2000 
[DOCID: f:h3566ih.txt]






107th CONGRESS
  1st Session
                                H. R. 3566

 To provide for the establishment of a trust fund at the International 
   Bank for Reconstruction and Development to address long-term food 
 production and rural development needs in Afghanistan and the Central 
                            Asian Republics.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 20, 2001

 Mr. Bereuter (for himself, Mrs. Clayton, Mr. Nethercutt, Mr. Sawyer, 
    Mr. Osborne, Mr. Hall of Ohio, Mrs. Johnson of Connecticut, Mr. 
 Doggett, Mr. Ehlers, Mr. George Miller of California, Mr. Shays, Ms. 
Millender-McDonald, Mr. Snyder, Mr. Waxman, Mr. Payne, and Ms. Baldwin) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
 To provide for the establishment of a trust fund at the International 
   Bank for Reconstruction and Development to address long-term food 
 production and rural development needs in Afghanistan and the Central 
                            Asian Republics.

    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 ``Afghanistan and Central Asian 
Republics Sustainable Food Production Trust Fund Act of 2001''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) abject poverty and the inability to produce food, even 
        at the subsistence level, in the rural, mountainous areas of 
        Afghanistan and the Central Asian Republics have plagued the 
        region for over 20 years;
            (2) extended food shortages in this region have resulted in 
        the consumption of seed supplies and breeding livestock 
        necessary to continue farming and food production;
            (3) ongoing and violent conflict in the region has badly 
        damaged or destroyed the basic irrigation systems necessary for 
        food production;
            (4) despite the delivery of over $185,000,000 in aid from 
        the United States in fiscal year 2001 toward humanitarian 
        assistance needs in Afghanistan, millions of people remain at 
        risk of severe malnutrition and starvation in the short- and 
        long-terms;
            (5) on October 4, 2001, President George W. Bush announced 
        that the people of Afghanistan, and the governments of 
        Pakistan, Iran, Tajikistan, Uzbekistan, and Turkmenistan will 
        receive an additional $320,000,000 humanitarian assistance 
        package for emergency food and refugee assistance to address 
        the region's immediate needs during the war on terrorism; and
            (6) in addition to addressing short-term emergency 
        assistance needs in Afghanistan and the mountainous regions of 
        the Central Asian Republics, addressing the long-term food 
        production and rural development issues in region will be 
        critical to attaining some stability in the region.

SEC. 3. ESTABLISHMENT.

    (a) Negotiations for Establishment of Trust Fund.--The Secretary of 
the Treasury shall seek to enter into negotiations with the 
International Bank for Reconstruction and Development, in consultation 
with the Administrator of the United States Agency for International 
Development and other United States Government agencies, and with the 
member nations of the Bank and with other interested parties, for the 
establishment within the Bank of--
            (1) the Afghanistan and Central Asian Republics Sustainable 
        Food Production Trust Fund (in this Act referred to as the 
        ``Trust Fund'') in accordance with the provisions of this Act; 
        and
            (2) the Advisory Board to the Trust Fund in accordance with 
        section 6.
    (b) Purpose.--The purpose of the Trust Fund should be to use 
contributed funds to develop sustainable food production for 
Afghanistan and the mountainous regions of other countries of Central 
Asia through restocking seed, replacing breeding livestock, restoring 
basic irrigation systems, and providing access to credit for food 
production, processing, or marketing enterprises through rural 
microenterprise loan programs.
    (c) Composition.--
            (1) In general.--It is the sense of the Congress that the 
        Trust Fund should be governed by a Board of Trustees, which 
        should be composed of representatives of the participating 
        donor countries to the Trust Fund. Individuals appointed to the 
        Board should have demonstrated knowledge and experience in the 
        fields of agriculture production and rural microenterprise loan 
        programs.
            (2) United states representation.--
                    (A) In general.--If there is a Board of Trustees of 
                the Trust Fund, the United States representative shall 
                be the Administrator of the United States Agency for 
                International Development or the Administrator's 
                designee.
                    (B) Effective and termination dates.--
                            (i) Effective date.--This paragraph shall 
                        take effect upon the date the Secretary of the 
                        Treasury certifies to Congress that an 
                        agreement establishing the Trust Fund and 
                        providing for a United States member of the 
                        Board of Trustees is in effect.
                            (ii) Termination date.--The position 
                        established by subparagraph (A) is abolished 
                        upon the date of termination of the Trust Fund.

SEC. 4. GRANT AUTHORITIES.

    (a) Program Objectives.--It is the sense of the Congress that:
            (1) In general.--In carrying out the purpose of section 
        3(b), the Trust Fund, acting through the Board of Trustees, 
        should provide only grants to nongovernmental organizations for 
        the purpose of carrying out the activities described in 
        paragraph (2) in Afghanistan and the other countries of Central 
        Asia in accordance with this section.
            (2) Activities supported.--
                    (A) In general.--Among the activities for which the 
                Trust Fund should provide grants should be--
                            (i) procurement of seed for local food 
                        production;
                            (ii) replacement of breeding livestock;
                            (iii) restoration of basic irrigation 
                        systems;
                            (iv) establishment of access to credit for 
                        food production, processing, or marketing 
                        enterprises through rural microenterprise loan 
                        programs; and
                            (v) providing technical assistance.
                    (B) Limitation.--Amounts received under a grant 
                should not be used to carry out activities related to 
                emergencies or disasters.
            (3) Applications.--A nongovernmental organization that 
        desires to receive a grant under this section should submit an 
        application for the grant to the Board of Trustees. The 
        application should be developed by the nongovernmental 
        organization in close consultation with local indigenous 
        entities, or associated persons of a village or villages, 
        located in the country within which the activities supported by 
        the grant will be carried out.
            (4) Implementation of program objectives.--In carrying out 
        the objectives of paragraph (1), the Trust Fund should--
                    (A) coordinate its activities with governments of 
                countri
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es authorized to receive grants under this 
                section, local and regional governments of such 
                countries, nongovernmental organizations operating in 
                such countries, and private donors;
                    (B) provide minimal supplementary grants for 
                associated administrative costs to the national and 
                regional governments of the country for which grants to 
                nongovernmental organizations are approved under this 
                section;
                    (C) provide oversight of grants disbursed under 
                this section, including procedures under which a 
                nongovernmental organization that misuses grant funds 
                or otherwise fails to adequately carry out the 
                activities described in paragraph (2) should be 
                disqualified from receiving additional grants under 
                this section for not less than 1 year; and
                    (D) coordinate efforts with national, regional, and 
                local government officials to conduct an annual review 
                of disbursement of grant funds and the effectiveness of 
                activities carried out with grant funds.
    (b) Restriction Relating To the Use of United States Funds in 
Afghanistan.--Funds made available under this Act may not be used 
during a fiscal year for any activity in Afghanistan which is described 
in subsection (a)(2) unless the Secretary of State certifies for the 
fiscal year that there has been substantial progress made toward the 
establishment of a government in Afghanistan that meets the following 
requirements:
            (1) The government includes broad representation from the 
        diverse ethnic and religious groups of Afghanistan, including 
        both men and women from such groups.
            (2) The government does not sponsor terrorism or harbor 
        terrorists.
            (3) The government demonstrates a strong and determined 
        commitment to eliminating the production of opium-producing 
        poppies.
            (4) The government meets the conditions outlined in the 
        United Nations Universal Declaration of Human Rights.

SEC. 5. ADMINISTRATION.

    (a) Sense of the Congress.--It is the sense of the Congress that:
            (1) Appointment of an administrator.--The Board of 
        Trustees, in consultation with the appropriate officials of the 
        Bank, should appoint an Administrator who should be responsible 
        for managing the day-to-day operations of the Trust Fund.
            (2) Authority to solicit and accept contributions.--The 
        Trust Fund should be authorized to solicit and accept 
        contributions from governments, the private sector, and 
        nongovernmental entities of all kinds.
            (3) Selection of projects and recipients.--The Board of 
        Trustees should establish--
                    (A) criteria for the selection of projects to 
                receive support from the Trust Fund;
                    (B) standards and criteria regarding qualifications 
                of recipients of such support;
                    (C) such rules and procedures as may be necessary 
                for cost-effective management of the Trust Fund and the 
                projects that it funds;
                    (D) such rules and procedures as may be necessary 
                to ensure transparency and accountability in the grant-
                making process; and
                    (E) criteria for an annual review process for all 
                projects receiving grants.
            (4) Transparency of operations.--The Board of Trustees 
        should ensure full and prompt public disclosure of the proposed 
        objectives, financial organization, and operations of the Trust 
        Fund.
    (b) Accountability of Funds and Criteria for Programs.--As part of 
the negotiations described in section 3(a), the Secretary of the 
Treasury shall, consistent with subsection (a)(3) of this section--
            (1) take such actions as are necessary to ensure that the 
        Bank will have in effect adequate procedures and standards to 
        account for and monitor the use of funds contributed to the 
        Trust Fund, including the cost of administering the Trust Fund; 
        and
            (2) seek agreement on the criteria that should be used to 
        determine the programs and activities that should be assisted 
        by the Trust Fund.

SEC. 6. ADVISORY BOARD.

    (a) Sense of the Congress.--It is the sense of the Congress that:
            (1) In general.--There should be an Advisory Board to the 
        Trust Fund.
            (2) Appointments.--The members of the Advisory Board should 
        be drawn from--
                    (A) a broad range of individuals with experience 
                and leadership in the fields of development, with 
                particular priority for individuals with experience in 
                agricultural production and rural microenterprise loan 
                programs; and
                    (B) representatives of relevant United Nations 
                agencies and nongovernmental organizations with on-the-
                ground experience in countries authorized to receive 
                grants.
            (3) Responsibilities.--The Advisory Board should provide 
        advice and guidance to the Board of Trustees on the development 
        and implementation of programs and projects to be assisted by 
        the Trust Fund and on leveraging donations to the Trust Fund.
            (4) Prohibition on payment of compensation.--Except for 
        travel expenses (including per diem in lieu of subsistence), no 
        member of the Advisory Board should receive compensation for 
        services performed as a member of the Board.
    (b) United States Representative.--Notwithstanding any other 
provision of law (including an international agreement), a 
representative of the United States on the Advisory Board may not 
accept compensation for services performed as a member of the Board, 
except that such representative may accept travel expenses, including 
per diem in lieu of subsistence, while away from the representative's 
home or regular place of business in the performance of services for 
the Board.

SEC. 7. REPORTS TO CONGRESS.

    (a) Annual Reports by Secretary of the Treasury.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, and annually thereafter for the 
        duration of the Trust Fund, the Secretary of the Treasury shall 
        submit to the appropriate committees of Congress a report on 
        the Trust Fund.
            (2) Report elements.--The report shall include a 
        description of--
                    (A) the goals of the Trust Fund;
                    (B) the programs, projects, and activities 
                supported by the Trust Fund;
                    (C) private and governmental contributions to the 
                Trust Fund;
                    (D) the criteria that have been established, 
                acceptable to the Secretary of the Treasury and the 
                Administrator of the United States Agency for 
                International Development, that would be used to 
                determine the programs and activities that should be 
                assisted by the Trust Fund;
                    (E) an assessment regarding the extent to which the 
                Government of Afghanistan does or does not meet the 
                requirements of section 4(b) for that fiscal year; and
                    (F) with respect to a fiscal year for which 
                Afghanistan is eligible to receive a grant under 
                section 4, the impact of programming on food production 
                and rural development in Afghanistan.
    (b) GAO Report on Trust Fund Effectiveness.--Not later than 2 years 
after the date of the enactment of this Act, the Comptroller G
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eneral of 
the United States shall submit to the appropriate committees of the 
Congress a report evaluating the effectiveness of the Trust Fund, 
including--
            (1) the effectiveness of the programs, projects, and 
        activities described in subsection (a)(2)(B) in building 
        sustainable food production and rural microenterprise loans in 
        the countries authorized to receive grants under this section; 
        and
            (2) an assessment of the merits of continued United States 
        financial contributions to the Trust Fund.
    (c) Appropriate Committees Defined.--In subsection (a), the term 
``appropriate committees'' means the Committee on Foreign Relations and 
the Committee on Appropriations of the Senate and the Committee on 
International Relations, the Committee on Financial Services, and the 
Committee on Appropriations of the House of Representatives.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    In addition to any other funds authorized to be appropriated for 
multilateral or bilateral programs related to sustainable food 
production and microenterprise systems, there is authorized to be 
appropriated to the Secretary of the Treasury $25,000,000 for fiscal 
year 2002 and $50,000,000 for each of the fiscal years 2003 through 
2006 for payment to the Trust Fund. Of the amount appropriated pursuant 
to the authorization of appropriations under the preceding sentence for 
a fiscal year 60 percent should be designated for grants for 
Afghanistan.

SEC. 9. CERTIFICATION REQUIREMENT.

    (a) In General.--Prior to the initial obligation or expenditure of 
funds appropriated pursuant to section 8, the Secretary of the Treasury 
shall certify that adequate procedures and standards have been 
established to ensure accountability for and monitoring of the use of 
funds contributed to the Trust Fund, including the cost of 
administering the Trust Fund.
    (b) Transmittal of Certification.--The certification required by 
subsection (a), and the bases for that certification, shall be 
submitted by the Secretary of the Treasury to Congress.

SEC. 10. DEFINITIONS.

    In this Act:
            (1) Bank.--The term ``Bank'' means the International Bank 
        for Reconstruction and Development.
            (2) Other countries of central asia.--The term ``other 
        countries of Central Asia'' means Kyrgyzstan, Pakistan, 
        Tajikistan, Turkmenistan, and Uzbekistan.
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