[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3930 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3930

    To establish the Universal Education Account and the Universal 
       Education Corporation to promote global education reform.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 2005

 Mr. Kind (for himself, Mr. Gilchrest, and Mr. Schiff) introduced the 
 following bill; which was referred to the Committee on International 
                               Relations

_______________________________________________________________________

                                 A BILL


 
    To establish the Universal Education Account and the Universal 
       Education Corporation to promote global education reform.

    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 ``Universal Education Act''.

SEC. 2. PURPOSES.

     The purposes of this Act are--
            (1) to provide United States assistance for global 
        education reform through the Universal Education Corporation, 
        as described in section 4; and
            (2) to provide such assistance in a manner that promotes 
        education reform and strengthens good governance, economic 
        freedom, and investments in people.

SEC. 3. DEFINITIONS.

     In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on International Relations and 
                the Committee on Appropriations of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate.
            (2) Board.--The term ``Board'' means the Board of Directors 
        of the Corporation established pursuant to section 4(c).
            (3) Candidate country.--The term ``candidate country'' 
        means a country that meets the requirements of section 6.
            (4) Chief executive officer.--The term ``Chief Executive 
        Officer'' means the chief executive officer of the Corporation 
        appointed pursuant to section 4(b).
            (5) Compact.--The term ``Compact'' means a Universal 
        Education Compact described in section 9.
            (6) Corporation.--The term ``Corporation'' means the 
        Universal Education Corporation established by section 4(a).
            (7) Eligible country.--The term ``eligible country'' means 
        a candidate country that is determined, under section 7, to be 
        an eligible country to receive assistance under section 5.

SEC. 4. ESTABLISHMENT AND MANAGEMENT OF THE UNIVERSAL EDUCATION 
              CORPORATION.

    (a) Establishment.--There is established in the executive branch a 
corporation to be known as the ``Universal Education Corporation'' that 
shall be responsible for carrying out this Act. 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, Universal Education 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 Act 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 Secretary of 
                Education; and
                    (B) four other individuals with relevant 
                international experience with respect to education 
                issues 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.
                    (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 Act 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. 5. AUTHORIZATION OF ASSISTANCE.

    (a) Assistance.--Notwithstanding any other provision of law (other 
than a provision of this Act), the Board, acting through the Chief 
Executive Officer, is authorized to provide assistance under this 
section for each country that enters into a Universal Education Compact 
with the United States pursuant to section 9 to support policies and 
programs that advance the progress of the country in achieving lasting 
education reform and are in furtherance of the purposes of this Act.
    (b) Form of Assistance.--Assistance under this section may be 
provided in the form of grants, cooperative agreements, or contracts to 
or with eligible entities described in subsection (c). Assistance under 
this section may not be provided in the form of loans.
    (c) Eligible Entities.--An eligible entity referred to in 
subsection (b) is--
            (1) the national government of the eligible country;
            (2) regional or local governmental units of the country; or
            (3) a nongovernmental organization or a private entity.
    (d) Application.--The Chief Executive Officer, in consultation with 
the Board and working with eligible countries selected by the Board for 
negotiation of Compacts, should develop and recommend procedures for 
considering solicited and unsolicited proposals in Compacts prior to an 
approval of the Compacts by the Board.
    (e) Limitations.--
            (1) Prohibition on military assistance and training.--
        Assistance under this section may not include military 
        assistance or military training for a country.
            (2) Prohibition on assistance relating to united states job 
        loss or production displacement.--Assistance under this section 
        may not be provided for any project that is likely to cause a 
        substantial loss of United States jobs or a substantial 
        displacement of United States production.
            (3) Prohibition on assistance relating to environmental, 
        health, or safety hazards.--Assistance under this section may 
        not be provided for any project that is likely to cause a 
        significant environmental, health, or safety hazard.
            (4) Prohibition on use of funds for abortions and 
        involuntary sterilizations.--The prohibitions on use of funds 
        contained in paragraphs (1) through (3) of section 104(f) of 
        the Foreign Assistance Act of 1961 (22 U.S.C. 2151b(f)(1)-(3)) 
        shall apply to funds made available to carry out this section 
        to the same extent and in the same manner as such prohibitions 
        apply to funds made available to carry out part I of such Act. 
        The prohibition on use of funds contained in any provision of 
        law comparable to the eleventh and fourteenth provisos under 
        the heading ``Child Survival and Health Programs Fund'' of 
        division E of Public Law 108-7 (117 Stat. 162) shall apply to 
        funds made available to carry out this section for fiscal year 
        2006.
    (f) Coordination.--The provision of assistance under this section 
shall be coordinated with other United States foreign assistance 
programs.
    (g) Sense of Congress.--It is the sense of Congress that--
            (1) the Board should encourage other countries, 
        particularly member countries of the European Union (EU), and 
        private donors to provide assistance for countries that receive 
        assistance under this section for the same purposes for which 
        assistance is provided under this section; and
            (2) assistance provided by other countries and private 
        donors in accordance with paragraph (1) should be coordinated 
        with assistance provided under this section.

SEC. 6. CANDIDATE COUNTRIES.

    (a) Low Income Countries.--
            (1) Fiscal year 2006.--A country shall be a candidate 
        country for purposes of eligibility for assistance for fiscal 
        year 2006 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), 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 2007 and subsequent fiscal years.--A 
        country shall be a candidate country for purposes of 
        eligibility for assistance for fiscal year 2007 or a subsequent 
        fiscal year 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) Rule of construction.--For the purposes of determining 
        whether a country is eligible for receiving assistance under 
        section 5 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.--In addition to countries described in 
        subsection (a), a country shall be a candidate country for 
        purposes of eligibility for assistance for fiscal year 2008 or 
        a subsequent fiscal year 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) Limitation.--The total amount of assistance provided to 
        countries described in paragraph (1) for fiscal year 2008 or 
        any subsequent fiscal year may not exceed 25 percent of the 
        total amount of assistance provided to all countries under 
        section 5 for fiscal year 2008 or the subsequent fiscal year, 
        as the case may be.
    (c) Identification by the Board.--The Board shall identify whether 
a country is a candidate country for purposes of this section.

SEC. 7. 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;
            (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 the 
                sustainable management of natural resources;
                    (C) strengthen market forces in the economy; and
                    (D) respect worker rights, including the right to 
                form labor unions;
            (3) investments in the people of such country, particularly 
        women and children, including programs that--
                    (A) promote broad-based primary education; and
                    (B) strengthen and build capacity to provide 
                quality public health and reduce child mortality; and
            (4) education reform, such as inclusion of women in schools 
        and children with special needs in schools, school nutrition 
        programs, and curricula to promote cultural, religious, and 
        ethnic tolerance.
    (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 Universal 
        Education Compact pursuant to section 9.
            (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 
                Act.
    (d) Establishment of Criteria and Methodology.--The criteria and 
methodology submitted by the Board to Congress and published in the 
Federal Register under section 8(b)(2) with respect to a fiscal year 
shall remain fixed for purposes of eligibility determinations for such 
year.
    (e) 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 
8(b).

SEC. 8. CONGRESSIONAL AND PUBLIC NOTIFICATION OF CANDIDATE COUNTRIES, 
              ELIGIBILITY CRITERIA, AND ELIGIBLE COUNTRIES.

    (a) Identification of Candidate Countries.--Not later than 90 days 
prior to the date on which the Board determines eligible countries 
under section 7 for a fiscal year, the Chief Executive Officer--
            (1) shall prepare and submit to the appropriate 
        congressional committees a report that contains a list of all 
        candidate countries identified under section 6, and all 
        countries that would be candidate countries if the countries 
        met the requirement contained in section 6(a)(1)(B), for the 
        fiscal year; and
            (2) shall publish in the Federal Register the information 
        contained in the report described in paragraph (1).
    (b) Identification of Eligibility Criteria and Methodology.--Not 
later than 60 days prior to the date on which the Board determines 
eligible countries under section 7 for a fiscal year, the Chief 
Executive Officer--
            (1) shall prepare and submit to the appropriate 
        congressional committees a report that contains a list of the 
        criteria and methodology described in subsections (a) and (b) 
        of section 7 that will be used to determine eligibility for 
        each candidate country identified under subsection (a);
            (2) shall publish in the Federal Register the information 
        contained in the report described in paragraph (1); and
            (3) may conduct one or more public hearings on the 
        eligibility criteria and methodology.
    (c) Public Comment and Congressional Consultation.--
            (1) Public comment.--The Chief Executive Officer shall, for 
        the 30-day period beginning on the date of publication in the 
        Federal Register of the information contained in the report 
        described in subsection (b)(1), accept public comment and 
        consider such comment for purposes of determining eligible 
        countries under section 7.
            (2) Congressional consultation.--The Chief Executive 
        Officer shall consult with the appropriate congressional 
        committees on the extent to which the candidate countries meet 
        the criteria described in section 7(b).
    (d) Identification of Eligible Countries.--Not later than five days 
after the date on which the Board determines eligible countries under 
section 7 for a fiscal year, the Chief Executive Officer--
            (1) shall prepare and submit to the appropriate 
        congressional committees a report that contains a list of all 
        such eligible countries, an identification of those countries 
        on such list with respect to which the Board will seek to enter 
        into a Compact under section 9, and a justification for such 
        eligibility determination and selection for Compact 
        negotiation; and
            (2) shall publish in the Federal Register the information 
        contained in the report described in paragraph (1).

SEC. 9. UNIVERSAL EDUCATION 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 ``Universal Education Compact'', that establishes a multi-
year plan for achieving shared education reform objectives in 
furtherance of the purposes of this Act.
    (b) Elements.--
            (1) In general.--The Compact should take into account the 
        national education reform 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 5;
                    (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 6(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 
        education reform strategy'' means any strategy to achieve 
        lasting education reform to benefit students 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) 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 Act after the expiration of the existing Compact.

SEC. 10. 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. 11. SUSPENSION AND TERMINATION OF ASSISTANCE.

    (a) Suspension and Termination of Assistance.--After consultation 
with the Board, the Chief Executive Officer may suspend or terminate 
assistance in whole or in part for a country or entity under section 5 
if the Chief Executive Officer determines that--
            (1) the country or entity is engaged in activities which 
        are contrary to the national security interests of the United 
        States;
            (2) the country or entity has engaged in a pattern of 
        actions inconsistent with the criteria used to determine the 
        eligibility of the country or entity, as the case may be; or
            (3) the country or entity has failed to adhere to its 
        responsibilities under the Compact.
    (b) Reinstatement.--The Chief Executive Officer may reinstate 
assistance for a country or entity under section 5 only if the Chief 
Executive Officer determines that the country or entity has 
demonstrated a commitment to correcting each condition for which 
assistance was suspended or terminated under subsection (a).
    (c) Congressional Notification.--Not later than 3 days after the 
date on which the Chief Executive Officer suspends or terminates 
assistance under subsection (a) for a country or entity, or reinstates 
assistance under subsection (b) for a country or entity, the Chief 
Executive Officer shall submit to the appropriate congressional 
committees a report that contains the determination of the Chief 
Executive Officer under subsection (a) or subsection (b), as the case 
may be.
    (d) Rule of Construction.--The authority to suspend or terminate 
assistance under this section includes the authority to suspend or 
terminate obligations and sub-obligations.

SEC. 12. DISCLOSURE.

    (a) Requirement for Disclosure.--The Corporation shall make 
available to the public on at least a quarterly basis, the following 
information:
            (1) For assistance provided under section 5--
                    (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 
        19(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.

SEC. 13. ANNUAL REPORT.

    (a) Report.--Not later than March 31, 2007, and each March 31 
thereafter, the President shall submit to Congress a report on the 
assistance provided under section 5 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 
                Compact entered into by the country; and
                    (B) the extent to which assistance provided under 
                section 5 has been effective in helping the country to 
                achieve such objectives.
            (3) A description of the coordination of assistance 
        provided under section 5 with other United States foreign 
        assistance and related trade policies.
            (4) A description of the coordination of assistance 
        provided under section 5 with assistance provided by other 
        donor countries.
            (5) Any other information the President considers relevant 
        with respect to assistance provided under section 5.

SEC. 14. POWERS OF THE CORPORATION; RELATED PROVISIONS.

    (a) Powers.--The Corporation--
            (1) shall have perpetual succession unless dissolved by a 
        law enacted after the date of the enactment of this Act;
            (2) may adopt, alter, and use a seal, which shall be 
        judicially noticed;
            (3) may make and perform such contracts, grants, and other 
        agreements with any person or government however designated and 
        wherever situated, as may be necessary for carrying out the 
        functions of the Corporation;
            (4) may determine and prescribe the manner in which its 
        obligations shall be incurred and its expenses allowed and 
        paid, including expenses for representation;
            (5) 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;
            (6) may accept cash gifts or donations of services or of 
        property (real, personal, or mixed), tangible or intangible, 
        for the purpose of carrying out the provisions of this Act;
            (7) may use the United States mails in the same manner and 
        on the same conditions as the executive departments;
            (8) 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;
            (9) may hire or obtain passenger motor vehicles; and
            (10) shall have such other powers as may be necessary and 
        incident to carrying out this Act.
    (b) Principal Office.--The Corporation shall maintain its principal 
office in the metropolitan area of Washington, District of Columbia.
    (c) Positions With Foreign Governments.--When approved by the Chief 
Executive Officer, for purposes of implementing a Compact, 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 with international organizations.
    (d) Other Authorities.--Except to the extent inconsistent with the 
provisions of this Act, the administrative authorities contained in the 
State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a et 
seq.) and the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) 
shall apply to the implementation of this Act to the same extent and in 
the same manner as such authorities apply to the implementation of 
those Acts.
    (e) Applicability of Government Corporation Control Act.--
            (1) In general.--The Corporation shall be subject to 
        chapter 91 of subtitle VI of title 31, United States Code, 
        except that the Corporation shall not be authorized to issue 
        obligations or offer obligations to the public.
            (2) Conforming amendment.--Section 9101(3) of title 31, 
        United States Code, is amended by adding at the end the 
        following:
                    ``(R) the Universal Education Corporation.''.
    (f) Inspector General.--
            (1) In general.--The Inspector General of the United States 
        Agency for International Development shall serve as Inspector 
        General of the Corporation, and, in acting in such capacity, 
        may conduct reviews, investigations, and inspections of all 
        aspects of the operations and activities of the Corporation.
            (2) Authority of the board.--In carrying out the 
        responsibilities under this subsection, the Inspector General 
        shall report to and be under the general supervision of the 
        Board.
            (3) Reimbursement and authorization of services.--
                    (A) Reimbursement.--The Corporation shall reimburse 
                the United States Agency for International Development 
                for all expenses incurred by the Inspector General in 
                connection with the Inspector General's 
                responsibilities under this subsection.
                    (B) Authorization for services.--Of the amount 
                authorized to be appropriated under section 19(a) for a 
                fiscal year, up to $5,000,000 is authorized to be made 
                available to the Inspector General of the United States 
                Agency for International Development to conduct 
                reviews, investigations, and inspections of operations 
                and activities of the Corporation.
    (g) Special Assistance.--
            (1) In general.--The Chief Executive Officer is authorized 
        to contract with any nongovernmental organization (including a 
        university, independent foundation, or other organization) in 
        the United States or in a candidate country, and, where 
        appropriate, directly with a governmental agency of any such 
        country, that is undertaking research aimed at improving data 
        related to eligibility criteria under this Act with respect to 
        the country.
            (2) Funding.--Of the amount authorized to be appropriated 
        under section 19(a) for a fiscal year, up to $5,000,000 is 
        authorized to be made available to carry out paragraph (1).

SEC. 15. COORDINATION WITH UNITED STATES AGENCY FOR INTERNATIONAL 
              DEVELOPMENT.

    (a) Requirement for Coordination.--The Chief Executive Officer 
shall consult with the Administrator of the United States Agency for 
International Development in order to coordinate the activities of the 
Corporation with the activities of the Agency.
    (b) USAID Programs.--The Administrator of the United States Agency 
for International Development shall seek to ensure that appropriate 
programs of the Agency play a primary role in preparing candidate 
countries to become eligible countries.

SEC. 16. 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 6; and
            (2) demonstrates a significant commitment to meet the 
        requirements of section 7(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 19(a) for 
fiscal year 2006 is authorized to be made available to carry out this 
section.

SEC. 17. GENERAL PERSONNEL AUTHORITIES.

    (a) Detail of Personnel.--Upon request of the Chief Executive 
Officer, the head of an agency may detail any employee of such agency 
to the Corporation on a reimbursable basis. Any employee so detailed 
remains, for the purpose of preserving such employee's allowances, 
privileges, rights, seniority, and other benefits, an employee of the 
agency from which detailed.
    (b) Reemployment Rights.--
            (1) In general.--An employee of an agency who is serving 
        under a career or career conditional appointment (or the 
        equivalent), and who, with the consent of the head of such 
        agency, transfers to the Corporation, is entitled to be 
        reemployed in such employee's former position or a position of 
        like seniority, status, and pay in such agency, if such 
        employee--
                    (A) is separated from the Corporation for any 
                reason, other than misconduct, neglect of duty, or 
                malfeasance; and
                    (B) applies for reemployment not later than 90 days 
                after the date of separation from the Corporation.
            (2) Specific rights.--An employee who satisfies paragraph 
        (1) is entitled to be reemployed (in accordance with such 
        paragraph) within 30 days after applying for reemployment and, 
        on reemployment, is entitled to at least the rate of basic pay 
        to which such employee would have been entitled had such 
        employee never transferred.
    (c) Hiring Authority.--Of persons employed by the Corporation, not 
to exceed 30 persons may be appointed, compensated, or removed without 
regard to the civil service laws and regulations.
    (d) Basic Pay.--The Chief Executive Officer may fix the rate of 
basic pay of employees of the Corporation without regard to the 
provisions of chapter 51 of title 5, United States Code (relating to 
the classification of positions), subchapter III of chapter 53 of such 
title (relating to General Schedule pay rates), except that no employee 
of the Corporation may receive a rate of basic pay that exceeds the 
rate for level II of the Executive Schedule under section 5313 of such 
title.
    (e) Definitions.--In this section--
            (1) the term ``agency'' means an executive agency, as 
        defined by section 105 of title 5, United States Code; and
            (2) the term ``detail'' means the assignment or loan of an 
        employee, without a change of position, from the agency by 
        which such employee is employed to the Corporation.

SEC. 18. PERSONNEL OUTSIDE THE UNITED STATES.

    (a) Assignment to United States Embassies.--An employee of the 
Corporation, including an individual detailed to or contracted by the 
Corporation, may be assigned to a United States diplomatic mission or 
consular post or a United States Agency for International Development 
field mission.
    (b) Privileges and Immunities.--The Secretary of State shall seek 
to ensure that an employee of the Corporation, including an individual 
detailed to or contracted by the Corporation, and the members of the 
family of such employee, while the employee is performing duties in any 
country or place outside the United States, enjoy the privileges and 
immunities that are enjoyed by a member of the Foreign Service, or the 
family of a member of the Foreign Service, as appropriate, of 
comparable rank and salary of such employee, if such employee or a 
member of the family of such employee is not a national of or 
permanently resident in such country or place.
    (c) Responsibility of Chief of Mission.--An employee of the 
Corporation, including an individual detailed to or contracted by the 
Corporation, and a member of the family of such employee, shall be 
subject to section 207 of the Foreign Service Act of 1980 (22 U.S.C. 
3927) in the same manner as United States Government employees while 
the employee is performing duties in any country or place outside the 
United States if such employee or member of the family of such employee 
is not a national of or permanently resident in such country or place.

SEC. 19. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this Act such sums as may be necessary for 
each of the fiscal years 2006 and 2007.
    (b) Allocation of Funds.--
            (1) In general.--The Corporation 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 the funds were authorized, in accordance with authority 
        granted in this Act or under authority governing the activities 
        of the United States Government agency to which such funds are 
        allocated or transferred.
            (2) Notification.--The Corporation shall notify the 
        appropriate congressional committees not less than 15 days 
        prior to an allocation or transfer of funds pursuant to 
        paragraph (1).
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