Short title

This Act may be cited as the

Native American Challenge Demonstration Project Act of 2007

Purposes

The purposes of this Act are to— (1)adapt the lessons of foreign aid to underdeveloped economies, such as the experience of the Millennium Challenge Corporation, to the provision of Federal economic development assistance to similarly situated remote Native American communities; (2)provide Federal economic development assistance for Native communities through the Native American Challenge Demonstration Project; (3)administer Federal economic development assistance in a manner that promotes economic growth and the elimination of poverty and strengthens good governance, entrepreneurship, and investment in Native communities; (4)improve the effectiveness of Federal economic development assistance by encouraging the integration and coordination of such assistance in Native American communities; (5)promote sustainable economic growth and poverty reduction policies in Native American communities in a manner that promotes self-determination and self-sufficiency among remote Native American communities while preserving their cultural values; and (6)establish a demonstration project which, if successful, may be broadly applied to other Native American communities in the United States.

Definitions

In this Act: (1)

Eligible entity

The term eligible entity means— (A)the Association of Village Council Presidents, the Bristol Bay Native Association, and the Alaska Federation of Natives applying jointly; (B)in the State of Hawaii, a consortia of local Native Hawaiian community organizations to be determined by the Secretary in consultation with the Secretary of Interior and the Office of Hawaiian Affairs; and (C)in the contiguous states, up to three organizations to be determined by the Secretary in consultation with the Secretary of the Interior, which organizations may be Indian tribes, consortia of Indian tribes, or nongovernmental entities authorized by one or more Indian tribes. (2)

Compact

The term compact means a binding agreement with the United States pursuant to this Act. (3)

Economic development strategy of the eligible entity

The term economic development strategy of the eligible entity means a strategy written by the eligible entity and designed to achieve sustainable economic growth and reduce poverty over a defined period, developed in consultation with public and private sector entities as appropriate to the geographic area and intended beneficiaries of the compact. (4)

Indian tribe

The term Indian tribe shall have the meaning given the term in section 4(e) of the Indian Self Determination and Education Assistance Act (25 U.S.C. 450 et seq.). (5)

Renewal

The term renewal means the negotiated extension of a compact. (6)

Secretary

The term Secretary means the Secretary of Commerce, Office of the Secretary.

Native American Millennium Challenge Demonstration Project

(a)

Establishment

The Secretary shall establish and implement a demonstration project in the Department of Commerce. (b)

Authorization of assistance

The Secretary may provide assistance under this section to an eligible entity that enters a compact with the United States pursuant to this Act. (c)

Form of assistance

Assistance under this section— (1)shall be provided in the form of funding agreements established by the compacts; (2)may not be provided in the form of loans; and (3)may not be used for gaming activities pursuant to the Indian Gaming Regulatory Act (25 USC 2701 et seq.). (d)

Coordination

(1)

In general

The provision of assistance under this section shall be coordinated with other Federal economic development assistance programs for Native Americans. (2)

Integrated funding

The Secretary, in cooperation with other Secretaries as appropriate, shall, upon execution of a compact with an eligible entity, authorize the eligible entity to coordinate its federally funded economic development assistance programs in a manner that integrates the program services into a single, coordinated program. (3)

Agencies and Departments

The Federal agencies and departments administering economic development assistance programs for Native Americans are the following: (A)Department of Agriculture. (B)Department of Commerce. (C)Department of Energy. (D)Department of Health and Human Services. (E)Department of Housing and Urban Development. (F)Department of the Interior. (G)Small Business Administration. (H)Such other Federal agencies and instrumentalities as the Secretary determines appropriate. (e)

Programs Affected

The programs that may be integrated pursuant to this Act shall include any program under which an Indian tribe is eligible for receipt of funds under a statutory or administrative formula for economic development purposes. (f)

Waiver Authority

Upon receipt of the executed compact, the Secretary shall consult with the eligible entity and the Secretary of each Federal agency or department providing funds to be used to implement the compact in order to identify any waivers of statutory requirements or applicable regulations, policies, or procedures necessary to enable the eligible entity to implement its compact.

Native American Challenge Compacts

(a)

Compacts

The Secretary shall develop and recommend procedures for considering proposals for compacts submitted by eligible entities. The Secretary may provide assistance to an eligible entity only if the eligible entity enters into an agreement with the United States, to be known as a Native American Challenge Compact, that establishes a multi-year plan for achieving development objectives in furtherance of the purposes of this Act. (b)

Eligible entities-Criteria for Selection

The Secretary shall develop an application process and criteria for selecting the eligible entities, taking into account— (1)the purposes of this Act; (2)the economic development strategy of the eligible entity; (3)the remoteness of the reservation or community to be served; (4)its general economic status; (5)poverty rates; and (6)the capacity of the applicant. (c)

Assistance for development of a compact

To the extent that funds have been appropriated in advance and are available for this section, the Secretary may enter into contracts with or make grants to any eligible entity for the purposes of facilitating the development and implementation of a compact between the United States and the eligible entity. (d)

Duration and extension

The term of an initial compact may not exceed five years. An eligible entity and the United States may enter into one or more subsequent compacts in accordance with the requirements of this Act. If a compact is nearing its expiration or has expired, the eligible entity and the United States may renegotiate or extend the compact for as many periods as the parties agree, with each period not exceeding 10 years. (e)

Application

The Secretary shall develop and recommend procedures for considering proposals for compacts submitted by eligible entities. (f)

Elements

In furtherance of the economic development strategy of the eligible entity, the compact shall contain— (1)a description of the specific objectives for sustainable economic development and the reduction of poverty that the eligible entity and the United States expect to achieve during the term of the compact; (2)a description of the respective roles and responsibilities of the eligible entity and the United States in the achievement of such objectives; (3)a list and description of regular benchmarks to measure progress toward achieving such objectives; (4)an identification of the intended beneficiaries, disaggregated by income level, gender, and age, to the maximum extent practical; and (5)a multi-year financial plan to guide the implementation of the compact, including the estimated level of funding and other contributions by the United States and the eligible entity, proposed mechanisms to execute the plan, and periodic assessments to determine whether the requirements of subparagraphs (1) through (4) are being met. (g)

Suspension and Termination of Assistance

(1)

In general

The Secretary may suspend or terminate assistance in whole or in part for an entity that has entered a compact with the United States if the Secretary determines that— (A)the entity has failed to adhere to its responsibilities under the compact, or (B)the entity has engaged in a pattern of actions inconsistent with the purposes of this Act. (h)

Reinstatement

The Secretary may reinstate assistance for an entity only if the Secretary determines that the entity has demonstrated a commitment to correcting each condition for which assistance was suspended or terminated under subsection (f).

Authorization of Appropriations

(a)

In general

There are authorized to be appropriated to carry out this Act $20,000,000 for each of fiscal years 2008 through 2012. Any funds authorized but not appropriated may be appropriated in subsequent fiscal years, provided that the cumulative level of funds authorized to be appropriated for Fiscal Year 2008 through 2012 shall not exceed $100,000,000. Sums appropriated under this section shall remain available until expended. (b)

Administrative Funds

Of the funds made available by this Act, no more than 5 percent may be used by the Secretary for administrative expenses and program oversight.

Program Assessments and Reports

(a)

Reports of Eligible Entities

Not later than March 15, 2008, and annually thereafter, each the eligible entity shall prepare and submit to the Secretary a written report regarding the assistance provided under this Act during the previous fiscal year. (b)

Report contents

A report required under subsection (a) shall include the following: (1)The amount of obligations and expenditures for assistance provided during the prior fiscal year. (2)A description of the programs and activities conducted by the entity in furtherance of its economic development strategy and the purposes of this Act. (3)An assessment of the effectiveness of the assistance provided and progress made by the entity toward achieving its economic development strategy and the purposes of this Act. (4)Other information the eligible entity considers relevant considering the purposes of this Act. (c)

Transmittal to congress

Not later than May 15, 2008, and annually thereafter, the Secretary shall transmit reports required under subsection (a), with such other information the Secretary considers relevant, to the Committee on Energy and Commerce and the Committee on Natural Resources in the House of Representatives, and the Committee on Indian Affairs, the Committee on Commerce, Science, and Transportation, and the Committee on Energy and Natural Resources in the Senate.