 
     235(b)(1)(B)(v) of the Immigration and Nationality Act (8 
     U.S.C. 1225(b)(1)(B)(v)) (as amended by section 302 of the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996; Public Law 104-208; 110 Stat. 3009-582) is amended 
     by adding at the end the following:

     ``Any alien who can credibly claim membership in a persecuted 
     community found to be subject to category 1 or category 2 
     religious persecution in the most recent annual report sent 
     by the Director of the Office of Religious Persecution 
     Monitoring to the Congress under section 6 of the Freedom 
     From Religious Persecution Act of 1997 shall be considered to 
     have a credible fear of persecution within the meaning of the 
     preceding sentence.''.
       (b) Training for Certain Immigration Officers.--Section 235 
     of the Immigration and Nationality Act (8 U.S.C. 1225) (as 
     amended by section 302 of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996; Public Law 104-208; 110 
     Stat. 3009-579) is amended by adding at the end the 
     following:
       ``(d) Training on Religious Persecution.--The Attorney 
     General shall establish and operate a program to provide to 
     immigration officers performing functions under subsection 
     (b), or section 207 or 208, training on religious 
     persecution, including training on--
       ``(1) the fundamental components of the right to freedom of 
     religion;
       ``(2) the variation in beliefs of religious groups; and
       ``(3) the governmental and nongovernmental methods used in 
     violation of the right to freedom of religion.''.
       (c) Asylum.--Section 208 of the Immigration and Nationality 
     Act (8 U.S.C. 1158) (as

[[Page S4885]]

     amended by section 604 of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996; Public Law 104-208; 
     1110 Stat. 3009-690) is amended by adding at the end the 
     following:
       ``(e) Special Rules for Religious Persecution Claims.--
       ``(1) Procedures upon denial.--
       ``(A) In general.--In any case in which the Service denies, 
     or refers to an immigration Judge, an asylum application 
     filed by an alien described in the second sentence of section 
     235(b)(1)(B)(v), or in any case in which an immigration Judge 
     denies such an application on the ground that the alien is 
     not a refugee within the meaning of section 101(a)(42)(A), 
     the Service shall provide the alien with the following:
       ``(i) A written statement containing the reasons for the 
     denial, which shall be supported by references to--

       ``(I) the most recent annual report sent by the Director of 
     the Office of Religious Persecution Monitoring to the 
     Congress under section 6 of the Freedom From Religious 
     Persecution Act of 1997; and
       ``(II) either--

       ``(aa) the most recent country report on human rights 
     practices issued by the Secretary of State; or
       ``(bb) any other report issued by the Secretary of State 
     concerning conditions in the country of which the alien is a 
     national (or, in the case of an alien having no nationality, 
     the country of the alien's last habitual residence).
       ``(ii) A copy of any assessment sheet prepared by an asylum 
     officer for a supervisory asylum officer with respect to the 
     application.
       ``(iii) A list of any publicly available materials relied 
     upon by an asylum officer as a basis for denying the 
     application.
       ``(iv) A copy of any materials relied upon by an asylum 
     officer as a basis for denying the application that are not 
     available to the public, except Federal agency records that 
     are exempt from disclosure under section 552(b) of title 5, 
     United States Code.
       ``(B) Credibility in issue.--In any case described in 
     subparagraph (A) in which the denial is based, in whole or in 
     part, on credibility grounds, the Service shall also provide 
     the alien with the following:
       ``(i) The statements by the applicant, or other evidence, 
     that were found not to be credible.
       ``(ii) A statement certifying that the applicant was 
     provided an opportunity to respond to the Service's position 
     on the credibility issue.
       ``(iii) A brief summary of such response, if any was made.
       ``(iv) An explanation of how the negative determination on 
     the credibility issue relates to the applicant's religious 
     persecution claim.
       ``(2) Effect in subsequent proceedings.--
       ``(A) Use at option of applicant.--Any material provided to 
     an alien under paragraph (1) shall be considered part of the 
     official record pertaining to the alien's asylum application 
     solely at the option of the alien.
       ``(B) No effect on review.--The provision of any material 
     under paragraph (1) to an alien shall not be construed to 
     alter any standard of review otherwise applicable in any 
     administrative or judicial adjudication concerning the 
     alien's asylum application.
       ``(3) Duty to submit report on religious persecution.--In 
     any judicial or administrative proceeding in which the 
     Service opposes granting asylum to an alien described in the 
     second sentence of section 235(b)(1)(B)(v), the Service shall 
     submit to the court or administrative adjudicator a copy of 
     the most recent annual report submitted to the Congress by 
     the Director of the Office of Religious Persecution 
     Monitoring under section 6 of the Freedom From Religious 
     Persecution Act of 1997, and any interim reports issued by 
     such Director after such annual report.''.
       (d) Annual Report.--Not later than January 1 of each year, 
     the Attorney General shall submit to the Director an annual 
     report that includes the following:
       (1) With respect to the year that is the subject of the 
     report, the number of applicants for asylum or refugee status 
     whose applications were based, in whole or in part, on 
     religious persecution.
       (2) In the case of such applications, the number that were 
     proposed to be denied, and the number that were finally 
     denied.
       (3) In the case of such applications, the number that were 
     granted.
       (4) A description of developments with respect to the 
     adjudication of applications for asylum or refugee status 
     filed by an alien who claims to be a member of a persecuted 
     community that the Director found to be subject to category 1 
     or category 2 religious persecution in the most recent annual 
     report submitted to the Congress under section 6.
       (5) With respect to the year that is the subject of the 
     report, a description of training on religious persecution 
     provided under section 235(d) of the Immigration and 
     Nationality Act (as added by subsection (b)) to immigration 
     officers performing functions under section 235(b) of such 
     Act, or adjudicating applications under section 207 or 208 of 
     such Act, including a list of speakers and materials used in 
     such training and the number of officers who received such 
     training.
       (e) Admission Priority.--For purposes of section 207(a)(3) 
     of the Immigration and Nationality Act, an individual who is 
     a member of a persecuted community that the Director found to 
     be subject to category 1 or category 2 religious persecution 
     in the most recent annual report submitted to the Congress 
     under section 6, and is determined by the Attorney General to 
     be a refugee within the meaning of section 101(a)(42)(A) of 
     the Immigration and Nationality Act, shall be considered a 
     refugee of special humanitarian concern to the United States. 
     In carrying out such section, such an individual shall be 
     given priority status at least as high as that given to any 
     member of any other specific group of refugees of special 
     concern to the United States.
       (f) No Effect on Others' Rights.--Nothing in this section, 
     or any amendment made by this section, shall be construed to 
     deny any applicant for asylum or refugee status any right, 
     privilege, protection, or eligibility otherwise provided by 
     law.

     SEC. 10. STATE DEPARTMENT HUMAN RIGHTS REPORTS.

       (a) Annual Human Rights Report.--In preparing the annual 
     reports of the State Department on human rights under 
     sections 116(d) and 502B(b) of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2151n(d) and 2304(b)), the Secretary of State 
     shall, in the section on religious freedom--
       (1) consider the facts and circumstances of the violation 
     of the right to freedom of religion presented by independent 
     human rights groups and nongovernmental organizations;
       (2) report on the extent of the violations of the right to 
     freedom of religion, specifically including whether the 
     violations arise from governmental or nongovernmental 
     sources, and whether the violations are encouraged by the 
     government or whether the government fails to exercise 
     satisfactory efforts to control such violations;
       (3) report on whether freedom of religion violations occur 
     on a nationwide, regional, or local level; and
       (4) identify whether the violations are focused on an 
     entire religion or on certain denominations or sects.
       (b) Training.--The Secretary of State shall--
       (1) institute programs to provide training for chiefs of 
     mission as well as Department of State officials--
       (A) having reporting responsibilities regarding the freedom 
     of religion, which shall include training on the fundamental 
     components of the right to freedom of religion, the variation 
     in beliefs of religious groups, and the governmental and 
     nongovernmental methods used in the violation of the right to 
     freedom of religion; and
       (B) the identification of independent human rights groups 
     and nongovernmental organizations with expertise in the 
     matters described in subparagraph (A); and
       (2) submit to the Director, not later than January 1 of 
     each year, a report describing all training provided to 
     Department of State officials with respect to religious 
     persecution during the preceding 1-year period, including a 
     list of instructors and materials used in such training and 
     the number and rank of individuals who received such 
     training.

     SEC. 11. TERMINATION OF SANCTIONS.

       (a) Termination of Sanctions.--If the Director determines 
     that a sanctioned country has substantially eliminated 
     religious persecution in that country, the Director shall 
     notify the Congress of that determination in writing. The 
     sanctions described in section 7 shall cease to apply with 
     respect to that country 45 days after the Congress receives 
     the notification of such a determination. The 45-day period 
     referred to in this section shall be computed by excluding--
       (1) the days on which either House of Congress is not in 
     session because of an adjournment of more than 3 days to a 
     day certain or an adjournment of the Congress sine die; and
       (2) any Saturday and Sunday, not excluded under paragraph 
     (1), when either House is not in session.
       (b) Withdrawal of Finding.--Any determination of the 
     Director under section 6 may be withdrawn before taking 
     effect if the Director makes a written determination, on the 
     basis of a preponderance of the evidence, that the country 
     substantially eliminated any category 1 or category 2 
     religious persecution that existed in that country. The 
     Director shall submit to the Congress each determination 
     under this subsection.

     SEC. 12. SANCTIONS AGAINST SUDAN.

       (a) Extension of Sanctions Under Existing Law.--Any 
     sanction imposed on Sudan because of a determination that the 
     government of that country has provided support for acts of 
     international terrorism, including--
       (1) export controls imposed pursuant to the Export 
     Administration Act of 1979,
       (2) prohibitions on transfers of munitions under section 40 
     of the Arms Export Control Act,
       (3) the prohibition on assistance under section 620A of the 
     Foreign Assistance Act of 1961,
       (4) section 2327(a) of title 10, United States Code,
       (5) section 6 of the Bretton Woods Agreements Act 
     Amendments, 1978 (22 U.S.C. 286e-11),
       (6) section 527 of the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1997 (as 
     contained in Public Law 104-208), and
       (7) section 901(j) of the Internal Revenue Code of 1986,

     shall continue in effect after the enactment of this Act 
     until the Director determines, in accordance with section 11, 
     that Sudan has substantially eliminated religious persecution 
     in that country, or the determination

[[Page S4886]]

     that the government of that country has provided support for 
     acts of international terrorism is no longer in effect, 
     whichever occurs later. For purposes of the preceding 
     sentence, the reference in section 11 to ``sanctions 
     described in section 7'' shall be deemed to refer to 
     sanctions described in paragraphs (1) through (7) of this 
     subsection.
       (b) Additional Sanctions on Sudan.--Effective 90 days after 
     the date of the enactment of this Act, the following 
     sanctions (to the extent not covered under subsection (a)) 
     shall apply with respect to Sudan:
       (1) Prohibition on financial transactions with government 
     of sudan.--
       (A) Offense.--Any United States person who knowingly 
     engages in any financial transaction, including any loan or 
     other extension of credit, directly or indirectly, with the 
     Government of Sudan shall be fined in accordance with title 
     18, United States Code, or imprisoned for not more than 10 
     years, or both.
       (B) Definitions.--As used in this paragraph:
       (i) Financial transaction.--The term ``financial 
     transaction'' has the meaning given that term in section 
     1956(c)(4) of title 18, United States Code.
       (ii) United states person.--The term ``United States 
     person'' means--

       (I) any United States citizen or national;
       (II) any permanent resident alien;
       (III) any juridical person organized under the laws of the 
     United States; and
       (IV) any person in the United States.

       (2) Prohibition on imports from sudan.--No article which is 
     grown, produced, manufactured by, marketed, or otherwise 
     exported by the Government of Sudan, may be imported into the 
     United States.
       (3) Prohibitions on united states exports to sudan.--
       (A) Prohibition on computer exports.--No computers, 
     computer software, or goods or technology intended to 
     manufacture or service computers may be exported to or for 
     use of the Government of Sudan.
       (B) Regulations of the secretary of commerce.--The 
     Secretary of Commerce may prescribe such regulations as may 
     be necessary to carry out subparagraph (A).
       (C) Penalties.--Any person who violates this paragraph 
     shall be subject to the penalties provided in section 11 of 
     the Export Administration Act of 1979 (50 U.S.C. App. 2410) 
     for violations under that Act.
       (4) Prohibition on new investment in sudan.--
       (A) Prohibition.--No United States person may, directly or 
     through another person, make any new investment in Sudan that 
     is not prohibited by paragraph (1).
       (B) Regulations.--The Secretary of Commerce may prescribe 
     such regulations as may be necessary to carry out 
     subparagraph (A).
       (C) Penalties.--Any person who violates this paragraph 
     shall be subject to penalties provided in section 11 of the 
     Export Administration Act of 1979 (50 U.S.C. App. 2410) for 
     violations under that Act.
       (5) Aviation rights.--
       (A) Air transportation rights.--The Secretary of 
     Transportation shall prohibit any aircraft of a foreign air 
     carrier owned or controlled, directly or indirectly, by the 
     Government of Sudan or operating pursuant to a contract with 
     the Government of Sudan from engaging in air transportation 
     with respect to the United States, except that such aircraft 
     shall be allowed to land in the event of an emergency for 
     which the safety of an aircraft's crew or passengers is 
     threatened.
       (B) Takeoffs and landings.--The Secretary of Transportation 
     shall prohibit the takeoff and landing in Sudan of any 
     aircraft by an air carrier owned, directly or indirectly, or 
     controlled by a United States person, except that such 
     aircraft shall be allowed to land in the event of an 
     emergency for which the safety of an aircraft's crew or 
     passengers is threatened, or for humanitarian purposes.
       (C) Termination of air service agreements.--To carry out 
     subparagraphs (A) and (B), the Secretary of State shall 
     terminate any agreement between the Government of Sudan and 
     the Government of the United States relating to air services 
     between their respective territories.
       (D) Definitions.--For purposes of this paragraph, the terms 
     ``aircraft'', ``air transportation'', and ``foreign air 
     carrier'' have the meanings given those terms in section 
     40102 of title 49, United States Code.
       (6) Prohibition on promotion of united states tourism.--
     None of the funds appropriated or otherwise made available by 
     any provision of law may be available to promote United 
     States tourism in Sudan.
       (7) Government of sudan bank accounts.--
       (A) Prohibition.--A United States depository institution 
     may not accept, receive, or hold a deposit account from the 
     Government of Sudan, except for such accounts which may be 
     authorized by the President for diplomatic or consular 
     purposes.
       (B) Annual reports.--The Secretary of the Treasury shall 
     submit annual reports to the Congress on the nature and 
     extent of assets held in the United States by the Government 
     of Sudan.
       (C) Definition.--For purposes of this paragraph, the term 
     ``depository institution'' has the meaning given that term in 
     section 19(b)(1) of the Act of December 23, 1913 (12 U.S.C. 
     461(b)(1)).
       (8) Prohibition on united states government procurement 
     from sudan.--
       (A) Prohibition.--No department, agency, or any other 
     entity of the United States Government may enter into a 
     contract for the procurement of goods or services from 
     parastatal organizations of Sudan except for items necessary 
     for diplomatic or consular purposes.
       (B) Definition.--As used in this paragraph, the term 
     ``parastatal organization of Sudan'' means a corporation, 
     partnership, or entity owned, controlled, or subsidized by 
     the Government of Sudan.
       (9) Prohibition on united states appropriations for use as 
     investments in or trade subsidies for sudan.--None of the 
     funds appropriated or otherwise made available by any 
     provision of law may be available for any new investment in, 
     or any subsidy for trade with, Sudan, including funding for 
     trade missions in Sudan and for participation in exhibitions 
     and trade fairs in Sudan.
       (10) Prohibition on cooperation with armed forces of 
     sudan.--No agency or entity of the United States may engage 
     in any form of cooperation, direct or indirect, with the 
     armed forces of Sudan, except for activities which are 
     reasonably necessary to facilitate the collection of 
     necessary intelligence. Each such activity shall be 
     considered as significant anticipated intelligence activity 
     for purposes of section 501 of the National Security Act of 
     1947 (50 U.S.C. 413).
       (11) Prohibition on cooperation with intelligence services 
     of sudan.--
       (A) Sanction.--No agency or entity of the United States 
     involved in intelligence activities may engage in any form of 
     cooperation, direct or indirect, with the Government of 
     Sudan, except for activities which are reasonably designed to 
     facilitate the collection of necessary intelligence.
       (B) Policy.--It is the policy of the United States that no 
     agency or entity of the United States involved in 
     intelligence activities may provide any intelligence 
     information to the Government of Sudan which pertains to any 
     internal group within Sudan. Any change in such policy or any 
     provision of intelligence information contrary to this policy 
     shall be considered a significant anticipated intelligence 
     activity for purposes of section 501 of the National Security 
     Act of 1947 (50 U.S.C. 413).

     The sanctions described in this subsection shall apply until 
     the Director determines, in accordance with section 11, that 
     Sudan has substantially eliminated religious persecution in 
     that country. For purposes of the preceding sentence, the 
     reference in section 11 to ``sanctions described in section 
     7'' shall be deemed to refer to the sanctions imposed under 
     this subsection.
       (c) Multilateral Efforts To End Religious Persecution in 
     Sudan.--
       (1) Efforts to obtain multilateral measures against 
     sudan.--It is the policy of the United States to seek an 
     international agreement with the other industrialized 
     democracies to bring about an end to religious persecution by 
     the Government of Sudan. The net economic effect of such 
     international agreement should be measurably greater than the 
     net economic effect of the other measures imposed by this 
     section.
       (2) Commencement of negotiations to initiate multilateral 
     sanctions against sudan.--It is the sense of the Congress 
     that the President or, at his direction, the Secretary of 
     State should convene an international conference of the other 
     industrialized democracies in order to reach an international 
     agreement to bring about an end to religious persecution in 
     Sudan. The international conference should begin promptly and 
     should be concluded not later than 180 days after the date of 
     the enactment of this Act.
       (3) Presidential report.--Not less than 210 days after the 
     date of the enactment of this Act, the President shall submit 
     to the Congress a report containing--
       (A) a description of United States' efforts to negotiate 
     multilateral measures to bring about an end to religious 
     persecution in Sudan; and
       (B) a detailed description of economic and other measures 
     adopted by the other industrialized countries to bring about 
     an end to religious persecution in Sudan, including an 
     assessment of the stringency with which such measures are 
     enforced by those countries.
       (4) Conformity of united states measures to international 
     agreement.--If the President successfully concludes an 
     international agreement described in paragraph (2), the 
     President may, after such agreement enters into force with 
     respect to the United States, adjust, modify, or otherwise 
     amend the measures imposed under any provision of this 
     section to conform with such agreement.
       (5) Procedures for agreement to enter into force.--Each 
     agreement submitted to the Congress under this subsection 
     shall enter into force with respect to the United States if--
       (A) the President, not less than 30 days before the day on 
     which the President enters into such agreement, notifies the 
     House of Representatives and the Senate of the President's 
     intention to enter into such an agreement, and promptly 
     thereafter publishes notice of such intention in the Federal 
     Register;
       (B) after entering into the agreement, the President 
     transmits to the House of Representatives and to the Senate a 
     document containing a copy of the final text of such 
     agreement, together with--
       (i) a description of any administrative action proposed to 
     implement such agreement

[[Page S4887]]

     and an explanation as to how the proposed administrative 
     action would change or affect existing law; and
       (ii) a statement of the President's reasons regarding--

       (I) how the agreement serves the interest of United States 
     foreign policy; and
       (II) why the proposed administrative action is required or 
     appropriate to carry out the agreement; and

       (C) a joint resolution approving such agreement has been 
     enacted, in accordance with section 8066(c) of the Department 
     of Defense Appropriations Act, 1985 (as contained in Public 
     Law 98-473 (98 Stat. 1936)), within 30 days of transmittal of 
     such document to the Congress.

     For purposes of applying such section 8066(c), any reference 
     in such section to ``joint resolution'', ``resolution'', or 
     ``resolution described in paragraph (1)'' shall be deemed to 
     refer to a joint resolution described in subparagraph (C) of 
     this paragraph.
       (6) United nations security council imposition of same 
     measures against sudan.--It is the sense of the Congress that 
     the President should instruct the Permanent Representative of 
     the United States to the United Nations to propose that the 
     United Nations Security Council, pursuant to Article 41 of 
     the United Nations Charter, impose measures against Sudan of 
     the same type as are imposed by this section.
       (d) Additional Measures and Reports; Recommendations of the 
     President.--
       (1) United states policy to end religious persecution.--It 
     shall be the policy of the United States to impose additional 
     measures against the Government of Sudan if its policy of 
     religious persecution has not ended on or before December 25, 
     1997.
       (2) Report to congress.--The Director shall prepare and 
     transmit to the Speaker of the House of Representatives and 
     the Chairman of the Committee on Foreign Relations of the 
     Senate on or before February 1, 1998, and every 12 months 
     thereafter, a report determining whether the policy of 
     religious persecution by the Government of Sudan has ended.
       (3) Recommendation for imposition of additional measures.--
     If the Director determines that the policy of religious 
     persecution by the Government of Sudan has not ended, the 
     President shall prepare and transmit to the Speaker of the 
     House of Representatives and the Chairman of the Committee on 
     Foreign Relations of the Senate on or before March 1, 1998, 
     and every 12 months thereafter, a report setting forth 
     recommendations for such additional measures and actions 
     against the Government of Sudan as the Director determines 
     will end the government's policy of religious persecution.
       (e) Definitions.--As used in this section--
       (1) Government of sudan.--The term ``Government of Sudan'' 
     includes any agency or instrumentality of the Government of 
     Sudan.
       (2) New investment in sudan.--The term ``new investment in 
     Sudan''--
       (A) means--
       (i) a commitment or contribution of funds or other assets, 
     or
       (ii) a loan or other extension of credit,
     that is made on or after the effective date of this 
     subsection; and
       (B) does not include--
       (i) the reinvestment of profits generated by a controlled 
     Sudanese entity into that same controlled Sudanese entity, or 
     the investment of such profits in a Sudanese entity;
       (ii) contributions of money or other assets where such 
     contributions are necessary to enable a controlled Sudanese 
     entity to operate in an economically sound manner, without 
     expanding its operations; or
       (iii) the ownership or control of a share or interest in a 
     Sudanese entity or a controlled Sudanese entity or a debt or 
     equity security issued by the Government of Sudan or a 
     Sudanese entity before the date of the enactment of this Act, 
     or the transfer or acquisition of such a share or interest, 
     or debt or equity security, if any such transfer or 
     acquisition does not result in a payment, contribution of 
     funds or assets, or credit to a Sudanese entity, a controlled 
     Sudanese entity, or the Government of Sudan.
       (3) Controlled sudanese entity.--The term ``controlled 
     Sudanese entity'' means--
       (A) a corporation, partnership, or other business 
     association or entity organized in Sudan and owned or 
     controlled, directly or indirectly, by a United States 
     person; or
       (B) a branch, office, agency, or sole proprietorship in 
     Sudan of a United States person.
       (4) Sudanese entity.--The term ``Sudanese entity'' means--
       (A) a corporation, partnership, or other business 
     association or entity organized in Sudan; or
       (B) a branch, office, agency, or sole proprietorship in 
     Sudan of a person that resides or is organized outside Sudan.

     SEC. 13. EFFECTIVE DATE.

       (a) In General.--Subject to subsections (b) and (c), and 
     except as provided in section 12, this Act and the amendments 
     made by this Act shall take effect 120 days after the date of 
     the enactment of this Act.
       (b) Appointment of Director.--The Director shall be 
     appointed not later than 60 days after the date of the 
     enactment of this Act.
       (c) Regulations.--Each Federal department or agency 
     responsible for carrying out any of the sanctions under 
     section 7 shall issue all necessary regulations to carry out 
     such sanctions within 120 days after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mr. Torricelli, Ms. Moseley-Braun, 
        Mrs. Murray, Mr. Feingold, Mr. Kennedy, Mr. Kerry, Mrs. Boxer, 
        and Mr. Reed):
  S. 773. A bill to designate certain Federal lands in the State of 
Utah as wilderness, and for other purposes; to the Committee on Energy 
and Natural Resources.


                   America's Red Rock Wilderness Act

  Mr. DURBIN. Mr. President, today I am introducing America's Red Rock 
Wilderness Act to protect an important part of our Nation's natural 
heritage. America's Red Rock Wilderness Act designates 5.7 million 
acres of the 22 million acres of public, Bureau of Land Management 
(BLM) lands in Southern Utah as wilderness.
  Passage of America's Red Rock Wilderness Act is essential to protect 
a national treasure for future generations of Americans. A companion 
bill, H.R. 1500, has been introduced in the House by Representative 
Maurice Hinchey with over 100 original cosponsors.
  America's Red Rock Wilderness Act will protect 5.7 million acres of 
magnificent canyons, red rock cliffs and rock formations which are 
unlike any on Earth. The lands included in this legislation contain 
steep slick rock canyons, high cliffs offering spectacular vistas of 
rare rock formations, important archeological sites and rare plant and 
animal species. Each year, almost 8 million people from across the 
United States and the world visit these lands to see a part of their 
natural heritage and experience the beauty and solitude of this 
wilderness area.
  However, these fragile, scenic lands are threatened by oil, gas and 
mining interests which are willing to sacrifice these lands for short-
term economic gain. These wilderness areas are also threatened by off-
road vehicle use and proposals to construct roads, communication 
towers, transmission lines, and dams.
  Because of flaws in the original wilderness inventory conducted by 
BLM during the Reagan administration, only 3.2 million acres in 
southern Utah are currently protected as wilderness study areas. The 
wilderness areas included in America's Red Rock Wilderness Act are 
based on a careful assessment of BLM lands which meet the criteria for 
wilderness designation by citizen groups that form the Utah Wilderness 
Coalition. Unlike other proposals, this legislation does not include 
special interest exemptions that would undermine the integrity of the 
1964 Wilderness Act.
  America's Red Rock Wilderness Act is supported by a broad coalition 
of environmental organizations and citizen groups. In a national survey 
conducted by USA Today, over 90 percent of the respondents supported 
the designation of 5.7 million acres in southern Utah as wilderness. 
Newspapers across the Nation have also editorialized in support of 
protecting America's Red Rock Wilderness Area.
  Theodore Roosevelt once stated that, ``The Nation behaves well if it 
treats the natural resources as assets which it must turn over to the 
next generation increased and not impaired in value.'' Because of the 
foresight of leaders like Theodore Roosevelt, national treasures such 
as the Grand Canyon and Yellowstone were preserved for all Americans. I 
urge my colleagues to join me in this effort to protect America's Red 
Rock Wilderness Area in southern Utah for future generations.
  Mr. FEINGOLD. Mr. President, I am very pleased to be joining the 
junior Senator from Illinois [Mr. Durbin] as an original cosponsor of 
legislation to designate 5.7 million acres of Federal lands in Utah as 
wilderness.
  Though this is the first time this particular measure has been 
introduced in this body, it is not the first time that the protection 
of Utah's public lands has been before the Senate. During the last 
Congress, I joined with the former Senator from New Jersey, Mr. 
Bradley, in opposing the Omnibus Parks legislation because it contained 
provisions, which were eventually removed, that many in my home State 
of Wisconsin believed not only designated as wilderness too little of 
the Bureau of Land Management's holding in Utah deserving of such 
protection, but also substantively changed the protections afforded 
designated lands under the Wilderness Act of 1964.
  Wallace Stegner wrote ``No place is a place until things that have 
happened there are remembered in history, ballads, yarns, legends, or 
monuments.''
  The lands of southern Utah are legendary, alive, and well remembered 
in

[[Page S4888]]

the minds and hearts of the people of Wisconsin. In writing to me last 
Congress, my constituents described these lands as places of special 
family moments, healing silence, and incredible beauty. In March 1996, 
during debate on the omnibus parks bill, Ed Culhane of the Appleton 
Post-Crescent wrote:

       This is some of the most beautiful landscape in the world 
     and each year hundreds of thousands of people hike into these 
     canyons, into this hard, dry land of varnished cliffs and 
     blasted mesas.
       Aldo Leopold once asked if a still higher standard of 
     living was worth its cost in things natural, wild, and free. 
     If we lose the Redrock Wilderness, we will get precious 
     little in return.

  Some may say, Mr. President, that this legislation is unnecessary and 
Utah already has the ``monument'' that Wallace Stegner wrote about, 
designated by President Clinton on September 18, 1997. However, it is 
important to note, the land of the Grand Staircase Escalante National 
Monument, included among the lands to be given wilderness protection in 
this bill, is less than one third of the lands this bill protects.
  I supported the President's actions to designate the Grand Staircase 
Escalante National Monument. On September 17, 1997, amid reports of the 
pending designation, I authored a letter to President Clinton, cosigned 
by six other members of the Senate, supporting that action. That letter 
concluded with the following statement ``We remain interested in 
working with the Administration on appropriate legislation to evaluate 
and protect the full extent of public lands in Utah that meet the 
criteria of the 1964 Wilderness Act.''

  I believe that the measure being introduced today accomplishes that 
goal. Identical in its designations to H.R. 1500 sponsored in the other 
body by Representative Maurice Hinchey of New York, it is the 
culmination of more than 10 years and four Congresses of effort in the 
other body beginning with the legislative work of the former 
Congressman from Utah, Mr. Owens.
  The measure protects wild lands that really are not done justice in 
words. Truly remarkable American resources of red rock cliff walls, 
desert, canyons and gorges are found on these BLM lands which encompass 
the canyon country of the Colorado Plateau, the Mojave Desert and 
portions of the Great Basin. They include mountain ranges in western 
Utah, stark areas like the new National Monument, and wildlife 
intensive areas like the Deep Creek and Stansbury Mountains, that 
support habitat for deer, elk, cougars, bobcats, bighorn sheep, 
coyotes, birds, reptiles, and other wildlife. These regions appeal to 
all types of American outdoor interests from hikers and sightseers to 
hunters.
  Phil Haslanger of the Capital Times, a paper in Madison, answered an 
important question I am often asked when people want to know why a 
Senator from Wisconsin would cosponsor legislation to protect lands in 
Utah. He wrote on September 13, 1995 simply that ``These are not scenes 
that you could see in Wisconsin. That's part of what makes them 
special.'' He continues, and adds what I think is an even more 
important reason to act to protect these lands than the landscape's 
uniqueness, ``the fight over wilderness lands in Utah is a test case of 
sorts. The anti-environmental factions in Congress are trying hard to 
remove restrictions on development in some of the Nation's most 
splendid areas.''
  Wisconsinites are watching this test case closely. I believe, Mr. 
President, that Wisconsinites view the outcome of this fight to save 
Utah's lands as a sign of where the Nation is headed with respect to 
its stewardship of natural resources in Wisconsin. For example, some in 
my home State believe that among Federal lands that comprise the 
Apostle Islands National Lakeshore and the Nicolet and Chequamegon 
National Forests there are lands that are deserving of wilderness 
protection. I know first hand what spectacular and special places these 
Federal properties are, and what they mean to the people of Wisconsin. 
Wisconsinites want to know that, should additional lands in Wisconsin 
be brought forward for wilderness designation, the type of protection 
they expect from Federal law is still available to be extended because 
it had been properly extended to other places of national significance.
  What Haslanger's Capital Times comments make clear is that while some 
in Congress may express concern about creating new wilderness in Utah, 
wilderness, as Wisconsinites know, is not created by legislation. 
Legislation to protect existing wilderness insures that future 
generations may have an experience on public lands equal to that which 
is available today. The action of Congress to preserve wild lands by 
extending the protections of the Wilderness Act of 1964 publicly 
codifies that expectation and promise.
  Finally, and perhaps the most important reason why this legislation 
is receiving my support, and deserves the support of others in this 
body, is that all of the 5.7 million acres that will be protected under 
this bill are already public lands held in trust by the Federal 
Government. Thus, while they are physically located in Utah, their 
preservation is important to the citizens of Wisconsin as it is for 
others.
  I am eager to work with my colleague from Illinois, Mr. Durbin, to 
protect these lands. I commend him for introducing this measure.
                                 ______
                                 
      By Mr. CRAIG (for himself and Mr. Kempthorne):
  S. 774. A bill to provide for the stabilization, enhancement, 
restoration, and management of the Coeur d'Alene River basin watershed; 
to the Committee on Environment and Public Works.


  the coeur d'alene river basin environmental restoration act of 1997

 Mr. CRAIG. Mr. President, I am today introducing, with the 
cosponsorship of Senator Kempthorne, the Coeur d'Alene River Basin 
Environmental Restoration Act of 1997. This legislation would allow for 
a workable solution to clean up the historic effects of mining on the 
Coeur d'Alene Basin in North Idaho. This bill is similar to a bill (S. 
1614) I introduced in the last Congress.
  This legislation establishes a process that is centered around an 
action plan developed between the Governor of the State of Idaho and a 
Citizens Advisory Commission comprised of fourteen representatives of 
affected State and Federal government agencies, private citizens, the 
Coeur d'Alene Indian Tribe; and affected industries. The 
responsibilities of this Commission are very important to the ultimate 
success of cleaning up the Basin. I would like to note that a 
Commission that mirrors the one in this legislation was created by the 
Idaho legislature and that legislation was signed into law by Governor 
Phil Batt. I am indeed pleased that Idaho has put in place the citizen 
committee that is the crux of this plan to clean up the Silver Valley.
  The Silver Valley of North Idaho has made contributions to the 
national economy and to all of our country's war efforts for well over 
a century. The federal government has been involved in every phase of 
mineral production over the history of the Valley. It is, therefore, 
appropriate that Congress specifically legislate a resolution of 
natural resources damages in the Coeur d'Alene Basin and participate in 
funding such a plan.
  I want to make clear this legislation does not interfere with the 
ongoing Superfund cleanup within the 21-square mile Bunker Hill site. 
This legislation sets up a framework for voluntary cleanup of affected 
areas outside this 21-square mile area. In drafting this legislation, I 
have worked with the mining industry, the Coeur d'Alene tribe, local 
governments, the Governor of Idaho, and citizens in North Idaho. It is 
only through the involvement of all these parties that a solution will 
be reached.
  Throughout this effort it has been clear that all parties want the 
Basin cleaned up, and they want the cleanup done with the concerns of 
local citizens and entities addressed and with controls and cleanup 
decisions made in Idaho, not in Washington, DC. These are the guiding 
principles that I have applied in developing this legislation.
  Local cleanup has already begun in the headwaters of the Basin's 
drainage. Nine Mile Creek and Canyon Creek have had proven engineering 
designs implemented within their drainages. The Coeur d'Alene River 
Basin Environmental Restoration Act of 1997 would assure this type of 
meaningful restoration could continue. However, the actions needed in 
each part of the Basin are not clear. That is why my bill calls for the 
Governor of Idaho and the Citizens Advisory Commission to develop an 
Action Plan that can address the varying conditions within the

[[Page S4889]]

Basin. For example, engineering solutions will certainly work in 
portions of the Basin--but not every place. The steeper gradient 
streams in the upper Basin respond well to engineering fixes, but these 
types of fixes may only exacerbate problems in the lower, flatter 
portions of the Basin. Local input and control through the action plan 
can address such diversity and the need for varying environmental 
fixes.
  The Department of Justice is currently pursuing a lawsuit for alleged 
natural resources damages in the area addressed by this legislation. 
For the federal government to follow such a course is folly. When the 
federal government litigates under Superfund, the members of the legal 
profession benefit, as litigation eats away at whatever resources are 
available for a cleanup. Litigation does not benefit the citizens 
affected by a cleanup and certainly does not benefit the resources that 
are purported to be the primary consideration when such a suit is 
pursued. I do not intend to see cleanup resources in North Idaho 
squandered in litigation. It is my goal to see that Coeur d'Alene Basin 
cleanup is not litigated away. That is the reason we have introduced 
this legislation. it will clean up the Basin, not litigiously waste the 
Basin's resources.
                                 ______
                                 
      By Mr. JEFFORDS (for himself, Mr. Kohl, Mr. Grams, Mr. D'Amato, 
        Ms. Collins, Mr. Daschle, Mr. Leahy, Mr. Smith of New 
        Hampshire, Mr. Grassley and Ms. Snowe):

  S. 775. A bill to amend the Internal Revenue Code of 1986 to exclude 
gain or loss from the sale of livestock from the computation of capital 
gain net income for purposes of the earned-income credit; to the 
Committee on Finance.


             The Earned-Income Credit Fairness Act of 1997

  Mr. JEFFORDS. Mr. President, I am today introducing a bill along with 
Senator Kohl and several of my colleagues which will amend the earned-
income credit to restore fairness to low-income dairy farmers across 
the country.
  Last year during the debate over welfare reform, Congress tightened 
up on the requirements for eligibility for the EIC. The law was amended 
to prevent taxpayers with investment assets from claiming the EIC, our 
rationale being that taxpayers with substantial investment assets 
should sell those assets rather than rely on the EIC to supplement 
their income. Specifically, the law now reads that if you have over 
$2,200 in disqualified income, you cannot claim the EIC.
  The earned-income credit (EIC) is a credit against tax available to 
low-income working taxpayers. The credit is refundable; in other words, 
even if you don't owe any income tax, the Government may still give you 
a refund. In this way, the credit is a kind of income assistance to 
low-income taxpayers, encouraging them to keep working.
  Mr. President, the problem lies in that the IRS has interpreted the 
term disqualified income to include gains realized by dairy farmers 
when they cull and sell cows no longer suitable for dairy farming. I 
disagree with the IRS' interpretation, as do many of my colleagues. In 
my view, culled dairy cows are not investment assets. When farmers cull 
and sell cows no longer fit for dairy farming, they're not cashing in 
on their investments. To the contrary, they're cutting their losses. 
And we should not automatically expect proceeds from these sales to be 
available to support the farmer's day-to-day living expenses. Farmers 
may not be able to use this money to put food on his or her family's 
table or clothing on his family's back. He or she may have to pump 
these funds back into the dairy operation. If the farmer intends to 
maintain a viable dairy farm, he or she may use proceeds from the sale 
of a culled cow to acquire another cow suitable for dairy farming. So, 
I think it is wrong that these sale proceeds should make the low-income 
dairy farmer ineligible for the EIC.
  The IRS' interpretation will result in the loss of income from 
thousands of struggling dairy farmers across the country. Dairy farmers 
have experienced a 25-percent decline in milk prices in recent months 
and for years have been faced with unstable and low milk prices. Based 
on the Farm Credit's analysis, the current IRS position would cost 
Vermont dairy farmers nearly $1 million in refunds and/or increased tax 
bills. Dairy farmers across the country will be adversely impacted by 
the current position of the IRS. The greatest impact will be in States 
that have a high number of small- and mid-sized family dairy 
operations. Losses to the Nation's dairy farmers have been estimated to 
be as much as $76 million.
  In short, in my view, when the income generated by a farmer's dairy 
operations is otherwise modest, he or she should not become ineligible 
for the EIC when he or she has the misfortune to discover that some of 
his or her dairy cows are nonproductive and disposes of those 
nonproductive assets at a profit.
  Because I disagree with the IRS interpretation, I, together with 16 
colleagues, wrote to IRS Commissioner Margaret Richardson on March 13, 
1997, to challenge the IRS interpretation of the EIC. Unfortunately, 
the IRS has maintained that its interpretation is correct. Accordingly, 
today I am introducing this bill, along with several of my colleagues, 
to overturn what we believe is an unwise and unwarranted interpretation 
by the IRS. I urge my colleagues to join us in this effort.
  Mr. President, I ask unanimous consent that additional material be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                  U.S. Senate,

                                   Washington, DC, March 13, 1997.
     Hon. Margaret Milner Richardson,
     Commissioner, Internal Revenue Service, Washington, DC.
       Dear Commissioner Richardson: We are writing because some 
     of our constituent dairy farmers have brought to our 
     attention their concern about a potentially adverse impact to 
     them that may result from an IRS interpretation of the earned 
     income credit (26 U.S.C. Sec. 32). Our constituents have 
     informed us that in conversations with taxpayers, IRS 
     personnel have indicated that a low-income dairy farmer may 
     become ineligible to claim the EIC if he decides to cull from 
     his herd a cow no longer suitable for dairy farming, and 
     subsequently sells the cow, realizing a gain of $2,200 or 
     more.
       We believe that this interpretation is incorrect. Section 
     32 of the Internal Revenue Code allows low-income taxpayers a 
     refundable credit against tax. Under Sec. 32(i)(1), this 
     earned income credit (EIC) is not available to taxpayers with 
     more than $2,200 in disqualified income. ``Disqualified 
     income'' is defined to include ``capital gain net income'' 
     for the taxable year.
       According to our constituents, the IRS has characterized 
     gains from the sale of culled cows as ``capital gain net 
     income.'' For the definition of ``capital gain net income,'' 
     Sec. 32(i)(1)(D) specifically references the definition of 
     that term in Sec. 1222. Section 1222(9) defines ``capital 
     gain net income'' as the excess of gains from sales of 
     ``capital assets'' over such losses from such sales.
       We do not believe that culled cows are ``capital assets.'' 
     As defined in Sec. 1221(2), the term ``capital asset'' does 
     not include ``property used in the trade or business.'' 
     Section 1231(b) defines the term ``property used in the trade 
     or business,'' and subsection (b)(3) specifically defines 
     cattle held by a taxpayer for 24 months or more for dairy 
     purposes as ``property used in the trade or business.'' It 
     would follow, then, that any gains resulting from the sale of 
     such cattle are not gains from sales of capital assets giving 
     rise to ``capital gain net income.'' Accordingly, we do not 
     believe that Sec. 32(i)(1)(D) disqualifies a dairy farmer 
     from claiming the EIC because of gains realized from sales of 
     culled cows.
       We request that the IRS review and summarize the 
     applicability of Sec. 32(i)(1)(D) to low-income dairy farmers 
     who realize gains of $2,200 or more upon the sale of culled 
     cows that they have held for more than two years. We also 
     request that you summarize what tax treatment would result if 
     the culled cows had not been held for two years. We look 
     forward to your response.
           Sincerely,
         Jim Jeffords, Alfonse D'Amato, Jeff Sessions, Bob Smith, 
           Patrick Leahy, Chris Dodd, Susan M. Collins, Jack Reed, 
           Joe Biden, Mike DeWine, Chuck Grassley, Rick Santorum, 
           Herb Kohl, Rob Grams, Olympia Snowe, Russ Feingold, 
           Judd Gregg.

  Mr. KOHL. Mr. President, I rise today as a co-author of this 
important legislation, which Senator Jeffords and I, and many others, 
introduce today on behalf of all of our nation's farmers.
  Let me begin by thanking my colleague from Vermont for his help and 
leadership on this issue. The economic health of our agricultural 
economy is paramount to both of our regions, and to the country at 
large. And tax provisions related to agriculture, whether it be the 
earned income credit [EIC] or other provisions, have repercussions 
throughout our agricultural economy.

[[Page S4890]]

 In the two regions that Senator Jeffords and I represent, dairy 
farming is of particular importance. And it is with our dairy farmers 
in mind that we feel an urgency in introducing this legislation. 
Because while the tax policy change that we are seeking to undo affects 
many livestock producers, it is the dairy farmers who are the hardest 
hit.
  Mr. President, our legislation will clarify that the sale of 
livestock should not be treated as capital gain net income for purposes 
of the EIC. As you may know, in last year's welfare bill, we took steps 
to tighten eligibility to the EIC, a refundable tax credit available 
only to lower income, working Americans. We did so to ensure further 
that, in a time of limited Federal resources, the EIC was benefiting 
those that it was intended to benefit--the working poor--those who have 
jobs but who often need extra help to avoid turning to public 
assistance. For many facing tough financial times and struggling to 
support their families, the EIC has been the difference between hard 
work and a hand out, between self-worth and self-doubt. And for many 
dairy farmers in Wisconsin, the EIC has helped pay seed bills and farm 
operating expenses and put food on kitchen tables.
  One of several EIC provisions approved by Congress last year expanded 
the category of disqualified income to include capital gain net income. 
As such, under current law, if a taxpayer reports more than $2,200 in 
capital gain net income, he or she is automatically disqualified from 
collecting the EIC.
  On its face, this tax policy adjustment seems reasonable. Most 
policymakers would agree that an individual who realizes substantial 
capital gain income from the sale of capital assets in any given year 
should not be eligible for a tax credit for the working poor. The House 
Committee report confirms as much.

  That said, however, we are here today because a subsequent IRS 
interpretation of that adjustment has restricted EIC eligibility in 
such a way that we believe goes far beyond congressional intent--
distorting the purpose of last year's reforms and denying the credit to 
a population of hard working Americans that the EIC was designed to 
help--small- and mid-sized family farmers.
  Specifically, the Internal Revenue Service [IRS] has interpreted 
capital gain income to include income generated by the sale of culled 
cows for purposes of the EIC. Further, the IRS argues that dairy cows 
represent the type of assets Congress would expect a taxpayer to sell 
to cover living expenses in lieu of claiming the credit.
  Mr. President, though I do not question their good intentions, I 
believe the IRS is misguided.
  As you may know, farmers sell cows no longer suited for dairy farming 
as a matter of course. It is a standard part of a farmer's business. 
And in times of low prices or economic stress, it can play an even more 
important role when some farmers are driven to cull cows more quickly 
than they otherwise would. In addition, the Tax Code defines dairy 
cattle held by a taxpayer for a certain period of time as property used 
in a trade or business, specifying that such property is excluded from 
the definition of capital assets. Since dairy cattle are not capital 
assets, it follows that sales of cattle should not give rise to capital 
gain income for EIC purposes.
  For our Nation's dairy farmers, this unfair policy change has come at 
a particularly cruel time, when milk prices have declined 
precipitously, and many have been forced to cull cows to make ends 
meet. Yet instead of stretching the family budget, they learn that 
their actions have actually resulted in thousands of dollars in extra 
taxes, leaving them worse off than before.
  The consequences for my home State have been devastating. In a sample 
of cases from a seven-county area in the eastern part of the State, the 
average loss of Federal and State EIC benefits to farmers has been 
$2,111 per family. And these are families with between one and seven 
children. The total loss to the approximately 12,000 Wisconsin dairy 
farms eligible for the EIC is estimated at $15.5 million.
  Denying the EIC to family farmers on the basis of culled cows sales 
is wrong. It is wrong, unfair, and Congress should act swiftly to 
correct it.
  I urge my colleagues to support this bipartisan legislation of 
national significance and help ensure the EIC continues to benefit 
those for whom Congress intended.
  Mr. GRAMS. Mr. President, I am proud to be a leading co-sponsor of 
legislation introduced today with my friend and colleague, Senator Jim 
Jeffords of Vermont. The Earned Income Credit (EIC) Fairness Act of 
1997 is a direct response to back-door efforts by the Internal Revenue 
Service to raise revenue on the backs of family farmers. This 
legislation simply clarifies the intent of Congress by preserving this 
important tax credit for our Nation's dairy farmers.
  I want to thank Senator Jeffords for his leadership on this issue. My 
colleague from Vermont and I have differed from time to time on what is 
best for the Nation's dairy industry in the way of federal dairy 
policy. However, I have always had a profound respect for his hard work 
and genuine commitment to Vermont's dairy farmers. They have in Senator 
Jeffords a tireless advocate in the U.S. Senate.
  I also want to commend Mike Foley, a teacher and dairy farmer from 
Melrose, MN for bringing this issue to my attention. Like other 
problems created by IRS misinterpretations of Congressional intent--
including the alternative minimum tax [AMT] and the self-employment tax 
problems--few knew of the EIC problem and the hardship it would 
ultimately cause. Thanks to Mike, we now have the opportunity to 
restore the IRS to its proper role of carrying out current laws instead 
of creating new ones.
  Mr. President, unless Congress acts on this legislation, the Nation's 
dairy farmers will be forced to pay $76 million in taxes they were 
never intended to pay. In effect, this is an agency-created $76 million 
tax hike on hard working, generally low-income, dairy producers. For 
dairy farmers in Minnesota, the tax hike would amount to about $6 
million. As a boy who grew up on a dairy farm, I know all too well how 
hard dairy farmers must work to make ends meet. Long hours. Early 
mornings. Late nights. The vacations--even for a day--which a lot of us 
take for granted are unthinkable for most of our dairy producers. This 
is especially true for the dairy producers who would be hit hardest by 
the new IRS-imposed tax hike. This is wrong. Wrong because the IRS has 
no business raising taxes by agency fiat. And, wrong because of the 
severe hardship the tax hike would impose on our Nation's dairy 
producers.
  During consideration of the 1996 Farm Bill, we promised our farmers 
long overdue tax relief, regulatory relief, improved risk management 
and research, and free and fair trade. My request of the 
administration, particularly the IRS, is simple. If you don't want to 
help keep this promise to America's farmers, simply step aside and at 
least don't hinder those of us who do.
  I urge my colleagues to give the EIC Fairness Act of 1997 speedy 
consideration and passage.
                                 ______
                                 
      By Mr. JOHNSON (for himself, Mr. Daschle, Mr. Wellstone, Mr. 
        Grams, Mr. Harkin and Mr. Grassley):
  S. 777. A bill to authorize the construction of the Lewis and Clark 
Rural Water System and to authorize assistance to the Lewis and Clark 
Rural Water System, Inc., a nonprofit corporation, for planning and 
construction of the water supply system, and for other purposes; to the 
Committee on Energy and Natural Resources.


           The Lewis and Clark Rural Water System Act of 1997

  Mr. JOHNSON. Mr. President, today, I am proud to be introducing 
legislation, along with my colleagues, the Minority Leader Senator 
Daschle of South Dakota, Senator Harkin and Senator Grassley of Iowa, 
and Senator Wellstone and Senator Grams of Minnesota, to authorize the 
Lewis and Clark Rural Water System. I introduced similar legislation 
last year as a Member of the House of Representatives during the 104th 
Congress. I look forward to again working closely with my colleagues 
for timely consideration of this important measure.
  The Lewis and Clark Rural Water System is made up of 22 rural water 
systems and communities in southeastern South Dakota, northwestern 
Iowa,

[[Page S4891]]

and southwestern Minnesota who have joined together in an effort to 
cooperatively address the dual problems facing the delivery of drinking 
water in this region--inadequate quantities of water and poor quality 
water.
  This region has seen substantial growth and development in recent 
years, and studies have shown that future water needs will be 
significantly greater than the current available supply. Most of the 
people who are served by 10 of the water utilities in the proposed 
Lewis and Clark project area currently enforce water restrictions on a 
seasonal basis. Almost half of the membership has water of such poor 
quality it does not meet present or proposed standards for drinking 
water. More than two-thirds rely on shallow aquifers as their primary 
source of drinking water, aquifers which are very vulnerable to 
contamination by surface activities.
  The Lewis and Clark system will be a supplemental supply of drinking 
water for its 22 members, acting as a treated, bulk delivery system. 
The distribution to deliver water to individual users will continue 
through the existing systems used by each member utility. This 
regionalization approach to solving these water supply and quality 
problems enables the Missouri River to provide a source of clean, safe 
drinking water to more than 180,000 individuals. A source of water 
which none of the members of Lewis and Clark could afford on their own.
  The proposed system would help to stabilize the regional rural 
economy by providing water to Sioux Falls, the hub city in the region, 
as well as numerous small communities and individual farms in South 
Dakota and portions of Iowa and Minnesota.
  The States of South Dakota, Iowa, and Minnesota have all authorized 
the project and local sponsors have demonstrated a financial commitment 
to this project through State grants, local water development district 
grants, and membership dues. The State of South Dakota has already 
contributed more than $400,000.
  Mr. President, I do not believe our needs get any more basic than 
good quality, reliable drinking water, and I appreciate the fact that 
Congress has shown support for efforts to improve drinking water 
supplies in South Dakota. I look forward to continue working with my 
colleagues to have that support extended to the Lewis and Clark Rural 
Water System.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 777

       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 ``Lewis and Clark Rural Water 
     System Act of 1997''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Environmental enhancement.--The term ``environmental 
     enhancement'' means the wetland and wildlife enhancement 
     activities that are carried out substantially in accordance 
     with the environmental enhancement component of the 
     feasibility study.
       (2) Environmental enhancement component.--The term 
     ``environmental enhancement component'' means the component 
     described in the report entitled ``Wetlands and Wildlife 
     Enhancement for the Lewis and Clark Rural Water System'', 
     dated April 1991, that is included in the feasibility study.
       (3) Feasibility study.--The term ``feasibility study'' 
     means the study entitled ``Feasibility Level Evaluation of a 
     Missouri River Regional Water Supply for South Dakota, Iowa 
     and Minnesota'', dated September 1993, that includes a water 
     conservation plan, environmental report, and environmental 
     enhancement component.
       (4) Member entity.--The term ``member entity'' means a 
     rural water system or municipality that signed a Letter of 
     Commitment to participate in the water supply system.
       (5) Project construction budget.--The term ``project 
     construction budget'' means the description of the total 
     amount of funds needed for the construction of the water 
     supply system, as contained in the feasibility study.
       (6) Pumping and incidental operational requirements.--The 
     term ``pumping and incidental operational requirements'' 
     means all power requirements that are incidental to the 
     operation of intake facilities, pumping stations, water 
     treatment facilities, reservoirs, and pipelines up to the 
     point of delivery of water by the water supply system to each 
     member entity that distributes water at retail to individual 
     users.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (8) Water supply system.--The term ``water supply system'' 
     means the Lewis and Clark Rural Water System, Inc., a 
     nonprofit corporation established and operated substantially 
     in accordance with the feasibility study.

     SEC. 3. FEDERAL ASSISTANCE FOR THE WATER SUPPLY SYSTEM.

       (a) In General.--The Secretary shall make grants to the 
     water supply system for the planning and construction of the 
     water supply system.
       (b) Service Area.--The water supply system shall provide 
     for safe and adequate municipal, rural, and industrial water 
     supplies, environmental enhancement, mitigation of wetland 
     areas, and water conservation in--
       (1) Lake County, McCook County, Minnehaha County, Turner 
     County, Lincoln County, Clay County, and Union County, in 
     southeastern South Dakota;
       (2) Rock County and Nobles County, in southwestern 
     Minnesota; and
       (3) Lyon County, Sioux County, Osceola County, O'Brien 
     County, Dickinson County, and Clay County, in northwestern 
     Iowa.
       (c) Amount of Grants.--Grants made available under 
     subsection (a) to the water supply system shall not exceed 
     the amount of funds authorized under section 10.
       (d) Limitation on Availability of Construction Funds.--The 
     Secretary shall not obligate funds for the construction of 
     the water supply system until--
       (1) the requirements of the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.) are met;
       (2) a final engineering report is prepared and submitted to 
     Congress not less than 90 days before the commencement of 
     construction of the water supply system; and
       (3) a water conservation program is developed and 
     implemented.

     SEC. 4. FEDERAL ASSISTANCE FOR THE ENVIRONMENTAL ENHANCEMENT 
                   COMPONENT.

       (a) Initial Development.--The Secretary shall make grants 
     and other funds available to the water supply system and 
     other private, State, and Federal entities, for the initial 
     development of the environmental enhancement component.
       (b) Nonreimbursement.--Funds provided under subsection (a) 
     shall be nonreimbursable and nonreturnable.

     SEC. 5. WATER CONSERVATION PROGRAM.

       (a) In General.--The water supply system shall establish a 
     water conservation program that ensures that users of water 
     from the water supply system use the best practicable 
     technology and management techniques to conserve water use.
       (b) Requirements.--The water conservation programs shall 
     include--
       (1) low consumption performance standards for all newly 
     installed plumbing fixtures;
       (2) leak detection and repair programs;
       (3) rate schedules that do not include declining block rate 
     schedules for municipal households and special water users 
     (as defined in the feasibility study);
       (4) public education programs and technical assistance to 
     member entities; and
       (5) coordinated operation among each rural water system, 
     and each water supply facility in existence on the date of 
     enactment of this Act, in the service area of the system.
       (c) Review and Revision.--The programs described in 
     subsection (b) shall contain provisions for periodic review 
     and revision, in cooperation with the Secretary.

     SEC. 6. MITIGATION OF FISH AND WILDLIFE LOSSES.

       Mitigation for fish and wildlife losses incurred as a 
     result of the construction and operation of the water supply 
     system shall be on an acre-for-acre basis, based on 
     ecological equivalency, concurrent with project construction, 
     as provided in the feasibility study.

     SEC. 7. USE OF PICK-SLOAN POWER.

       (a) In General.--From power designated for future 
     irrigation and drainage pumping for the Pick-Sloan Missouri 
     Basin program, the Western Area Power Administration shall 
     make available the capacity and energy required to meet the 
     pumping and incidental operational requirements of the water 
     supply system during the period beginning on May 1 and ending 
     on October 31 of each year.
       (b) Conditions.--The capacity and energy described in 
     subsection (a) shall be made available on the following 
     conditions:
       (1) The water supply system shall be operated on a not-for-
     profit basis.
       (2) The water supply system shall contract to purchase the 
     entire electric service requirements of the system, including 
     the capacity and energy made available under subsection (a), 
     from a qualified preference power supplier that itself 
     purchases power from the Western Area Power Administration.
       (3) The rate schedule applicable to the capacity and energy 
     made available under subsection (a) shall be the firm power 
     rate schedule of the Pick-Sloan Eastern Division of the 
     Western Area Power Administration in effect when the power is 
     delivered by the Administration.
       (4) It is agreed by contract among--
       (A) the Western Area Power Administration;
       (B) the power supplier with which the water supply system 
     contracts under paragraph (2);
       (C) the power supplier of the entity described in 
     subparagraph (B); and

[[Page S4892]]

       (D) the water supply system;
     that in the case of the capacity and energy made available 
     under subsection (a), the benefit of the rate schedule 
     described in paragraph (3) shall be passed through to the 
     water supply system, except that the power supplier of the 
     water supply system shall not be precluded from including, in 
     the charges of the supplier to the water system for the 
     electric service, the other usual and customary charges of 
     the supplier.

     SEC. 8. NO LIMITATION ON WATER PROJECTS IN STATES.

       This Act does not limit the authorization for water 
     projects in the States of South Dakota, Iowa, and Minnesota 
     under law in effect on or after the date of enactment of this 
     Act.

     SEC. 9. WATER RIGHTS.

       Nothing in this Act--
       (1) invalidates or preempts State water law or an 
     interstate compact governing water;
       (2) alters the rights of any State to any appropriated 
     share of the waters of any body of surface or ground water, 
     whether determined by past or future interstate compacts or 
     by past or future legislative or final judicial allocations;
       (3) preempts or modifies any Federal or State law, or 
     interstate compact, governing water quality or disposal; or
       (4) confers on any non-Federal entity the ability to 
     exercise any Federal right to the waters of any stream or to 
     any ground water resource.

     SEC. 10. COST SHARING.

       (a) Federal Cost Share.--
       (1) In general.--Except as provided in paragraph (2), the 
     Secretary shall provide funds equal to 80 percent of--
       (A) the amount allocated in the total project construction 
     budget for planning and construction of the water supply 
     system under section 3;
       (B) such amounts as are necessary to defray increases in 
     the budget for planning and construction of the water supply 
     system under section 3; and
       (C) such amounts as are necessary to defray increases in 
     development costs reflected in appropriate engineering cost 
     indices after September 1, 1993.
       (2) Sioux falls.--The Secretary shall provide funds for the 
     city of Sioux Falls, South Dakota, in an amount equal to 50 
     percent of the incremental cost to the city of participation 
     in the project.
       (b) Non-Federal Cost Share.--
       (1) In general.--Except as provided in paragraph (2), the 
     non-Federal share of the costs allocated to the water supply 
     system shall be 20 percent of the amounts described in 
     subsection (a)(1).
       (2) Sioux falls.--The non-Federal cost-share for the city 
     of Sioux Falls, South Dakota, shall be 50 percent of the 
     incremental cost to the city of participation in the project.

     SEC. 11. BUREAU OF RECLAMATION.

       (a) Authorization.--The Secretary may allow the Director of 
     the Bureau of Reclamation to provide project construction 
     oversight to the water supply system and environmental 
     enhancement component for the service area of the water 
     supply system described in section 3(b).
       (b) Project Oversight Administration.--The amount of funds 
     used by the Director of the Bureau of Reclamation for 
     planning and construction of the water supply system shall 
     not exceed the amount that is equal to 1 percent of the 
     amount provided in the total project construction budget for 
     the entire project construction period.

     SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     Act $226,320,000, of which not less than $8,487,000 shall be 
     used for the initial development of the environmental 
     enhancement component under section 4, to remain available 
     until expended.

  Mr. WELLSTONE. Mr. President, today I join my colleagues from South 
Dakota, Iowa, and Minnesota in co-sponsoring Lewis and Clark Rural 
Water System Act of 1977, and I do so with great enthusiasm for what 
this project could mean to the people in southwestern Minnesota, as 
well as those in Iowa and South Dakota who have serious problems 
finding adequate drinking water supplies.
  Many of us never really have to think about where our water comes 
from, but for the people in Luverne and Worthington, Minnesota, it is a 
constantly nagging question, Helping provide for this sort of basic 
need is what I think government ought to be doing.
  In a project like Lewis and Clark, governments at all levels have to 
work together. Municipalities, states, and the federal government each 
will have important roles to play, and each will have to carry a 
significant burden. And that is as it should be--in tough situations 
like this, not only is there no free lunch, but there is also no free 
water.
  So today I am pleased to formally state my support for the Lewis and 
Clark project by cosponsoring its authorization legislation. The Lewis 
and Clark Rural Water System project is sorely needed to provide safe 
drinking water on a consistent basis for citizens in the tri-state 
region of Minnesota, South Dakota, and Iowa. For far too long 
communities in this region have faced great and sometimes overwhelming 
challenges in finding safe and reliable sources of water for their 
citizens. While many communities in our country have ample supplies of 
drinking water, twenty-two communities in this tri-state area are not 
so lucky. Shallow aquifers and high water tables have left many water 
systems in the region constantly searching for potable water. Even when 
these communities have managed to find sources of water, many times the 
water has been contaminated with unsafe levels of nitrates and 
bacteria, as well as high levels of naturally occurring iron and 
manganese.
  While the lack of water, reliable water sources affects the health of 
these citizens in the short-term, the economic vitality of these 
communities is adversely affected in the long-term. Rural communities 
cannot plan economic growth when they do not possess long-term sources 
of safe drinking water. Businesses are reluctant to locate in an area 
where such necessities are not guaranteed. Therefore, as a strong 
supporter of rural economic development. I believe that this project 
will benefit the economic welfare of citizens who live in this region.
  I recognize that some concerns still exist about the impacts of this 
project. I intend to work to improve the bill as it makes its way 
through the legislative process, and believe the concerns which some 
have raised regarding the environmental impacts of this project will be 
addressed as the project moves forward. Work on this important bill 
will likely be going on for some time, and I look forward to helping 
shape the final legislation and making the project a reality.
  Mr. GRAMS. Mr. President, I rise today to join Senators Daschle, 
Johnson, Grassley, Harkin, and Wellstone as a proud cosponsor of 
legislation authorizing the Lewis and Clark Rural Water System. This 
much-needed legislation will help provide a long-term, high-quality 
water supply from the Missouri River to over 180,000 individuals in 
portions of Minnesota, South Dakota, and Iowa.
  For too long, and to the detriment of community development, 
residents of this region have been deprived of a sustainable water 
resource. In light of Minnesota's reputation as the ``land of 10,000 
lakes,'' it might come as a surprise to hear my home state described as 
being desperately short on water supplies. The southwestern corner of 
the state, however, is geographically very different from the rest of 
Minnesota. Rock County, which would be served by the Lewis and Clark 
system, is the only county in Minnesota without a natural lake.
  Communities within the proposed water system are now served by 
shallow aquifers highly susceptible to drought, leading most of these 
communities to impose severe watering restrictions. The constant 
deterioration of these aquifers is evidenced through the detection of 
ever-increasing nitrate levels that threaten the safety of current 
drinking water. Moreover, increasing federal regulations have imposed 
expensive, unfunded mandates on communities seeking to deliver clean 
and healthy water to their residents.
  This situation has forced communities throughout the region to 
aggressively explore alternative water supplies. Since 1989, the 
community of Worthington, Minnesota has spent between $50,000 to 
$75,000 annually searching for another source of water, all without 
success. The nearby community of Luverne, Minnesota has experienced the 
same disappointing results despite its significant expenditures. It is 
little wonder struggling communities across this region have joined 
together to strongly support the Lewis and Clark proposal.
  Bill Weber, the distinguished mayor of Luverne, Minnesota stated: 
``It made sense to us to combine our financial assets in building one 
system that can provide an alternative supply of drinking water for 22 
systems. The only other alternative was for each of us to continue as 
we have in the past, exploring more costly alternatives that only 
helped one at a time and alternatives, which in the case of Luverne 
appear to be nonexistent.''
  Greg Degroot, President of Worthington Public Utilities, wrote that 
the system ``will provide our community

[[Page S4893]]

with an alternative source of water that will give us some protection 
in the event of the loss of our existing water source and will also 
provide the additional water that is necessary for our community to 
continue to prosper and grow.''
  Mr. President, under our legislation, local communities will come 
together with the affected states and the federal government to form a 
strong, financial partnership, thereby ensuring an adequate, safe water 
supply while reducing the costs to the American taxpayers. In fact, 
with our revised proposal, the city of Sioux Falls, South Dakota--by 
far the largest user of the proposed system--will pay 50% of the 
construction costs for its share of Lewis and Clark water.
  Mr. President, providing healthy water to our communities is one of 
the most basic functions of the government. It is not a partisan issue, 
and therefore I am proud to join with a bipartisan group of my 
colleagues and the Governors of Minnesota, South Dakota, and Iowa in 
supporting this bill. We believe our legislation to be the best, most 
cost-effective answer to a severe and growing problem.
  The time to enact this bipartisan legislation is now. As a member of 
the Energy and Natural Resources Committee, I look forward to working 
with the distinguished Chairman, Senator Murkowski; Senator Johnson, 
the primary sponsor of this legislation and a Committee member; the 
rest of our colleagues; and the Clinton Administration in providing 
much-needed relief to our communities. They deserve nothing less.
  Mr. HARKIN. Mr. President, I rise today in strong support of the 
Lewis and Clark Water System Act of 1997. This legislation will 
authorize the construction of Lewis and Clark, along with a federal 
commitment of assistance for construction. Lewis and Clark is designed 
to be a treated, bulk water delivery system for 22 communities and 
rural water systems located in northwest Iowa, southeast South Dakota, 
and southwest Minnesota. Within this tri-state area, over 200,000 
persons will be assured of clean and safe drinking water from Lewis and 
Clark.
  Lewis and Clark is necessary to address poor water quality sources, 
inadequate water supplies, population growth, and increasing federal 
regulations that the member water systems are trying to deal with. In 
many cases the drinking water currently delivered by Lewis and Clark's 
membership exceeds secondary drinking water standards for iron, 
manganese, sulfate, and total dissolved solids. Water of this quality 
is very difficult and expensive to treat. In Iowa, most of the involved 
drinking water systems are at, or near, their capacity, and have 
serious water quality problems. An engineering feasibility study 
completed by the Bureau of Reclamation in September 1993 concluded the 
project is technically feasible.
  However, this project will not be economically viable without federal 
assistance. Because many rural areas and small communities are involved 
with the project, the necessary financial resources do not exist to 
bring Lewis and Clark to completion. Through the Bureau of Reclamation 
study, each utility member determined that Lewis and Clark was the most 
feasible and least costly alternative for meeting future drinking water 
needs. It is estimated that this project will provide quality water at 
a reasonable cost, an estimated 75 cents per 1,000 gallons.
  Mr. President, this project represents a unique opportunity to bring 
safe, clean, and affordable drinking water to hundreds of thousands of 
persons in a tri-state area. It is not often Congress has the 
opportunity to assist in a project that has the joint cooperation of 
persons from three states, and twenty-two communities and local water 
systems. In an era when we see states and communities fighting for 
water resources, Lewis and Clark represents a grass-roots effort of 
concerned citizens, businesses, and government officials.
  Lastly, I would like to add that this is a project that clearly fits 
the characteristics of projects traditionally funded by the Bureau of 
Reclamation. Given its broad support, critical needs, and clear merits, 
I urge the passage of this important legislation.
      By Mr. LUGAR:
  S. 778. A bill to authorize a new trade and investment policy for 
sub-Saharan African; to the Committee on Finance.


                 The African Growth and Opportunity Act

 Mr. LUGAR. Mr. President, I introduce the African Growth and 
Opportunity Act. A similar bill has been introduced in the House of 
Representatives and is now cosponsored by nearly 50 Members. It enjoys 
the support of many in the House leadership. I applaud the hard work of 
those Members of the House who have toiled to draft proactive 
legislation that would, if enacted, help re-shape our relationship with 
countries in sub-Sahara Africa.
  The bill I am introducing contains a range of trade, investment and 
reform incentives for economic growth that require little or no new 
spending. It reflects much of the administration's ``Partnership for 
Economic Growth and Opportunity in Africa'' initiative which proposes 
greater U.S. attention and priority to Africa. This bill proposes 
important trade and investment initiatives that would be available to 
eligible African countries which pursue meaningful internal reforms--
both economic and political reform.
  The bill would seek to provide a range of trade preferences and 
concessions, including GSP and lower trade barriers, to eligible 
countries embarking on economic and political liberalization. It seeks 
to encourage increased private sector investment flows by engaging OPIC 
and other government guarantees to create private equity and 
infrastructure funds targeted on Africa. It proposes certain personnel 
changes in various government agencies to give greater attention to 
Africa and to facilitate U.S. trade and investment. It seeks the 
cooperation of international financial institutions to ease the heavy 
debt burden of the poorest countries in Africa. And, it seeks the 
cooperation of other developed countries to join us in granting trade 
concessions and other preferences to Africa.
  To achieve sustained economic growth and political stability in 
Africa, the private sector must be more fully engaged. They have the 
investment capital, they have the knowhow, and they have the will to 
take calculated risks abroad. The private sector, however, will be more 
interested in investment, trade and the technical assistance that 
accompany them, if countries make the hard decisions to liberalize 
their economies and open their political system to participation and 
good governance. That process is underway in Africa, but much more 
needs to be done.
  This bill intends to increase our commercial and official contacts 
and interactions in recognition of the enormous potential for economic 
growth and development in Africa. It reflects the vast diversity of 
people, cultures, economies, and potential among the forty-eight 
countries and the more than 600 million people. It provides incentives 
and rewards to the growing number of countries embarking on a host of 
economic and political reforms. These are reforms we should encourage 
and support. These changes are not only in the interests of African 
societies, they are in our interest as well. A stable and economically 
prosperous Africa will contribute to our commercial and security 
interests.
  The ``African Growth and Opportunity Act'', therefore, includes a 
range of incentives and policy tools that would begin the long-overdue 
process of linking U.S. ties with Africa on trade and investment, not 
solely on foreign assistance. We should be basing our relations with 
Africans as partners, not just as aid recipients. For too long, 
American policy towards Africa has concentrated on our foreign 
assistance programs which have resulted in little more than a series of 
bi-lateral donor-recipient relationships.
  While helpful in promoting economic and political development, and in 
alleviating humanitarian crises and other social ills, our assistance 
programs were never large enough to be effective in stimulating or 
sustaining real economic growth. They are still important and needed. 
But, bilateral assistance, even when coupled with assistance from other 
donor countries and from international banks and lending institutions, 
are insufficient by themselves to kick-start and sustain the economies 
of Africa. They have not been sufficient in eradicating contagious 
diseases, in eliminating chronic poverty, or in ending the cycle of 
under-development and recurring political turmoil.

[[Page S4894]]

  Mr. President, we have neglected Africa's economic growth potential 
for too many years. For too long, American interest in sub-Sahara 
Africa was largely a function of our strategic considerations and 
trade-offs during the Cold War period. Most Americans paid attention to 
Africa only when there was a natural or man-made calamity or disaster. 
Regrettably, this has led to distortion and mis-information about the 
real Africa. It has retarded interest in exploring opportunities in 
this rich and diverse continent.
  But, economic growth, political stability or the protection of human 
rights in Africa won't happen by themselves or by the actions of the 
U.S. The leadership in Africa must make it happen by their actions and 
decisions. We should encourage and respond to those countries and those 
leaders who are making the difficult decisions to implement economic 
and political reform.
  There is little doubt that those African countries which have 
embarked on the road to economic and political reform are beginning to 
reap the kind of benefits known in other regions of the world, such as 
East Asia. Several countries already enjoy multi-year economic growth 
in the five, six to ten percent range. Uganda, for example, had a 
growth rate of 10% in l995 and Ethiopia exceeded that level last year. 
More than 30 countries in sub-Sahara Africa have already initiated 
economic reform programs and some twenty-five countries have conducted 
open elections.

  Many countries have begun to liberalize their exchange rates and 
prices, privatize state-owned enterprises, reduce expensive state 
subsidies and cut back on impediments to trade and investment. These 
steps and others will help African economies grow.
  African trade barriers are more onerous than those in the faster 
growing economies in the developing world. Import tariffs are three and 
a half times higher than those in faster growing countries in the 
developing world. Along with non-tariff restrictions and assorted 
protectionist practices, these practices have hurt the competitiveness 
of Africa exports. They inflict trade losses that match or exceed the 
total levels of aid to Africa. As these barriers to trade and 
investment are eased and eliminated, they will open the way for 
economic growth and assist American entrepreneurs by opening their 
markets to our goods and services.
  It may interest members to know that U.S. trade with sub-Saharan 
Africa grew by more than 18% last year. For the second consecutive 
year, the growth in U.S. trade in sub-Sahara Africa outdistanced 
America's overall growth in world trade. No one who has sought to 
invest or trade in Africa will deny that doing so has been difficult, 
but few would deny that the many opportunities exist.
  U.S. trade with Africa amounts to only about one percent of total 
U.S. trade and U.S. investment there totals less than one percent of 
all U.S. direct investment overseas. This, despite the fact that 
roughly forty per cent of all America exports now go to developing 
countries where the greatest growth in U.S. trade and exports in recent 
years has taken place.
  Finally, Mr. President, let me conclude by saying that I am 
introducing this bill to stimulate interest and to encourage serious 
debate in the Senate on re-orienting U.S. policy towards Africa. 
Without question, we have a genuine interest in Africa that is only now 
being recognized. Enactment of this bill will help create an 
environment in which the private sector will become more fully engaged 
in the economic development and growth and political modernization of 
Africa. If that happens, it will be very much in the interest of the 
United States.
  I urge my colleagues in the Senate to take note of this bill, 
consider its merits, explore the growing potential for U.S. exports and 
investment and consider the prospects for revising and broadening our 
overall relationship with sub-Sahara Africa.
  If we do so, our country will be a major economic and security 
beneficiary.
  Mr. President, I ask unanimous consent that the Africa Growth and 
Opportunity Act be printed in full in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 778

       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 ``African Growth and 
     Opportunity Act''.

     SEC. 2. FINDINGS.

       The Congress finds that it is in the mutual economic 
     interest of the United States and sub-Saharan Africa to 
     promote stable and sustainable economic growth and 
     development in sub-Saharan Africa. To that end, the United 
     States seeks to facilitate the social and economic 
     development of the countries of sub-Saharan Africa in a 
     manner which strengthens and expands market-led economic 
     growth consistent with equitable and efficient development 
     and which reduces poverty and increases employment among the 
     poor. In particular, the United States seeks to assist sub-
     Saharan African countries to achieve economic self-reliance 
     by--
       (1) strengthening and expanding the private sector in sub-
     Saharan Africa, especially women-owned businesses;
       (2) encouraging increased trade and investment between the 
     United States and sub-Saharan Africa;
       (3) reducing tariff and nontariff barriers and other trade 
     obstacles;
       (4) expanding United States assistance to sub-Saharan 
     Africa's regional integration efforts;
       (5) negotiating free trade areas;
       (6) establishing a United States-Sub-Saharan Africa Trade 
     and Investment Partnership;
       (7) focusing on countries committed to accountable 
     government, economic reform, and the eradication of poverty;
       (8) establishing a United States-Sub-Saharan Africa 
     Economic Cooperation Forum; and
       (9) continuing to support development assistance for those 
     countries in sub-Saharan Africa attempting to build civil 
     societies.

     SEC. 3. STATEMENT OF POLICY.

       The Congress supports economic self-reliance for sub-
     Saharan African countries, particularly those committed to--
       (1) economic and political reform;
       (2) market incentives and private sector growth;
       (3) the eradication of poverty; and
       (4) the importance of women to economic growth and 
     development.

     SEC. 4. ELIGIBILITY REQUIREMENTS.

       (a) In General.--A sub-Saharan African country shall be 
     eligible to participate in programs, projects, or activities, 
     or receive assistance or other benefits under this Act for a 
     fiscal year only if the President determines that the country 
     has established, or is making continual progress toward 
     establishing, a market-based economy, such as the 
     establishment and enforcement of appropriate policies 
     relating to--
       (1) promoting free movement of goods and services and 
     factors of production between the United States and sub-
     Saharan Africa;
       (2) promoting the expansion of the production base and the 
     transformation of commodities and nontraditional products for 
     exports through joint venture projects between African and 
     United States companies;
       (3) trade issues, such as protection of intellectual 
     property rights, improvements in standards, testing, labeling 
     and certification, and government procurement;
       (4) the protection of property rights, such as protection 
     against expropriation and a functioning and fair judicial 
     system;
       (5) tax issues, such as reducing high import and corporate 
     taxes, controlling government consumption, participation in 
     bilateral investment treaties, and the harmonization of such 
     treaties to avoid double taxation;
       (6) foreign investment issues, such as the provision of 
     national treatment for foreign investors and other measures 
     to attract foreign investors;
       (7) supporting the growth of regional markets within a free 
     trade area framework;
       (8) regulatory issues, such as eliminating government 
     corruption, minimizing government intervention in the market, 
     monitoring the fiscal and monetary policies of the 
     government, and supporting the growth of the private sector, 
     in particular by promoting the emergence of a new generation 
     of African entrepreneurs;
       (9) encouraging the private ownership of government-
     controlled economic enterprises through divestiture programs;
       (10) removing restrictions on investment; and
       (11) the reduction of poverty, such as the provision of 
     basic health and education for poor citizens, the expansion 
     of physical infrastructure in a manner designed to maximize 
     accessibility, increased access to market and credit 
     facilities for small farmers and producers, and improved 
     economic opportunities for women as entrepreneurs and 
     employees.
       (b) Additional Factors.--In determining whether a sub-
     Saharan African country is eligible under subsection (a), the 
     President shall take into account the following factors:
       (1) An expression by such country of its desire to be an 
     eligible country under subsection (a).
       (2) The extent to which such country has made substantial 
     progress toward--
       (A) reducing tariff levels;
       (B) binding its tariffs in the World Trade Organization and 
     assuming meaningful binding obligations in other sectors of 
     trade; and

[[Page S4895]]

       (C) eliminating nontariff barriers to trade.
       (3) Whether such country, if not already a member of the 
     World Trade Organization, is actively pursuing membership in 
     that Organization.
       (4) The extent to which such country is in material 
     compliance with its programs with and its obligation to the 
     International Monetary Fund and other international financial 
     institutions.
       (c) Continuing Compliance.--
       (1) Monitoring and review of certain countries.--The 
     President shall monitor and review the progress of those sub-
     Saharan African countries that have been determined to be 
     eligible under subsection (a) but are in need of making 
     continual progress in meeting one or more of the requirements 
     of such subsection.
       (2) Ineligibility of certain countries.--A sub-Saharan 
     African country described in paragraph (1) that has not made 
     continual progress in meeting the requirements with which it 
     is not in compliance shall be ineligible to participate in 
     programs, projects, or activities, or receive assistance or 
     other benefits, under this Act.

     SEC. 5. ADDITIONAL AUTHORITIES AND INCREASED FLEXIBILITY TO 
                   PROVIDE ASSISTANCE UNDER THE DEVELOPMENT FUND 
                   FOR AFRICA.

       (a) Use of Sustainable Development Assistance To Support 
     Further Economic Growth.--It is the sense of the Congress 
     that sustained economic growth in sub-Saharan Africa depends 
     in large measure upon the development of a receptive 
     environment for trade and investment, and that to achieve 
     this objective the United States Agency for International 
     Development should continue to support programs which help to 
     create this environment. Investments in human resources, 
     development, and implementation of free market policies, 
     including policies to liberalize agricultural markets and 
     improve food security, and the support for the rule of law 
     and democratic governance should continue to be encouraged 
     and enhanced on a bilateral and regional basis.
       (b) Declarations of Policy.--The Congress makes the 
     following declarations:
       (1) The Development Fund for Africa established under 
     chapter 10 of part I of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2293 et seq.) has been an effective tool in 
     providing development assistance to sub-Saharan Africa since 
     1988.
       (2) The Development Fund for Africa will complement the 
     other provisions of this Act and lay a foundation for 
     increased trade and investment opportunities between the 
     United States and sub-Saharan Africa.
       (3) Assistance provided through the Development Fund for 
     Africa will continue to support programs and activities that 
     promote the long term economic development of sub-Saharan 
     Africa, such as programs and activities relating to the 
     following:
       (A) Strengthening primary and vocational education systems, 
     especially the acquisition of middle-level technical skills 
     for operating modern private businesses and the introduction 
     of college level business education, including the study of 
     international business, finance, and stock exchanges.
       (B) Strengthening health care systems.
       (C) Strengthening family planning service delivery systems.
       (D) Supporting democratization, good governance and civil 
     society and conflict resolution efforts.
       (E) Increasing food security by promoting the expansion of 
     agricultural and agriculture-based industrial production and 
     productivity and increasing real incomes for poor 
     individuals.
       (F) Promoting an enabling environment for private sector-
     led growth through sustained economic reform, privatization 
     programs, and market-led economic activities.
       (G) Promoting decentralization and local participation in 
     the development process, especially linking the rural 
     production sectors and the industrial and market centers 
     throughout Africa.
       (H) Increasing the technical and managerial capacity of 
     sub-Saharan African individuals to manage the economy of sub-
     Saharan Africa.
       (I) Ensuring sustainable economic growth through 
     environmental protection.
       (4) The African Development Foundation has a unique 
     congressional mandate to empower the poor to participate 
     fully in development and to increase opportunities for 
     gainful employment, poverty alleviation, and more equitable 
     income distribution in sub-Saharan Africa. The African 
     Development Foundation has worked successfully to enhance the 
     role of women as agents of change, strengthen the informal 
     sector with an emphasis on supporting micro and small sized 
     enterprises, indigenous technologies, and mobilizing local 
     financing. The African Development Foundation should develop 
     and implement strategies for promoting participation in the 
     socioeconomic development process of grassroots and informal 
     sector groups such as nongovernmental organizations, 
     cooperatives, artisans, and traders into the programs and 
     initiatives established under this Act.
       (c) Additional Authorities.--
       (1) In general.--Section 496(h) of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2293(h)) is amended--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following:
       ``(3) Democratization and conflict resolution 
     capabilities.--Assistance under this section may also include 
     program assistance--
       ``(A) to promote democratization, good governance, and 
     strong civil societies in sub-Saharan Africa; and
       ``(B) to strengthen conflict resolution capabilities of 
     governmental, intergovernmental, and nongovernmental entities 
     in sub-Saharan 
     Africa.''.
       (2) Conforming amendment.--Section 496(h)(4) of such Act, 
     as amended by paragraph (1), is further amended by striking 
     ``paragraphs (1) and (2)'' in the first sentence and 
     inserting ``paragraphs (1), (2), and (3)''.
       (d) Waiver Authority.--Section 496 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2293) is amended by adding 
     at the end the following:
       ``(p) Waiver Authority.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     President may waive any provision of law that earmarks, for a 
     specified country, organization, or purpose, funds made 
     available to carry out this chapter if the President 
     determines that the waiver of such provision of law would 
     provide increased flexibility in carrying out this chapter.
       ``(2) Exceptions.--
       ``(A) Child survival activities.--The authority contained 
     in paragraph (1) may not be used to waive a provision of law 
     that earmarks funds made available to carry out this chapter 
     for the following purposes:
       ``(i) Immunization programs.
       ``(ii) Oral rehydration programs.
       ``(iii) Health and nutrition programs, and related 
     education programs, which address the needs of mothers and 
     children.
       ``(iv) Water and sanitation programs.
       ``(v) Assistance for displaced and orphaned children.
       ``(vi) Programs for the prevention, treatment, and control 
     of, and research on, tuberculosis, HIV/AIDS, polio, malaria, 
     and other diseases.
       ``(vii) Basic education programs for children.
       ``(viii) Contribution on a grant basis to the United 
     Nations Children's Fund (UNICEF) pursuant to section 301 of 
     this Act.
       ``(B) Requirement to supersede waiver authority.--The 
     provisions of this subsection shall not be superseded except 
     by a provision of law enacted after the date of the enactment 
     of the African Growth and Opportunity Act which specifically 
     repeals, modifies, or supersedes such provisions.''.

     SEC. 6. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC 
                   COOPERATION FORUM.

       (a) Declaration of Policy.--The President shall convene 
     annual high-level meetings between appropriate officials of 
     the United States Government and officials of the governments 
     of sub-Saharan African countries in order to foster close 
     economic ties between the United States and sub-Saharan 
     Africa.
       (b) Establishment.--Not later than 12 months after the date 
     of the enactment of this Act, the President, after consulting 
     with the governments concerned, shall establish a United 
     States-Sub-Saharan Africa Trade and Economic Cooperation 
     Forum (hereafter in this section referred to as the 
     ``Forum'').
       (c) Requirements.--In creating the Forum, the President 
     shall meet the following requirements:
       (1) The President shall direct the Secretary of Commerce, 
     the Secretary of the Treasury, the Secretary of State, and 
     the United States Trade Representative to host the first 
     annual meeting with the counterparts of such Secretaries from 
     the governments of sub-Saharan African countries eligible 
     under section 4, the Secretary General of the Organization of 
     African Unity, and government officials from other 
     appropriate countries in Africa, to discuss expanding trade 
     and investment relations between the United States and sub-
     Saharan Africa and the implementation of this Act.
       (2)(A) The President, in consultation with the Congress, 
     shall encourage United States nongovernmental organizations 
     to host annual meetings with nongovernmental organizations 
     from sub-Saharan Africa in conjunction with the annual 
     meetings of the Forum for the purpose of discussing the 
     issues described in paragraph (1).
       (B) The President, in consultation with the Congress, shall 
     encourage United States representatives of the private sector 
     to host annual meetings with representatives of the private 
     sector from sub-Saharan Africa in conjunction with the annual 
     meetings of the Forum for the purpose of discussing the 
     issues described in paragraph (1).
       (3) The President shall, to the extent practicable, meet 
     with the heads of governments of sub-Saharan African 
     countries eligible under section 4 not less than once every 
     two years for the purpose of discussing the issues described 
     in paragraph (1). The first such meeting should take place 
     not later than twelve months after the date of the enactment 
     of this Act.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 7. UNITED STATES-SUB-SAHARAN AFRICA FREE TRADE AREA.

       (a) Declaration of Policy.--The Congress declares that a 
     United States-Sub-Saharan Africa Free Trade Area should be 
     established, or free trade agreements should be entered into, 
     in order to serve as the catalyst for increasing trade 
     between the United

[[Page S4896]]

     States and sub-Saharan Africa and increasing private sector 
     development in sub-Saharan Africa.
       (b) Plan Requirement.--
       (1) In general.--The President, taking into account the 
     provisions of the treaty establishing the African Economic 
     Community and the willingness of the governments of Sub-
     Saharan African countries to engage in negotiations to enter 
     into free trade agreements, shall develop a plan for the 
     purpose of entering into one or more trade agreements with 
     sub-Saharan African countries eligible under section 4 in 
     order to establish a United States-Sub-Saharan Africa Free 
     Trade Area (hereafter in this section referred to as the 
     ``Free Trade Area'').
       (2) Elements of plan.--The plan shall include the 
     following:
       (A) The specific objectives of the United States with 
     respect to the establishment of the Free Trade Area and a 
     suggested timetable for achieving those objectives.
       (B) The benefits to both the United States and sub-Saharan 
     Africa with respect to the Free Trade Area.
       (C) A mutually agreed-upon timetable for establishing the 
     Free Trade Area.
       (D) The implications for and the role of regional and sub-
     regional organizations in sub-Saharan Africa with respect to 
     the Free Trade Area.
       (E) Subject matter anticipated to be covered by the 
     agreement for establishing the Free Trade Area and United 
     States laws, programs, and policies, as well as the laws of 
     participating eligible African countries and existing 
     bilateral and multilateral and economic cooperation and trade 
     agreements, that may be affected by the agreement or 
     agreements.
       (F) Procedures to ensure the following:
       (i) Adequate consultation with the Congress and the private 
     sector during the negotiation of the agreement or agreements 
     for establishing the Free Trade Area.
       (ii) Consultation with the Congress regarding all matters 
     relating to implementation of the agreement or agreements.
       (iii) Approval by the Congress of the agreement or 
     agreements.
       (iv) Adequate consultations with the relevant African 
     governments and African regional and subregional 
     intergovernmental organizations during the negotiations of 
     the agreement or agreements.
       (c) Reporting Requirement.--Not later than 12 months after 
     the date of the enactment of this Act, the President shall 
     prepare and transmit to the Congress a report containing the 
     plan developed pursuant to subsection (b).

     SEC. 8. ELIMINATING TRADE BARRIERS AND ENCOURAGING EXPORTS.

       (a) Findings.--The Congress makes the following findings:
       (1) The lack of competitiveness of sub-Saharan Africa in 
     the global market, especially in the manufacturing sector, 
     make it a limited threat to market disruption and no threat 
     to United States jobs.
       (2) Annual textile and apparel exports to the United States 
     from sub-Saharan Africa represent less than 1 percent of all 
     textile and apparel exports to the United States, which 
     totaled $45,932,000,000 in 1996.
       (3) Sub-Saharan Africa has limited textile manufacturing 
     capacity. During 1998 and the succeeding 4 years, this 
     limited capacity to manufacture textiles and apparel is 
     projected to grow at a modest rate. Given this limited 
     capacity to export textiles and apparel, it will be very 
     difficult for these exports from sub-Saharan Africa, during 
     1998 and the succeeding 9 years, to exceed 3 percent annually 
     of total imports of textile and apparel to the United States. 
     If these exports from sub-Saharan Africa remain around 3 
     percent of total imports, they will not represent a threat to 
     United States workers, consumers, or manufacturers.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that--
       (1) it would be to the mutual benefit of the countries in 
     sub-Saharan Africa and the United States to ensure that the 
     commitments of the World Trade Organization and associated 
     agreements are faithfully implemented in each of the member 
     countries, so as to lay the groundwork for sustained growth 
     in textile and apparel exports and trade under agreed rules 
     and disciplines;
       (2) reform of trade policies in sub-Saharan Africa with the 
     objective of removing structural impediments to trade, 
     consistent with obligations under the World Trade 
     Organization, can assist the countries of the region in 
     achieving greater and greater diversification of textile and 
     apparel export commodities and products and export markets; 
     and
       (3) the President should support textile and apparel trade 
     reform in sub-Saharan Africa by, among other measures, 
     providing technical assistance, sharing of information to 
     expand basic knowledge of how to trade with the United 
     States, and encouraging business-to-business contacts with 
     the region.
       (c) Treatment of Quotas.--
       (1) Kenya and mauritius.--Pursuant to the Agreement on 
     Textiles and Clothing, the United States shall eliminate the 
     existing quotas on textile and apparel exports to the United 
     States--
       (A) from Kenya within 30 days after that country adopts a 
     cost-effective and efficient visa system to guard against 
     unlawful transshipment of textile and apparel goods; and
       (B) from Mauritius within 30 days after that country adopts 
     such a visa system.
     The Customs Service shall provide the necessary assistance to 
     Kenya and Mauritius in the development and implementation of 
     those visa systems. The Customs Service shall monitor and the 
     Commissioner of Customs shall submit to the Congress, not 
     later than March 31 of each year, a report on the 
     effectiveness of those visa systems during the preceding 
     calendar year.
       (2) Other sub-saharan countries.--The President shall 
     continue the existing no quota policy for countries in sub-
     Saharan Africa. The President shall submit to the Congress, 
     not later than March 31 of each year, a report on the growth 
     in textiles and apparel exports to the United States from 
     countries in sub-Saharan Africa in order to protect United 
     States consumers, workers, and textile manufacturers from 
     economic injury on account of the no quota policy. The 
     President should ensure that any country in sub-Saharan 
     Africa that intends to export substantial textile and apparel 
     goods to the United States has in place a functioning and 
     efficient visa system to guard against unlawful transshipment 
     of textile and apparel goods.
       (d) Definition.--For purposes of this section, the term 
     ``Agreement on Textiles and Clothing'' means the Agreement on 
     Textiles and Clothing referred to in section 101(d)(4) of the 
     Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).

     SEC. 9. GENERALIZED SYSTEM OF PREFERENCES.

       (a) Preferential Tariff Treatment for Certain Articles.--
     Section 503(a)(1) of the Trade Act of 1974 (19 U.S.C. 
     2463(a)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following:
       ``(C) Eligible countries in sub-saharan africa.--The 
     President may provide duty-free treatment for any article set 
     forth in paragraph (1) of subsection (b) that is the growth, 
     product, or manufacture of an eligible country in sub-Saharan 
     Africa that is a beneficiary developing country, if, after 
     receiving the advice of the International Trade Commission in 
     accordance with subsection (e), the President determines that 
     such article is not import-sensitive in the context of 
     imports from eligible countries in sub-Saharan Africa. This 
     subparagraph shall not affect the designation of eligible 
     articles under subparagraph (B).''.
       (b) Rules of Origin.--Section 503(a)(2) of the Trade Act of 
     1974 (19 U.S.C. 2463(a)(2)) is amended by adding at the end 
     the following:
       ``(C) Eligible countries in sub-saharan africa.--For 
     purposes of determining the percentage referred to in 
     subparagraph (A) in the case of an article of an eligible 
     country in sub-Saharan Africa that is a beneficiary 
     developing country--
       ``(i) if the cost or value of materials produced in the 
     customs territory of the United States is included with 
     respect to that article, an amount not to exceed 15 percent 
     of the appraised value of the article at the time it is 
     entered that is attributed to such United States cost or 
     value may be applied toward determining the percentage 
     referred to in subparagraph (A); and
       ``(ii) the cost or value of the materials included with 
     respect to that article that are produced in any beneficiary 
     developing country that is an eligible country in sub-Saharan 
     Africa shall be applied in determining such percentage.''.
       (c) Waiver of Competitive Need Limitation.--Section 
     503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C. 
     2463(c)(2)(D)) is amended to read as follows:
       ``(D) Least-developed beneficiary developing countries and 
     eligible countries in sub-saharan africa.--Subparagraph (A) 
     shall not apply to any least-developed beneficiary developing 
     country or any eligible country in sub-Saharan Africa.''.
       (c) Extension of Program.--Section 505 of the Trade Act of 
     1974 (19 U.S.C. 2465) is amended to read as follows:

     ``SEC. 505. DATE OF TERMINATION.

       ``(a) Countries in Sub-Saharan Africa.--No duty-free 
     treatment provided under this title shall remain in effect 
     after May 31, 2007, with respect to beneficiary developing 
     countries that are eligible countries in sub-Saharan Africa.
       ``(b) Other Countries.--No duty-free treatment provided 
     under this title shall remain in effect after May 31, 1997, 
     with respect to beneficiary developing countries other than 
     those provided for in subsection (a).''.
       (d) Definition.--Section 507 of the Trade Act of 1974 (19 
     U.S.C. 2467) is amended by adding at the end the following:
       ``(6) Eligible country in sub-saharan africa.--The terms 
     `eligible country in sub-Saharan Africa' and `eligible 
     countries in sub-Saharan Africa' means a country or countries 
     that the President has determined to be eligible under 
     section 4 of the African Growth and Opportunity Act.''.

     SEC. 10. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT 
                   REDUCTION.

       (a) International Financial Institutions.--(1) It is the 
     sense of the Congress that international financial 
     institutions and improved application of programs such as 
     those of the International Development Association, the 
     African Development Bank, the African Development Fund, and 
     the Enhanced Structural Adjustment Facility of the 
     International Monetary Fund are vital to achieving the 
     purposes of this Act.
       (2) The Congress supports the efforts of the executive 
     branch to encourage international financial institutions to 
     develop enhanced mechanisms for providing financing for

[[Page S4897]]

     countries eligible under section 4, consistent with the 
     purposes of this Act.
       (b) Debt Reduction.--(1) It is the sense of the Congress 
     that the executive branch should extinguish concessional debt 
     owed to the United States by the poorest countries in sub-
     Saharan Africa that are heavily indebted and pursuing bold 
     growth-oriented policies, and that the executive branch 
     should seek comparable action by other creditors of such 
     countries.
       (2) The Congress supports the efforts of the executive 
     branch to secure agreement from international financial 
     institutions on maximum debt reduction for sub-Saharan Africa 
     as part of the multilateral initiative referred to as the 
     Heavily Indebted Poor Countries (HIPC) initiative.
       (c) Executive Branch Initiatives.--The Congress supports 
     and encourages the implementation of the following 
     initiatives of the executive branch:
       (1) American-african business partnership.--The Agency for 
     International Development devoting up to $1,000,000 annually 
     to help catalyze relationships between United States firms 
     and firms in sub-Saharan Africa through a variety of business 
     associations and networks.
       (2) Technical assistance to promote reforms.--The Agency 
     for International Development providing up to $5,000,000 
     annually in short-term technical assistance programs to help 
     the governments of sub-Saharan African countries to--
       (A) liberalize trade and promote exports;
       (B) bring their legal regimes into compliance with the 
     standards of the World Trade Organization in conjunction with 
     membership in that Organization; and
       (C) make financial and fiscal reforms, as well as the 
     United States Department of Agriculture providing support to 
     promote greater agribusiness linkages.
       (3) Agricultural market liberalization.--The Agency for 
     International Development devoting up to $15,000,000 annually 
     as part of the multi-year Africa Food Security Initiative to 
     help address such critical agricultural policy issues as 
     market liberalization, agricultural export development, and 
     agribusiness investment in processing and transporting 
     agricultural commodities.
       (4) Trade promotion.--The Trade Development Agency 
     increasing the number of reverse trade missions to growth-
     oriented countries in sub-Saharan Africa.
       (5) Trade in services.--Efforts by United States embassies 
     in the countries in sub-Saharan Africa to encourage their 
     host governments--
       (A) to participate in the ongoing negotiations on financial 
     services in the World Trade Organization;
       (B) to revise their existing schedules to the General 
     Agreement on Trade in Services of the World Trade 
     Organization in light of the successful conclusion of 
     negotiations on basic telecommunications services; and
       (C) to make further commitments in their schedules to the 
     General Agreement on Trade in Services in order to encourage 
     the removal of tariff and nontariff barriers and to foster 
     competition in the services sector in those countries.

     SEC. 11. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS.

       (a) Initiation of Funds.--It is the sense of the Congress 
     that the Overseas Private Investment Corporation should, 
     within 12 months after the date of the enactment of this Act, 
     exercise the authorities it has to initiate 2 or more equity 
     funds in support of projects in the countries in sub-Saharan 
     Africa.
       (b) Structure and Types of Funds.--
       (1) Structure.--Each fund initiated under subsection (a) 
     should be structured as a partnership managed by professional 
     private sector fund managers and monitored on a continuing 
     basis by the Corporation.
       (2) Capitalization.--Each fund should be capitalized with a 
     combination of private equity capital, which is not 
     guaranteed by the Corporation, and debt for which the 
     Corporation provides guaranties.
       (3) Types of funds.--
       (A) Equity fund for sub-saharan Africa.--One of the funds 
     should be an equity fund, with assets of up to $150,000,000, 
     the primary purpose of which is to achieve long-term capital 
     appreciation through equity investments in support of 
     projects in countries in sub-Saharan Africa.
       (B) Infrastructure fund.--One or more of the funds, with 
     combined assets of up to $500,000,000, should be used in 
     support of infrastructure projects in countries of sub-
     Saharan Africa. The primary purpose of any such fund would be 
     to achieve long-term capital appreciation through investing 
     in financing for infrastructure projects in sub-Saharan 
     Africa, including for the expansion of businesses in sub-
     Saharan Africa, restructurings, management buyouts and 
     buyins, businesses with local ownership, and privatizations.
       (4) Emphasis.--The Corporation shall ensure that the funds 
     are used to provide support in particular to women 
     entrepreneurs and to innovative investments that expand 
     opportunities for women and maximize employment opportunities 
     for poor individuals.

     SEC. 12. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-
                   IMPORT BANK INITIATIVES.

       (a) Overseas Private Investment Corporation.--
       (1) Board of directors to include member with private 
     sector experience in sub-saharan africa.--Section 233(b) of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2193(b)) is 
     amended in the first paragraph by inserting after the fifth 
     sentence the following: ``At least one of the eight Directors 
     appointed under the fourth sentence shall have extensive 
     private sector experience in sub-Saharan Africa.''.
       (2) Advisory board.--
       (A) In general.--Section 233 of the Foreign Assistance Act 
     of 1961 is amended by adding at the end the following:
       ``(e) Advisory Board.--The Board shall take prompt measures 
     to increase the loan, guarantee, and insurance programs, and 
     financial commitments, of the Corporation in sub-Saharan 
     Africa, including through the establishment and use of an 
     advisory committee to assist the Board in developing and 
     implementing policies, programs, and financial instruments 
     designed to support the expansion of, and increase in, the 
     provision of loans, guarantees, and insurance with respect to 
     sub-Saharan Africa. In addition, the advisory board shall 
     make recommendations to the Board on how the Corporation can 
     facilitate greater support by the United States for trade and 
     investment with and in sub-Saharan Africa.''.
       (B) Reports to the congress.--Within 6 months after the 
     date of the enactment of this Act, and annually for each of 
     the 4 years thereafter, the Board of Directors of the 
     Overseas Private Investment Corporation shall submit to the 
     Congress a report on the steps that the Board has taken to 
     implement section 233(e) of the Foreign Assistance Act of 
     1961 and any recommendations of the advisory board 
     established pursuant to such section.
       (b) Export-Import Bank.--
       (1) Board of directors to include member with private 
     sector experience in sub-saharan africa.--Section 3(c)(8)(B) 
     of the Export-Import Bank Act of 1945 (12 U.S.C. 
     635a(c)(8)(B)) is amended by inserting ``, and one such 
     member shall be selected from among persons who have 
     extensive private sector experience in sub-Saharan Africa'' 
     before the period.
       (2) Advisory board.--
       (A) In general.--Section 3 of such Act (12 U.S.C. 635a) is 
     amended by adding at the end the following:
       ``(f) The Board of Directors shall take prompt measures to 
     increase the loan, guarantee, and insurance programs, and 
     financial commitments, of the Bank in sub-Saharan Africa, 
     including through the establishment and use of an advisory 
     committee to assist the Board of Directors in developing and 
     implementing policies, programs, and financial instruments 
     designed to support the expansion of, and increase in, the 
     provision of loans, guarantees, and insurance with respect to 
     sub-Saharan Africa. In addition, the advisory board shall 
     make recommendations to the Board of Directors on how the 
     Bank can facilitate greater support by United States 
     commercial banks for trade and investment with and in sub-
     Saharan Africa.''.
       (B) Reports to the congress.--Within 6 months after the 
     date of the enactment of this Act, and annually for each of 
     the 4 years thereafter, the Board of Directors of the Export-
     Import Bank shall submit to the Congress a report on the 
     steps that the Board has taken to implement section 3(f) of 
     the Export-Import Bank Act of 1945 and any recommendations of 
     the advisory board established pursuant to such section.

     SEC. 13. ESTABLISHMENT OF ASSISTANT UNITED STATES TRADE 
                   REPRESENTATIVE FOR SUB-SAHARAN AFRICA.

       (a) Establishment.--The President shall establish a 
     position of Assistant United States Trade Representative 
     within the Office of the United States Trade Representative 
     to focus on trade issues relating to sub-Saharan Africa.
       (b) Funding and Staff.--The President shall ensure that the 
     Assistant United States Trade Representative appointed 
     pursuant to paragraph (1) has adequate funding and staff to 
     carry out the duties described in paragraph (1).

     SEC. 14. REPORTING REQUIREMENT.

       The President shall submit to the Congress, not later than 
     1 year after the date of the enactment of this Act, and not 
     later than the end of each of the next 4 1-year periods 
     thereafter, a report on the implementation of this Act.

     SEC. 15. SUB-SAHARAN AFRICA DEFINED.

       For purposes of this Act, the terms ``sub-Saharan Africa'', 
     ``sub-Saharan African country'', ``country in sub-Saharan 
     Africa'', and ``countries in sub-Saharan Africa'' refer to 
     the following:
       Republic of Angola (Angola)
       Republic of Botswana (Botswana)
       Republic of Burundi (Burundi)
       Republic of Cape Verde (Cape Verde)
       Republic of Chad (Chad)
       Republic of the Congo (Congo)
       Republic of Djibouti (Djibouti)
       State of Eritrea (Eritrea)
       Gabonese Republic (Gabon)
       Republic of Ghana (Ghana)
       Republic of Guinea-Bissau (Guinea-Bissau)
       Kingdom of Lesotho (Lesotho)
       Republic of Madagascar (Madagascar)
       Republic of Mali (Mali)
       Republic of Mauritius (Mauritius)
       Republic of Namibia (Namibia)
       Federal Republic of Nigeria (Nigeria)
       Democratic Republic of Sao Tome and Principe (Sao Tome and 
     Principe)
       Republic of Sierra Leone (Sierra Leone)
       Somalia
       Kingdom of Swaziland (Swaziland)
       Republic of Togo (Togo)
       Republic of Zaire (Zaire)

[[Page S4898]]

       Republic of Zimbabwe (Zimbabwe)
       Republic of Benin (Benin)
       Burkina Faso (Burkina)
       Republic of Cameroon (Cameroon)
       Central African Republic
       Federal Islamic Republic of the Comoros (Comoros)
       Republic of Cote d'Ivoire (Cote d'Ivoire)
       Republic of Equatorial Guinea (Equatorial Guinea)
       Ethiopia
       Republic of the Gambia (Gambia)
       Republic of Guinea (Guinea)
       Republic of Kenya (Kenya)
       Republic of Liberia (Liberia)
       Republic of Malawi (Malawi)
       Islamic Republic of Mauritania (Mauritania)
       Republic of Mozambique (Mozambique)
       Republic of Niger (Niger)
       Republic of Rwanda (Rwanda)
       Republic of Senegal (Senegal)
       Republic of Seychelles (Seychelles)
       Republic of South Africa (South Africa)
       Republic of Sudan (Sudan)
       United Republic of Tanzania (Tanzania)
       Republic of Uganda (Uganda)
       Republic of Zambia (Zambia)

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