To reauthorize the Millennium Challenge Act of 2003, and for other purposes.

October 7, 2005

Mr. HYDE (for himself and Mr. LANTOS) introduced the following bill; which was referred to the Committee on International Relations

To reauthorize the Millennium Challenge Act of 2003, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Millennium Challenge Reauthorization Act of 2005'.

(b) Table of Contents- The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Declaration of policy.

TITLE I--AMENDMENTS TO THE MILLENNIUM CHALLENGE ACT OF 2003

Sec. 101. Purposes.

Sec. 102. Establishment and management of the Millennium Challenge Corporation.

Sec. 103. Authorization of assistance.

Sec. 104. Candidate countries.

Sec. 105. Eligible countries.

Sec. 106. Millennium Challenge Compact.

Sec. 107. Congressional and public notification of Compact.

Sec. 108. Suspension and termination of assistance.

Sec. 109. Disclosure.

Sec. 110. Annual report.

Sec. 111. Powers of the Corporation; related provisions.

Sec. 112. Assistance to certain candidate countries.

Sec. 113. General personnel authorities.

Sec. 114. Publicity and identification of programs, projects, and activities.

Sec. 115. Authorization of appropriations.

TITLE II--TRANSFER OF THE MILLENNIUM CHALLENGE ACT OF 2003 TO THE FOREIGN ASSISTANCE ACT OF 1961

Sec. 201. Transfer of the Millennium Challenge Act of 2003 to the Foreign Assistance Act of 1961.

Sec. 202. Conforming amendment.

SEC. 2. DECLARATION OF POLICY.

Congress declares the following:

(1) The Millennium Challenge Act of 2003 (22 U.S.C. 7701 et seq.) is the most important approach to development assistance in a generation and is a model for facilitating the transformation of needy societies into communities of opportunity.

(2) It is the policy of the United States to continue to provide assistance under the Millennium Challenge Act of 2003 to reduce overall poverty through sustainable economic growth and development in countries that receive assistance under such Act.

TITLE I--AMENDMENTS TO THE MILLENNIUM CHALLENGE ACT OF 2003

SEC. 101. PURPOSES.

Section 602(2) of the Millennium Challenge Act of 2003 (22 U.S.C. 7701(2)) is amended by striking `promotes economic growth and the elimination of extreme poverty' and inserting `promotes the reduction of overall poverty through sustainable economic growth and development'.

SEC. 102. ESTABLISHMENT AND MANAGEMENT OF THE MILLENNIUM CHALLENGE CORPORATION.

(a) Chief Executive Officer- Section 604(b)(2) of the Millennium Challenge Act of 2003 (22 U.S.C. 7703(b)(2)) is amended--

(1) by striking `APPOINTMENT' and all that follows through `the Chief Executive Officer shall be appointed' and inserting the following: `APPOINTMENT- The Chief Executive Officer shall be appointed'; and

(2) by striking subparagraph (B).

(b) Board of Directors- It is the sense of Congress that the President should appoint to the Board of Directors of the Millennium Challenge Corporation the individuals described in section 604(c)(3)(B) of the Millennium Challenge Act of 2003 (22 U.S.C. 7703(c)(3)(B)), as soon as possible after the congressional leadership submits to the President the lists of individuals for nomination to the Board of Directors pursuant to clauses (i) through (iv) of section 604(c)(3)(B) such Act.

SEC. 103. AUTHORIZATION OF ASSISTANCE.

Section 605(a) of the Millennium Challenge Act of 2003 (22 U.S.C. 7704(a)) is amended by striking `in achieving lasting economic growth and poverty reduction' and inserting `in reducing overall poverty through sustainable economic growth and development'.

SEC. 104. CANDIDATE COUNTRIES.

(a) Low Income Countries- Section 606(a)(2)(A) of the Millennium Challenge Act of 2003 (22 U.S.C. 7705(a)(2)(A)) is amended--

(1) by striking `(A)' and inserting `(A)(i)';

(2) by striking `and' at the end and inserting `or' ; and

(3) by adding at the end the following new clause:

`(ii) the average per capita income of the country for the fiscal year involved and the 2 fiscal years most recently preceding the fiscal year involved is equal to or less than the historical ceiling of the International Development Association for the fiscal year involved, and the country is eligible for assistance from the International Development Association; and'.

(b) Lower Middle Income Countries- Section 606(b)(1) of the Millennium Challenge Act of 2003 (22 U.S.C. 7705(b)(1)) is amended to read as follows:

`(1) IN GENERAL- 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 if--

`(A) the average of the income classification of the country in the then current edition of the World Development Report for Reconstruction and Development published by the International Bank for Reconstruction and Development and the 2 most recently preceding editions of the report is `lower-middle-income economy'; and

`(B) the country meets the requirements of subsection (a)(1)(B)'.

(c) Effective Date- The amendments made by subsections (a) and (b) apply with respect to eligibility of countries for assistance under the Millennium Challenge Act of 2003 (22 U.S.C. 7701 et seq.) for fiscal year 2007 and subsequent fiscal years.

SEC. 105. ELIGIBLE COUNTRIES.

(a) Criteria- Section 607(b) of the Millennium Challenge Act of 2003 (22 U.S.C. 7706(b)) is amended--

(1) in paragraph (1)(B), by inserting at the end before the semicolon the following: `and refugees'; and

(2) in paragraph (2)(A), by striking `citizens' and inserting `individuals'.

(b) Selection by the Board- Section 607(c)(2)(B) of the Millennium Challenge Act of 2003 (22 U.S.C. 7706(c)(2)(B)) is amended by striking `and generate' and inserting `through'.

(c) Effective Date- The amendments made by subsections (a) and (b) apply with respect to eligibility of countries for assistance under the Millennium Challenge Act of 2003 (22 U.S.C. 7701 et seq.) for fiscal year 2007 and subsequent fiscal years.

SEC. 106. MILLENNIUM CHALLENGE COMPACT.

(a) Elements-

(1) AMENDMENTS- Section 609(b)(1) of the Millennium Challenge Act of 2003 (22 U.S.C. 7708(b)(1)) is amended--

(A) in subparagraph (D)--

(i) by inserting before `an identification' the following: `in order to demonstrate that programs in Compacts are designed to reduce overall poverty through sustainable economic growth and development,'; and

(ii) by adding at the end before the semicolon the following: `, and an analysis of how the intended beneficiaries will participate in, or be impacted by, each project';

(B) by redesignating subparagraphs (G) through (K) as subparagraphs (H) through (L), respectively;

(C) by inserting after subparagraph (F) the following new subparagraph:

`(G) a description of the existing constraints to sustainable development in the country, including the productive capacity of the poor, and a description of the role of the Corporation and other donors in addressing such constraints during the duration of the Compact;';

(D) in subparagraph (K) (as redesignated), by striking `and' at the end;

(E) in subparagraph (L) (as redesignated), by striking the period at the end and inserting a semicolon; and

(F) by adding at the end the following new subparagraphs:

`(M) a detailed description of the extent to which the government of the country met, and continues to meet, the requirements of subsection (d) (relating to local input) in developing the Compact, a comprehensive summary of the local input provided to the government by individuals and organizations described in such subsection, and an explanation of how the local input will be reflected in projects carried out under the Compact; and

`(N) an analysis of the extent to which each project carried out under the Compact will contribute to reducing aggregate poverty in the country through sustainable economic growth and development.'.

(2) EFFECTIVE DATE- The amendments made by paragraph (1) apply with respect to eligibility of countries for assistance under the Millennium Challenge Act of 2003 (22 U.S.C. 7701 et seq.) for fiscal year 2006 and subsequent fiscal years.

(b) Definition- Section 609(b)(3) of the Millennium Challenge Act of 2003 (22 U.S.C. 7708(b)(3)) is amended by striking `to achieve market-driven economic growth and eliminate extreme poverty' and inserting `to eliminate extreme poverty and reduce overall poverty through sustainable economic growth and development'.

(c) Local Input- Section 609(d) of the Millennium Challenge Act of 2003 (22 U.S.C. 7708(d)) is amended--

(1) in paragraph (1), by striking `and' at the end;

(2) by redesignating paragraph (2) as paragraph (3);

(3) by inserting after paragraph (1) the following new paragraph:

`(2) consults with the national legislature of the eligible country; and'; and

(4) in paragraph (3) (as redesignated)--

(A) by inserting `national and international' before `private and voluntary organizations'; and

(B) by striking `other' and inserting `foreign'.

(d) Assistance for Development of Compact- Section 609(g) of the Millennium Challenge Act of 2003 (22 U.S.C. 7708(g)) is amended--

(1) by striking `enter into contracts or make grants' and inserting `enter into contracts, make grants, or provide personnel of the Corporation on a temporary basis';

(2) by adding at the end before the period the following: `, including facilitating the development of the Compact proposal, implementation of the Compact, and the development and implementation of amendments to the Compact'; and

(3) by further adding at the end the following new sentence: `Such facilitation of the development and implementation of the Compact may include supporting the meaningful participation of a broad spectrum of independent civil society representatives in such development and implementation.'.

(e) Requirement for Approval by the Board- Section 609(h) of the Millennium Challenge Act of 2003 (22 U.S.C. 7708(h)) is amended--

(1) by striking `Each Compact' and inserting the following:

`(1) IN GENERAL- Each Compact'; and

(2) by adding at the end the following new paragraph:

`(2) SENSE OF CONGRESS- It is the sense of Congress that the Board, acting through the Chief Executive Officer, should--

`(A) establish and make known policies that encourage each eligible country--

`(i) to submit to the Corporation its Compact proposal not later than one year after the date on which the country is identified as an eligible country under section 608(d)(2); and

`(ii) to seek to enter into a Compact with the United States not later than two years after the country has been identified as such an eligible country; and

`(B) consider removing from eligibility those countries that fail to submit a Compact proposal or enter into a Compact with the United States in a timely or good-faith manner, but allow such countries to seek eligibility for assistance under section 605 in subsequent years, as appropriate.'.

(f) Duration of Compact- Section 609(j) of the Millennium Challenge Act of 2003 (22 U.S.C. 7708(j)) is amended--

(1) by striking `The duration' and inserting the following:

`(1) IN GENERAL- Except as provided in paragraph (2), the duration'; and

(2) by adding at the end the following new paragraph:

`(2) EXCEPTION-

`(A) IN GENERAL- A Compact shall not include a project with a duration of more than 5 years unless the Board--

`(i) determines that the project cannot be completed in 5 years or less; and

`(ii) approves a duration for the project of not more than 10 years.

`(B) CONGRESSIONAL NOTIFICATION- Not later than 15 days after the Board approves a duration for a project pursuant to subparagraph (A)(ii), the Board, acting through the Chief Executive Officer, shall submit to the appropriate congressional committees a notification of such approval, including a detailed explanation for the determination and approval.'.

(g) Concurrent and Subsequent Compacts- Section 609 of the Millennium Challenge Act of 2003 (22 U.S.C. 7708) is amended--

(1) by striking subsection (k); and

(2) by inserting at the end the following new subsection:

`(k) Concurrent and Subsequent Compacts-

`(1) IN GENERAL- Subject to the requirements of paragraph (2), an eligible country and the United States--

`(A) may enter into and have in effect not more than two Compacts at any given time under this section; and

`(B) may enter into subsequent Compacts in accordance with the requirements of this title after the expiration of the existing Compact or Compacts.

`(2) REQUIREMENTS-

`(A) CONCURRENT COMPACTS- An eligible country and the United States may enter into a concurrent Compact only if the Board determines that the country is making considerable and demonstrable progress in implementing the terms of its existing Compact and supplementary agreements thereto.

`(B) SUBSEQUENT COMPACTS- An eligible country and the United States may enter into subsequent Compacts if the Board determines that the country substantially met the objectives of prior Compacts between the country and the United States and supplementary agreements thereto.'.

(h) Effective Date- The amendments made by subsections (f) and (g) apply with respect to Compacts entered into between the United States and an eligible country under the Millennium Challenge Act of 2003 (22 U.S.C. 7701 et seq.) before, on, or after the date of the enactment of this Act.

SEC. 107. CONGRESSIONAL AND PUBLIC NOTIFICATION OF COMPACT.

(a) Congressional Consultation Prior to Compact Negotiations- Section 610(a) of the Millennium Challenge Act of 2003 (22 U.S.C. 7709(a)) is amended--

(1) in paragraph (1), by striking `and' at the end;

(2) in paragraph (2), by striking the period at the end and inserting `; and'; and

(3) by adding at the end the following new paragraph:

`(3) shall--

`(A) in the case of negotiations for a concurrent Compact with an eligible country, notify the appropriate congressional committees of its determination that the country is making considerable and demonstrable progress in implementing the terms of its existing Compact and supplementary agreements thereto pursuant to section 609(k); and

`(B) in the case of negotiations for a subsequent Compact with an eligible country, notify the appropriate congressional committees of its determination that the country substantially met the objectives of prior Compacts between the country and the United States and supplementary agreements thereto pursuant to section 609(k).'.

(b) Congressional Consultation and Notification Prior to Entering Into a Compact- Section 610 of the Millennium Challenge Act of 2003 (22 U.S.C. 7709(a)) is amended--

(1) by redesignating subsection (b) as subsection (c); and

(2) by inserting after subsection (a) the following new subsection:

`(b) Congressional Consultation and Notification Prior to Entering Into a Compact-

`(1) MEETING OF THE BOARD- Not later than 15 days prior to a meeting of the Board for the purpose of fulfilling the requirement of section 609(h), the Board, acting through the Chief Executive Officer, should consult with the appropriate congressional committees, and provide copies, in a classified form if necessary, of the proposed Compact, including annexes or supplementary agreements thereto, to the appropriate congressional committees.

`(2) ENTRY INTO COMPACT- Not later than 15 days prior to entering into a Compact with an eligible country, the Board, acting through the Chief Executive Officer, shall provide notification of the proposed Compact to the appropriate congressional committees in accordance with the procedures applicable to reprogramming notifications under section 634A of the Foreign Assistance Act of 1961.'.

(c) Congressional and Public Notification After Entering Into a Compact- Section 610(c)(2) of the Millennium Challenge Act of 2003 (as redesignated by subsection (b)(1) of this section) is amended to read as follows:

`(2) shall publish such detailed summary of the Compact in the Federal Register and shall publish such detailed summary and the text of the Compact (including a copy of any annexes or supplementary agreements thereto) on the Internet website of the Corporation.'.

(d) Effective Date- The amendments made by subsections (a), (b), and (c) apply with respect to Compacts entered into between the United States and an eligible country under the Millennium Challenge Act of 2003 (22 U.S.C. 7701 et seq.) on or after the date of the enactment of this Act.

SEC. 108. SUSPENSION AND TERMINATION OF ASSISTANCE.

(a) Suspension and Termination of Assistance- Section 611(a) of the Millennium Challenge Act of 2003 (22 U.S.C. 7710(a)) is amended in the matter preceding paragraph (1)--

(1) by striking `After consultation with the Board, the Chief Executive Officer' and inserting `The Board, acting through the Chief Executive Officer,'; and

(2) by striking `if the Chief Executive Officer' and inserting `if the Board'.

(b) Reinstatement- Section 611(b) of the Millennium Challenge Act of 2003 (22 U.S.C. 7710(b)) is amended--

(1) by striking `The Chief Executive Officer' and inserting `The Board, acting through the Chief Executive Officer,'; and

(2) by striking `the Chief Executive Officer' and inserting `the Board'.

(c) Congressional Notification- Section 611(c) of the Millennium Challenge Act of 2003 (22 U.S.C. 7710(c)) is amended--

(1) by striking `the Chief Executive Officer' the first place it appears and inserting `the Board, acting through the Chief Executive Officer,'; and

(2) by striking `the Chief Executive Officer' in each place it appears thereafter and inserting `the Board'.

(d) Publication in Federal Register of Certain Criteria- Not later than 30 days after the date of the enactment of this Act, the Chief Executive Officer of the Millennium Challenge Corporation shall publish in the Federal Register a detailed description of the criteria used by the Corporation to determine whether or not to suspend or terminate assistance in whole or in part for a country or entity under section 611 of the Millennium Challenge Act of 2003 (22 U.S.C. 7710).

SEC. 109. DISCLOSURE.

Section 612 of the Millennium Challenge Act of 2003 (22 U.S.C. 7711) is amended by adding at the end the following new subsection:

`(c) Freedom of Information- The Corporation and its officers and employees shall be subject to the provisions of section 552 of title 5, United States Code (relating to freedom of information).'.

SEC. 110. ANNUAL REPORT.

Section 613(b)(2) of the Millennium Challenge Act of 2003 (22 U.S.C. 7712(b)(2)) is amended to read as follows:

`(2) For each eligible country, an assessment (in quantifiable terms to the maximum extent practicable) of--

`(A) the progress of the country to submit a Compact proposal and negotiate a Compact to final approval;

`(B) the impact that the assistance provided under section 605 has had on reducing overall poverty through sustainable economic growth and development and otherwise achieving the objectives set out in the Compact entered into by the country;

`(C) the extent to which assistance provided under section 605 has been effective in helping the country to achieve such objectives, including a description of the measures and efforts of the country to implement the Compact;

`(D) the policy reforms of the country that are conducive to economic development and the furtherance of such objectives that have been, or need to be, implemented;

`(E) the amount and type of economic assistance provided by other major donors to the country which further the purposes of this title; and

`(F) the commitment and contribution of the country to achieving the objectives set out in the Compact entered into by the country.'.

SEC. 111. POWERS OF THE CORPORATION; RELATED PROVISIONS.

Section 614 of the Millennium Challenge Act of 2003 (22 U.S.C. 7713) is amended by adding at the end the following new subsection:

`(h) Technical Assistance- The Chief Executive Officer is authorized and encouraged to contract with any nongovernmental organization (including a university, independent foundation, or other organization) or private entity to provide technical assistance to an eligible country with respect to the merits and feasibility of the Compact proposal of the eligible country or amendments to the Compact of the eligible country.'.

SEC. 112. ASSISTANCE TO CERTAIN CANDIDATE COUNTRIES.

Section 616(d) of the Millennium Challenge Act of 2003 (22 U.S.C. 7715(d)) is amended by striking `for fiscal year 2004' and inserting `for a fiscal year'.

SEC. 113. GENERAL PERSONNEL AUTHORITIES.

It is the sense of Congress that the Millennium Challenge Corporation should employ approximately 300 persons in order to ensure that the Corporation carries out its activities, including activities in eligible countries, in an efficient and timely manner.

SEC. 114. PUBLICITY AND IDENTIFICATION OF PROGRAMS, PROJECTS, AND ACTIVITIES.

It is the sense of Congress that, pursuant to section 641 of the Foreign Assistance Act of 1961 (22 U.S.C. 2401), the Chief Executive Officer (or the Chief Executive Officer's designee), in consultation with the Administrator of the United States Agency for International Development and the heads of other appropriate departments and agencies of the Government of the United States, should promulgate regulations that require programs, projects, and activities, including public communications and commodities, that are partially or fully funded by the Millennium Challenge Corporation to be marked or otherwise bear a visible standard graphic identity marking that clearly communicates that the assistance is `From the American people'.

SEC. 115. AUTHORIZATION OF APPROPRIATIONS.

(a) Amendment- Section 619(a) of the Millennium Challenge Act of 2003 (22 U.S.C. 7718(a)) is amended by striking `fiscal years 2004 and 2005' and inserting `fiscal years 2006 through 2008'.

(b) Rule of Construction- The amendment made by subsection (a) shall not be construed to affect the availability of funds appropriated pursuant to the authorization of appropriations under section 619 of the Millennium Challenge Act of 2003 (22 U.S.C. 7718(a)) before the date of the enactment of this Act.

TITLE II--TRANSFER OF THE MILLENNIUM CHALLENGE ACT OF 2003 TO THE FOREIGN ASSISTANCE ACT OF 1961

SEC. 201. TRANSFER OF THE MILLENNIUM CHALLENGE ACT OF 2003 TO THE FOREIGN ASSISTANCE ACT OF 1961.

(a) Transfer- The Millennium Challenge Act of 2003 (title VI of division D of the Consolidated Appropriations Act, 2004; Public Law 108-199; 22 U.S.C. 7701 et seq.), as amended by this Act, is hereby--

(1) transferred from the Consolidated Appropriations Act, 2004, to the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.); and

(2) inserted after title VI of chapter 2 of part I of the Foreign Assistance Act of 1961.

(b) Redesignation- Chapter 2 of part I of the Foreign Assistance Act of 1961 is amended--

(1) by redesignating the second title VI (as added by subsection (a)) as title VII; and

(2) in title VII (as redesignated by paragraph (1))--

(A) in the title heading, to read as follows:

`TITLE VII--MILLENNIUM CHALLENGE ACT OF 2003';

(B) by redesignating sections 601 through 620 as sections 261 through 280, respectively; and

(C) by striking each reference in such title to any of sections 601 through 620 and inserting a reference to the corresponding section number (as redesignated by subparagraph (B)).

(c) Technical Assistance- Section 269(g) of the Foreign Assistance Act of 1961 (as added by subsection (a) and redesignated by subsection (b) of this section) is amended by inserting after `Notwithstanding subsection (a)' the following: `or any other provision of law (other than a provision of this title)'.

(d) Conforming Amendment- The table of contents of the Consolidated Appropriations Act, 2004 (Public Law 108-199) is amended by striking the item relating to title VI of division D of such Act.

SEC. 202. CONFORMING AMENDMENT.

Section 270(b)(2) of the Foreign Assistance Act of 1961 (as added by section 201(a) and redesignated by section 201(b) of this Act) is amended by striking `section 634A of the Foreign Assistance Act of 1961' and inserting `section 634A of this Act'.

END