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[Senate Report 111-205]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 426
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-205

======================================================================

 
 THE ORGANIZATION OF AMERICAN STATES REVITALIZATION AND REFORM ACT OF 
                                  2010

                                _______
                                

                 June 10, 2010.--Ordered to be printed

                                _______
                                

          Mr. Kerry, from the Committee on Foreign Relations,
                        submitted the following

                                 REPORT

                         [To accompany S. 3087]

    The Committee on Foreign Relations, having had under 
consideration the bill (S. 3087), to support the revitalization 
and reform of the Organization of American States, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill (as 
amended) do pass.

                                CONTENTS

                                                                   Page

  I. Purpose..........................................................1
 II. Committee Action.................................................1
III. Discussion.......................................................2
 IV. Cost Estimate....................................................3
  V. Evaluation of Regulatory Impact..................................4
 VI. Changes in Existing Law..........................................4

                               I. Purpose

    The purpose of S. 3087 is to support the revitalization and 
reform of the Organization of American States.

                          II. Committee Action

    S. 3087 was introduced by Senator Menendez on March 8, 
2010. Senator Kerry is an original cosponsor, and Senator Lugar 
is a cosponsor.
    On April 27, 2010, the committee considered the bill with 
an amendment in the nature of a substitute. The committee 
ordered the bill to be reported favorably, with the amendment, 
by voice vote.

                            III. Discussion

    The Organization of American States Revitalization and 
Reform Act of 2010 (the ``Act'') is intended to encourage the 
Organization of the American States (OAS) to focus its mission 
towards its natural areas of strength, and encourage the 
organization to adopt and implement improved accounting 
standards, put in place results-based budgeting processes, and 
adhere to transparent and merit-based human resource policies. 
It also seeks to help agencies within the U.S. Government to 
better use the OAS as a forum to collaborate on areas of mutual 
interest like energy, citizen security, economic development, 
and trade. The bill affirms that the core strengths of the OAS 
are programs to consolidate democracy, monitor elections, and 
improve citizen security.
    The committee agrees that it is in the best interests of 
the United States to have a strong and capable multilateral 
forum to help resolve disputes and build consensus around 
democratic values and initiatives that benefit all the people 
in the Western Hemisphere. The OAS is the only regional 
institution that encompasses all the democracies in the Western 
Hemisphere, and it provides a multilateral forum for the United 
States to engage with Latin America, the Caribbean, and Canada 
on issues of mutual concern. It has strengthened peace and 
security and promoted representative democracy and regional 
dispute resolution. It has championed election monitoring, 
contributed to economic development and served as a fair 
steward of the Inter-American Human Rights System.
    However, as OAS officials themselves acknowledge, there is 
room for improvement. The long-term relevance and health of the 
OAS depends on the strength of its underlying processes--the 
transparency of its budget, the effectiveness of its personnel 
selection process, and efficiency of its priority-setting 
mechanisms. This bill focuses on strengthening the OAS from the 
bottom up, with an eye toward strengthening its value as a 
hemispheric forum for cooperation. This is in the interests of 
the United States and in the interests of the entire 
hemisphere.
    The Organization of American States Revitalization and 
Reform Act of 2010 provides that it is the policy of the United 
States to:

(1) Promote democracy and the rule of law throughout the 
        Western Hemisphere;

(2) Promote and protect human rights and fundamental freedoms 
        in the Western Hemisphere; and

(3) Support the practices, purposes, and principles in the 
        Charter of the OAS, the American Declaration on the 
        Rights and Duties of Man, the Inter-American Democratic 
        Charter, and other fundamental instruments of 
        democracy.

    Further, the Act articulates a Sense of Congress: That, the 
OAS should be strengthened, be more transparent in their 
budgeting, adopt and adhere to better budget monitoring, use 
consistent mechanisms for setting OAS quotas and OAS 
expenditures, reduce its number of mandates, and have more 
transparent hiring practices.
    The Act directs the Secretary of State to submit a 
multiyear strategy to the Committee on Foreign Relations of the 
Senate and the Committee on Foreign Affairs of the House of 
Representatives that outlines a recommended approach to the OAS 
to encourage the adoption of International Public Sector 
Accounting Standards, a results-based budgeting process in 
order to strategically prioritize current and future mandates, 
and transparent hiring practices. The Act also requires that 
the strategy reflect the inputs and coordination from other 
executive branch agencies, as appropriate. Further, the Act 
directs the Secretary of State to: proactively inform executive 
branch agencies about the role and importance of the OAS; 
encourage increased use of the OAS as a forum through which to 
publicize hemispheric initiatives; promote donor coordination 
among OAS member states; and help set priorities for the OAS.
    The Act also includes a provision added at Senator Lugar's 
request and reflective of the committee's view regarding the 
need for improved coordination between the OAS and the Inter-
American Development Bank on economic development programs.

                           IV. Cost Estimate

    In accordance with rule XXVI, paragraph 11(a) of the 
Standing Rules of the Senate, the committee provides this 
estimate of the costs of this legislation prepared by the 
Congressional Budget Office.

                            United States Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 17, 2010.

Hon. John F. Kerry,
Chairman, Committee on Foreign Relations,
U.S. Senate, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 3087, the 
Organization of American States Revitalization and Reform Act 
of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John Chin.
          Sincerely,
                                      Douglas W. Elmendorf.

                                ------                                

               Congressional Budget Office Cost Estimate

                                                      May 26, 2010.

                                S. 3087

            Organization of American States Revitalization 
                         and Reform Act of 2010

  AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FOREIGN RELATIONS ON 
                             APRIL 27, 2010

    S. 3087 would direct the Department of State to coordinate 
with appropriate federal agencies to develop a multiyear 
strategy that outlines an approach to encouraging specified 
reforms at the Organization of American States (OAS). Such 
reforms include the adoption of International Public Sector 
Accounting Standards, a results-based budgeting process, and 
transparent hiring practices. The Secretary of State would be 
required to submit its strategic plan to the Senate Committee 
on Foreign Relations and the House Committee on Foreign Affairs 
within 180 days of enactment of S. 3087. Within a year of the 
submission of that plan, the Secretary of State would be 
required to submit a report that analyzes the progress OAS has 
made in adopting the specified reforms. CBO estimates that 
preparing the strategy and progress report would cost less than 
$500,000 over the 2011-2012 period, assuming availability of 
appropriated funds.
    Enacting S. 3087 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures would not apply.
    S. 3087 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is John Chin. This 
estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                   V. Evaluation of Regulatory Impact

    Pursuant to rule XXVI, paragraph 11(b) of the Standing 
Rules of the Senate, the committee has determined that there is 
no regulatory impact as a result of this legislation.

                      VI. Changes in Existing Law

    In compliance with rule XXVI, paragraph 12 of the Standing 
Rules of the Senate, the committee has determined that there 
are no changes in existing law made by the bill, as reported.

                                  
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