RENACER Act

117TH CONGRESS 1ST SESSION S. 1041 AN ACT To advance the strategic alignment of United States diplo- matic tools toward the realization of free, fair, and trans- parent elections in Nicaragua and to reaffirm the com- mitment of the United States to protect the fundamental freedoms and human rights of the people of Nicaragua, and for other purposes. 2 † S 1041 ES Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Reinforcing Nicaragua’s Adherence to Conditions for 5 Electoral Reform Act of 2021’’ or the ‘‘RENACER Act’’. 6 (b) TABLE OF CONTENTS.—The table of contents for 7 this Act is as follows: 8 Sec. 1. Short title; table of contents. Sec. 2. Sense of Congress. Sec. 3. Review of participation of Nicaragua in Dominican Republic-Central America-United States Free Trade Agreement. Sec. 4. Restrictions on international financial institutions relating to Nicaragua. Sec. 5. Targeted sanctions to advance democratic elections. Sec. 6. Developing and implementing a coordinated sanctions strategy with dip- lomatic partners. Sec. 7. Inclusion of Nicaragua in list of countries subject to certain sanctions relating to corruption. Sec. 8. Classified report on the involvement of Ortega family members and Nic- araguan government officials in corruption. Sec. 9. Classified report on the activities of the Russian Federation in Nica- ragua. Sec. 10. Imposition of sanctions under section 231 of Countering America’s Ad- versaries Through Sanctions Act with respect to Government of Nicaragua. Sec. 11. Report on human rights abuses in Nicaragua. Sec. 12. Supporting independent news media and freedom of information in Nicaragua. Sec. 13. Amendment to short title of Public Law 115–335. Sec. 14. Definition. SEC. 2. SENSE OF CONGRESS. 9 It is the sense of Congress that— 10 (1) ongoing efforts by the government of Presi- 11 dent Daniel Ortega in Nicaragua to suppress the 12 voice and actions of political opponents through in- 13 timidation and unlawful detainment, civil society, 14 and independent news media violate the fundamental 15 3 † S 1041 ES freedoms and basic human rights of the people of 1 Nicaragua; 2 (2) Congress unequivocally condemns the politi- 3 cally motivated and unlawful detention of presi- 4 dential candidates Cristiana Chamorro, Arturo Cruz, 5 Felix Maradiaga, and Juan Sebastian Chamorro; 6 (3) Congress unequivocally condemns the pas- 7 sage of the Foreign Agents Regulation Law, the 8 Special Cybercrimes Law, the Self-Determination 9 Law, and the Consumer Protection Law by the Na- 10 tional Assembly of Nicaragua, which represent clear 11 attempts by the Ortega government to curtail the 12 fundamental freedoms and basic human rights of the 13 people of Nicaragua; 14 (4) Congress recognizes that free, fair, and 15 transparent elections predicated on robust reform 16 measures and the presence of domestic and inter- 17 national observers represent the best opportunity for 18 the people of Nicaragua to restore democracy and 19 reach a peaceful solution to the political and social 20 crisis in Nicaragua; 21 (5) the United States recognizes the right of 22 the people of Nicaragua to freely determine their 23 own political future as vital to ensuring the sustain- 24 able restoration of democracy in their country; 25 4 † S 1041 ES (6) the United States should align the use of 1 diplomatic engagement and all other foreign policy 2 tools, including the use of targeted sanctions, in sup- 3 port of efforts by democratic political actors and 4 civil society in Nicaragua to advance the necessary 5 conditions for free, fair, and transparent elections in 6 Nicaragua; 7 (7) the United States, in order to maximize the 8 effectiveness of efforts described in paragraph (6), 9 should— 10 (A) coordinate with diplomatic partners, 11 including the Government of Canada, the Euro- 12 pean Union, and partners in Latin America and 13 the Caribbean; 14 (B) advance diplomatic initiatives in con- 15 sultation with the Organization of American 16 States and the United Nations; and 17 (C) thoroughly investigate the assets and 18 holdings of the Nicaraguan Armed Forces in 19 the United States and consider appropriate ac- 20 tions to hold such forces accountable for gross 21 violations of human rights; and 22 (8) pursuant to section 6(b) of the Nicaragua 23 Investment Conditionality Act of 2018, the Presi- 24 dent should waive the application of restrictions 25 5 † S 1041 ES under section 4 of that Act and the sanctions under 1 section 5 of that Act if the Secretary of State cer- 2 tifies that the Government of Nicaragua is taking 3 the steps identified in section 6(a) of that Act, in- 4 cluding taking steps to ‘‘to hold free and fair elec- 5 tions overseen by credible domestic and international 6 observers’’. 7 SEC. 3. REVIEW OF PARTICIPATION OF NICARAGUA IN DO- 8 MINICAN REPUBLIC-CENTRAL AMERICA- 9 UNITED STATES FREE TRADE AGREEMENT. 10 (a) FINDINGS.—Congress makes the following find- 11 ings: 12 (1) On November 27, 2018, the President 13 signed Executive Order 13851 (50 U.S.C. 1701 14 note; relating to blocking property of certain persons 15 contributing to the situation in Nicaragua), which 16 stated that ‘‘the situation in Nicaragua, including 17 the violent response by the Government of Nica- 18 ragua to the protests that began on April 18, 2018, 19 and the Ortega regime’s systematic dismantling and 20 undermining of democratic institutions and the rule 21 of law, its use of indiscriminate violence and repres- 22 sive tactics against civilians, as well as its corruption 23 leading to the destabilization of Nicaragua’s econ- 24 omy, constitutes an unusual and extraordinary 25 6 † S 1041 ES threat to the national security and foreign policy of 1 the United States’’. 2 (2) Article 21.2 of the Dominican Republic- 3 Central America-United States Free Trade Agree- 4 ment approved by Congress under section 101(a)(1) 5 of the Dominican Republic-Central America-United 6 States Free Trade Agreement Implementation Act 7 (19 U.S.C. 4011(a)(1)) states, ‘‘Nothing in this 8 Agreement shall be construed . . . to preclude a 9 Party from applying measures that it considers nec- 10 essary for the fulfillment of its obligations with re- 11 spect to the maintenance or restoration of inter- 12 national peace or security, or the protection of its 13 own essential security interests.’’. 14 (b) SENSE OF CONGRESS.—It is the sense of Con- 15 gress that the President should review the continued par- 16 ticipation of Nicaragua in the Dominican Republic-Central 17 America-United States Free Trade Agreement if the Gov- 18 ernment of Nicaragua continues to tighten its authori- 19 tarian rule in an attempt to subvert democratic elections 20 in November 2021 and undermine democracy and human 21 rights in Nicaragua. 22 7 † S 1041 ES SEC. 4. RESTRICTIONS ON INTERNATIONAL FINANCIAL IN- 1 STITUTIONS RELATING TO NICARAGUA. 2 Section 4 of the Nicaragua Investment Conditionality 3 Act of 2018 is amended— 4 (1) by redesignating subsections (a), (b), and 5 (c) as subsections (b), (c), and (d), respectively; 6 (2) by inserting before subsection (b), as redes- 7 ignated by paragraph (1), the following: 8 ‘‘(a) SENSE OF CONGRESS.—It is the sense of Con- 9 gress that the Secretary of the Treasury should take all 10 possible steps, including through the full implementation 11 of the exceptions set forth in subsection (c), to ensure that 12 the restrictions required under subsection (b) do not nega- 13 tively impact the basic human needs of the people of Nica- 14 ragua.’’; 15 (3) in subsection (c), as so redesignated, by 16 striking ‘‘subsection (a)’’ and inserting ‘‘subsection 17 (b)’’; and 18 (4) by striking subsection (d), as so redesig- 19 nated, and inserting the following: 20 ‘‘(d) INCREASED OVERSIGHT.— 21 ‘‘(1) IN GENERAL.—The United States Execu- 22 tive Director at each international financial institu- 23 tion of the World Bank Group, the United States 24 Executive Director at the Inter-American Develop- 25 ment Bank, and the United States Executive Direc- 26 8 † S 1041 ES tor at each other international financial institution, 1 including the International Monetary Fund, shall 2 take all practicable steps— 3 ‘‘(A) to increase scrutiny of any loan or fi- 4 nancial or technical assistance provided for a 5 project in Nicaragua; and 6 ‘‘(B) to ensure that the loan or assistance 7 is administered through an entity with full tech- 8 nical, administrative, and financial independ- 9 ence from the Government of Nicaragua. 10 ‘‘(2) MECHANISMS FOR INCREASED SCRU- 11 TINY.—The United States Executive Director at 12 each international financial institution described in 13 paragraph (1) shall use the voice, vote, and influence 14 of the United States to encourage that institution to 15 increase oversight mechanisms for new and existing 16 loans or financial or technical assistance provided 17 for a project in Nicaragua. 18 ‘‘(e) INTERAGENCY CONSULTATION.—Before imple- 19 menting the restrictions described in subsection (b), or be- 20 fore exercising an exception under subsection (c), the Sec- 21 retary of the Treasury shall consult with the Secretary of 22 State and with the Administrator of the United States 23 Agency for International Development to ensure that all 24 loans and financial or technical assistance to Nicaragua 25 9 † S 1041 ES are consistent with United States foreign policy objectives 1 as defined in section 3. 2 ‘‘(f) REPORT.—Not later than 180 days after the 3 date of the enactment of the RENACER Act, and annu- 4 ally thereafter until the termination date specified in sec- 5 tion 10, the Secretary of the Treasury, in coordination 6 with the Secretary of State and the Administrator of the 7 United States Agency for International Development, shall 8 submit to the appropriate congressional committees a re- 9 port on the implementation of this section, which shall in- 10 clude— 11 ‘‘(1) summary of any loans and financial and 12 technical assistance provided by international finan- 13 cial institutions for projects in Nicaragua; 14 ‘‘(2) a description of the implementation of the 15 restrictions described in subsection (b); 16 ‘‘(3) an identification of the occasions in which 17 the exceptions under subsection (c) are exercised 18 and an assessment of how the loan or assistance 19 provided with each such exception may address basic 20 human needs or promote democracy in Nicaragua; 21 ‘‘(4) a description of the results of the in- 22 creased oversight conducted under subsection (d); 23 and 24 10 † S 1041 ES ‘‘(5) a description of international efforts to ad- 1 dress the humanitarian needs of the people of Nica- 2 ragua.’’. 3 SEC. 5. TARGETED SANCTIONS TO ADVANCE DEMOCRATIC 4 ELECTIONS. 5 (a) COORDINATED STRATEGY.— 6 (1) IN GENERAL.—The Secretary of State and 7 the Secretary of the Treasury, in consultation with 8 the intelligence community (as defined in section 3 9 of the National Security Act of 1947 (50 U.S.C. 10 3003)), shall develop and implement a coordinated 11 strategy to align diplomatic engagement efforts with 12 the implementation of targeted sanctions in order to 13 support efforts to facilitate the necessary conditions 14 for free, fair, and transparent elections in Nica- 15 ragua. 16 (2) BRIEFING REQUIRED.—Not later than 90 17 days after the date of the enactment of this Act, and 18 every 90 days thereafter until December 31, 2022, 19 the Secretary of State and the Secretary of the 20 Treasury shall brief the Committee on Foreign Rela- 21 tions of the Senate and the Committee on Foreign 22 Affairs of the House of Representatives on steps to 23 be taken by the United States Government to de- 24 11 † S 1041 ES velop and implement the coordinated strategy re- 1 quired by paragraph (1). 2 (b) TARGETED SANCTIONS PRIORITIZATION.— 3 (1) IN GENERAL.—Pursuant to the coordinated 4 strategy required by subsection (a), the President 5 shall prioritize the implementation of the targeted 6 sanctions required under section 5 of the Nicaragua 7 Investment Conditionality Act of 2018. 8 (2) TARGETS.—In carrying out paragraph (1), 9 the President— 10 (A) shall examine whether foreign persons 11 involved in directly or indirectly obstructing the 12 establishment of conditions necessary for the 13 realization of free, fair, and transparent elec- 14 tions in Nicaragua are subject to sanctions 15 under section 5 of the Nicaragua Investment 16 Conditionality Act of 2018; and 17 (B) should, in particular, examine whether 18 the following persons have engaged in conduct 19 subject to such sanctions: 20 (i) Officials in the government of 21 President Daniel Ortega. 22 (ii) Family members of President 23 Daniel Ortega. 24 12 † S 1041 ES (iii) High-ranking members of the Na- 1 tional Nicaraguan Police. 2 (iv) High-ranking members of the 3 Nicaraguan Armed Forces. 4 (v) Members of the Supreme Electoral 5 Council of Nicaragua. 6 (vi) Officials of the Central Bank of 7 Nicaragua. 8 (vii) Party members and elected offi- 9 cials from the Sandinista National Libera- 10 tion Front and their family members. 11 (viii) Individuals or entities affiliated 12 with businesses engaged in corrupt finan- 13 cial transactions with officials in the gov- 14 ernment of President Daniel Ortega, his 15 party, or his family. 16 (ix) Individuals identified in the re- 17 port required by section 8 as involved in 18 significant acts of public corruption in 19 Nicaragua. 20 SEC. 6. DEVELOPING AND IMPLEMENTING A COORDINATED 21 SANCTIONS STRATEGY WITH DIPLOMATIC 22 PARTNERS. 23 (a) FINDINGS.—Congress makes the following find- 24 ings: 25 13 † S 1041 ES (1) On June 21, 2019, the Government of Can- 1 ada, pursuant to its Special Economic Measures Act, 2 designated 9 officials of the Government of Nica- 3 ragua for the imposition of sanctions in response to 4 gross and systematic human rights violations in 5 Nicaragua. 6 (2) On May 4, 2020, the European Union im- 7 posed sanctions with respect to 6 officials of the 8 Government of Nicaragua identified as responsible 9 for serious human rights violations and for the re- 10 pression of civil society and democratic opposition in 11 Nicaragua. 12 (3) On October 12, 2020, the European Union 13 extended its authority to impose restrictive measures 14 on ‘‘persons and entities responsible for serious 15 human rights violations or abuses or for the repres- 16 sion of civil society and democratic opposition in 17 Nicaragua, as well as persons and entities whose ac- 18 tions, policies or activities otherwise undermine de- 19 mocracy and the rule of law in Nicaragua, and per- 20 sons associated wi [Text truncated for display. Full text available on Congress.gov.]