[House Report 115-484]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2nd Session } { 115-484
======================================================================
AFRICAN GROWTH AND OPPORTUNITY ACT AND MILLENNIUM CHALLENGE ACT
MODERNIZATION ACT
_______
January 3, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Royce of California, from the Committee on Foreign Affairs,
submitted the following
R E P O R T
[To accompany H.R. 3445]
[Including cost estimate of the Congressional Budget Office]
The Committee on Foreign Affairs, to whom was referred the
bill (H.R. 3445) to enhance the transparency and accelerate the
impact of programs under the African Growth and Opportunity Act
and the Millennium Challenge Corporation, and for other
purposes, having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
TABLE OF CONTENTS
Page
Summary and Purpose.............................................. 1
Background and Need for the Legislation.......................... 2
Hearings......................................................... 7
Committee Consideration.......................................... 9
Committee Oversight Findings..................................... 9
New Budget Authority, Tax Expenditures, and Federal Mandates..... 9
Congressional Budget Office Cost Estimate........................ 9
Directed Rule Making............................................. 11
Non-Duplication of Federal Programs.............................. 11
Performance Goals and Objectives................................. 11
Congressional Accountability Act................................. 11
New Advisory Committees.......................................... 12
Earmark Identification........................................... 12
Section-by-Section Analysis...................................... 12
Changes in Existing Law Made by the Bill, as Reported............ 13
Summary and Purpose
H.R. 3445, the AGOA and MCA Modernization Act, seeks to
reduce poverty, accelerate economic growth, and enable
developing countries, particularly in Africa, to transition
from U.S. foreign aid recipients to U.S. trade partners by
incentivizing good governance and open market principles,
building trade capacity, promoting regional economic
integration, and breaking down barriers to market-based growth.
First, the bill seeks to expand and accelerate the impact of
African Growth and Opportunity Act (AGOA)--a trade preference
program first authorized as Title I of the Trade and
Development Act of 2000 (P.L. 106-200) and most recently
renewed by the Trade Preferences Extension Act of 2015 (P.L.
114-27)--by making information about AGOA, including
information about technical assistance that may be made
available to businesses and entrepreneurs through existing U.S.
trade hubs, available on a single, consolidated, publicly
available website. Second, it provides the Millennium Challenge
Corporation (MCC)--a foreign development agency of the United
States Government established by the Millennium Challenge Act
of 2003 (Title VI, Division D of the Consolidated
Appropriations Act, P.L. 108-199)--with the authority to invest
in concurrent Compacts that promote regional economic
integration and trade among eligible partner countries.
Additionally, the bill includes authorizing language that
stabilizes movement between MCC's ``Low Income'' and ``Lower
Middle Income'' candidate country pools (carried in annual
appropriations bills since FY2012) and prohibits the provision
of assistance to a country in any fiscal year for which that
country does not qualify as a candidate country (carried in
annual appropriations bills since FY 2014). Finally, the bill
improves the transparency and accountability of MCC by
streamlining, enhancing, and making publicly available reports
on quarterly expenditures and other program requirements.
Background and Need for the Legislation
The African Growth and Opportunity Act
The African Growth and Opportunity Act (AGOA), is a trade
preference program that incentivizes good governance and pro-
growth policies in sub-Saharan Africa. Enacted at a time when
development assistance and humanitarian relief drove U.S.
policies toward the sub-continent, AGOA catalyzed a paradigm
shift from aid to trade. Through AGOA, marketable goods
produced in eligible countries in Sub-Saharan Africa enter the
U.S. market duty-free. Eligibility for this preferential tariff
treatment is based on several considerations, including the
prospective AGOA country's commitment to: the rule of law and
pro-growth policies; the elimination of barriers to U.S. trade
and investment; economic policies that reduce poverty, expand
access to health and education, improve infrastructure, and
promote private enterprise; combatting corruption; the
protection of worker rights; support for counter-terrorism
activities; and non-interference with U.S. national security
and foreign policy efforts. In 2016, 39 of 48 countries in sub-
Saharan Africa were designated as AGOA eligible. Non-oil
exports to the United States from sub-Saharan Africa have
nearly tripled since enactment--from $1.4 billion in 2001 to
$4.1 billion in 2015--mainly due to increased exports of autos
and parts, apparel, fruits and nuts, cocoa, prepared
vegetables, footwear, and cut flowers.
While two-way U.S.-Africa trade has nearly tripled since
AGOA was established, its full potential has yet to be realized
because the law's attendant benefits remain underutilized in
many eligible countries and sectors. A consistent message
received during fact finding missions to determine why AGOA
remains underutilized is that timely and accurate information
about what AGOA is, how it works, and how benefits can be
directly accessed is difficult to find. Multiple privately-
sponsored websites describe AGOA and the website of the
International Trade Administration includes an AGOA page with
some useful links. However, there is no single, comprehensive,
website managed by the U.S. agencies charged with overseeing
implementation and providing technical assistance necessary to
ensure proper utilization. Moreover, embassies in eligible
countries have been inconsistent in their efforts to promote
AGOA and the trade hubs in their public affairs and commercial
outreach. This is a missed opportunity that can easily be
rectified at little-to-no cost to the United States Government.
H.R. 3445 establishes that it shall be the policy of the
United States to improve the rule of law, promote free and fair
elections, strengthen and expand the private sector, fight
corruption, and promote the role of women in social, political,
and economic development in sub-Saharan Africa. It seeks to
accomplish these policy objectives by increasing opportunities
for AGOA utilization and encouraging the President to provide
technical and trade capacity building assistance to businesses
and entrepreneurs in sub-Saharan Africa. It calls for the
establishment of a publicly available internet website for the
collection and dissemination of information about AGOA,
including information relating to commitments and outcomes of
each meeting of the U.S.-Sub-Saharan Africa Trade and Economic
Cooperation Forum. It also calls upon the U.S. embassies in
eligible countries to link to the AGOA website and promote
utilization of AGOA benefits.
The Millennium Challenge Corporation.
The Millennium Challenge Corporation (MCC) is an
independent Federal agency created by Congress pursuant to the
Millennium Challenge Act of 2003 to reduce poverty in poor but
well-governed countries by funding projects and incentivizing
policy reforms that accelerate economic growth. It is led by a
Board of Directors that is chaired by the Secretary of State
and includes the Secretary of Treasury, the U.S. Trade
Representative, the Administrator of USAID, the Chief Executive
Officer of MCC, and four private sector members nominated by
the majority and minority leaders of the House and Senate.
MCC represents a unique model, centered on a commitment to
selectivity, country ownership, transparency, accountability,
and results. By working only with a select number of countries
that demonstrate continuous commitment to democratic
governance, economic freedom, and investing in their own
people, MCC has established itself as a global leader in
development policy and best practices. It has created an
important incentive structure that inspires governments to
undertake difficult reforms. It requires evidence-based
decision-making and holds itself and its partners accountable
for delivering results that can be sustained over time.
Moreover, it builds mechanisms for robust monitoring and
evaluation into each Compact, so problems can be identified
early, course corrections can be made, and learning can be
captured and shared. This learning and accountability agenda
has positively influenced the policies and programs of other
development agencies, including the U.S. Agency for
International Development (USAID).
MCC has two major categories of investment: Compacts and
Threshold programs. To be eligible for a Compact, a country
must be a Low Income Country (LIC) or a Lower Middle Income
Country (LMIC) that passes a ``scorecard'' measuring
performance on 20 indicators of that country's commitment to
economic freedom, ruling justly, and investing in its people.
Once selected as eligible by the Board, an economic analysis is
conducted to identify a country's key constraints to growth.
The partner country is then responsible for developing and
implementing a Board-approved, MCC monitored, five-year Compact
to overcome those constraints. Compacts have ranged in size
from $66 million in Cape Verde to nearly $700 million in
Morocco and Tanzania, and have included a range of activities
from agriculture to energy, market access, land titling, and
major infrastructure. To date, MCC has obligated $10.8 billion
to support 33 Compacts in 27 countries. There are currently 12
Compacts in implementation (Benin, Cape Verde, El Salvador,
Georgia, Ghana, Indonesia, Liberia, Malawi, Morocco, Zambia,
Niger, and Nepal) and 6 in development (Cote d'Ivoire, Sri
Lanka, Tunisia, Mongolia, Senegal, Burkina Faso).
Threshold programs are smaller-scale investments intended
to help a country become eligible for a Compact. To date, MCC
has obligated $583.6 million to support 26 Threshold agreements
with 24 countries, 11 of which subsequently entered into
Compacts. There are four active Threshold programs (Guatemala,
Honduras, Kosovo, and Sierra Leone) and two in development
(Togo and Timor-Leste). Beginning in December 2011, MCC
refocused its Threshold program and began utilizing an economic
constraints analysis to more consistently guide investments. As
a result, Threshold agreements now focus more heavily upon the
policy reforms necessary to create an enabling environment for
economic growth.
According to MCC, these Compact and Threshold investments
have leveraged more than $6 billion in additional investments
from the private sector and other development partners to date,
including $850 million by partner countries themselves.
Stabilizing MCC Candidate Country Pools. Within the first
decade of MCC's existence, it became clear that the arbitrary
line between the LIC and LMIC country candidate pools was not
working as intended. Only 25 percent of MCC's Compact funds can
be dedicated to LMICs. This means that during an average fiscal
year, only one-to-two LMICs can be selected. However, it
frequently takes more than 18 months to develop a Compact. From
the point of country selection to Compact approval, a partner
country that is hovering around the LIC or LMIC per capita
income limit could cross the income line multiple times. These
fluctuations bring instability to the selection process,
disrupt compact development, and push otherwise eligible
countries out of contention. Congress has addressed this
challenge by re-defining the LIC and LMIC country candidate
pools in each appropriations bill since FY2012 and easing a
country's transition from one category to another in each
appropriations bill since FY2010. H.R. 3445 amends the MCA of
2003 to reflect these changes, thereby mitigating the need to
carry authorization language on appropriations bills.
Addressing MCC Board Vacancies. The bill also seeks to
provide a temporary solution to a long-standing problem
relating to vacancies on MCC's Board of Directors. There are
four positions on the Board intended to be filled, with the
advice and consent of the U.S. Senate, by individuals from the
private sector who have been nominated by the majority and
minority leaders of the House and Senate, respectively. Such
Board members may be appointed to serve one three-year term and
may be reappointed to serve one additional two-year term.
Unfortunately, delays in nominating and confirming such
positions have threatened MCC's ability to maintain a quorum at
quarterly Board meetings. In the absence of a quorum, the Board
cannot select country partners or approve, suspend, or
terminate Compact or Threshold agreements. The bill seeks to
address this problem by allowing a private sector Board member
to extend his or her term by up to two years until a
replacement has been nominated and confirmed.
Country Selection. MCC's selection process starts with the
identification of countries that are legally eligible to
receive United States assistance and meet the criteria for
MCC's two candidate country pools (i.e. LICs, which are defined
as the 75 countries with the lowest per capita income per the
International Bank for Reconstruction and Development, and
LMICs, which are defined as countries with a per capita income
above the poorest 75 countries but below $4,035). MCC then
publishes its selection criteria and methodology, which
includes a description of the ``indicators'' the agency will
use to measure a candidate country's commitment to ruling
justly, investing in people, and encouraging economic freedom.
There are currently 20 indicators used to measure a country's
performance, all of which are developed by independent third-
party institutions and rely upon objective, publicly available
data. The indicators are used to generate a ``scorecard,''
which shows how a country compares to its peers with in the LIC
and LMIC candidate country pools. To be eligible for selection,
a country must ``pass'' (i.e. score above the median when
compared to its peers) at least half of the indicators overall,
pass the Control of Corruption indicator, and score above the
threshold on either the Civil Liberties or Political Rights
indicators. The Civil Liberties indicator, currently measured
by Freedom House, rates countries on freedom of expression,
association and organizational rights, rule of law and human
rights, and personal autonomy and economic rights. The
Political Rights indicator rates, also measured by Freedom
House, rates countries on the quality of electoral processes,
political pluralism and participation, government corruption
and transparency, and fair political treatment of ethnic
groups.
H.R. 3445 requires MCC to provide Board members with
information on how civil society organizations are treated
within a candidate country prior to selection. The committee
notes that such information consistently has been provided to
Board members since the start of MCC, particularly in relation
to discussions of country performance on the Civil Liberties
and Political Rights indicators during the selection process.
MCC also has a demonstrated track record of holding partner
countries accountable for the contraction of democratic space
post-selection. The committee remains deeply committed to the
principles of freedom of expression and association, and urges
MCC to continue to promote United States values toward this
end.
Concurrent Compact Authority. H.R. 3445 seeks to intensify
the impact of MCC investments by enabling the agency to enter
into concurrent Compacts that promote regional economic
integration, increased regional trade, and cross-border
collaboration. Currently, MCC has the authority to sign just
one Compact at a time with any given partner country. This has
led many countries to take a largely insular approach toward
Compact development. In other words, partner countries have
been more inclined to prioritize the construction of a road or
other infrastructure within its own physical borders than to
seek opportunities to connect to markets in neighboring
countries, even if such neighboring countries are also compact
eligible. By granting MCC the authority to enter into
concurrent, regionally-focused Compacts with eligible partner
countries, the agency will be better positioned to break down
the barriers to market-based economic growth within and between
partner countries. For example, MCC selected Cote d'Ivoire as
eligible to develop a Compact in December 2015. With concurrent
Compact authority, MCC would be able to work across Cote
d'Ivoire's borders with neighboring Burkina Faso, Ghana, and
Liberia--also MCC partner countries--to promote cross-border
collaboration and stimulate regional trade and investment. H.R.
3445 provides MCC with concurrent Compact authority, provided
that each partner country has no more than one Compact and one
concurrent Compact in operation at any given time and each
partner country is making significant progress in implementing
its initial Compact.
Eligibility for Subsequent, Non-Concurrent Compacts. MCC
has had the authority to enter into subsequent, non-concurrent
Compacts with eligible partner countries that demonstrate
continuous commitment to the eligibility requirements since its
establishment. Still, MCC engagements were never intended to be
open-ended, and the bar for entering into a second Compact is
expected to be even higher than it was for a country's first.
To this end, MCC developed a strategy, articulated in its
FY2013 Congressional Budget Justification, to guide Board
consideration of subsequent, non-concurrent Compacts. To be
eligible for a subsequent Compact, a country must be able to:
(1) demonstrate continuous commitment to maintaining and
improving upon its eligibility ``scorecard''; (2) achieve
measurable results through implementation of its first Compact;
and (3) commit to self-financing or attracting private sector
investment to finance a portion of such subsequent Compact.
H.R. 3445 formalizes the requirement under MCC's subsequent
Compact strategy to maintain and improve performance on the
eligibility criteria prior to be selected for a subsequent
Compact.
Enhancing Transparency and Streamlining Reports. H.R. 3445
amends the MCA of 2003 to consolidate and streamline
Congressional notification and reporting requirements. It
requires notifications relating to the intent to negotiate or
sign a Compact to contain a cost-benefit analysis and include
information relating to the targeted beneficiary population,
the expected economic rate of return, and the prospects for
catalyzing private sector investment. Additionally, not later
than 60 days prior to signing a concurrent Compact, the CEO
shall provide Congress with a comprehensive risk management
plan. The bill requires MCC to make quarterly status reports
available within 90 days. It also requires MCC to conduct a
study on the feasibility of entering into Compacts at the sub-
national level.
Limitations on Threshold Programs. The committee notes that
the MCA of 2003 included a 10 percent limitation on investment
in Threshold programs for FY2004, which has been extended
through annual appropriations bills. In 2011, MCC conducted an
internal review of its Threshold program and found that
performance was uneven and results were lacking. That same
year, the Appropriations Committees reduced the amount
available for Threshold programs to five percent. This five
percent limitation has been extended through annual
appropriations bill ever since. In FY2013, however, MCC
launched a new Threshold strategy that refocused the program to
create an enabling policy environment for economic growth prior
to a country becoming eligible for a full-scale Compact. The
committee has observed significant improvements in these
``second generation'' Threshold programs and believes they
provide an important incentive for countries to undertake
difficult reforms. The committee therefore recommends restoring
the 10 percent funding limitation for Threshold agreements that
was envisioned by Congress from the start.
Hearings
Over the past 2 years, the committee has continued its
active oversight of U.S. foreign development, economic, and
trade facilitation programs, including multiple hearings
related to the content of H.R. 3445, such as:
September 13, 2017, subcommittee hearing, ``The
Future of Democracy and Governance in Liberia'' (The
Honorable Donald Yamamoto, Acting Assistant Secretary,
Bureau of African Affairs, U.S. Department of State;
Ms. Cheryl Anderson, Acting Assistant Administrator,
Bureau for Africa, U.S. Agency for International
Development; Mr. Dave Peterson, Senior Director for
Africa Programs, National Endowment for Democracy; Ms.
Aurelia Curtis, Founder and Executive Director, Weeks
Educational and Social Advocacy Project; Mr. Rushdi
Nackerdien, Regional Director for Africa International
Foundation for Electoral Systems; Christopher Fomunyoh,
Ph.D., Senior Associate and Regional Director for
Central and West Africa, National Democratic
Institute);
September 7, 20176, subcommittee hearing,
``Maintaining U.S. Influence in South Asia: The FY 2018
Budget'' (The Honorable Alice G. Wells, Acting
Assistant Secretary, Bureau of South and Central Asian
Affairs, U.S. Department of State; Ms. Gloria Steele,
Acting Assistant Administrator, Bureau for Asia, U.S.
Agency for International Development);
July 13, 2017, subcommittee hearing, ``America's
Interests in the Middle East and North Africa: The
President's FY 2018 Budget Request'' (The Honorable
Stuart Jones, Acting Assistant Secretary, Bureau of
Near Eastern Affairs, U.S. Department of State; Ms.
Maria Longi, Acting Assistant Administrator, Bureau for
the Middle East, U.S. Agency for International
Development);
July 12, 2017, full committee hearing, ``Beyond
Microfinance: Empowering Women in the Developing
World'' (Ms. Mary Ellen Iskenderian, President and
Chief Executive Officer, Women's World Banking; Tavneet
Suri, Ph.D, Associate Professor of Applied Economics,
Sloan School of Management, Massachusetts Institute of
Technology; the Honorable Melanne Verveer, Executive
Director, Georgetown Institute for Women, Peace and
Security, Georgetown University);
June 14, 2017, full committee hearing, ``The FY 2018
Foreign Affairs Budget'' (The Honorable Rex W.
Tillerson, Secretary of State, U.S. Department of
State);
May 18, 2017, full committee hearing, ``U.S.
Interests in Africa'' (General William E. Ward, USA,
Retired, President and Chief Operating Officer, SENTEL
Corporation, (Former Commander, U.S. Africa Command);
Mr. Bryan Christy, Explorer and Investigative Reporter,
National Geographic Society; Mr. Anthony Carroll,
Adjunct Professor, School of Advanced International
Studies, Johns Hopkins University; the Honorable Reuben
E. Brigety II, Dean, Elliott School of International
Affairs, The George Washington University, (Former U.S.
Representative to the African Union, U.S. Department of
State));
March 28, 2017, full committee hearing, ``The Budget,
Diplomacy, and Development'' (Stephen D. Krasner,
Ph.D., Senior Fellow, Hoover Institution; Ms. Danielle
Pletka, Senior Vice President, Foreign and Defense
Policy Studies, American Enterprise Institute; the
Honorable R. Nicholas Burns, Roy and Barbara Goodman
Family Professor of Diplomacy and International
Relations, Belfer Center for Science and International
Affairs, John F. Kennedy School of Government, Harvard
University);
June 23, 2016, subcommittee hearing, ``U.S. Policy in
the Pacific: The Struggle to Maintain Influence'' (Mr.
Matthew J. Matthews, Deputy Assistant Secretary for
Australia, New Zealand, and the Pacific Islands and
Senior Official for APEC, Bureau of East Asian and
Pacific Affairs, U.S. Department of State; Ms. Gloria
Steele Senior Deputy Assistant Administrator, Bureau
for Asia, U.S. Agency for International Development);
March 15, 2016, full committee hearing, ``Review of
the FY 2017 Foreign Assistance Budget: Aligning
Interests, Ensuring Effectiveness and Transparency''
(The Honorable Gayle Smith, Administrator, U.S. Agency
for International Development; the Honorable Dana J.
Hyde, Chief Executive Officer, Millennium Challenge
Corporation);
March 17, 2015, full committee hearing, ``The FY 2016
Budget Request: Assessing U.S. Foreign Assistance
Effectiveness'' (The Honorable Alfonso E. Lenhardt,
Acting Administrator, U.S. Agency for International
Development; the Honorable Dana J. Hyde, Chief
Executive Officer, Millennium Challenge Corporation);
March 4, 2015, subcommittee hearing, ``The Trans-
Pacific Partnership: Prospects for Greater U.S. Trade''
(Mr. Claude Barfield, Ph.D., Resident Scholar, American
Enterprise Institute; Ms. Tami Overby, Senior Vice
President for Asia, U.S. Chamber of Commerce; Mr. Scott
Miller, Senior Adviser and William M. Scholl Chair in
International Business, Center for Strategic and
International Studies; Ms. Celeste Drake, Trade and
Globalization Policy Specialist, The American
Federation of Labor and Congress of Industrial
Organizations);
February 25, 2015, full committee hearing,
``Advancing U.S. Interests in a Troubled World: The FY
2016 Foreign Affairs Budget'' (The Honorable John F.
Kerry, Secretary of State, U.S. Department of State);
Committee Consideration
On September 28, 2017, the Committee on Foreign Affairs
marked up H.R. 3445 in open session, pursuant to notice. The
bill was considered as introduced, and was agreed to by voice
vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of rules of
the House of Representatives, the committee reports that
findings and recommendations of the committee, based on
oversight activities under clause 2(b)(1) of House Rule X, are
incorporated in the descriptive portions of this report,
particularly in the ``Background and Purpose of Legislation''
and ``Section-by-Section Analysis'' sections.
New Budget Authority, Tax Expenditures, and Federal Mandates
In compliance with clause 3(c)(2) of House Rule XIII and
the Unfunded Mandates Reform Act (P.L. 104-4), the committee
adopts as its own the estimate of new budget authority,
entitlement authority, tax expenditure or revenues, and Federal
mandates contained in the cost estimate prepared by the
Director of the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974.
Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 11, 2017.
Hon. Edward R. Royce, Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3445, the AGOA and
MCA Modernization Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sunita
D'Monte, who can be reached at 226-2840.
Sincerely,
Keith Hall.
Enclosure
cc:
Honorable Eliot L. Engel
Ranking Member
H.R. 3445--AGOA and MCA Modernization Act.
As ordered reported by the House Committee on Foreign
Affairs on September 28, 2017.
H.R. 3445 would direct the President to increase public
awareness of the African Growth and Opportunity Act (AGOA) and
would authorize several federal programs to encourage trade and
economic cooperation with and between AGOA countries. It also
would make changes to the operations of the Millennium
Challenge Corporation (MCC). In total, CBO estimates that
implementing the bill would cost less than $500,000 over the
2018-2022 period, subject to the availability of appropriated
funds.
In particular, the bill would:
LRequire the President to establish and update
a public website for information on AGOA;
LAuthorize the President to encourage trade
with and economic cooperation between countries in sub-
Saharan Africa;
LAuthorize MCC to enter into a concurrent
compact with a country to increase regional economic
integration, trade, or other economic collaborations;
LAllow countries that experience changes in
their per capita income to remain candidates for MCC
compacts in the year they were selected and the two
subsequent years; and
LRequire MCC to report to the Congress on the
risks associated with concurrent compacts and on the
feasibility of partnering with entities within a
country such as state or local governments.
On the basis of information from agencies engaged in
implementing AGOA, CBO expects that most of the bill's
requirements pertaining to AGOA will be implemented under
current and ongoing initiatives. MCC indicated that allowing it
to enter into concurrent compacts would not require additional
appropriations nor would it significantly affect MCC's planned
obligations. In recent years, appropriations acts have provided
MCC the flexibility to stabilize its pool of candidate
countries despite changes in their per capita income, and CBO
estimates that making that flexibility permanent would not
affect spending by MCC. Finally, on the basis of information
from MCC, CBO estimates that implementing the reporting
requirements would have insignificant costs.
Enacting H.R. 3445 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply. CBO
estimates that enacting H.R. 3445 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2028.
H.R. 3445 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Sunita D'Monte.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Directed Rule Making
Pursuant to clause 3(c) of House Rule XIII, as modified by
section 3(i) of H. Res. 5 during the 115th Congress, the
committee notes that H.R. 3445 contains no directed rule-making
provisions.
Non-Duplication of Federal Programs
Pursuant to clause 3(c)(5) of House Rule XIII, the
committee states that no provision of this bill establishes or
reauthorizes a program of the Federal Government known to be
duplicative of another Federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Performance Goals and Objectives
The objective of this legislation is to enhance the
transparency, accountability, and impact of two critical tools
for promoting market-based economic growth and trade,
particularly in sub-Saharan Africa: AGOA and MCC. The
overarching goal is to help poor but relatively well-governed
countries to grow their own way out of poverty and accelerate
the transition from U.S. foreign aid recipients to U.S. trade
partners, while also creating opportunities for increased U.S.
investment and trade. Performance goals associated with these
objectives include, but are not limited to, the following:
For AGOA: Measurably increasing utilization of AGOA at both
the country and sector level; measurably increasing the volume
and diversity of U.S. investments and trade in sub-Saharan
Africa; successfully deploying a single, publicly-available
website that provides timely and accurate information about
AGOA; ensuring all U.S. Embassies and Consulates in eligible
countries that link to the AGOA website; and measurably
improving the quality and quantity of public engagement by U.S.
Embassies and Consulates about AGOA benefits across sub-Saharan
Africa.
For MCC: Effectively managing and mitigating the impact of
abrupt movements between the LIC and LMIC country candidate
pools; preventing operational disruptions attributable to
extended vacancies on the Board of Directors; measurably
increasing regional economic collaboration, integration, and
trade among eligible countries through the deployment of
concurrent Compacts; improving the quality and timeliness of
reports and notifications, including by reducing the time
between the close of a financial quarter and delivery of
associated quarterly status report to 90 days or less;
standardizing the incorporation of economic justifications and
risk management plans into Compact proposals and notifications;
and completing and delivering a feasibility study on
subnational compacts.
Congressional Accountability Act
H.R. 3445 does not apply to terms and conditions of
employment or to access to public services or accommodations
within the legislative branch.
New Advisory Committees
H.R. 3445 does not establish or authorize any new advisory
committees.
Earmark Identification
H.R. 3445 contains no congressional earmarks, limited tax
benefits, or limited tariff benefits as described in clauses
9(e), 9(f), and 9(g) of House Rule XXI.
Section-by-Section Analysis
Section 1. Short Title and Table of Contents. States that
the bill may be cited as the ``African Growth and Opportunity
Act and Millennium Challenge Act Modernization Act'' or ``AGOA
and MCA Modernization Act'' and divides the bill into two
corresponding titles.
TITLE I: ENHANCEMENT OF THE AFRICAN GROWTH AND OPPORTUNITY ACT.
Section 101. Statement of Policy. Establishes that it shall
be the policy of the United States to support efforts to: (1)
improve rule of law, promote free and fair elections,
strengthen and expand the private sector, and fight corruption
in sub-Saharan Africa; and (2) promote the role of women in
social, political, and economic development in sub-Saharan
Africa.
Section 102. Activities in Support of Transparency.
Requires the President to establish a publicly available
Internet website for the collection and sharing of information
regarding AGOA, to include information about AGOA benefits in
eligible countries, technical assistance available through
regional trade hubs, and outcomes of meetings of the United
States-Sub-Saharan Africa Trade and Economic Cooperation Forum.
U.S. embassies in eligible countries should link to the AGOA
website and promote utilization of AGOA benefits.
Section 103. Activities in Support of Trade Capacity
Building. Calls upon the President to develop and implement
policies to encourage cross-boundary cooperation among eligible
sub-Saharan African countries in order to facilitate trade and
economic growth. Encourages the President to provide technical
assistance and training: (1) for businesses and government
officials in eligible countries on how to access benefits under
AGOA and other trade preference programs; (2) for African
entrepreneurs and trade associations on production strategies,
quality standards, formation of cooperatives, market research,
and market development; (3) to promote diversification of
African products and value-added processing; and (4) to help
African businesses and institutions comply with United States
counter-terrorism initiatives and policies.
Section 104. Eligible Sub-Saharan Country. Defines the term
``eligible sub-Saharan country''.
TITLE II: MODERNIZATION OF THE MILLENNIUM CHALLENGE CORPORATION.
Section 201. Candidacy Status. Amends the Millennium
Challenge Act of 2003 (hereinafter cited as the ``MCA'') (22
U.S.C. 7705(a)) to redefine and stabilize movement between the
``low income'' and ``lower middle income'' candidate country
pools, consistent with authorizing language that has been
carried in annual appropriations bills since FY2012.
Section 202. Carryover Authority for Private Sector Members
of the Board of Directors. Amends the MCA (22 U.S.C.
7703(c)(4)(B)) to clarify that public sector board members may
be appointed for a single three-year term and reappointed for a
single two-year term, but may extend either of those terms by
up to one year if a successor has not yet been appointed and
confirmed by the U.S. Senate.
Section 203. Additional Reporting to the Board on the
Treatment of Civil Society in an Eligible Country. Amends the
MCA (22 U.S.C. 7706) to require MCC to submit to the Board
information relating to a potential candidate country's
treatment of civil society prior to selecting such country to
develop a Compact.
Section 204. Concurrent Compacts under the Millennium
Challenge Act of 2003. Amends the MCA (22 U.S.C. 7708) to grant
the Millennium Challenge Corporation with the authority to
enter into and have in effect up to two Compacts with an
eligible country at the same time (i.e. ``Concurrent
Compacts''), provided that at least one of the Compacts is
focused on promoting regional economic integration, increasing
regional trade, or facilitating cross-border collaboration.
Approval of a Concurrent Compact will be subject to a Board
determination that the eligible country is making demonstrable
progress in implementing its existing Compact.
Section 205. Public Notification of Entering Into a
Compact. Amends the MCA (22 U.S.C. 7709) to consolidate and
streamline existing notification and consultation requirements,
including those carried in annual appropriations bills. Adds an
additional requirement for MCC to provide Congress with a
``risk management plan'' at least 60 days prior to entering
into a Concurrent Compact with an eligible country. Reduces
administrative costs by allowing MCC to publish a Compact
summary, rather than the entire Compact, in the Federal
Register.
Section 206. Disclosure. Amends the MCA (22 U.S.C. 7711(a))
to require more timely, public disclosure of quarterly status
reports.
Section 207. Restriction on the Use of Assistance Under
Section 616. Amends the MCA (22 U.S.C. 7715(d)) to extend a 10
percent limitation on funding for ``threshold'' programs (i.e.
assistance provided to a candidate country to help them become
eligible for a full Compact) that was imposed in FY2004.
Further amends the MCA to prohibit the provision of assistance
to a country in a fiscal year for which that country does not
qualify as a candidate country, consistent with a restriction
that has been carried in annual appropriations bills since
FY2014.
Section 208. Study on Subnational Compacts. Requires the
Board, acting through the CEO, to submit to Congress a one-time
study that assesses the feasibility of developing compacts at
the sub-national level within candidate countries within 180
days of enactment.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
MILLENNIUM CHALLENGE ACT OF 2003
* * * * * * *
TITLE VI--MILLENNIUM CHALLENGE ACT OF 2003
* * * * * * *
SEC. 604. ESTABLISHMENT AND MANAGEMENT OF THE MILLENNIUM CHALLENGE
CORPORATION.
(a) Establishment.--There is established in the executive
branch a corporation to be known as the ``Millennium Challenge
Corporation'' that shall be responsible for carrying out this
title. The Corporation shall be a government corporation, as
defined in section 103 of title 5, United States Code.
(b) Chief Executive Officer.--
(1) In general.--There shall be in the Corporation a
Chief Executive Officer who shall be responsible for
the management of the Corporation.
(2) Appointment.--
(A) In general.--Except as provided in
subparagraph (B), the Chief Executive Officer
shall be appointed by the President, by and
with the advice and consent of the Senate.
(B) Interim ceo.--The members of the Board of
Directors described in subsection (c)(3)(A) may
designate by unanimous consent in writing an
individual who is an officer within any Federal
department or agency (and who has been
appointed to such position by the President, by
and with the advice and consent of the Senate)
to carry out the duties described in this
subsection until the Chief Executive Officer is
appointed pursuant to subparagraph (A).
(3) Relationship to board.--The Chief Executive
Officer shall report to and be under the direct
authority of the Board.
(4) Compensation and rank.--
(A) In general.--The Chief Executive Officer
shall be compensated at the rate provided for
level II of the Executive Schedule under
section 5313 of title 5, United States Code,
and shall have the equivalent rank of Deputy
Secretary.
(B) Amendment.--Section 5313 of title 5,
United States Code, is amended by adding at the
end the following:
``Chief Executive Officer, Millennium Challenge
Corporation.''.
(5) Authorities and duties.--The Chief Executive
Officer shall be responsible for the management of the
Corporation and shall exercise the powers and discharge
the duties of the Corporation.
(6) Authority to appoint officers.--In consultation
and with approval of the Board, the Chief Executive
Officer shall appoint all officers of the Corporation.
(c) Board of Directors.--
(1) Establishment.--There shall be in the Corporation
a Board of Directors.
(2) Duties.--The Board shall perform the functions
specified to be carried out by the Board in this title
and may prescribe, amend, and repeal bylaws, rules,
regulations, and procedures governing the manner in
which the business of the Corporation may be conducted
and in which the powers granted to it by law may be
exercised.
(3) Membership.--The Board shall consist of--
(A) the Secretary of State, the Secretary of
the Treasury, the Administrator of the United
States Agency for International Development,
the Chief Executive Officer of the Corporation,
and the United States Trade Representative; and
(B) four other individuals with relevant
international experience who shall be appointed
by the President, by and with the advice and
consent of the Senate, of which--
(i) one individual should be
appointed from among a list of
individuals submitted by the majority
leader of the House of Representatives;
(ii) one individual should be
appointed from among a list of
individuals submitted by the minority
leader of the House of Representatives;
(iii) one individual should be
appointed from among a list of
individuals submitted by the majority
leader of the Senate; and
(iv) one individual should be
appointed from among a list of
individuals submitted by the minority
leader of the Senate.
(4) Terms.--
(A) Officers of the federal government.--Each
member of the Board described in paragraph
(3)(A) shall serve for a term that is
concurrent with the term of service of the
individual's position as an officer within the
other Federal department or agency.
[(B) Other members.--Each member of the Board
described in paragraph (3)(B) shall be
appointed for a term of 3 years and may be
reappointed for a term of an additional 2
years.]
(B) Other members.--Each member of the Board
described in paragraph (3)(B)--
(i) shall be appointed for a term of
3 years;
(ii) may be reappointed for a term of
an additional 2 years; and
(iii) may continue to serve in each
such appointment until the earlier of--
(I) the date on which his or
her successor is appointed; or
(II) the date that is one
year after the expiration of
his or her appointment or
reappointment, as the case may
be.
(C) Vacancies.--A vacancy in the Board shall
be filled in the manner in which the original
appointment was made.
(5) Chairperson.--There shall be a Chairperson of the
Board. The Secretary of State shall serve as the
Chairperson.
(6) Quorum.--A majority of the members of the Board
shall constitute a quorum, which, except with respect
to a meeting of the Board during the 135-day period
beginning on the date of the enactment of this Act,
shall include at least one member of the Board
described in paragraph (3)(B).
(7) Meetings.--The Board shall meet at the call of
the Chairperson.
(8) Compensation.--
(A) Officers of the federal government.--
(i) In general.--A member of the
Board described in paragraph (3)(A) may
not receive additional pay, allowances,
or benefits by reason of the member's
service on the Board.
(ii) Travel expenses.--Each such
member of the Board shall receive
travel expenses, including per diem in
lieu of subsistence, in accordance with
applicable provisions under subchapter
I of chapter 57 of title 5, United
States Code.
(B) Other members.--
(i) In general.--Except as provided
in clause (ii), a member of the Board
described in paragraph (3)(B)--
(I) shall be paid
compensation out of funds made
available for the purposes of
this title at the daily
equivalent of the highest rate
payable under section 5332 of
title 5, United States Code,
for each day (including travel
time) during which the member
is engaged in the actual
performance of duties as a
member of the Board; and
(II) while away from the
member's home or regular place
of business on necessary travel
in the actual performance of
duties as a member of the
Board, shall be paid per diem,
travel, and transportation
expenses in the same manner as
is provided under subchapter I
of chapter 57 of title 5,
United States Code.
(ii) Limitation.--A member of the
Board may not be paid compensation
under clause (i)(II) for more than 90
days in any calendar year.
* * * * * * *
SEC. 606. CANDIDATE COUNTRIES.
(a) Low Income Countries.--
(1) Fiscal year 2004.--A country shall be a candidate
country for purposes of eligibility for assistance for
fiscal year 2004 if--
(A) the country is eligible for assistance
from the International Development Association,
and the per capita income of the country is
equal to or less than the historical ceiling of
the International Development Association for
that year, as defined by the International Bank
for Reconstruction and Development; and
(B) subject to paragraph [(3)] (4), the
country is not ineligible to receive United
States economic assistance under part I of the
Foreign Assistance Act of 1961 by reason of the
application of any provision of the Foreign
Assistance Act of 1961 or any other provision
of law.
(2) [Fiscal year 2005 and subsequent fiscal years.--
] Fiscal years 2005 through 2012._A country shall be a
candidate country for purposes of eligibility for
assistance for [fiscal year 2005 or a subsequent fiscal
year] each of fiscal years 2005 through 2012 if--
(A) the per capita income of the country is
equal to or less than the historical ceiling of
the International Development Association for
the fiscal year involved, as defined by the
International Bank for Reconstruction and
Development; and
(B) the country meets the requirements of
paragraph (1)(B).
(3) Fiscal year 2013 and subsequent fiscal years.--A
country shall be a candidate country for purposes of
eligibility for assistance for fiscal year 2013 or a
subsequent fiscal year if the country--
(A) has a per capita income not greater than
the lower middle income country threshold
established by the International Bank for
Reconstruction and Development for such fiscal
year;
(B) is among the 75 countries identified by
the International Bank for Reconstruction and
Development as having the lowest per capita
income; and
(C) meets the requirements under paragraph
(1)(B).
[(3)] (4) Rule of construction.--For the purposes of
determining whether a country is eligible for receiving
assistance under section 605 pursuant to paragraph
(1)(B), the exercise by the President, the Secretary of
State, or any other officer or employee of the United
States of any waiver or suspension of any provision of
law referred to in such paragraph, and notification to
the appropriate congressional committees in accordance
with such provision of law, shall be construed as
satisfying the requirement of such paragraph.
(b) Lower Middle Income Countries.--
(1) [In general.--] Fiscal years 2006 through 2012._
In addition to countries described in subsection (a), a
country shall be a candidate country for purposes of
eligibility for assistance for [fiscal year 2006 or a
subsequent fiscal year] fiscal years 2006 through 2012
if the country--
(A) is classified as a lower middle income
country in the then most recent edition of the
World Development Report for Reconstruction and
Development published by the International Bank
for Reconstruction and Development and has an
income greater than the historical ceiling for
International Development Association
eligibility for the fiscal year involved; and
(B) meets the requirements of subsection
(a)(1)(B).
(2) Fiscal year 2013 and subsequent fiscal years.--In
addition to the countries described in subsection (a),
a country shall be a candidate country for purposes of
eligibility for assistance for fiscal year 2013 or a
subsequent fiscal year if the country--
(A) has a per capita income not greater than
the lower middle income country threshold
established by the International Bank for
Reconstruction and Development for the fiscal
year;
(B) is not among the 75 countries identified
by the International Bank for Reconstruction
and Development as having the lowest per capita
income; and
(C) meets the requirements under subsection
(a)(1)(B).
[(2)] (3) Limitation.--The total amount of assistance
provided to countries described in paragraph (1) for
fiscal year 2006 or any subsequent fiscal year may not
exceed 25 percent of the total amount of assistance
provided to all countries under section 605 for fiscal
year 2006 or the subsequent fiscal year, as the case
may be.
(c) Treatment of Countries With Per Capita Income Changes.--A
country qualifying for candidate status under this section with
a per capita income that changes during the fiscal year such
that the country would be reclassified from a low income
country to a lower middle income country or from a lower middle
income country to a low income country shall retain its
candidacy status in its former income classification for such
fiscal year and the two subsequent fiscal years.
[(c)] (d) Identification by the Board.--The Board shall
identify whether a country is a candidate country for purposes
of this section.
SEC. 607. ELIGIBLE COUNTRIES.
(a) Determination by the Board.--The Board shall determine
whether a candidate country is an eligible country for purposes
of this section. Such determination shall be based, to the
maximum extent possible, upon objective and quantifiable
indicators of a country's demonstrated commitment to the
criteria in subsection (b), and shall, where appropriate, take
into account and assess the role of women and girls.
(b) Criteria.--A candidate country should be considered to be
an eligible country for purposes of this section if the Board
determines that the country has demonstrated a commitment to--
(1) just and democratic governance, including a
demonstrated commitment to--
(A) promote political pluralism, equality,
and the rule of law;
(B) respect human and civil rights, including
the rights of people with disabilities;
(C) protect private property rights;
(D) encourage transparency and accountability
of government; [and]
(E) combat corruption; and
(F) the quality of the civil society enabling
environment;
(2) economic freedom, including a demonstrated
commitment to economic policies that--
(A) encourage citizens and firms to
participate in global trade and international
capital markets;
(B) promote private sector growth;
(C) strengthen market forces in the economy;
and
(D) respect worker rights, including the
right to form labor unions; and
(3) investments in the people of such country,
particularly women and children, including programs
that--
(A) promote broad-based primary education;
(B) strengthen and build capacity to provide
quality public health and reduce child
mortality; and
(C) promote the protection of biodiversity
and the transparent and sustainable management
and use of natural resources.
(c) Selection by the Board.--
(1) In general.--At the time the Board determines
eligible countries under this section for a fiscal
year, the Board shall select those eligible countries
with respect to which the United States will initially
seek to enter into a Millennium Challenge Compact
pursuant to section 609.
(2) Factors.--In selecting eligible countries under
paragraph (1), the Board shall consider the following
factors:
(A) The extent to which the country clearly
meets or exceeds the eligibility criteria.
(B) The opportunity to reduce poverty and
generate economic growth in the country.
(C) The availability of amounts to carry out
this title.
(d) Reporting on Treatment of Civil Society.--Before the
Board selects an eligible country for a Compact under
subsection (c), the Corporation shall provide information to
the Board regarding the country's treatment of civil society,
including classified information, as appropriate. The
information shall include an assessment and analysis of factors
including--
(1) any relevant laws governing the formation or
establishment of a civil society organization,
particularly laws intended to curb the activities of
foreign civil society organizations;
(2) any relevant laws governing the operations of a
civil society organization, particularly those laws
seeking to define or otherwise regulate the actions of
foreign civil society organizations;
(3) laws relating to the legal status of civil
society organizations, including laws which effectively
discriminate against foreign civil society
organizations as compared to similarly situated
domestic organizations;
(4) laws regulating the freedom of expression and
peaceful assembly; and
(5) laws regulating the usage of the Internet,
particularly by foreign civil society organizations.
[(d)] (e) Establishment of Criteria and Methodology.--The
criteria and methodology submitted by the Board to Congress and
published in the Federal Register under section 608(b)(2) with
respect to a fiscal year shall remain fixed for purposes of
eligibility determinations for such year.
[(e)] (f) Annual Modification of Criteria and Methodology.--
As appropriate, the Board, acting through the Chief Executive
Officer, shall review the eligibility criteria and methodology
and modify such criteria and methodology in subsequent years
consistent with section 608(b).
* * * * * * *
SEC. 609. MILLENNIUM CHALLENGE COMPACT.
(a) Compact.--The Board, acting through the Chief Executive
Officer of the Corporation, may provide assistance for an
eligible country only if the country enters into an agreement
with the United States, to be known as a ``Millennium Challenge
Compact'', that establishes a multi-year plan for achieving
shared development objectives in furtherance of the purposes of
this title.
(b) Elements.--
(1) In general.--The Compact should take into account
the national development strategy of the eligible
country and shall contain--
(A) the specific objectives that the country
and the United States expect to achieve during
the term of the Compact;
(B) the responsibilities of the country and
the United States in the achievement of such
objectives;
(C) regular benchmarks to measure, where
appropriate, progress toward achieving such
objectives;
(D) an identification of the intended
beneficiaries, disaggregated by income level,
gender, and age, to the maximum extent
practicable;
(E) a multi-year financial plan, including
the estimated amount of contributions by the
Corporation and the country and proposed
mechanisms to implement the plan and provide
oversight, that describes how the requirements
of subparagraphs (A) through (D) will be met,
including identifying the role of civil society
in the achievement of such requirements;
(F) where appropriate, a description of the
current and potential participation of other
donors in the achievement of such objectives;
(G) a plan to ensure appropriate fiscal
accountability for the use of assistance
provided under section 605;
(H) where appropriate, a process or processes
for consideration of solicited proposals under
the Compact as well as a process for
consideration of unsolicited proposals by the
Corporation and national, regional, or local
units of government;
(I) a requirement that open, fair, and
competitive procedures are used in a
transparent manner in the administration of
grants or cooperative agreements or the
procurement of goods and services for the
accomplishment of objectives under the Compact;
(J) the strategy of the eligible country to
sustain progress made toward achieving such
objectives after expiration of the Compact; and
(K) a description of the role of the United
States Agency for International Development in
any design, implementation, and monitoring of
programs and activities funded under the
Compact.
(2) Lower middle income countries.--In addition to
the elements described in subparagraphs (A) through (K)
of paragraph (1), with respect to a lower middle income
country described in section 606(b), the Compact shall
identify a contribution, as appropriate, from the
country relative to its national budget, taking into
account the prevailing economic conditions, toward
meeting the objectives of the Compact. Any such
contribution should be in addition to government
spending allocated for such purposes in the country's
budget for the year immediately preceding the
establishment of the Compact and should continue for
the duration of the Compact.
(3) Definition.--In this subsection, the term
``national development strategy'' means any strategy to
achieve market-driven economic growth and eliminate
extreme poverty that has been developed by the
government of the country in consultation with a wide
variety of civic participation, including
nongovernmental organizations, private and voluntary
organizations, academia, women's and student
organizations, local trade and labor unions, and the
business community.
(c) Additional Provision Relating to Prohibition on
Taxation.--In addition to the elements described in subsection
(c), each Compact shall contain a provision that states that
assistance provided by the United States under the Compact
shall be exempt from taxation by the government of the eligible
country.
(d) Local Input.--In entering into a Compact, the United
States shall seek to ensure that the government of an eligible
country--
(1) takes into account the local-level perspectives
of the rural and urban poor, including women, in the
eligible country; and
(2) consults with private and voluntary
organizations, the business community, and other donors
in the eligible country.
(e) Consultation.--During any discussions with a country for
the purpose of entering into a Compact with the country,
officials of the Corporation participating in such discussions
shall, at a minimum, consult with appropriate officials of the
United States Agency for International Development,
particularly with those officials responsible for the
appropriate region or country on development issues related to
the Compact.
(f) Coordination With Other Donors.--To the maximum extent
feasible, activities undertaken to achieve the objectives of
the Compact shall be undertaken in coordination with the
assistance activities of other donors.
(g) Assistance for Development of Compact.--Notwithstanding
subsection (a), the Chief Executive Officer may enter into
contracts or make grants for any eligible country for the
purpose of facilitating the development and implementation of
the Compact between the United States and the country.
(h) Requirement for Approval by the Board.--Each Compact
shall be approved by the Board before the United States enters
into the Compact.
(i) Increase or Extension of Assistance Under a Compact.--Not
later than 15 days after making a determination to increase or
extend assistance under a Compact with an eligible country, the
Board, acting through the Chief Executive Officer--
(1) shall prepare and transmit to the appropriate
congressional committees a written report and
justification that contains a detailed summary of the
proposed increase in or extension of assistance under
the Compact and a copy of the full text of the
amendment to the Compact; and
(2) shall publish a detailed summary, full text, and
justification of the proposed increase in or extension
of assistance under the Compact in the Federal Register
and on the Internet website of the Corporation.
(j) Duration of Compact.--The duration of a Compact shall not
exceed 5 years.
(k) Concurrent Compacts.--An eligible country that has
entered into and has in effect a Compact under this section may
enter into and have in effect at the same time not more than
one additional Compact in accordance with the requirements of
this title if--
(1) one or both of the Compacts are or will be for
purposes of regional economic integration, increased
regional trade, or cross-border collaborations; and
(2) the Board determines that the country is making
considerable and demonstrable progress in implementing
the terms of the existing Compact and supplementary
agreements thereto.
[(k)] (l) Subsequent Compacts.--[An eligible country and the
United States may enter into and have in effect only one
Compact at any given time under this section.] An eligible
country and the United States may enter into one or more
subsequent Compacts in accordance with the requirements of this
title after the expiration of the existing Compact.
[SEC. 610. CONGRESSIONAL AND PUBLIC NOTIFICATION OF COMPACT.
[(a) Congressional Consultation Prior to Compact
Negotiations.--Not later than 15 days prior to the start of
negotiations of a Compact with an eligible country, the Board,
acting through the Chief Executive Officer--
[(1) shall consult with the appropriate congressional
committees with respect to the proposed Compact
negotiation; and
[(2) shall identify the objectives and mechanisms to
be used for the negotiation of the Compact.
[(b) Congressional and Public Notification After Entering
Into a Compact.--Not later than 10 days after entering into a
Compact with an eligible country, the Board, acting through the
Chief Executive Officer--
[(1) shall provide notification of the Compact to the
appropriate congressional committees, including a
detailed summary of the Compact and a copy of the text
of the Compact; and
[(2) shall publish such detailed summary and the text
of the Compact in the Federal Register and on the
Internet website of the Corporation.]
SEC. 610. CONGRESSIONAL AND PUBLIC NOTIFICATION.
(a) Congressional Consultations and Notifications.--
(1) In general.--The Board, acting through the Chief
Executive Officer, shall consult with and notify the
appropriate congressional committees not later than 15
days before taking any of the actions described in
paragraph (2).
(2) Actions described.--The actions described in this
paragraph are--
(A) providing assistance for an eligible
country under section 609(g);
(B) commencing negotiations with an eligible
country to provide assistance for--
(i) a Compact under section 605; or
(ii) an agreement under section 616;
(C) signing such a Compact or agreement; and
(D) terminating assistance under such a
Compact or agreement.
(3) Economic justification.--Any notification
relating to the intent to negotiate or sign a Compact
shall include a report describing the projected
economic justification for the Compact, including, as
applicable--
(A) the expected economic rate of return of
the Compact;
(B) a cost-benefit analysis of the Compact;
(C) a description of the impact on
beneficiary populations;
(D) the likelihood that the investment will
catalyze private sector investments; and
(E) any other applicable economic factors
that justify each project to be funded under
such a Compact to the extent practicable and
appropriate.
(4) Risk management plan.--Not later than 60 days
before signing each concurrent Compact, as authorized
under section 609, the Board, acting through the Chief
Executive Officer, shall consult with and provide to
the appropriate congressional committees--
(A) an assessment and, as appropriate, the
identification of potential measures to
mitigate risks, of--
(i) the countries' commitment to
regional integration and cross-border
cooperation and capacity to carry out
commitments;
(ii) political and policy risks,
including risks that could affect
country eligibility;
(iii) risks associated with realizing
economic returns;
(iv) time and completion risks; and
(v) cost and financial risks; and
(B) an assessment of measures to be taken to
mitigate any identified risks, including--
(i) securing other potential donors
to finance projects or parts of
projects as needed; and
(ii) partnering with regional
organizations to support and oversee
effective cross-border cooperation.
(b) Congressional and Public Notification After Entering Into
a Compact.--Not later than 10 days after entering into a
Compact with an eligible country, the Board, acting through the
Chief Executive Officer, shall--
(1) publish the text of the Compact on the internet
website of the Corporation;
(2) provide the appropriate congressional committees
with a detailed summary of the Compact and, upon
request, the text of the Compact; and
(3) publish in the Federal Register a detailed
summary of the Compact and a notice of availability of
the text of the Compact on the internet website of the
Corporation.
* * * * * * *
SEC. 612. DISCLOSURE.
(a) Requirement for Timely Disclosure.--[The Corporation] Not
later than 90 days after the last day of each fiscal quarter,
the Corporation shall make available to the public [on at least
a quarterly basis,] the following information:
(1) For assistance provided under section 605--
(A) the name of each entity to which
assistance is provided;
(B) the amount of assistance provided to the
entity; and
(C) a description of the program or project,
including--
(i) a description of whether the
program or project was solicited or
unsolicited; and
(ii) a detailed description of the
objectives and measures for results of
the program or project.
(2) For funds allocated or transferred under section
619(b)--
(A) the name of each United States Government
agency to which such funds are transferred or
allocated;
(B) the amount of funds transferred or
allocated to such agency; and
(C) a description of the program or project
to be carried out by such agency with such
funds.
[(b) Dissemination.--The information required to be disclosed
under subsection (a) shall be made available to the public by
means of publication in the Federal Register and on the
Internet website of the Corporation, as well as by any other
methods that the Board determines appropriate.]
(b) Dissemination.--The Board, acting through the Chief
Executive Officer, shall make the information required to be
disclosed under subsection (a) available to the public--
(1) by publishing it on the internet website of the
Corporation;
(2) by providing notice of the availability of such
information in the Federal Register; and
(3) by any other methods that the Board determines to
be appropriate.
SEC. 613. ANNUAL REPORT.
(a) Report.--Not later than March 31, 2005, and each March 31
thereafter, the President shall submit to Congress a report on
the assistance provided under section 605 during the prior
fiscal year.
(b) Contents.--The report shall include the following:
(1) The amount of obligations and expenditures for
assistance provided to each eligible country during the
prior fiscal year.
(2) For each eligible country, an assessment of--
(A) the progress made during each year by the
country toward achieving the objectives set out
in [the] any Compact entered into by the
country; and
(B) the extent to which assistance provided
under section 605 has been effective in helping
the country to achieve such objectives.
(3) A description of the coordination of assistance
provided under section 605 with other United States
foreign assistance and related trade policies.
(4) A description of the coordination of assistance
provided under section 605 with assistance provided by
other donor countries.
(5) Any other information the President considers
relevant with respect to assistance provided under
section 605.
* * * * * * *
SEC. 616. ASSISTANCE TO CERTAIN CANDIDATE COUNTRIES.
(a) Authorization.--The Board, acting through the Chief
Executive Officer, is authorized to provide assistance to a
candidate country described in subsection (b) for the purpose
of assisting such country to become an eligible country.
(b) Candidate Country Described.--A candidate country
referred to in subsection (a) is a candidate country that--
(1) satisfies the requirements contained in
subsection (a) or (b) of section 606; and
(2) demonstrates a significant commitment to meet the
requirements of section 607(b) but fails to meet such
requirements (including by reason of the absence or
unreliability of data).
(c) Administration.--Assistance under this section may be
provided through the United States Agency for International
Development.
[(d) Funding.--Not more than 10 percent of the amount
appropriated pursuant to the authorization of appropriations
under section 619(a) for fiscal year 2004 is authorized to be
made available to carry out this section.]
(d) Funding.--
(1) Limitation.--Not more than 10 percent of the
amounts made available to carry out this Act for a
fiscal year may be made available to carry out this
section.
(2) Restriction relating to assistance.--None of the
funds authorized to carry out the purposes of this Act
shall be available for assistance under this section to
a country that does not qualify as a candidate country
under section 606 for the fiscal year during which such
assistance is provided.
* * * * * * *