[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1160 Reported in Senate (RS)]






                                                       Calendar No. 115
108th CONGRESS
  1st Session
                                S. 1160

                          [Report No. 108-55]

 To authorize Millennium Challenge assistance, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 29, 2003

Mr. Lugar, from the Committee on Foreign Relations, reported under the 
  authority of the order of the Senate of May 23, 2003, the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To authorize Millennium Challenge assistance, 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 Act of 2003''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; purpose.
Sec. 3. Definitions.
                TITLE I--MILLENNIUM CHALLENGE ASSISTANCE

Sec. 101. Authority of the Secretary of State.
Sec. 102. Authorization for Millennium Challenge assistance.
Sec. 103. Candidate country.
Sec. 104. Eligible country.
Sec. 105. Eligible entity.
Sec. 106. Millennium Challenge Contract.
Sec. 107. Disclosure.
Sec. 108. Annual report to Congress.
Sec. 109. Millennium Challenge assistance to candidate countries.
    TITLE II--THE MILLENNIUM CHALLENGE ACCOUNT AND AUTHORIZATION OF 
                             APPROPRIATIONS

Sec. 201. Establishment of the Millennium Challenge Account.
Sec. 202. Authorization of appropriations.

SEC. 2. FINDINGS; PURPOSE.

    (a) Findings.--Congress makes the following findings:
            (1) On March 14, 2002, President George W. Bush stated that 
        ``America supports the international development goals in the 
        U.N. Millennium Declaration, and believes that the goals are a 
        shared responsibility of developed and developing countries.'' 
        The President also called for a ``new compact for global 
        development, defined by new accountability for both rich and 
        poor nations'' and pledged support for increased assistance 
        from the United States through the establishment of a 
        Millennium Challenge Account for countries that govern justly, 
        invest in their own people, and encourage economic freedom.
            (2) The elimination of extreme poverty and the achievement 
        of the other international development goals of the United 
        Nations Millennium Declaration adopted by the United Nations 
        General Assembly on September 8, 2000, are important objectives 
        and it is appropriate for the United States to make development 
        assistance available in a manner that will assist in achieving 
        such goals.
            (3) The availability of financial assistance through a 
        Millennium Challenge Account, linked to performance by 
        developing countries, can contribute significantly to the 
        achievement of the international development goals of the 
        United Nations Millennium Declaration.
    (b) Purposes.--The purposes of this Act are--
            (1) to provide United States assistance for global 
        development through Millennium Challenge Contracts, as 
        described in section 102; and
            (2) to provide such assistance in a manner that promotes 
        economic growth and the elimination of extreme poverty and 
        strengthens good governance, economic freedom, and investments 
        in people.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Candidate country.--The term ``candidate country'' 
        means a country that meets the criteria set out in section 103.
            (2) Eligible country.--The term ``eligible country'' means 
        a candidate country that is determined, under section 104, to 
        be eligible to receive assistance under this Act.
            (3) Millennium challenge account.--The term ``Millennium 
        Challenge Account'' means the account established under section 
        201.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of State.

                TITLE I--MILLENNIUM CHALLENGE ASSISTANCE

SEC. 101. AUTHORITY OF THE SECRETARY OF STATE.

    (a) In General.--The Secretary shall, under the direction of the 
President, coordinate all assistance provided under this Act.
    (b) Other Authorities and Powers.--The authority provided to the 
Secretary under this Act is in addition to the authorities and powers 
provided to the Secretary under any other provisions of law, including 
sections 101(b) and 622(c) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151(b) and 2382(c)) and sections 1522 and 1523 of the Foreign 
Affairs Agencies Consolidation Act of 1998 (22 U.S.C. 6592 and 6593).
    (c) Coordinator for the Millennium Challenge Account.--
            (1) Designation of coordinator.--The Secretary shall 
        designate an appropriate officer to be Coordinator for the 
        Millennium Challenge Account. Such official shall be selected 
        from among those officers serving in the Department of State in 
        a position requiring the advice and consent of the Senate.
            (2) Duties of the coordinator.--The Coordinator designated 
        under paragraph (1) shall, subject to the direction of the 
        Secretary, be responsible for--
                    (A) developing the indicators described in section 
                104(b);
                    (B) ensuring program and policy coordination among 
                agencies of the United States Government in carrying 
                out this Act;
                    (C) ensuring that assistance under this Act is 
                coordinated with other United States economic 
                assistance programs;
                    (D) pursuing coordination with other countries and 
                international organizations with respect to assistance 
                to countries receiving assistance under this Act;
                    (E) ensuring proper management, implementation, and 
                oversight by agencies of the United States Government 
                responsible for assistance under this Act; and
                    (F) resolving policy, program, and funding disputes 
                among agencies of the United States Government involved 
                in carrying out this Act.
    (d) Consultation With the Secretary of the Treasury.--The Secretary 
shall consult with the Secretary of the Treasury with regard to--
            (1) development of the indicators described in section 
        104(b);
            (2) determinations of eligible countries under section 104;
            (3) standards for measuring performance under the 
        Millennium Challenge Contract; and
            (4) other appropriate matters as determined by the 
        Secretary.

SEC. 102. AUTHORIZATION FOR MILLENNIUM CHALLENGE ASSISTANCE.

    (a) Authority.--The Secretary is authorized to provide assistance 
to an eligible entity consistent with the purposes of this Act set out 
in section 2(b) to conduct programs or projects consistent with the 
objectives of a Millennium Challenge Contract. Assistance provided 
under this Act may be provided notwithstanding any other provision of 
law.
    (b) Exception.--Assistance under this Act may not be used for 
military assistance or training.
    (c) Form of Assistance.--Assistance under this Act shall be 
provided in the form of grants to eligible entities.
    (d) Coordination.--The provision of assistance under this Act shall 
be coordinated with other United States foreign assistance programs.
    (e) Applications.--An eligible entity seeking assistance under this 
Act to conduct programs or projects consistent with the objectives of a 
Millennium Challenge Contract shall submit a proposal for the use of 
such assistance to the Secretary in such manner and accompanied by such 
information as the Secretary may reasonably require.

SEC. 103. CANDIDATE COUNTRY.

    (a) In General.--A country is a candidate country for the purposes 
of this Act--
            (1) during fiscal year 2004, if such country is eligible to 
        receive loans from the International Development Association;
            (2) during fiscal year 2005, if the per capita income of 
        such country is less than the historical per capita income 
        cutoff of the International Development Association for that 
        year; and
            (3) during any fiscal year after 2005--
                    (A) for which more than $5,000,000,000 has been 
                appropriated to the Millennium Challenge Account, if 
                the country is classified as a lower middle income 
                country by the World Bank on the first day of such 
                fiscal year; or
                    (B) for which not more than $5,000,000,000 has been 
                appropriated to such Millennium Challenge Account, the 
                per capita income of such country is less than the 
                historical per capita income cutoff of the 
                International Development Association for that year.
    (b) Limitation on Assistance to Certain Candidate Countries.--In a 
fiscal year in which subparagraph (A) of subsection (a)(3) applies with 
respect to determining candidate countries, not more than 20 percent of 
the amounts appropriated to the Millennium Challenge Account shall be 
available for assistance to countries that would not be candidate 
countries if subparagraph (B) of subsection (a)(3) applied during such 
year.

SEC. 104. ELIGIBLE COUNTRY.

    (a) Determination by the Secretary.--The Secretary shall determine 
whether a candidate country is an eligible country by evaluating the 
demonstrated commitment of the government of the candidate country to--
            (1) just and democratic governance, including a 
        demonstrated commitment to--
                    (A) promote political pluralism and the rule of 
                law;
                    (B) respect human and civil rights;
                    (C) protect private property rights;
                    (D) encourage transparency and accountability of 
                government; and
                    (E) limit corruption;
            (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; and
                    (C) strengthen market forces in the economy; and
            (3) investments in the people of such country, including 
        improving the availability of educational opportunities and 
        health care for all citizens of such country.
    (b) Assessing Eligibility.--
            (1) In general.--To evaluate the demonstrated commitment of 
        a candidate country for the purposes of subsection (a), the 
        Secretary shall use objective and quantifiable indicators of a 
        candidate country's performance with respect to the criteria 
        described in paragraphs (1), (2), and (3) of such subsection.
            (2) Annual publication of indicators.--
                    (A) Initial publication.--Not later than 45 days 
                prior to the final publication of indicators under 
                subparagraph (B) in any year, the Secretary shall 
                publish in the Federal Register and make available on 
                the Internet the indicators that the Secretary proposes 
                to use for the purposes of paragraph (1) in such year.
                    (B) Final publication.--Not later than 15 days 
                prior to the determination of eligible countries in any 
                year, the Secretary shall publish in the Federal 
                Register and make available on the Internet the 
                indicators the Secretary will use for the purposes of 
                paragraph (1) in such year.
            (3) Consideration of public comment.--The Secretary shall 
        consider any comments on the proposed indicators published 
        under paragraph (2)(A) that are received within 30 days after 
        the publication of such indicators when selecting the 
        indicators to be used for the purposes of paragraph (1).

SEC. 105. ELIGIBLE ENTITY.

    (a) Assistance.--Any eligible entity may receive assistance under 
this Act to carry out a project in an eligible country for the purpose 
of making progress toward achieving an objective of a Millennium 
Challenge Contract.
    (b) Determinations of Eligibility.--The Secretary shall determine 
whether a person or governmental entity is an eligible entity for the 
purposes of this section.
    (c) Eligible Entities.--For the purposes of this section, an 
eligible entity is--
            (1) a government of an eligible country, including a local 
        or regional government; or
            (2) a nongovernmental organization or other private entity.

SEC. 106. MILLENNIUM CHALLENGE CONTRACT.

    (a) In General.--The Secretary shall invite the government of an 
eligible country to enter into a Millennium Challenge Contract with the 
United States Government. A Millennium Challenge Contract shall 
establish a multiyear plan for the eligible country to achieve specific 
objectives consistent with the purposes set out in section 2(b).
    (b) Content.--A Millennium Challenge Contract shall include--
            (1) specific objectives to be achieved by the eligible 
        country during the term of the Contract;
            (2) a description of the actions to be taken by the 
        government of the eligible country and the United States 
        Government for achieving such objectives;
            (3) the role and contribution of private entities, 
        nongovernmental organizations, and other organizations in 
        achieving such objectives;
            (4) regular benchmarks for measuring progress toward 
        achieving such objectives;
            (5) a schedule for achieving such objectives;
            (6) a schedule of evaluations to be performed to determine 
        whether the country is meeting its commitments under the 
        Contract;
            (7) a statement that the Secretary intends to consider the 
        eligible country's performance in achieving such objectives in 
        making decisions about providing continued assistance under the 
        Contract;
            (8) the strategy of the eligible country to sustain 
        progress made toward achieving such objectives after the 
        expiration of the Contract;
            (9) a plan to ensure financial accountability for any 
        assistance provided to a person or government in the eligible 
        country under this Act; and
            (10) a statement that nothing in the Contract may be 
        construed to create a legally binding or enforceable obligation 
        on the United States Government.
    (c) Requirement for Consultation.--The Secretary shall seek to 
ensure that the government of an eligible country consults with private 
entities and nongovernmental organizations in the eligible country for 
the purpose of ensuring that the terms of a Millennium Challenge 
Contract entered into by the United States Government and the eligible 
country--
            (1) reflect the needs of the rural and urban poor in the 
        eligible country; and
            (2) provide means to assist poor citizens of such eligible 
        country to escape poverty through their own efforts.

SEC. 107. DISCLOSURE.

    (a) Requirement for Disclosure.--The Secretary shall make available 
to the public on a continuous basis and on the earliest possible date, 
but no later than 15 days after the information is available to the 
Secretary, the following information:
            (1) A list of the candidate countries determined to be 
        eligible countries during any year.
            (2) The text of each Millennium Challenge Contract entered 
        into by the United States Government.
            (3) For assistance provided under this Act--
                    (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 for 
                which assistance was provided.
            (4) For each eligible country, an assessment of--
                    (A) the progress made during each year by an 
                eligible country toward achieving the objectives set 
                out in the Millennium Challenge Contract entered into 
                by the eligible country; and
                    (B) the extent to which assistance provided under 
                this Act has been effective in helping the eligible 
                country to achieve such objectives.
    (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 posting on the Internet, as 
well as by any other methods that the Secretary determines appropriate.

SEC. 108. ANNUAL REPORT TO CONGRESS.

    Not later than January 31 of each year, the President shall submit 
to Congress a report on the assistance provided under this Act during 
the prior fiscal year. The report shall include--
            (1) information regarding obligations and expenditures for 
        assistance provided to each eligible country in the prior 
        fiscal year;
            (2) a discussion, for each eligible country, of the 
        objectives of such assistance;
            (3) a description of the coordination of assistance under 
        this Act with other United States foreign assistance and 
        related trade policies;
            (4) a description of the coordination of assistance under 
        this Act with the contributions of other donors; and
            (5) any other information the President considers relevant 
        to assistance provided under this Act.

SEC. 109. MILLENNIUM CHALLENGE ASSISTANCE TO CANDIDATE COUNTRIES.

    (a) Authority.--Notwithstanding any other provision of this Act and 
subject to the limitation in subsection (c), the Secretary is 
authorized to provide assistance to a candidate country that meets the 
conditions in subsection (b) for the purpose of assisting such country 
in becoming an eligible country.
    (b) Conditions.--Assistance under subsection (a) may be provided to 
a candidate country that is not an eligible country under section 104 
because of--
            (1) the unreliability of data used to assess its 
        eligibility under section 104; or
            (2) the failure of the government of the candidate country 
        to perform adequately with respect to only 1 of the indicators 
        described in subsection (a) of section 104.
    (c) Limitation.--The total amount of assistance provided under 
subsection (a) in a fiscal year may not exceed 10 percent of the funds 
made available to the Millennium Challenge Account during such fiscal 
year.

    TITLE II--THE MILLENNIUM CHALLENGE ACCOUNT AND AUTHORIZATION OF 
                             APPROPRIATIONS

SEC. 201. ESTABLISHMENT OF THE MILLENNIUM CHALLENGE ACCOUNT.

    There is established on the books of the Treasury an account to be 
known as the Millennium Challenge Account. All amounts made available 
to carry out the provisions of this Act shall be deposited into such 
Account and such amounts shall be available to carry out such 
provisions.

SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out the provisions of this Act $1,000,000,000 for fiscal year 2004, 
$2,300,000,000 for fiscal year 2005, and $5,000,000,000 for fiscal year 
2006.
    (b) Availability.--Funds appropriated under subsection (a)--
            (1) are authorized to remain available until expended; and
            (2) are in addition to funds otherwise available for such 
        purposes.
    (c) Allocation of Funds.--
            (1) In general.--The Secretary may allocate or transfer to 
        any agency of the United States Government any of the funds 
        available for carrying out this Act. Such funds shall be 
        available for obligation and expenditure for the purposes for 
        which authorized, in accordance with authority granted in this 
        Act or under authority governing the activities of the agencies 
        of the United States Government to which such funds are 
        allocated or transferred.
            (2) Notification.--The notification requirements of section 
        634A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2394-
        1(a)) shall apply to any allocation or transfer of funds made 
        pursuant to paragraph (1).




                                                       Calendar No. 115

108th CONGRESS

  1st Session

                                S. 1160

                          [Report No. 108-55]

_______________________________________________________________________

                                 A BILL

 To authorize Millennium Challenge assistance, and for other purposes.

_______________________________________________________________________

                              May 29, 2003

                 Read twice and placed on the calendar