HR 3566 IH
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.
(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 countries 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 General 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.
(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.
END