S.Amdt. 2330

SA 2330. Mr. CARDIN submitted an amendment intended to be proposed by
him to the bill H.R. 5515, to authorize appropriations for fiscal year
2019 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of title XII, add the following:

Subtitle H--Combating Public Corruption

SEC. 1281. DEFINITIONS.

In this subtitle:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Armed Services, the Committee on
Foreign Relations, and the Committee on Appropriations of the
Senate; and
(B) the Committee on Armed Services, the Committee on
Foreign Affairs, and the Committee on Appropriations of the
House of Representatives.
(2) Corrupt actor.--The term ``corrupt actor'' means--
(A) any foreign person or entity that is a government
official or government entity responsible for, or complicit
in, an act of public corruption; and
(B) any company, in which a person or entity described in
subparagraph (A) has a significant stake, which is
responsible for, or complicit in, an act of public
corruption.
(3) Department.--The term ``Department'' means the
Department of State.
(4) Foreign assistance.--The term ``foreign assistance''
means assistance made available under--
(A) the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.); or
(B) the Arms Export Control Act (22 U.S.C. 2751 et seq.).
(5) Grand corruption.--The term ``grand corruption'' means
public corruption committed at a high level of government
that--
(A) distorts policies or the central functioning of the
country; and
(B) enables leaders to benefit at the expense of the public
good.
(6) Petty corruption.--The term ``petty corruption'' means
the unlawful exercise of entrusted public power for private
gain by low- or mid-level public officials in their
interactions with ordinary citizens, including by bribery,
nepotism, fraud, or embezzlement.
(7) Public corruption.--The term ``public corruption''
means the unlawful exercise of entrusted public power for
private gain, including by bribery, nepotism, fraud, or
embezzlement.
(8) Secretary.--The term ``Secretary'' means the Secretary
of State.

SEC. 1282. SENSE OF CONGRESS.

It is the sense of Congress that--
(1) it is in the foreign policy interest of the United
States to help other countries promote good governance and
combat public corruption, particularly grand corruption;
(2) multiple departments and agencies across the United
States Government operate programs that promote good
governance in foreign countries and enhance foreign
countries' ability to combat public corruption;
(3) the Department should promote coordination among
programs described in paragraph (2) to improve their
effectiveness and efficiency; and
(4) the Department should identify areas in which United
States efforts to help other countries promote good
governance and combat public corruption could be enhanced.

SEC. 1283. ANNUAL REPORT.

The Secretary shall annually submit to the appropriate
congressional committees and publish, on a publicly
accessible website, a report that--
(1) groups foreign countries, by quintile, based on--
(A) the World Bank Worldwide Governance Indicator on
Control of Corruption; and
(B) the World Bank Worldwide Governance Indicator on Voice
and Accountability;
(2) adds context and commentary, as appropriate, to the
World Bank Worldwide Governance Indicator on Control of
Corruption and the World Bank Worldwide Governance Indicator
on Voice and Accountability groupings under paragraph (1), as
appropriate, based on the factors outlined in section 1284;
(3) describes, based on the World Bank Worldwide Governance
Indicators and the factors outlined in section 1284, the
status of foreign governments' efforts to combat public
corruption; and
(4) describes the status of each foreign country's active
membership in voluntary multi-sectoral global governance
initiatives as evidence of the country's government-led
efforts to combat public corruption.

SEC. 1284. ADDITIONAL FACTORS FOR ASSESSING GOVERNMENT
EFFORTS TO COMBAT PUBLIC CORRUPTION.

(a) Factors for Assessing Government Efforts To Combat
Public Corruption.--In assessing a government's efforts to
combat public corruption, the Secretary should consider, to
the extent reliable information is available--
(1) whether the country--
(A) has enacted laws and established government structures,
policies, and practices that prohibit public corruption,
including grand corruption and petty corruption; and
(B) enforces such laws through a fair judicial process;
(2) whether the country prescribes appropriate punishment
for grand corruption that is commensurate with the punishment
prescribed for serious crimes;
(3) whether the country prescribes appropriate punishment
for petty corruption that provides a sufficiently stringent
deterrent and adequately reflects the nature of the offense;
(4) the extent to which the government of the country--
(A) vigorously investigates and prosecutes acts of public
corruption; and
(B) convicts and sentences persons responsible for such
acts that take place wholly or partly within such country,
including, as appropriate, requiring the incarceration of
individuals convicted of such acts;
(5) the extent to which the government of the country
vigorously investigates, prosecutes, convicts, and sentences
public officials who participate in or facilitate public
corruption, including nationals of the country who are
deployed in foreign military assignments, trade delegations
abroad, or other similar missions who engage in or facilitate
severe forms of public corruption;
(6) the extent to which the government of the country has
adopted measures to prevent public corruption, such as
measures to inform and educate the public, including
potential victims, about the causes and consequences of
public corruption;
(7) steps taken by the government of the country to
prohibit government officials

[[Page S3246]]

from participating in, facilitating, or condoning public
corruption, including the investigation, prosecution, and
conviction of such officials;
(8) the extent to which the country government provides
access, or, as appropriate, makes adequate resources
available, to civil society organizations and other
institutions to combat public corruption, including
reporting, investigating, and monitoring;
(9) the extent to which an independent judiciary or
judicial body in the country is responsible for, and
effectively capable of, deciding public corruption cases
impartially, on the basis of facts and in accordance with the
law, without any improper restrictions, influences,
inducements, pressures, threats, or interferences (direct or
indirect) from any source or for any reason;
(10) the extent to which the government of the country is
assisting in international investigations of transnational
public corruption networks and in other cooperative efforts
to combat grand corruption, including cooperating with the
governments of other countries to extradite corrupt actors;
(11) the extent to which the government of the country
recognizes the rights of victims of public corruption,
ensures their access to justice, and takes steps to prevent
victims from being further victimized or persecuted by
corrupt actors, government officials, or others;
(12) the extent to which the government of the country
refrains from prosecuting legitimate victims of public
corruption or whistleblowers due to such persons having
assisted in exposing public corruption, and refrains from
other discriminatory treatment of such persons; and
(13) such other information relating to public corruption
as the Secretary considers appropriate.

SEC. 1285. DESIGNATION OF EMBASSY ANTI-CORRUPTION POINTS OF
CONTACT.

(a) Designated Countries.--The Secretary shall annually
designate an anti-corruption point of contact at the United
States Mission to each country that he or she determines is
in need of such a point of contact.
(b) Points of Contact Duties.--Each designated anti-
corruption point of contact shall be responsible for
coordinating a whole-of-government approach to combating
public corruption in his or her posted country among relevant
United States Government departments or agencies with a
presence in that country, including, as applicable, the
Department of State, the Department of Justice, the
Department of the Treasury, the Department of Homeland
Security, and USAID.
(c) Training.--The Secretary shall develop and implement
appropriate training for designated anti-corruption points of
contact.
(d) Internal Reporting.--Each anti-corruption point of
contact shall submit an annual report to the Secretary
regarding anti-corruption activities within his or her posted
country that--
(1) evaluates the effectiveness of current programs that
promote good governance and have an effect of combating
public corruption; and
(2) identifies areas in which the United States
Government's approach could be enhanced, including specific
programs that could be used to enhance the whole-of-
government approach.

SEC. 1286. INTERAGENCY WORKING GROUP.

(a) In General.--The Secretary shall have primary
responsibility for managing a whole-of-government effort to
improve coordination among United States Government
departments and agencies that have a role in promoting good
governance in foreign countries and enhancing foreign
countries' ability to combat public corruption.
(b) Task Force.--
(1) Initial meeting.--Not later than 180 days after the
date of the enactment of this Act, the Secretary shall
establish and convene an initial meeting of an interagency
task force, which shall be composed of--
(A) representatives appointed by the President from the
departments and agency listed in section 1285(b); and
(B) representatives from any other United States Government
departments or agencies, as determined by the Secretary.
(2) Additional meetings.--The task force described in
paragraph (1) shall meet not less frequently than twice per
year.
(c) Task Force Duties.--The task force established pursuant
to subsection (b) shall--
(1) assist the Secretary in managing the whole-of-
government effort described in subsection (a);
(2) evaluate, on a general basis, the effectiveness of
current programs that have an effect of combating public
corruption;
(3) identify general areas in which the United States
Government's approach could be enhanced; and
(4) identify specific programs for specific countries that
could be used to enhance the whole-of-government approach.

SEC. 1287. TRANSPARENCY AND ACCOUNTABILITY.

(a) In General.--Not later than 60 days after publishing
the report required under section 1283, and prior to
obligation by any United States agency of foreign assistance
to the government of a country ranked in the lowest 2
quintiles in the World Bank Worldwide Governance Indicator on
Control of Corruption grouping described in section 1283(1),
the Secretary, in coordination with the Administrator of
USAID, as appropriate, shall--
(1) conduct a corruption risk assessment and create a
corruption mitigation strategy for all United States foreign
assistance programs to that country;
(2) require the inclusion of anti-corruption clauses for
all foreign assistance contracts, grants, and cooperative
agreements, which allow for the termination of the contract,
grant, or cooperative agreement without penalty if credible
indicators of public corruption are discovered;
(3) require the inclusion of appropriate clawback clauses
for all foreign assistance that has been misappropriated
through corruption;
(4) require the appropriate disclosure to the United States
Government, in confidential form, if necessary, of the
beneficial ownership of contractors, subcontractors,
grantees, cooperative agreement participants, and other
organizations receiving funding from the United States
Government for foreign assistance programs; and
(5) establish a mechanism for investigating allegations of
misappropriated foreign assistance funds or equipment.
(b) Exceptions and Waiver.--
(1) Exceptions.--Subsection (a) shall not apply to
humanitarian assistance, disaster assistance, or assistance
to combat corruption.
(2) Waiver.--The Secretary may waive the requirement to
delay foreign assistance under subsection (a) if the
Secretary certifies to the appropriate congressional
committees that such waiver is important to the national
security interests of the United States.

SEC. 1288. RESOURCES AND REPORTING REQUIREMENTS.

(a) Annual Report.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, and annually thereafter, the
Secretary shall submit a report to the appropriate
congressional committees that outlines the resources needed
to meet the objectives of this subtitle, including--
(A) personnel needs; and
(B) a description of the bureaucratic structure of the
offices within the Department and USAID that are engaged in
anti-corruption activities.
(b) Annual Briefing.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, and annually thereafter, the
Secretary shall brief the appropriate congressional
committees on the implementation of this subtitle,
including--
(A) the designation of anti-corruption points of contact
for countries under section 1285(a);
(B) the training implemented under section 1285(c);
(C) the reports received from anti-corruption points of
contact under section 1285(d);
(D) the management of the whole-of-government effort to
improve coordination under section 1286(a);
(E) the establishment of the task force under section
1286(b); and
(F) the activities of the task force under section 1286(c).
(2) Form of briefing.--The briefings under subsection (b)
shall be conducted on an in-person basis to members or staff
of the appropriate congressional committees. Portions of the
briefings may be conducted in a classified setting, as
needed.
(c) Online Platform.--The Secretary and the USAID
Administrator shall consolidate existing reports with anti-
corruption components into one online, public platform, which
shall--
(1) include--
(A) the Human Rights Report;
(B) the Fiscal Transparency Report;
(C) the Investment Climate Statement reports;
(D) the International Narcotics Control Strategy Report;
and
(E) any other relevant public reports; and
(2) link to third-party indicators and compliance
mechanisms used by the United States Government to inform
policy and programming, such as--
(A) the International Finance Corporation's Doing Business
surveys;
(B) the International Budget Partnership's Open Budget
Index; and
(C) multilateral peer review anti-corruption compliance
mechanisms, such as the Organisation for Economic Co-
operation and Development's Working Group on Bribery in
International Business Transactions and the United Nations
Convention Against Corruption, done at New York October 31,
2003, to further highlight expert international views on
country challenges and country efforts.
(d) Training.--The Secretary and the USAID Administrator
shall incorporate anti-corruption components into existing
Foreign Service and Civil Service training courses--
(1) to increase the ability of Department and USAID
personnel to support anti-corruption as a foreign policy and
development priority; and
(2) to strengthen their ability to design, implement, and
evaluate more effective anti-corruption programming around
the world, including enhancing skills to better evaluate and
mitigate public corruption risks in assistance programs.
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