Restoring Sovereignty and Human Rights in Nicaragua Act of 2024

II Calendar No. 371 118TH CONGRESS 2D SESSION S. 1881 To reauthorize and amend the Nicaraguan Investment Conditionality Act of 2018 and the Reinforcing Nicaragua’s Adherence to Conditions for Electoral Reform Act of 2021, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 8, 2023 Mr. RUBIO (for himself, Mr. KAINE, and Mr. CASSIDY) introduced the fol- lowing bill; which was read twice and referred to the Committee on For- eign Relations MAY 7, 2024 Reported by Mr. CARDIN, with an amendment [Strike out all after the enacting clause and insert the part printed in italic] A BILL To reauthorize and amend the Nicaraguan Investment Condi- tionality Act of 2018 and the Reinforcing Nicaragua’s Adherence to Conditions for Electoral Reform Act of 2021, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 •S 1881 RS SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1 (a) SHORT TITLE.—This Act may be cited as the 2 ‘‘Restoring Sovereignty and Human Rights in Nicaragua 3 Act of 2023’’. 4 (b) TABLE OF CONTENTS.—The table of contents of 5 this Act is as follows: 6 Sec. 1. Short title; table of contents. Sec. 2. Definitions. Sec. 3. Findings. Sec. 4. Sense of Congress. TITLE I—REAUTHORIZATION AND AMENDMENT OF THE NICA- RAGUAN INVESTMENT CONDITIONALITY ACT OF 2018 AND THE REINFORCING NICARAGUA’S ADHERENCE TO CONDITIONS FOR ELECTORAL REFORM ACT OF 2021 Sec. 101. Extension of authorities of the Nicaraguan Investment Conditionality Act of 2018. Sec. 102. Enhancing sanctions on sectors of the Nicaraguan economy that gen- erate revenue for the Ortega family. Sec. 103. Imposition of sanctions with respect to the Ortega administration’s abuses against the Catholic Church, political prisoners, and support for the invasion of Ukraine. Sec. 104. Coordinated diplomatic strategy to restrict investment and loans that benefit the Government of Nicaragua from the Central Amer- ican Bank for Economic Integration. TITLE II—ADDITIONAL ECONOMIC MEASURES TO HOLD THE GOVERNMENT OF NICARAGUA ACCOUNTABLE FOR HUMAN RIGHTS ABUSES Sec. 201. Statement of policy. Sec. 202. Review of participation of Nicaragua in the Dominican Republic-Cen- tral America-United States free trade agreement. Sec. 203. Prohibition on new United States investment in Nicaragua. Sec. 204. Termination. TITLE III—PROMOTING THE HUMAN RIGHTS OF NICARAGUANS Sec. 301. Support for human rights and democracy programs. Sec. 302. Support for Nicaraguan human rights at the United Nations. SEC. 2. DEFINITIONS. 7 In this Act: 8 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 •S 1881 RS (1) APPROPRIATE CONGRESSIONAL COMMIT- 1 TEES.—The term ‘‘appropriate congressional com- 2 mittees’’ means— 3 (A) the Committee on Foreign Relations 4 and the Committee on Banking of the Senate; 5 and 6 (B) the Committee on Foreign Affairs and 7 the Committee on Financial Services of the 8 House of Representatives. 9 (2) UNITED STATES PERSON.—The term 10 ‘‘United States person’’ means— 11 (A) an individual who is a citizen or na- 12 tional of the United States or an alien lawfully 13 admitted for permanent residence in the United 14 States; and 15 (B) any corporation, partnership, or other 16 entity organized under the laws of the United 17 States or the laws of any jurisdiction within the 18 United States. 19 SEC. 3. FINDINGS. 20 Congress makes the following findings: 21 (1) The 2022 Annual Report of the United 22 States Commission on International Religious Free- 23 dom made the following recommendations to the 24 United States Government: 25 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 •S 1881 RS (A) Maintain Nicaragua on the special 1 watch list of the Department of State under 2 section 402(b)(1)(A)(iii) of the International 3 Religious Freedom Act of 1998 (22 U.S.C. 4 6442(b)(1)(A)(iii)) for engaging in or tolerating 5 serious violations of religious freedom. 6 (B) Impose targeted sanctions with respect 7 to agencies and officials of the Government of 8 Nicaragua responsible for violence and other 9 punitive actions against places of worship, reli- 10 gious leaders, and organizations by freezing the 11 assets of and barring the entry of certain per- 12 sons into the United States, citing specific vio- 13 lations of religious freedom. 14 (C) Collaborate with and encourage multi- 15 lateral organizations, such as the Organization 16 of American States— 17 (i) to monitor and investigate viola- 18 tions of religious freedom that occur in 19 Nicaragua; 20 (ii) to work to identify perpetrators of 21 religious freedom violations in Nicaragua; 22 and 23 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 •S 1881 RS (iii) to seek the repeal of problematic 1 laws such as the foreign agents law passed 2 in Nicaragua in 2020. 3 (2) The Catholic Church in Nicaragua suf- 4 fered— 5 (A) 127 attacks in 2022; 6 (B) 54 attacks in 2021; 7 (C) 58 attacks in 2020; 8 (D) 76 attacks in 2019; and 9 (E) 81 attacks in 2018. 10 (3) In a 2022 report by the Economist Intel- 11 ligence Unit, Nicaragua was listed as an authori- 12 tarian regime and one of the least democratic coun- 13 tries in the Western Hemisphere, along with Cuba 14 and Venezuela. 15 (4) According to the 2021 Country Reports on 16 Human Rights Practices published by the Depart- 17 ment of State, members of civil society and student 18 leaders involved in the April 2018 protests in Nica- 19 ragua were subjected to torture and inhuman or de- 20 grading treatment or punishment. 21 (5) According to human rights organizations, 22 the Ortega regime has 150 political prisoners, in- 23 cluding prisoners in solitary confinement. 24 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 •S 1881 RS (6) In 2022, the Ortega regime rejected a 1 United States envoy, declared the head of the Euro- 2 pean Union persona non grata, and closed the Vati- 3 can embassy in Managua. 4 (7) On February 9, 2023, the authoritarian Or- 5 tega regime— 6 (A) expelled 222 Nicaraguan nationals who 7 had been unjustly imprisoned for exercising 8 their fundamental rights; and 9 (B) stripped those nationals of Nicaraguan 10 citizenship. 11 (8) The invasion of Ukraine by President of the 12 Russian Federation Vladimir Putin poses a signifi- 13 cant threat to global peace and stability in the West- 14 ern Hemisphere. 15 (9) The authoritarian regime of President Dan- 16 iel Ortega in Nicaragua is providing diplomatic sup- 17 port to the Russian Federation and serving as an 18 amplifier and repeater of Russian propaganda on a 19 global scale. 20 (10) The actions of the Government of Nica- 21 ragua are impeding development of a global con- 22 sensus to reject and respond to crimes against hu- 23 manity conducted by President Putin. 24 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 •S 1881 RS (11) The Ortega regime has deepened the rela- 1 tionship between the Government of Nicaragua and 2 the Government of the Russian Federation and is 3 establishing diplomatic relations with the Govern- 4 ment of the People Republic of China. 5 SEC. 4. SENSE OF CONGRESS. 6 It is the sense of Congress that— 7 (1) the Secretary of State, working through the 8 head of the Office of Sanctions Coordination, and in 9 consultation with the Secretary of the Treasury, 10 should engage in diplomatic efforts with partners of 11 the United States, including the Government of Can- 12 ada, governments of countries in the European 13 Union, and governments of countries in Latin Amer- 14 ica and the Caribbean, to impose targeted sanctions 15 with respect to the persons subject to sanctions au- 16 thorized by the Nicaraguan Investment Condition- 17 ality Act of 2018 and the Reinforcing Nicaragua’s 18 Adherence to Conditions for Electoral Reform Act of 19 2021 in order to hold the authoritarian regime of 20 President Daniel Ortega accountable for crimes 21 against the Catholic Church, the clergy, and the peo- 22 ple of Nicaragua; 23 (2) the United States Government should con- 24 tinue— 25 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 •S 1881 RS (A) to raise concerns about human rights 1 and democracy in Nicaragua, and call attention 2 to religious and opposition leaders and civil so- 3 ciety, media, and faith-based organizations si- 4 lenced by the Ortega regime; and 5 (B) to enforce Executive Order 13851 (50 6 U.S.C. 1701 note; relating to blocking property 7 of certain persons contributing to the situation 8 in Nicaragua), and expand existing sanctions to 9 other sectors of the economy of Nicaragua, such 10 as the meat sector; and 11 (3) the international community, including the 12 Holy See, the International Red Cross, and the 13 United Nations should coordinate efforts— 14 (A) to improve the conditions of all polit- 15 ical prisoners in Nicaragua; 16 (B) to document all gross violations of 17 internationally recognized human rights in 18 Nicaragua; and 19 (C) to call for the end of political persecu- 20 tion against members of religious organizations, 21 including the Catholic Church. 22 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 •S 1881 RS TITLE I—REAUTHORIZATION 1 AND AMENDMENT OF THE 2 NICARAGUAN INVESTMENT 3 CONDITIONALITY ACT OF 2018 4 AND THE REINFORCING 5 NICARAGUA’S ADHERENCE TO 6 CONDITIONS FOR ELEC- 7 TORAL REFORM ACT OF 2021 8 SEC. 101. EXTENSION OF AUTHORITIES OF THE NICA- 9 RAGUAN INVESTMENT CONDITIONALITY ACT 10 OF 2018. 11 Section 10 of the Nicaraguan Investment Condition- 12 ality Act of 2018 (Public Law 115–335; 50 U.S.C. 1701 13 note) is amended by striking ‘‘2023’’ and inserting 14 ‘‘2028’’. 15 SEC. 102. ENHANCING SANCTIONS ON SECTORS OF THE 16 NICARAGUAN ECONOMY THAT GENERATE 17 REVENUE FOR THE ORTEGA FAMILY. 18 Section 5(a) of the Nicaraguan Investment Condi- 19 tionality Act of 2018 (Public Law 115–335; 50 U.S.C. 20 1701 note) is amended— 21 (1) in paragraph (3)(B), by striking ‘‘or’’; 22 (2) in paragraph (4), by striking the period at 23 the end and inserting ‘‘; or’’; and 24 (3) by adding at the end the following: 25 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 •S 1881 RS ‘‘(5) to operate or have operated in the gold, 1 cattle, or coffee sectors of the Nicaraguan economy 2 or in any other sector of the Nicaraguan economy 3 identified by the Secretary of the Treasury, in con- 4 sultation with the Secretary of State, for purposes of 5 this paragraph.’’. 6 SEC. 103. IMPOSITION OF SANCTIONS WITH RESPECT TO 7 THE ORTEGA ADMINISTRATION’S ABUSES 8 AGAINST THE CATHOLIC CHURCH, POLITICAL 9 PRISONERS, AND SUPPORT FOR THE INVA- 10 SION OF UKRAINE. 11 (a) EXPANSION OF ACTIVITIES TRIGGERING TAR- 12 GETED SANCTIONS.—Section 5(b) of the Nicaraguan In- 13 vestment Conditionality Act of 2018 (Public Law 115– 14 335; 50 U.S.C. 1701 note) is amended by adding at the 15 end the following: 16 ‘‘(5) The arrest or prosecution of a person, in- 17 cluding a person who is a member of or an officer 18 of the Catholic Church, because of the legitimate ex- 19 ercise by such person of the freedom of religion. 20 ‘‘(6) The conviction and sentencing of a person 21 who is a member of an opposition party or inde- 22 pendent civil society organization under politically 23 motivated charges. 24 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 11 •S 1881 RS ‘‘(7) Gross violations of the internationally rec- 1 ognized human rights of prisoners. 2 ‘‘(8) Acts of providing significant goods, serv- 3 ices, or technology to or expressing support for the 4 invasion of Ukraine by the Russian Federation that 5 began on February 24, 2022.’’. 6 (b) MODIFICATION OF TARGETED SANCTIONS 7 PRIORITIZATION.—Section 5(b)(2)(B) of the Reinforcing 8 Nicaragua’s Adherence to Conditions for Electoral Reform 9 Act of 2021 (Public Law 117–54; 50 U.S.C. 1701 note) 10 is amended— 11 (1) by redesignating clauses (viii) and (ix) as 12 clauses (ix) and (x), respectively; and 13 (2) by inserting after clause (vii) the following 14 new clause (viii): 15 ‘‘(viii) Officials of the Instituto de 16 Previsio´n Social Militar (IPSM), commonly 17 known as the Military Institute of Social 18 Security of Nicaragua.’’. 19 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 12 •S 1881 RS SEC. 104. COORDINATED DIPLOMATIC STRATEGY TO RE- 1 STRICT INVESTMENT AND LOANS THAT BEN- 2 EFIT THE GOVERNMENT OF NICARAGUA 3 FROM THE CENTRAL AMERICAN BANK FOR 4 ECONOMIC INTEGRATION. 5 Section 4 of the Nicaragua Investment Conditionality 6 Act of 2018 (Public Law 115–335; 50 U.S.C. 1701 note) 7 is amended— 8 (1) by redesignating subsection (f) as sub- 9 section (g); 10 (2) by inserting after subsection (e) the fol- 11 lowing new subsection (f): 12 ‘‘(f) DIPLOMATIC STRATEGY TO RESTRICT INVEST- 13 MENT IN NICARAGUA AT THE CENTRAL AMERICAN BANK 14 FOR ECONOMIC INTEGRATION.—The Secretary of State, 15 in consultation with the Secretary of the Treasury, shall 16 engage in diplomatic efforts with governments of countries 17 that are partners of the United States and members of 18 the Central American Bank for Economic Integration (re- 19 ferred to in this section as ‘CABEI’), including the govern- 20 ments of Mexico, Taiwan, Argentina, Colombia, Spain, 21 and the Republic of Korea— 22 ‘‘(1) to oppose the extension by CABEI of any 23 loan or financial or technical assistance to the Gov- 24 ernment of Nicaragua for any project in Nicaragua; 25 VerDate Sep 11 2014 06:39 May 08, 2024 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6401 E:\BILLS\S1881.RS S1881 kjohnson on DSK7ZCZBW3PROD with $$_JOB 13 •S 1881 RS ‘‘(2) to increase the scrutiny of any loan or fi- 1 nancial or technical assistance provided by [Text truncated for display. 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