,,ii ,calendar ,no4 #add #aafth ,,congress #ast ,session ,s4 #acji ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #b1 #bjai,mr4 ,cardin 7for himself1 ,mr4 ,young1 ,mr4 ,leahy1 ,mr4 ,rubio1 ,mr4 ,blumenthal1 ,mr4 ,merkley1 and ,mr4 ,coons7 introduced the following bill2 which was read twice and referred to the ,committee on ,foreign ,relations ,july #aa1 #bjai,reported by ,mr4 ,risch1 with an amendment,strike out all after the enacting clause and insert the part printed in italic ,a ,,bill ,to identify and combat corruption in countries1 to establish a tiered system of countries with respect to levels of corruption by their governments and their efforts to combat such corruption1 and to assess ,united ,states assistance to designated countries in order to advance anti-corruption efforts in those countries and better serve ,united ,states taxpayers4 #a4 ,short title ,this ,act may be cited as the ,combating ,global ,corruption ,act of #bjai4 #b4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,relations of the ,senate2 7,b7 the ,committee on ,armed ,services of the ,senate2 7,c7 the ,committee on ,appropriations of the ,senate2 7,d7 the ,committee on ,foreign ,affairs of the ,house of ,representatives2 7,e7 the ,committee on ,armed ,services of the ,house of ,representatives2 and 7,f7 the ,committee on ,appropriations of the ,house of ,representatives4 7#b7 ,corrupt actor ,the term corrupt actor means-- 7,a7 any foreign person or entity that is a government official or government entity responsible for1 or complicit in1 an act of corruption2 and 7,b7 any company1 in which a person or entity described in subparagraph 7,a7 has a significant stake1 which is responsible for1 or complicit in1 an act of corruption4 7#c7 ,corruption ,the term corruption means the exercise of public power for private gain1 including by bribery1 nepotism1 fraud1 or embezzlement4 7#d7 ,foreign assistance ,the term foreign assistance means assistance made available under-- 7,a7 the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baea et seq472 7,b7 the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq472 or 7,c7 title #aj1 ,united ,states ,code4 7#e7 ,grand corruption ,the term grand corruption means corruption committed at a high level of government that-- 7,a7 distorts policies or the central functioning of the country2 and 7,b7 enables leaders to benefit at the expense of the public good4 7#f7 ,petty corruption ,the term petty corruption means the abuse of entrusted power by low- or mid-level public officials in their interactions with ordinary citizens4 #c4 ,publication of tiered ranking list 7a7 ,in general ,the ,secretary of ,state shall annually publish1 on a publicly accessible website1 a tiered ranking of all foreign countries4 7b7 ,tier #a countries ,a country shall be ranked as a tier #a country in the ranking published under subsection 7a7 if the government of such country is complying with the minimum standards set forth in section #d4 7c7 ,tier #b countries ,a country shall be ranked as a tier #b country in the ranking published under subsection 7a7 if the government of such country is making efforts to comply with the minimum standards set forth in section #d1 but is not achieving the requisite level of compliance to be ranked as a tier #a country4 7d7 ,tier #c countries ,a country shall be ranked as a tier #c country in the ranking published under subsection 7a7 if the government of such country is making de minimis or no efforts to comply with the minimum standards set forth in section #d4 #d4 ,minimum standards for the elimination of corruption and assessment of efforts to combat corruption 7a7 ,in general ,the government of a country is complying with the minimum standards for the elimination of corruption if the government-- 7#a7 has enacted laws and established government structures1 policies1 and practices that prohibit corruption1 including grand corruption and petty corruption2 7#b7 enforces the laws described in paragraph 7#a7 by punishing any person who is found1 through a fair judicial process1 to have violated such laws2 7#c7 prescribes punishment for grand corruption that is commensurate with the punishment prescribed for serious crimes2 7#d7 prescribes punishment for petty corruption that-- 7,a7 provides a sufficiently stringent deterrent2 and 7,b7 adequately reflects the nature of the offense2 and 7#e7 is making serious and sustained efforts to eliminate corruption4 7b7 ,factors for assessing government efforts ,to combat corruption ,in determining whether a government is making serious and sustained efforts to eliminate corruption1 the ,secretary of ,state shall consider-- 7#a7 whether the government of the country vigorously investigates and prosecutes acts of corruption and convicts and sentences persons responsible for such acts that take place wholly or partly within such country1 including1 as appropriate1 requiring incarceration of individuals convicted of such acts2 7#b7 whether the government of the country vigorously investigates1 prosecutes1 convicts1 and sentences public officials who participate in or facilitate corruption1 including nationals of the country who are deployed in foreign military assignments1 trade delegations abroad1 or other similar missions1 who engage in or facilitate severe forms of corruption2 7#c7 whether the government of the country has adopted measures to prevent corruption1 such as measures to inform and educate the public1 including potential victims1 about the causes and consequences of corruption2 7#d7 what steps the government of the country has taken to prohibit government officials from participating in1 facilitating1 or condoning corruption1 including the investigation1 prosecution1 and conviction of such officials2 7#e7 the extent to which the country provides access1 or1 as appropriate1 makes adequate resources available1 to civil society organizations and other institutions to combat corruption1 including reporting1 investigating1 and monitoring2 7#f7 whether an independent judiciary or judicial body in the country responsible for1 and effectively capable of1 deciding corruption cases impartially1 on the basis of facts and in accordance with the law1 without any restrictions1 improper influences1 inducements1 pressures1 threats1 or interferences 7direct or indirect7 from any quarter or for any reason2 7#g7 whether the government of the country is assisting in international investigations of transnational corruption networks and in other cooperative efforts to combat grand corruption1 including cooperating with the governments of other countries to extradite corrupt actors2 7#h7 whether the government of the country recognizes the rights of victims of corruption1 ensures their access to justice1 and takes steps to prevent victims from being further victimized or persecuted by corrupt actors1 government officials1 or others2 7#i7 whether the government of the country refrains from prosecuting victims of corruption or whistleblowers due to such persons having assisted in exposing corruption1 and refrains from other discriminatory treatment of such persons2 and 7#aj7 such other information relating to corruption as the ,secretary of ,state considers appropriate4 #e4 ,transparency and accountability 7a7 ,in general ,not later than #fj days after publishing the report required under section #c7;a71 and prior to obligation by any ,united ,states agency of foreign assistance to the government of a country ranked as a tier #c country under section #c7;d71 the ,secretary of ,state1 in coordination with the ,administrator of the ,united ,states ,agency for ,international ,development 7referred to in this ,act as the ,,usaid ,administrator7 and the ,secretary of ,defense1 as appropriate1 shall-- 7#a7 conduct a corruption risk assessment and create a corruption mitigation strategy for all ,united ,states foreign assistance programs to that country2 7#b7 require the inclusion of anti-corruption clauses for all foreign assistance contracts1 grants1 and cooperative agreements1 which allow for the termination of the contract1 grant1 or cooperative agreement without penalty if credible indicators of corruption are discovered2 7#c7 require the inclusion of appropriate clawback clauses for all foreign assistance contracts1 grants1 and cooperative agreements to recover ,united ,states taxpayer funds that have been misappropriated from the prime contractor1 grantee1 or cooperative agreement participant through corruption2 7#d7 require the disclosure of the beneficial ownership of all contractors1 subcontractors1 grantees1 cooperative agreement participants1 and other organizations receiving funding from the ,united ,states ,government for foreign assistance programs2 and 7#e7 establish a mechanism for investigating allegations of misappropriated foreign assistance funds or equipment4 7b7 ,exceptions and waiver 7#a7 ,exceptions ,subsection 7a7 shall not apply to humanitarian assistance1 disaster assistance1 or assistance to combat corruption4 7#b7 ,waiver ,the ,secretary of ,state1 on a program-by-program basis1 may waive the requirement to delay foreign assistance under subsection 7a7 if the ,secretary of ,state certifies to the appropriate congressional committees that such waiver is important to the national security interests of the ,united ,states4 #f4 ,resources and reporting requirements 7a7 ,annual report 7#a7 ,in general ,the ,secretary of ,state shall submit an annual report to the appropriate congressional committees that outlines the resources needed to meet the objectives and reports under sections #c through #e1 including-- 7,a7 intelligence data collection needs2 7,b7 personnel needs2 7,c7 information technology requirements2 and 7,d7 a description of the bureaucratic structure of the offices within the ,department of ,state and the ,united ,states ,agency for ,international ,development 7,,usaid7 that are engaged in anti-corruption activities4 7#b7 ,form ,the report submitted under paragraph 7#a7 shall be submitted in unclassified form1 but may include a classified annex4 7b7 ,online platform ,the ,secretary of ,state and the ,,usaid ,administrator shall consolidate existing reports with anti-corruption components into one online1 public platform1 which shall-- 7#a7 include-- 7,a7 the ,human ,rights ,report2 7,b7 the ,fiscal ,transparency ,report2 7,c7 the ,investment ,climate ,statement reports2 7,d7 the ,international ,narcotics ,control ,strategy ,report2 and 7,e7 any other relevant public reports2 and 7#b7 link to third-party indicators used by the ,united ,states ,government to inform policy and programming1 such as-- 7,a7 the ,world ,bank's ,control of ,corruption ,indicator2 7,b7 the ,world ,bank's ,actionable ,governance ,index ,data ,portal2 7,c7 the ,international ,finance ,corporation's ,doing ,business surveys2 7,d7 the ,international ,budget ,partnership's ,open ,budget ,index2 7,e7 the ,global ,integrity ,index2 and 7,f7 multilateral peer review anti-corruption compliance mechanisms1 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 ,corruption1 done at ,new ,york ,october #ca1 #bjjc1 to further highlight expert international views on country challenges and country efforts4 7c7 ,training ,to increase the ability of ,department of ,state and ,,usaid personnel to support anti-corruption as a foreign policy and development priority1 and strengthen their ability to design1 implement1 and evaluate more effective anti-corruption programming around the world1 including enhancing skills to better evaluate and mitigate corruption risks in assistance programs1 the ,secretary of ,state and the ,,usaid ,administrator shall incorporate anti-corruption components into existing ,foreign ,service and ,civil ,service training courses4 #a4 ,definitions ,in this ,act3 7#a7 ,corrupt actor ,the term corrupt actor means-- 7,a7 any foreign person or entity that is a government official or government entity responsible for1 or complicit in1 an act of public corruption2 and 7,b7 any company1 in which a person or entity described in subparagraph 7,a7 has a significant stake1 which is responsible for1 or complicit in1 an act of public corruption4 7#b7 ,foreign assistance ,the term foreign assistance means assistance made available under-- 7,a7 the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baea et seq472 or 7,b7 the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq474 7#c7 ,grand corruption ,the term grand corruption means public corruption committed at a high level of government that-- 7,a7 distorts policies or the central functioning of the country2 and 7,b7 enables leaders to benefit at the expense of the public good4 7#d7 ,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 citizens1 including by bribery1 nepotism1 fraud1 or embezzlement4 7#e7 ,public corruption ,the term public corruption means the unlawful exercise of entrusted public power for private gain1 including by bribery1 nepotism1 fraud1 or embezzlement4 #b4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 it is in the foreign policy interest of the ,united ,states to help other countries promote good governance and combat public corruption1 particularly grand corruption2 7#b7 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 corruption2 7#c7 the ,department of ,state should promote coordination among programs described in paragraph 7#b7 to improve their effectiveness and efficiency2 and 7#d7 the ,department of ,state should identify areas in which ,united ,states efforts to help other countries promote good governance and combat public corruption could be enhanced4 #c4 ,annual report ,the ,secretary shall annually submit to the appropriate congressional committees and publish1 on a publicly accessible website1 a report that-- 7#a7 groups foreign countries1 by quintile1 based on-- 7,a7 the ,world ,bank ,worldwide ,governance ,indicator on ,control of ,corruption2 and 7,b7 the ,world ,bank ,worldwide ,governance ,indicator on ,voice and ,accountability2 7#b7 adds context and commentary1 as appropriate1 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 7#a71 as appropriate1 based on the factors outlined in section #d2 7#c7 describes1 based on the ,world ,bank ,worldwide ,governance ,indicators and the factors outlined in section #d1 the status of foreign governments' efforts to combat public corruption2 and 7#d7 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 corruption4 #d4 ,additional factors for assessing government efforts to combat public corruption 7a7 ,factors for assessing government efforts ,to combat public corruption ,in assessing a government's efforts to combat public corruption1 the ,secretary of ,state should consider1 to the extent reliable information is available-- 7#a7 whether the country-- 7,a7 has enacted laws and established government structures1 policies1 and practices that prohibit public corruption1 including grand corruption and petty corruption2 and 7,b7 enforces such laws through a fair judicial process2 7#b7 whether the country prescribes appropriate punishment for grand corruption that is commensurate with the punishment prescribed for serious crimes2 7#c7 whether the country prescribes appropriate punishment for petty corruption that provides a sufficiently stringent deterrent and adequately reflects the nature of the offense2 7#d7 the extent to which the government of the country-- 7,a7 vigorously investigates and prosecutes acts of public corruption2 and 7,b7 convicts and sentences persons responsible for such acts that take place wholly or partly within such country1 including1 as appropriate1 requiring the incarceration of individuals convicted of such acts2 7#e7 the extent to which the government of the country vigorously investigates1 prosecutes1 convicts1 and sentences public officials who participate in or facilitate public corruption1 including nationals of the country who are deployed in foreign military assignments1 trade delegations abroad1 or other similar missions who engage in or facilitate severe forms of public corruption2 7#f7 the extent to which the government of the country has adopted measures to prevent public corruption1 such as measures to inform and educate the public1 including potential victims1 about the causes and consequences of public corruption2 7#g7 steps taken by the government of the country to prohibit government officials from participating in1 facilitating1 or condoning public corruption1 including the investigation1 prosecution1 and conviction of such officials2 7#h7 the extent to which the country government provides access1 or1 as appropriate1 makes adequate resources available1 to civil society organizations and other institutions to combat public corruption1 including reporting1 investigating1 and monitoring2 7#i7 the extent to which an independent judiciary or judicial body in the country is responsible for1 and effectively capable of1 deciding public corruption cases impartially1 on the basis of facts and in accordance with the law1 without any improper restrictions1 influences1 inducements1 pressures1 threats1 or interferences 7direct or indirect7 from any source or for any reason2 7#aj7 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 corruption1 including cooperating with the governments of other countries to extradite corrupt actors2 7#aa7 the extent to which the government of the country recognizes the rights of victims of public corruption1 ensures their access to justice1 and takes steps to prevent victims from being further victimized or persecuted by corrupt actors1 government officials1 or others2 7#ab7 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 corruption1 and refrains from other discriminatory treatment of such persons2 and 7#ac7 such other information relating to public corruption as the ,secretary of ,state considers appropriate4 #e4 ,designation of embassy anti-corruption points of contact 7a7 ,designated countries ,the ,secretary of ,state 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 contact4 7b7 ,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 country1 including1 as applicable1 the ,department of ,state1 the ,department of ,justice1 the ,department of the ,treasury1 the ,department of ,homeland ,security1 and the ,united ,states ,agency for ,international ,development4 7c7 ,training ,the ,secretary of ,state shall develop and implement appropriate training for designated anti-corruption points of contact4 7d7 ,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-- 7#a7 evaluates the effectiveness of current programs that promote good governance and have an effect of combating public corruption2 and 7#b7 identifies areas in which the ,united ,states ,government's approach could be enhanced1 including specific programs that could be used to enhance the whole-of-government approach4 #f4 ,interagency working group 7a7 ,in general ,the ,secretary of ,state 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 corruption4 7b7 ,task force 7#a7 ,initial meeting ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,state shall establish and convene an initial meeting of an interagency task force1 which shall be composed of-- 7,a7 representatives appointed by the ,president from the departments and agency listed in section #e7;b72 and 7,b7 representatives from any other ,united ,states ,government departments or agencies1 as determined by the ,secretary4 7#b7 ,additional meetings ,the task force described in paragraph 7#a7 shall meet not less frequently than twice per year4 7c7 ,task force duties ,the task force established pursuant to subsection 7b7 shall-- 7#a7 assist the ,secretary of ,state in managing the whole-of-government effort described in subsection 7a72 7#b7 evaluate1 on a general basis1 the effectiveness of current programs that have an effect of combating public corruption2 7#c7 identify general areas in which the ,united ,states ,government's approach could be enhanced2 and 7#d7 identify specific programs for specific countries that could be used to enhance the whole-of-government approach4 #g4 ,transparency and accountability 7a7 ,in general ,not later than #fj days after publishing the report required under section #c1 and prior to obligation by any ,united ,states agency of foreign assistance to the government of a country ranked in the lowest #b quintiles in the ,world ,bank ,worldwide ,governance ,indicator on ,control of ,corruption grouping described in section #c7a71 the ,secretary1 in coordination with the ,administrator of ,,usaid1 as appropriate1 shall-- 7#a7 conduct a corruption risk assessment and create a corruption mitigation strategy for all ,united ,states foreign assistance programs in that country2 7#b7 require the inclusion of anti-corruption clauses for all foreign assistance contracts1 grants1 and cooperative agreements1 which allow for the termination of the contract1 grant1 or cooperative agreement without penalty if credible indicators of public corruption are discovered2 7#c7 require the inclusion of appropriate clawback clauses for all foreign assistance that has been misappropriated through corruption2 7#d7 require the appropriate disclosure to the ,united ,states ,government1 in confidential form1 if necessary1 of the beneficial ownership of contractors1 subcontractors1 grantees1 cooperative agreement participants1 and other organizations receiving funding from the ,united ,states ,government for foreign assistance programs2 and 7#e7 establish a mechanism for investigating allegations of misappropriated foreign assistance funds or equipment4 7b7 ,exceptions and waiver 7#a7 ,exceptions ,subsection 7a7 shall not apply to humanitarian assistance1 disaster assistance1 or assistance to combat corruption4 7#b7 ,waiver ,the ,secretary of ,state may waive the requirement to delay foreign assistance under subsection 7a7 if the ,secretary certifies to the appropriate congressional committees that such waiver is important to the national security interests of the ,united ,states4 #h4 ,resources and reporting requirements 7a7 ,annual report 7#a7 ,in general ,not later than one year after the date of the enactment of this ,act1 and annually thereafter1 the ,secretary of ,state shall submit a report to the appropriate congressional committees that outlines the resources needed to meet the objectives of this ,act1 including-- 7,a7 personnel needs2 and 7,b7 a description of the bureaucratic structure of the offices within the ,department of ,state and ,,usaid that are engaged in anti-corruption activities4 7b7 ,annual briefing 7#a7 ,in general ,not later than one year after the date of the enactment of this ,act1 and annually thereafter1 the ,secretary shall brief the appropriate congressional committees on the implementation of this ,act1 including-- 7,a7 the designation of anti-corruption points of contact for countries under section #e7;a72 7,b7 the training implemented under section #e7;c72 7,c7 the reports received from anti-corruption points of contact under section #e7;d72 7,d7 the management of the whole-of-government effort to improve coordination under section #f7;a72 7,e7 the establishment of the task force under section #f7;b72 and 7,f7 the activities of the task force under section #f7;c74 7#b7 ,form of briefing ,the briefings under subsection 7b7 shall be conducted on an in-person basis to members or staff of the appropriate congressional committees4 ,portions of the briefings may be conducted in a classified setting1 as needed4 7c7 ,online platform ,the ,secretary of ,state and the ,,usaid ,administrator shall consolidate existing reports with anti-corruption components into one online1 public platform1 which shall-- 7#a7 include-- 7,a7 the ,human ,rights ,report2 7,b7 the ,fiscal ,transparency ,report2 7,c7 the ,investment ,climate ,statement reports2 7,d7 the ,international ,narcotics ,control ,strategy ,report2 and 7,e7 any other relevant public reports2 7#b7 link to third-party indicators and compliance mechanisms used by the ,united ,states ,government to inform policy and programming1 such as-- 7,a7 the ,international ,finance ,corporation's ,doing ,business surveys2 7,b7 the ,international ,budget ,partnership's ,open ,budget ,index2 and 7,c7 multilateral peer review anti-corruption compliance mechanisms1 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 ,corruption1 done at ,new ,york ,october #ca1 #bjjc1 to further highlight expert international views on country challenges and country efforts4 7d7 ,training ,the ,secretary of ,state and the ,,usaid ,administrator shall incorporate anti-corruption components into existing ,foreign ,service and ,civil ,service training courses-- 7#a7 to increase the ability of ,department of ,state and ,,usaid personnel to support anti-corruption as a foreign policy and development priority2 and 7#b7 to strengthen their ability to design1 implement1 and evaluate more effective anti-corruption programming around the world1 including enhancing skills to better evaluate and mitigate public corruption risks in assistance programs4 ,july #aa1 #bjai,reported with an amendment