[Congressional Record Volume 153, Number 170 (Monday, November 5, 2007)]
[House]
[Pages H12462-H12464]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         EURASIA FOUNDATION ACT

  Mr. ENGEL. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 2949) to authorize grants to the Eurasia Foundation, and for 
other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2949

       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 ``Eurasia Foundation Act''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) There has been established in the District of Columbia 
     a private, nonprofit corporation known as the Eurasia 
     Foundation (hereafter in this Act referred to as the 
     ``Foundation''), which is not an agency or establishment of 
     the United States Government.
       (2) In recognition of the valuable contributions of the 
     Foundation to long-range United States foreign policy 
     interests, the United States Government has, through the 
     United States Agency for International Development and the 
     Department of State, provided financial support for the 
     Foundation.
       (3) It is in the interest of the United States, and the 
     further strengthening of cooperation with the countries of 
     Eurasia, to establish a more permanent mechanism for United 
     States Government financial support for the ongoing 
     activities of the Foundation, while preserving the 
     independent character of the Foundation.
       (b) Purposes.--The purposes of the Foundation are--
       (1) to promote civil society, private enterprise, and sound 
     public administration and policy in the countries of Eurasia 
     and in lending encouragement and assistance to citizens of 
     such countries in their own efforts to develop more open, 
     just, and democratic societies;
       (2) to strengthen indigenous institutions that foster 
     national development, constructive social change, equitable 
     economic growth, and cooperative international relationships 
     that are fully consistent with and supportive of long-term 
     United States interests with respect to the countries of 
     Eurasia; and
       (3) to conduct programs in response to initiatives in the 
     countries of Eurasia that would be difficult or impossible 
     for an official United States entity, and, as a result of its 
     position in the countries of Eurasia, to respond quickly and 
     flexibly to meet new opportunities.

     SEC. 3. GRANTS TO THE FOUNDATION.

       (a) Grants Required.--
       (1) In general.--The Secretary of State shall make an 
     annual grant to the Foundation to enable the Foundation to 
     carry out its purposes as specified in section 2(b).
       (2) Additional requirements.--Each grant required under 
     paragraph (1)--
       (A) shall be made with funds specifically appropriated for 
     grants to the Foundation; and
       (B) shall be made pursuant to a grant agreement between the 
     Secretary and the Foundation which--
       (i) requires that grant funds will only be used for 
     activities the Board of Directors of the Foundation 
     determines are consistent with the purposes described in 
     section 2(b), and that the Foundation will otherwise comply 
     with the requirements of this Act; and
       (ii) may not require the Foundation to comply with 
     requirements other than those specified in this Act.
       (b) Use of Funds.--The Foundation may use funds received 
     under a grant described in subsection (a) to carry out the 
     purposes described in section 2(b).
       (c) Rule of Construction.--Nothing in this Act shall be 
     construed to make the Foundation an agency or establishment 
     of the United States Government or to make the members of the 
     Board of Directors of the Foundation, or the officers or 
     employees of the Foundation, officers or employees of the 
     United States.
       (d) Oversight.--The Foundation and its grantees shall be 
     subject to the appropriate oversight procedures of Congress.
       (e) Other Funding.--The Foundation shall have authority to 
     accept funding from non-United States Government sources to 
     complement United States Government funding.
       (f) Sense of Congress.--It is the sense of Congress that--
       (1) a robust Foundation, funded at the levels authorized 
     under section 6 of this Act, and at appropriate levels in 
     subsequent fiscal years, can contribute significantly to the 
     political, economic, and social development of democracy and 
     human rights in the countries of Eurasia;
       (2) notwithstanding the Foundation's distinguished record 
     of performance, organizations that seek competitive grants 
     typically perform in a more transparent and effective manner; 
     and
       (3) to the maximum extent possible, the Foundation should 
     seek competitive grants to supplement appropriations from the 
     United States Government, and at least 20 percent of the 
     funding received in each fiscal year by the Foundation should 
     be from non-United States Government sources to ensure 
     continued strong performance of the Foundation.

     SEC. 4. ELIGIBILITY OF THE FOUNDATION FOR GRANTS.

       (a) Compliance With Statutory Requirements.--Grants may be 
     made to the Foundation under this Act only if the Foundation 
     agrees to comply with the requirements specified in this 
     section and elsewhere in this Act.
       (b) Funding for Covered Programs Only.--The Foundation may 
     provide funding only for programs that are consistent with 
     the purposes set forth in section 2(b).
       (c) Compensation for Officers and Employees of the 
     Foundation.--If an individual who is an officer or employee 
     of the United States Government serves as a member of the 
     Board of Directors or as an officer or employee of the 
     Foundation, that individual may not receive any compensation 
     or travel expenses in connection with service performed for 
     the Foundation.
       (d) Prohibition Respecting Financial Matters.--The 
     Foundation shall not issue any shares of stock or declare or 
     pay any dividends. No part of the assets of the Foundation 
     shall inure to the benefit of any member of the Board of 
     Directors of the Foundation, any officer or employee of the 
     Foundation, or any other individual, except as salary or 
     reasonable compensation for expenses incurred in the 
     performance of duties to the Foundation.
       (e) Audit of Accounts; Reporting Requirements.--
       (1) Audit of accounts.--The accounts of the Foundation 
     shall be audited annually in accordance with generally 
     accepted auditing standards by independent certified public 
     accountants or independent licensed public accountants 
     certified or licensed by a regulatory authority of a State or 
     other political subdivision of the United States.
       (2) Reporting requirements.--The report of each such 
     independent audit shall be included in the annual report 
     required by subsection (h) of this section. The audit report 
     shall set forth the scope of the audit and include such 
     statements as are necessary to present fairly the 
     Foundation's assets and liabilities, surplus or deficit, with 
     an analysis of the changes therein during the year, 
     supplemented in reasonable detail by a statement of the 
     Foundation's income and expenses during the year, and a 
     statement of the application of funds, together with the 
     independent auditor's opinion of those statements.
       (f) Audit of Financial Transactions.--
       (1) Audit of financial transactions.--The financial 
     transactions of the Foundation for each fiscal year may be 
     audited by the Government Accountability Office in accordance 
     with such principles and procedures and under such rules and 
     regulations as may be prescribed by the Comptroller General 
     of the United States.
       (2) Reporting requirements.--A report of each such audit 
     shall be made by the Comptroller General to the Congress. The 
     report to the Congress shall contain such comments and 
     information as the Comptroller General may deem necessary to 
     inform the Congress of the financial operations and condition 
     of the Foundation, together which such recommendations with 
     respect thereto as the Comptroller General may deem 
     advisable. A copy of each report shall be furnished to the 
     President and to the Foundation at the time submitted to the 
     Congress.
       (g) Recordkeeping Requirements; Audit and Examination of 
     Books.--
       (1) Recordkeeping requirements.--The Foundation shall 
     ensure that each recipient

[[Page H12463]]

     of assistance provided through the Foundation under this Act 
     keeps such records as may be reasonably necessary to fully 
     disclose the amount and the disposition by such recipient of 
     the proceeds of such assistance, the total cost of the 
     project or undertaking in connection with which such 
     assistance is given or used, and the amount and nature of 
     that portion of the cost of the project or undertaking 
     supplied by other sources, and such other records as will 
     facilitate an effective audit.
       (2) Audit and examination of books.--The Foundation shall 
     ensure that it, or any of its duly authorized 
     representatives, shall have access for the purpose of audit 
     and examination to any books, documents, papers, and records 
     of the recipient that are pertinent to assistance provided 
     through the Foundation under this Act. The Comptroller 
     General of the United States or any duly authorized 
     representative of the Comptroller General shall also have 
     access thereto for such purpose.
       (h) Annual Report; Testimony Relating to Report.--
       (1) Annual report.--
       (A) In general.--Not later than March 31 of each year, the 
     Foundation shall submit an annual report for the preceding 
     fiscal year to the President for transmittal to the Congress.
       (B) Contents.--The report required under subparagraph (A) 
     shall include a comprehensive and detailed report of the 
     Foundation's operations, activities, financial condition, and 
     accomplishments under this Act and may include such 
     recommendations as the Foundation deems appropriate. The 
     report should also include any information regarding 
     allegations or reports on the misuse of funds and how such 
     allegations or reports were addressed by the Foundation.
       (2) Testimony relating to report.--The Board members and 
     officers of the Foundation shall be available to testify 
     before appropriate committees of the Congress with respect to 
     the report required under paragraph (1), the report of any 
     audit made by the Comptroller General of the United States 
     pursuant to subsection (f) of this section, or any other 
     matter which any such committees may determine.
       (i) Grantee; Conflict of Interest.--A member of the Board 
     of Directors of the Foundation who serves as a member of the 
     board of directors or an officer of a grantee of the 
     Foundation may not receive compensation for their services 
     but shall be entitled to reimbursement for travel and other 
     expenses incurred by them in connection with their duties on 
     behalf of such grantee.

     SEC. 5. AGREEMENT BETWEEN FOUNDATION AND SUCCESSOR OR RELATED 
                   ENTITY TO THE U.S. RUSSIA INVESTMENT FUND.

       (a) Agreement Required.--The Foundation and any successor 
     or related entity to the U.S. Russia Investment Fund shall 
     enter into a memorandum of understanding for the purpose of 
     coordinating activities carried out by the Foundation and the 
     successor or related entity. The memorandum of understanding 
     shall include language that prohibits the same entities from 
     carrying out the same activities.
       (b) Deadline.--The memorandum of understanding described in 
     subsection (a) shall be entered into between the Foundation 
     and the successor or related entity described in subsection 
     (a) by not later than the later of the following:
       (1) If the successor or related entity is established on or 
     before the date of the enactment of this Act, 90 days after 
     the date of the enactment of this Act.
       (2) If the successor or related entity is established after 
     the date of the enactment of this Act, 90 days after the date 
     on which the entity is established.
       (c) Submission to Secretary of State and Congress.--The 
     Foundation and the successor or related entity described in 
     subsection (a) shall submit to the Secretary of State and 
     Congress a copy of the memorandum of understanding described 
     in subsection (a) not later than 30 days after the date on 
     which the parties enter into the memorandum of understanding.
       (d) Limitations.--For the period beginning on the date on 
     which the successor or related entity described in subsection 
     (a) is established, or the date of the enactment of this Act, 
     whichever occurs later, and ending on the date on which the 
     memorandum of understanding described in subsection (a) is 
     entered into--
       (1) United States assistance may not be provided to the 
     Foundation under any other provision of law; and
       (2) funds may not be transferred from the U.S. Russia 
     Investment Fund to the successor or related entity or placed 
     in a trust on behalf of the successor or related entity.  
       (e) Successor or Related Entity to the U.S. Russia 
     Investment Fund Defined.--In this section, the term 
     ``successor or related entity to the U.S. Russia Investment 
     Fund'' or ``successor or related entity'' means any 
     organization, corporation, limited-liability partnership, 
     foundation, or other corporate structure that receives any or 
     all of the remaining funds of the U.S. Russia Investment Fund 
     after liquidation of assets upon closure of the U.S. Russia 
     Investment Fund.  

     SEC. 6. COUNTRIES OF EURASIA DEFINED.

       In this Act, the term ``countries of Eurasia'' means 
     Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, the Kyrgyz 
     Republic, Moldova, the Russian Federation, Tajikistan, 
     Turkmenistan, Ukraine, and Uzbekistan.

     SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     carry out this Act $15,000,000 for fiscal year 2008 and such 
     sums as may be necessary for fiscal year 2009.
       (b) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriation under subsection (a) are 
     authorized to remain available for 2 years from the end of 
     the fiscal year for which the amount was appropriated.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Engel) and the gentleman from Arkansas (Mr. Boozman) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New York.


                             General Leave

  Mr. ENGEL. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise and extend their remarks and include 
extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. ENGEL. Mr. Speaker, I rise in strong support of this bill, and I 
yield myself as much time as I may consume.
  Let me first thank my good friend and colleague, the chairman of the 
Europe Subcommittee, Mr. Wexler from Florida, for introducing this 
important bill.
  The Eurasia Foundation has been a key U.S. government partner in the 
ongoing effort to promote democracy, expand economic opportunities, and 
facilitate government reform in countries that formerly comprised the 
Soviet Union.
  Created in 1992 with bipartisan support, the Eurasia Foundation has 
invested over $360 million in Russia, the Caucasus, and Central Asia in 
programs that have complemented United States goals for participatory 
government and active citizenry in this region.
  In addition, the Eurasia Foundation has been able to leverage 
significant private sector funding, in main part due to the annual 
funding support from the U.S. Government.
  This bill seeks to enhance those efforts by recognizing the Eurasia 
Foundation as a distinct and independent entity that could continue to 
raise private capital while under a U.S. Government authorization.
  Vital work remains unfinished in this part of the world. It is clear 
that political and economic stability in Eurasia will have a direct 
impact on the security of the United States.
  For these reasons, it's imperative that we continue to support 
programs such as those conducted by the Eurasia Foundation.
  I strongly support this legislation and encourage my colleagues to do 
the same.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BOOZMAN. Mr. Speaker, I yield myself such time as I may consume.
  The Eurasia Foundation has reportedly done some good work over the 
past few years of the region of the former Soviet Union. Because the 
aid programs for the countries of that region from which the foundation 
has received its funding are now closing down, the issue before us is 
whether that foundation should be authorized to continue to receive 
funds directly from the U.S. in order to continue its democracy 
promotion work independently. I suspect that for many of us in this 
House the answer would be yes.
  Just as we have had an Asia foundation, it is possible to see the 
work of funding this kind of foundation to do democracy promotion in 
Eurasia.

                              {time}  1430

  The passage of this bill, H.R. 2949, would help ensure that funding.
  At the request of Members from our side of the aisle and the Foreign 
Affairs Committee, this bill has been amended in committee to try to 
address a significant problem that is not directly related to the 
Eurasia Foundation but that is an issue of importance to the wise use 
of our United States Government funds if they are appropriated to the 
foundation under this bill in the future.
  Independent of the Eurasia Foundation, our United States Government-
funded Enterprise Fund in Russia, the major state of that region, is 
closing down and is seeking to use the hundreds of millions of dollars 
from the

[[Page H12464]]

sale of its assets to fund democracy promotion, civil society and rule-
of-law programs in Russia, as well as economic reform efforts.
  At the same time, we have democracy promotion programs under way 
across Russia and the rest of the region, through the National 
Endowment for Democracy, the National Democratic Institute, and the 
International Republican Institute.
  So there is obviously a possibility that duplications of efforts will 
take place unless this Congress finds ways to ensure that it doesn't. 
We don't want to see U.S. Government-funded organizations compete to do 
the same kinds of activities if that leads to duplication and waste, 
and the democracy promotion in that region is too important to see 
money wasted at a time when Russian President Putin and others are 
forcing their own brand of authoritarian government on their nations.
  This measure has been amended in a way that seeks to mandate that any 
successor to the U.S. Government-funded Enterprise Fund in Russia has 
to reach an agreement with the Eurasia Foundation before it engages in 
any democracy promotion efforts in that country. Hopefully, that will 
eliminate duplication to some degree.
  The bill, as amended, does not go as far as some of us would like, I 
must note. It does not address the similar situation that will arise in 
the Ukraine in the next few years when our U.S. Government-funded 
Enterprise Fund there closes down and seeks to set up its own successor 
foundation that may, once again, end up duplicating the work done by 
the Eurasia Foundation in the Ukraine.
  It also does not address a completely separate question about how the 
assets of such U.S. Government-funded Enterprise Funds in Russia and 
Ukraine will be disposed of, an issue that involves hundreds of 
millions of dollars in U.S. taxpayer funds. It has been the practice to 
ensure that the taxpayers get back at least 50 percent of the funds 
held by such funds when they close down their operations.
  There is an effort in the House-passed fiscal year 2008 foreign aid 
appropriations bill, however, to allow our fund in Russia not to turn 
back to our Treasury half of its assets. That would mean that the 
taxpayers would lose $160 million, or perhaps even more than that, 
depending on the value of the assets sold in the case of the Russia 
fund alone. Those are monies that might otherwise go to help fund other 
worthwhile programs.
  Perhaps this is not the bill in which to debate that issue, and our 
efforts in committee to address it in this measure were unsuccessful. 
But I take this opportunity to point out that issue in the hopes that 
the administration will be supported by Congress in its efforts to 
follow current practice and ensure that our Treasury gets back that 
very significant sum of money.
  Mr. WEXLER. Mr. Speaker, I rise in strong support of H.R. 2949, 
authorizing 15 million dollars in appropriations to the Eurasia 
Foundation for Fiscal Years 2008 and 2009. This legislation will enable 
the Eurasia Foundation--which has been operating in the former Soviet 
Union since 1992--to continue to engage at the highest level in 
democracy building, civil society promotion and private sector 
expansion.
  I wish to thank Chairman Lantos and Ranking Member Ros-Lehtinen for 
their support of this legislation, as well as Congressman Gallegly who 
was the lead sponsor of this legislation in the 109th Congress. All of 
these Members have been tireless advocates for providing critical aid 
and support to former Soviet countries.
  Mr. Speaker, this legislation comes at a critical time in our 
relations with Eurasian states that are still in political, economic 
and social transition following the collapse of the Soviet Union. It is 
also coming at a time when U.S. aid to the region is unconscionably 
shrinking. To this end, organizations such as the Eurasia Foundation 
are critical components of our strategy to remain engaged at 
governmental and non-governmental levels in a region that stretches 
from Armenia to Uzbekistan and from Ukraine to Kazakhstan.
  This legislation recognizes the important work being done by the 
Eurasia Foundation and its efforts to promote civil society, public 
administration and rule of law--in a region of the world that needs 
America's attention, assistance and support. Passage of H.R. 2949 today 
will provide the Eurasia Foundation--a partner of the U.S.--the funds 
it needs to continue to issue thousands of grants and operate programs 
in Eurasia that have proven to be effective over fourteen years.
  Again, I want to thank Chairman Lantos and Ranking Member Ros-
Lehtinen for supporting this important legislation and urge my 
colleagues to vote in favor of this legislation when it comes to the 
floor for a vote.
  Mr. BOOZMAN. Mr. Speaker, I yield back the balance of my time.
  Mr. ENGEL. Mr. Speaker, I yield back the balance of my time as well.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York (Mr. Engel) that the House suspend the rules 
and pass the bill, H.R. 2949, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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