article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Russian Economic Restoration and Justice Act of 1999''. SEC. 2. FINDINGS; GOALS. (a) Findings.--The Congress finds that-- (1) the United States has spent billions of dollars to aid Russia through the provision of funds to the International Monetary Fund and other international financial institutions, and through other programs; (2) many of these funds have been siphoned off by corrupt institutions; and (3) the average Russian family has yet to see an improvement in their standard of living. (b) Goals.--It is the sense of the Congress that-- (1) the United States must find a way to more effectively support democracy and the establishment of free markets in Russia; and (2) the following principles should be applied to international financial institution assistance to Russia: (A) establish a joint Russian-United States legislative oversight commission to monitor the use of Western resources in Russia; (B) focus Western resources on programs, such as housing, that will help to develop a Russian middle class; (C) make Western resources available to reform- minded regional governments; (D) deny corrupt Moscow-based financial institutions access to Western resources; (E) reform the International Monetary Fund; (F) put the horse in front of the cart: make reforms precede--not follow--the provision of resources; (G) create a program which will link United States business leaders with their Russian counterparts in order to provide Russian businesses with a pool of resources to assist them in making the successful transition to a market-based economy; and (H) bring 15,000 Russian students to the United States to study economics, business administration, and agricultural production so that they can return to Russia to develop the human capital to support a free market system. SEC. 3. PRINCIPLES GOVERNING INTERNATIONAL MONETARY FUND ASSISTANCE TO RUSSIA. The Bretton Woods Agreements Act (22 U.S.C. 286-286mm) is amended by adding at the end the following: ``SEC. 61. PRINCIPLES GOVERNING INTERNATIONAL MONETARY FUND ASSISTANCE TO RUSSIA. ``(a) Conditions and Limitations of Assistance.--The Secretary of the Treasury shall instruct the United States Executive Director at the Fund to use the voice and vote of the United States to urge the Fund-- ``(1) to not provide any assistance to the government of the Russian Federation or of any political subdivision of the Russian Federation, or to any other entity in the Russian Federation, until there is in effect a Russian federal law that implements the economic reforms described in subsection (b); and ``(2) to provide assistance to the Russian Federation or a political subdivision of the Russian Federation only to aid the implementation of such reforms. ``(b) Economic Reforms.--The economic reforms described in this subsection are the following: ``(1) Land reform, including private ownership of land. ``(2) Further privatization of state-owned industrial enterprises. ``(3) Tax reform, including increased collection of tax obligations. ``(4) Development of effective commercial law, including the ability of individuals to seek enforcement of contracts by an effective judicial system. ``(5) Establishment of residential mortgage financing system for middle class individuals residing in the Russian Federation. ``(6) The development of criteria for evaluating the effectiveness of regional economic reform programs in the Russian Federation, and the use of such criteria to assure that Western resources are provided to the political subdivisions of the Russian Federation on an equitable basis, taking into account the necessity to provide incentives for political subdivisions to implement viable economic reforms and to reward those that have made progress in implementing such reforms. ``(7) The development of steps to make the recipients of Western resources in the Russian Federation accountable for the use of such resources.''. SEC. 4. RUSSIAN-AMERICAN FINANCIAL OVERSIGHT COMMISSION. (a) In General.--The Speaker of the House of Representatives and the President of the Senate shall seek to enter into negotiations with the State Duma and the Federation Council of the Russian Federation for the establishment of a commission which would-- (1) be composed of 8 Members of the United States Congress and a total of 8 Deputies from the State Duma and Federation Council; (2) monitor expenditures of the funds provided to the government of the Russian Federation or a political subdivision of the Russian Federation by the United States or the international community, for the purpose of evaluating that the funds are used for only for the purposes for which provided; and (3) create a working group of financial experts tasked with developing a comprehensive program to reform, privatize, or close industrial enterprises in the Russian Federation that are bankrupt and are (or would be) not competitive under conditions of a market economy without significant government financial support. (b) Membership.--On the successful conclusion of negotiations under subsection (a), the Speaker of the House of Representatives and the President of the Senate are jointly authorized to appoint 8 Members of Congress to the commission established pursuant to subsection (a). SEC. 5. SENSE OF THE CONGRESS. (a) Establishment of Joint United States-Russian Business, Economics, and Agricultural Education Programs.--It is the sense of the Congress that the United States and the government of the Russian Federation should conclude an agreement under which students in the Russian Federation would enroll in colleges and universities in the United States at undergraduate and graduate levels for the purpose of developing a network of specialists in business administration, economics, and agricultural production in the Russian Federation, and students so enrolled would, on completion of their studies in the United States, be required to return to the Russian Federation and work for the federal or a regional government in Russia. (b) Linking of United States Business Leaders With Russian Federation Business Leaders.--It is the sense of the Congress that the United States and the government of the Russian Federation should create a program which would link successful United States business leaders with their counterparts in the Russian Federation, so that companies in the Russian Federation will be better able to access a pool of resources and knowledge to assist them in their transition to successfully competing in a market-based economy. SEC. 6. IMF REFORM COMMISSION. The Secretary of the Treasury shall instruct the United States Executive Director at the Fund to use the voice and vote of the United States to urge the Fund to create a commission, composed of prominent international financial experts, for the purpose of drawing up recommendations for reforming the Fund, with a view to achieving more transparency in the structures of the Fund and increasing the effectiveness of Fund programs while decreasing financial risk. SEC. 7. RUSSIAN HOUSING LOAN PROGRAM. (a) Loan Program.--There is hereby established a pilot housing loan program for the people of Russia, with such funds as may be made available, as the means by which the average Russian citizen may attain affordable home ownership. (b) Restrictions.--None of the funds under this section may be made available-- (1) for transfer to the Government of Russia; or (2) for the purposes of providing Russian military housing. (c) Establishment of Administering Corporation.-- (1) In general.--There is established a nonprofit corporation (in this section referred to as the ``Corporation''). (2) Purpose.--The purpose of the Corporation shall be to administer directly funds made available under this section. (3) Recommendations regarding the membership of board of directors.--It is the sense of the Congress that the Corporation should consist of a 13-member Board of Directors, the members of which should be appointed by the President of the United States from lists provided by the following individuals: (A) Two members from a list provided by the Speaker of the United States House of Representatives. (B) One member from a list provided by the minority leader of the United States House of Representatives. (C) Two members from a list provided by the majority leader of the United States Senate. (D) One member from a list provided by the minority leader of the United States Senate. (E) Two members appointed by the President of the United States at his discretion. (F) Four members from a list provided by the President of the Russian Federation. (G) One member from a list provided by the Chairman of the Russian State Duma. (4) Recommendations regarding the chairman of the board of directors, terms of office, and authority.--It is the sense of the Congress that the President of the United States should select a Chairman of the Board of Directors from among the 13 board members, that the Chairman should serve a single 2-year term, and that the entire Board of Directors should serve a 2- year term and have the authority to select other officers and employees to carry out the purposes of the Corporation. (d) Loan Size and Type.--Since it is the intent of the housing loan program to provide loans for the average middle-income potential Russian home buyer, loans shall range between the equivalent of $10,000 to $50,000 (U.S.). This amount shall be determined by the Corporation and shall fluctuate in accordance upon market conditions. Loans shall be for a term of 10 to 30 years and may be prepaid at any time without penalty. Loan payments shall be amortized on a basis of level monthly payments. (e) Working Groups.--The Corporation shall have the authority to establish working groups comprised of Russian and American experts, for the purpose of making recommendations on topics essential to the success of the program, including, but not limited to-- (1) the preparation of the necessary legal and regulatory changes; (2) the involvement of United States housing trade and labor associations in providing materials, training, and joint venture capital; (3) ensuring adequate offsite infrastructure for new housing sites; and (4) other issues as deemed appropriate by the Corporation.
summary: Establishes a Russian-American financial oversight commission to monitor the use of Western resources in Russia. Expresses the sense of Congress that: (1) there should be established joint United States-Russian business, economics, and agricultural education programs in which Russian Federation students on completion of their studies in the United States be required to return to the Russian Federation and work for the federal or regional government in Russia; and (2) the United States and the government of the Russian Federation should create a program which would link successful U.S. business leaders with their Russian Federation counterparts so that Russian Federation companies will be better able to access a pool of resources and knowledge to assist them in their transition to successfully competing in a market-based economy. Directs the Secretary of the Treasury to instruct the U.S. Executive Director at the IMF to use the U.S. vote to urge the IMF to create a commission, composed of prominent international financial experts, to draw up recommendations for reforming the IMF, with a view to achieving more transparency in the structures of the IMF and increasing the effectiveness of its programs while decreasing financial risk. Establishes a pilot housing loan program (to be administered through a nonprofit corporation) in which the average Russian citizen may attain affordable home ownership.