[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 571 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 571

   To establish the Millennium Challenge Account and the Millennium 
    Challenge Corporation in order to reduce global poverty through 
   increased economic growth by supporting a new compact for global 
                              development.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 6, 2003

 Mr. Lugar (by request) introduced the following bill; which was read 
        twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
   To establish the Millennium Challenge Account and the Millennium 
    Challenge Corporation in order to reduce global poverty through 
   increased economic growth by supporting a new compact for global 
                              development.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Millennium Challenge Act of 2003''.

               TITLE I--THE MILLENNIUM CHALLENGE ACCOUNT

SEC. 101. STATEMENT OF POLICY.

    It is the policy of the United States to reduce global poverty 
through increased economic growth by supporting a new compact for 
global development in which increased support is provided by developed 
countries to those developing countries that are ruling justly, 
fostering economic freedom, and investing in their citizens.

SEC. 102. ELIGIBILITY CRITERIA.

    To be eligible for assistance under this Act, a country (``eligible 
country'')--
            (1) must suffer from significant poverty;
            (2) must have a demonstrated commitment to--
                    (A) just and democratic governance, including 
                political pluralism and the rule of law, and respect 
                for human and civil rights of all citizens, protect 
                private property rights, encourage transparency and 
                accountability of governance, and limit corruption;
                    (B) economic freedom, including economic policies 
                that encourage citizens and firms to participate in the 
                global product and capital markets, promote private 
                sector growth, and avoid direct government 
                participation in the economy; and
                    (C) investing in its own people, including 
                improving the availability of educational opportunities 
                and health care for all citizens; and
            (3) must have entered into a Millennium Challenge Contract, 
        as defined in section 103, with the United States.

SEC. 103. MILLENNIUM CHALLENGE CONTRACT.

    (a) In General.--A Millennium Challenge Contract is an agreement 
between the United States and an eligible country that establishes a 
multi-year plan of partnership for achieving shared development 
objectives in furtherance of the purposes of this Act.
    (b) Elements.--The Millennium Challenge Contract shall contain--
            (1) the specific objectives that the eligible country and 
        the United States expect to achieve;
            (2) the responsibilities of the eligible country and the 
        United States in the achievement of those objectives;
            (3) regular benchmarks to measure progress towards 
        achieving the agreed upon objectives and a description of how 
        the objectives will be sustained once assistance under this 
        Millennium Challenge Contract ends;
            (4) a plan and a timeframe that describes how and when 
        those objectives will be met;
            (5) the role and contribution of the business community, 
        private and voluntary organizations, and other members of civil 
        society in designing that plan and achieving the objectives;
            (6) where appropriate, the contribution of other donors in 
        the achievement of those objectives; and
            (7) a plan to ensure financial accountability of funds used 
        to achieve those objectives.
    (c) Local Input.--The Millennium Challenge Contract should take 
into account the perspectives of the rural and urban poor in an 
eligible country, and should reflect consultation with private and 
voluntary organizations, and the business community in the country.
    (d) Other Donors.--To the maximum extent feasible, activities 
undertaken to achieve the objectives of the Millennium Challenge 
Contract should be undertaken in coordination with the assistance 
activities of other donors.

SEC. 104. MILLENNIUM CHALLENGE ASSISTANCE.

    The President is authorized to provide assistance for eligible 
countries to support policies and programs that are in furtherance of 
the purposes of this Act. The goal of the Millennium Challenge Account 
is to reduce poverty by signficiantly increasing the economic growth 
trajectory of recipient countries. This requires an emphasis on 
investments that raise the productive potential of a country's citizens 
and firms and help integrate its economy into the global product and 
capital markets. Key areas of focus for Millennium Challenge Assistance 
will include:
            (1) Agricultural development.
            (2) Education.
            (3) Enterprise and private sector development.
            (4) Governance.
            (5) Health.
            (6) Trade and investment capacity building.

SEC. 105. AUTHORIZATION OF THE MILLENNIUM CHALLENGE ACCOUNT AND 
              AUTHORITIES.

    (a) Authorization of Millennium Challenge Account.--
            (1) Authorization.--There are authorized to be appropriated 
        to the President to carry out this Act $1,300,000,000 for 
        fiscal year 2004, and such sums as may be necessary for 
        subsequent fiscal years.
            (2) Availability.--Funds appropriated under paragraph (1)--
                    (A) may be referred to as the ``Millennium 
                Challenge Account'';
                    (B) are authorized to remain available until 
                expended; and
                    (C) are in addition to funds otherwise available 
                for such purposes.
    (b) Applicability of Provisions of Law.--
            (1) Funds made available to carry out the purposes of this 
        Act may be made available notwithstanding any other provision 
        of law, except the provisions of the Anti-Deficiency Act.
            (2) Notwithstanding paragraph (1), a country, including the 
        government of a country, that is ineligible to receive 
        assistance under provisions of law that would prohibit 
        assistance under Part I of the Foreign Assistance Act of 1961 
        shall not be eligible to receive assistance under this Act. If 
        the President waives the provisions of Part I of the Foreign 
        Assistance Act of 1961, such country could receive assistance 
        under this Act.
    (c) Use of Other Funds.--Any funds allocated from funds 
appropriated to carry out any other Act may be made available, if used 
in conjunction with funds appropriated to carry out this Act, under the 
authority and subject to the limitations applicable to funds made 
available to carry out this Act.

SEC. 106. EVALUATION AND ACCOUNTABILITY.

    All concluded Millennium Challenge Contracts and performance 
evaluations of activities under these contracts shall be made available 
to the public on the Internet, unless the Board makes a specific 
finding that a performance evaluation or contract should not be posted.

SEC. 107. GRADUATION.

    The Millennium Challenge Contract will provide funds for limited 
purposes, projects, and terms.

             TITLE II--THE MILLENNIUM CHALLENGE CORPORATION

SEC. 201. ESTABLISHMENT OF THE MILLENNIUM CHALLENGE CORPORATION.

    (a) Establishment of the Millennium Challenge Corporation.--There 
is hereby established in the executive branch, a corporation to be 
known as the Millennium Challenge Corporation (hereinafter in this Act 
referred to as the ``Corporation'').
    (b) Responsibility of the Corporation.--It shall be the 
responsibility of the Corporation to implement title I of this Act, 
consistent with the direction of the President.

SEC. 202. MANAGEMENT OF THE CORPORATION.

    (a) Board of Directors.--The management of the Corporation shall be 
vested in a board of directors (hereinafter in this title referred to 
as the ``Board'') composed of the Secretary of State, who shall Chair, 
the Secretary of the Treasury, and the Director of the Office of 
Management and Budget, and may include individuals serving in such 
positions in an acting capacity.
    (b) Functions of the Board.--
            (1) The Board shall direct the exercise of all the 
        functions and powers of the Corporation, including the 
        authority to review and approve the eligibility of countries 
        for assistance.
            (2) The Board 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 and 
        enjoyed.
            (3) Members of the Board shall serve without additional 
        compensation, but may be reimbursed for travel expenses, 
        including per diem, in lieu of subsistence, while engaged in 
        their duties on behalf of the Corporation.
    (c) Chief Executive Officer of the Corporation.--
            (1) The chief executive officer of the Corporation 
        (hereafter referred to in this title as the ``CEO'') shall be 
        appointed by the President, by and with the advice and consent 
        of the Senate, and shall exercise the functions and powers 
        vested in the CEO by the President and the Board.
            (2) The CEO shall receive compensation at the rate provided 
        for level II of the Executive Schedule under section 5313 of 
        title 5, United States Code.
    (d) Functions of, and actions by, the Corporation, Board, CEO, or 
an officer of the United States under this act are vested in their 
discretion.

SEC. 203. FUNCTIONS OF THE CORPORATION.

    In order to carry out programs in furtherance of the purposes and 
policies of this Act, and in accordance with the provisions of Title I 
of this Act, the Corporation may make grants for any eligible country, 
including to any private or public entity, and including for the 
purpose of providing technical assistance to any such country for the 
development of the Millennium Challenge Contract and the management, 
including financial management, and evaluation of programs for which 
assistance is provided pursuant to this Act.

SEC. 204. POWERS OF THE CORPORATION.

    (a) Powers.--The Corporation--
            (1) shall have perpetual succession unless dissolved by an 
        Act of Congress;
            (2) may adopt, alter, and use a seal, which shall be 
        judicially noticed;
            (3) may prescribe, amend, and repeal such rules, 
        regulations, and procedures as may be necessary for carrying 
        out the functions of the Corporation;
            (4) may make and perform such contracts, grants, and other 
        agreements with any individual, corporation, or other private 
        or public entity however designated and wherever situated, as 
        may be necessary for carrying out the functions of the 
        Corporation and all Millennium Challenge Contracts;
            (5) may determine and prescribe the manner in which its 
        obligations shall be incurred and its expenses allowed and 
        paid, including expenses for representation not exceeding 
        $95,000 in any fiscal year;
            (6) may lease, purchase, or otherwise acquire, improve, and 
        use such real property wherever situated, as may be necessary 
        for carrying out the functions of the Corporation;
            (7) may accept cash gifts or donations of services or of 
        property (real, personal, or mixed), tangible or intangible, in 
        furtherance of the purposes of this Act;
            (8) may use the United States mails in the same manner and 
        on the same conditions as the executive departments of 
        Government;
            (9) may, with the consent of any agency of the United 
        States, use the information, services, facilities, and 
        personnel of that agency on a full or partial reimbursement or 
        on a non-reimbursable basis in carrying out the purposes of 
        this Act;
            (10) may contract with individuals for personal services, 
        who shall not be considered federal employees for any provision 
        of law administered by the Office of Personnel Management;
            (11) hire or obtain passenger motor vehicles; and
            (12) shall have such other powers as may be necessary and 
        incident to carrying out this Act.
    (b) Principal Office.--
            (1) The Corporation shall maintain its principal office in 
        the metropolitan Washington, D.C. area.
            (2) The Corporation may establish other offices in any 
        place including places outside the United States, in which the 
        Corporation may carry on all or any of its operations and 
        business.
    (c) Positions with Foreign Governments.--When approved by the 
Corporation, in furtherance of its purposes, employees of the 
Corporation (including individuals detailed to the Corporation) may 
accept and hold offices or positions to which no compensation is 
attached with governments or governmental agencies of foreign countries 
or international organizations.
    (d) Commitment Authority.--Subject to the provisions of the Anti-
Deficiency Act, a contract, grant, or other agreement which entails 
commitments for the expenditure of funds available under this Act may 
commit such expenditures for such period of time as is deemed necessary 
to carrying out this Act.
    (e) Contracting Authority.--In furtherance of the purposes of this 
Act, functions and powers authorized by this Act may be performed 
without regard to any provision of law regulating the making, 
performance, amendment, or modification of contracts, grants, and other 
agreements.
    (f) Taxation of the Corporation.--The Corporation, including all 
its assets and property, shall be exempt from taxation now or hereafter 
imposed by the United States, or any territory or possession thereof, 
or by any State, county, municipality, or local taxing authority.

SEC. 205. PERSONNEL AND ADMINISTRATIVE AUTHORITIES.

    (a) Personnel Authorities.--Notwithstanding any provision of title 
5, United States Code or of the Foreign Service Act of 1980, as 
amended, the CEO of the Millennium Challenge Corporation may, in 
regulations prescribed jointly with the Director of the Office of 
Personnel Management, establish, and from time to time adjust, a human 
resources management system, including a retirement benefits program.
            (1) Any system established under this subsection shall not 
        waive, modify, or otherwise affect, with respect to Civil 
        Service and Foreign Service employees--
                    (A) the public employment principles of merit and 
                fitness set forth in section 2301 of title 5, including 
                the principles of hiring based on merit, fair treatment 
                without regard to political affiliation or other non-
                merit considerations, equal pay for equal work, and 
                protection of employees against reprisal for whistle 
                blowing,
                    (B) section 2302(b) of title 5,
                    (C) chapters 72 and 73 of title 5, and
                    (D) the conflict of interest provisions in title 
                18, chapter 11 of the United States Code.
            (2) The CEO of the Corporation may, without regard to the 
        civil service and foreign service laws and regulations, appoint 
        and terminate personnel as may be necessary to enable the 
        Corporation to perform its duties.
            (3) The CEO may fix the compensation of the Corporation 
        personnel without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of title 5, United States Code, 
        relating to the classification of positions and General 
        Schedule pay rates, and without regard to the provisions of 
        chapters 4 and 5 of the Foreign Service Act, relating to the 
        classification of positions and Foreign Service pay rates.
            (4) The Corporation may utilize such authority contained in 
        the Foreign Service Act of 1980, as amended, as the Corporation 
        deems appropriate.
            (5) The CEO and other personnel who are employees of the 
        Corporation shall be employees under section 2105 of title 5, 
        United States Code, for purposes of chapters 63 (relating to 
        leave), 81 (relating to compensation for work injuries), 85 
        (relating to unemployment benefits), 87 (relating to life 
        insurance benefits), 89 (relating to health insurance 
        benefits), and 90 (relating to long-term care insurance) of 
        that title. If the CEO chooses not to waive chapters 83 and 84 
        (relating to retirement benefits) of title 5, or chapter 8 of 
        the Foreign Service Act (relating to Foreign Service retirement 
        systems), employees of the Corporation shall be eligible for 
        benefits under those chapters as otherwise applicable.
            (6) No individual, except for the officers of the 
        Corporation, may be employed by the Corporation for a period in 
        excess of 5 years: Provided, That the CEO, under special 
        circumstances, may approve an extension of the length of 
        employment on an individual basis.
            (7) Individuals employed by the Corporation, including 
        individuals detailed to or contracted by the Corporation, while 
        performing duties in any country or place outside the United 
        States, and their families shall, if they are not nationals of 
        or permanently resident in such country or place, enjoy the 
        privileges and immunities of at least the administrative and 
        technical staff of the Mission of the United States to such 
        country and shall be subject to 22 U.S.C. 3927 in the same 
        manner as United States Government employees.
            (8) The CEO may procure temporary and intermittent services 
        under section 3109(b) of title 5, United States Code, at rates 
        for individuals which do not exceed the daily equivalent of the 
        annual rate of basic pay prescribed for level V of the 
        Executive Schedule under section 5316 of such title.
    (b) Detail of Personnel to the Corporation.--
            (1) Any Federal Government employee may be detailed to the 
        Corporation on a fully or partially reimbursable or on a 
        nonreimbursable basis, and such detail shall be without 
        interruption or loss of civil service or Foreign Service status 
        or privilege.
            (2) Alternatively, an employee serving under a career or 
        career conditional appointment or the equivalent in an agency 
        who transfers to or converts to an appointment in the 
Corporation with the consent of the head of the agency is entitled to 
be returned to the employee's former position or a position of like 
seniority, status, and pay without grade or pay reduction in the agency 
if the employee--
                    (A) is being separated from the Corporation for 
                reasons other than misconduct, neglect of duty, or 
                malfeasance; and
                    (B) applies for return not later than 30 days 
                before the date of the termination of the employment in 
                the Corporation.
            (3) An employee of a private sector organization assigned 
        to the Corporation under this section is deemed, during the 
        period of assignment, to be on detail to such agency. Such 
        employee--
                    (A) may continue to receive pay and benefits from 
                the private sector organization from which he is 
                assigned;
                    (B) is deemed to be an employee of the Corporation 
                as specified in (a)(5) of this section, for the 
                purposes of chapters 81 and 85 of title 5 U.S.C.;
                    (C) may not have access to any trade secrets or to 
                any other non-public information which is of commercial 
                value to the private sector organization from which he 
                is assigned; and
                    (D) is subject to such regulations as the President 
                may prescribe.
        Such assignment may be made with or without reimbursement by 
        the Corporation for the pay, or a part thereof, of the employee 
        during the period of assignment, or for any contribution of the 
        private sector organization to its employee benefit system. A 
        private sector organization may not charge the Federal 
        Government, as direct or indirect costs under a Federal 
        contract, the costs of pay or benefits paid by the organization 
        to an employee assigned to the Corporation.
    (c) Allocation of Funds.--
            (1) Transfer or Allocation.--The Corporation may allocate 
        or transfer to any agency of the United States Government any 
        part of any funds available for carrying out the purposes of 
        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) Use of Services.--For carrying out the purposes of this 
        Act, the Corporation may utilize the services and facilities 
        of, or procure commodities from, any agency of the United 
        States Government under such terms and conditions as may be 
        agreed to by the head of such agency and the Corporation.
    (d) Other Authorities.--Except where inconsistent with the 
provisions of this Act, the Corporation is authorized to use any of the 
administrative authorities contained in the State Department Basic 
Authorities Act of 1956 and the Foreign Assistance Act of 1961.
    (e) Government Corporation Control Act.--The Corporation shall be 
subject to the provisions of the Government Corporation Control Act, 
title 31, United States Code.
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