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<PRE>[DOCID: f:h2121rfs.txt]
107th CONGRESS
  1st Session
                                H. R. 2121


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 12, 2001

Received; read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 AN ACT


 
  To make available funds under the Foreign Assistance Act of 1961 to 
expand democracy, good governance, and anti-corruption programs in the 
   Russian Federation in order to promote and strengthen democratic 
government and civil society in that country and to support independent 
                                 media.

    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 ``Russian Democracy Act of 2001''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress makes the following findings:
            (1) Since the dissolution of the Soviet Union, the 
        leadership of the Russian Federation has publicly committed 
        itself to building--
                    (A) a society with democratic political 
                institutions and practices, the observance of 
                universally recognized standards of human rights, and 
                religious and press freedom; and
                    (B) a market economy based on internationally 
                accepted principles of transparency, accountability, 
                and the rule of law.
            (2) In order to facilitate this transition, the 
        international community has provided multilateral and bilateral 
        technical assistance, and the United States' contribution to 
        these efforts has played an important role in developing new 
        institutions built on democratic and liberal economic 
        foundations and the rule of law.
            (3)(A) Since 1992, United States Government democratic 
        reform programs and public diplomacy programs, including 
        training, small grants, and technical assistance to independent 
        television, radio, and print media across the Russian 
        Federation, have strengthened nongovernment-owned media, 
        provided access to and training in the use of the Internet, 
        brought nearly 40,000 Russian citizens to the United States, 
        and have led to the establishment of over 65,000 
        nongovernmental organizations, thousands of vibrant independent 
        media outlets, and numerous political parties.
            (B) These efforts contributed to the substantially free and 
        fair Russian parliamentary elections in 1995 and 1999 and 
        Presidential elections in 1996 and 2000.
            (4) The United States has assisted Russian efforts to 
        replace its centrally planned, state-controlled economy with a 
        market economy and helped create institutions and 
        infrastructure for a market economy by encouraging the 
        transparent privatization of state-owned enterprises. 
        Approximately two-thirds of the Russian Federation's gross 
        domestic product is now generated by the private sector.
            (5)(A) The United States fostered grassroots 
        entrepreneurship in the Russian Federation by focusing United 
        States economic assistance on small- and medium-sized 
        businesses and by providing training, consulting services, and 
        small loans to more than 250,000 Russian entrepreneurs.
            (B) There are now more than 900,000 small businesses in the 
        Russian Federation, producing 12 to 15 percent of the gross 
        domestic product of the Russian Federation.
            (C) United States-funded programs help to fight corruption 
        and financial crime, such as money laundering, by helping to--
                    (i) establish a commercial legal infrastructure;
                    (ii) develop an independent judiciary;
                    (iii) support the drafting of a new criminal code, 
                civil code, and bankruptcy law;
                    (iv) develop a legal and regulatory framework for 
                the Russian Federation's equivalent of the United 
                States Securities and Exchange Commission;
                    (v) support Russian law schools;
                    (vi) create legal aid clinics; and
                    (vii) bolster law-related activities of 
                nongovernmental organizations.
            (6) Because the capability of Russian democratic forces and 
        the civil society to organize and defend democratic gains 
        without international support is uncertain, and because the 
        gradual integration of the Russian Federation into the global 
        order of free-market, democratic nations will further enhance 
        Russian cooperation with the United States on a wide-range of 
        political, economic, and security issues, the success of 
        democracy in Russia is in the national security interest of the 
        United States, and the United States Government should develop 
        a far-reaching and flexible strategy aimed at strengthening 
        Russian society's support for democracy and a market economy, 
        particularly by enhancing Russian democratic institutions and 
        education, promoting the rule of law, and supporting Russia's 
        independent media.
            (7) Since the tragic events of September 11, 2001, the 
        Russian Federation has stood with the United States and the 
        civilized world in the struggle against terrorism and has 
        cooperated in the war in Afghanistan by sharing intelligence 
        and through other means.
    (b) Purposes.--The purposes of this Act are--
            (1) to strengthen and advance institutions of democratic 
        government and of a free and independent media and to sustain 
        the development of an independent civil society in the Russian 
        Federation based on religious and ethnic tolerance, 
        internationally recognized human rights, and an internationally 
        recognized rule of law; and
            (2) to focus United States foreign assistance programs on 
        using local expertise and giving local organizations a greater 
        role in designing and implementing such programs, while 
        maintaining appropriate oversight and monitoring.

SEC. 3. UNITED STATES POLICY TOWARD THE RUSSIAN FEDERATION.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States Government should--
            (1) recognize that a democratic and economically stable 
        Russian Federation is inherently less confrontational and 
        destabilizing in its foreign policy and therefore that the 
        promotion of democracy in Russia is in the national security 
        interests of the United States; and
            (2) continue and increase assistance to the democratic 
        forces in the Russian Federation, including the independent 
        media, regional administrations, democratic political parties, 
        and nongovernmental organizations.
    (b) Statement of Policy.--It shall be the policy of the United 
States--
            (1) to facilitate Russia's integration into the Western 
        community of nations, including supporting the establishment of 
        a stable democracy and a market economy, and also including 
        Russia's membership in the appropriate international 
        institutions;
            (2) to engage the Government of Russian Federation and 
        Russian society in order to strengthen democratic reform and 
        institutions, and to promote good governance principles based 
        on the internationally recognized norms of transparency in 
        business practices, the rule of law, religious freedom, and 
        human rights;
            (3) to advance a dialog between United States Government 
        offici
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als and private sector individuals and representatives of 
        the Government of the Russian Federation regarding Russian 
        integration into the Western community of nations;
            (4) to encourage United States Government officials and 
        private sector individuals to meet regularly with democratic 
        activists, human rights activists, representatives of the 
        independent media, representatives of nongovernmental 
        organizations, civic organizers, and reform-minded politicians 
        from Moscow and the various regions of the Russian Federation;
            (5) to incorporate democratic reforms, the promotion of an 
        independent media, and economic reforms in the broad United 
        States agenda with the Government of the Russian Federation;
            (6) to encourage the Government of the Russian Federation 
        to address cross-border issues, including the environment, 
        crime, trafficking, and corruption in a cooperative and 
        transparent manner consistent with internationally recognized 
        and accepted principles of the rule of law;
            (7) to consult with the Government of the Russian 
        Federation and the Russian Parliament on the adoption of 
        economic and social reforms necessary to sustain Russian 
        economic growth and to ensure Russia's transition to a fully 
        functioning market economy;
            (8) to persuade the Government of the Russian Federation to 
        honor its commitments made to the Organization for Security and 
        Cooperation in Europe (OSCE) at the November 1999 Istanbul 
        Conference and to conduct a genuine good neighbor policy toward 
        the other independent states of the former Soviet Union in the 
        spirit of internationally accepted principles of regional 
        cooperation; and
            (9) to encourage the G-7 partners and international 
        financial institutions, including the World Bank, the 
        International Monetary Fund, and the European Bank for 
        Reconstruction and Development, to develop financial safeguards 
        and transparency practices in lending to the Russian 
        Federation.

 SEC. 4. AMENDMENTS TO THE FOREIGN ASSISTANCE ACT OF 1961.

    (a) Amendments.--
            (1) Democracy and rule of law.--Section 498(2) of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2295(2)) is amended--
                    (A) in the heading, by striking ``Democracy'' and 
                inserting ``Democracy and rule of law'';
                    (B) by striking subparagraphs (E) and (G);
                    (C) by redesignating subparagraph (F) as 
                subparagraph (I);
                    (D) by inserting after subparagraph (D) the 
                following:
                    ``(E) development and support of grass-roots and 
                nongovernmental organizations promoting democracy, the 
                rule of law, transparency, and accountability in the 
                political process, including grants in small amounts to 
                such organizations;
                    ``(F) international exchanges to promote greater 
                understanding by Russian Federation citizens on how 
                democracy, public policy process, market institutions, 
                and an independent judiciary function in Western 
                societies;
                    ``(G) political parties committed to promoting 
                democracy, human rights, and economic reforms;
                    ``(H) support for civic organizations committed to 
                promoting human rights; and''; and
                    (E) by adding at the end the following:
                    ``(J) strengthened administration of justice 
                through programs and activities carried out in 
                accordance with section 498B(e), including--
                            ``(i) support for nongovernmental 
                        organizations, civic organizations, and 
                        political parties that favor a strong and 
                        independent judiciary based on merit;
                            ``(ii) support for local organizations that 
                        work with judges and law enforcement officials 
                        in efforts to achieve a reduction in the number 
                        of pretrial detainees; and
                            ``(iii) support for the creation of Russian 
                        legal associations or groups that provide 
                        training in human rights and advocacy, public 
                        education with respect to human rights-related 
                        laws and proposed legislation, and legal 
                        assistance to persons subject to improper 
                        government interference.''.
            (2) Independent media.--Section 498 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2295) is amended--
                    (A) by redesignating paragraphs (3) through (13) as 
                paragraphs (4) though (14), respectively; and
                    (B) by inserting after paragraph (2) the following:
            ``(3) Independent media.--Developing a free and independent 
        media, including--
                    ``(A) supporting all forms of non-state-owned media 
                reporting, including print, radio, and television;
                    ``(B) providing special support for, and 
                unrestricted public access to, nongovernmental 
                Internet-based sources of information, dissemination 
                and reporting, including providing technical and other 
                support for web radio services, providing computers and 
                other necessary resources for Internet connectivity and 
                training new Internet users in nongovernmental and 
                other civic organizations on methods and uses of 
                Internet-based media; and
                    ``(C) training in journalism, including 
                investigative journalism techniques which educate the 
                public on the costs of corruption and act as a 
                deterrent against corrupt officials.''.
    (b) Conforming Amendment.--Section 498B(e) of such Act is amended 
by striking ``paragraph (2)(G)'' and inserting ``paragraph (2)(J)''.

SEC. 5. ACTIVITIES TO SUPPORT THE RUSSIAN FEDERATION.

    (a) Assistance Programs.--In providing assistance to the Russian 
Federation under chapter 11 of part I of the Foreign Assistance Act of 
1961 (22 U.S.C. 2295 et seq.), the President is authorized to carry out 
the following specific activities:
            (1) Work with the Government of the Russian Federation, the 
        Duma, and representatives of the Russian Federation judiciary 
        to help implement a revised and improved code of criminal 
        procedure and other laws.
            (2) Establish civic education programs relating to 
        democracy, public policy, the rule of law, and the importance 
        of an independent media, including the establishment of 
        ``American Centers'' and public policy schools at Russian 
        universities and programs by universities in the United States 
        to offer courses through Internet-based off-site learning 
        centers at Russian universities.
            (3) Support the Regional Initiatives (RI) program, which 
        provides targeted assistance in those regions of the Russian 
        Federation that have demonstrated commitment to reform, 
        democracy, and the rule of law, and which promote the concept 
        of such programs as a model for all regions of the Russian 
        Federation.
    (b) Radio Free Europe/Radio Liberty and Voice of America.--Radio 
Free Europe/Radio Liberty and the Voice of America should use new and 
innovative techniques, in cooperation with local independent media 
sources, to disseminate information throughout the Russian Federation 
relating to democracy, free-market ec
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onomics, the rule of law, and 
human rights.

SEC. 6. AUTHORIZATION OF ASSISTANCE FOR DEMOCRACY, INDEPENDENT MEDIA, 
              AND THE RULE OF LAW.

    Of the amounts made available to carry out the provision of chapter 
11 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et 
seq.) and the Freedom for Russia and Emerging Eurasian Democracies and 
Open Markets Support Act of 1992 for fiscal year 2002, not less than 
$50,000,000 is authorized to be available for the activities authorized 
by paragraphs (2) and (3) of section 498 of the Foreign Assistance Act 
of 1961, as amended by section 4(a) of this Act.

            Passed the House of Representatives December 11, 2001.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

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