[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2120 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2120

  To authorize the establishment of a Social Investment and Economic 
   Development Fund for the Americas to provide assistance to reduce 
    poverty, expand the middle class, and foster increased economic 
 opportunity in the countries of the Western Hemisphere, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 1, 2007

  Mr. Menendez (for himself, Mr. Martinez, Mr. Biden, Mr. Lugar, Mr. 
 Dodd, Mr. Coleman, Mr. Salazar, Mr. Kerry, Mrs. Clinton, Mrs. Boxer, 
 Mr. Nelson of Florida, and Mr. Cardin) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
  To authorize the establishment of a Social Investment and Economic 
   Development Fund for the Americas to provide assistance to reduce 
    poverty, expand the middle class, and foster increased economic 
 opportunity in the countries of the Western Hemisphere, 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 ``Social Investment 
and Economic Development for the Americas Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Amendment to Foreign Assistance Act of 1961.
Sec. 4. Amendment to the Inter-American Development Bank Act.
Sec. 5. Sense of Congress.
Sec. 6. Payment of arrears owed by United States to the Multilateral 
                            Investment Fund.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) It is in the national interest and national security 
        interest of the United States to help foster security and 
        stability in Latin America and the Caribbean.
            (2) Over the past 25 years, there has been tremendous 
        progress on democracy and economic growth in the Western 
        Hemisphere, and the hemisphere is now a region dominated by 
        democracies and democratic values.
            (3) the United States contributes, on average, $820,000,000 
        in bilateral development assistance to Latin America and the 
        Caribbean each year and has continued to strengthen its 
        commitment to promoting our shared values, heritage, and 
        culture while confronting the common challenges we face.
            (4) The United States has also contributed through the 
        Millennium Challenge Account more than $269,000,000 in 
        development assistance to countries in the region that have 
        demonstrated a commitment to just and democratic governance, 
        economic freedom, and investing in their people.
            (5) Poverty and inequality remain historic and persistent 
        problems in the region, which undermine progress on social and 
        economic development. These problems contribute to the rise of 
        populist ideas and add to inequality. The poverty rate in Latin 
        America is almost 40 percent, with little significant change 
        since the 1980s, and Latin America remains the region with the 
        most unequal distribution of wealth in the world.
            (6) The region must also face the challenges of staggering 
        crime rates, weak judicial systems, and inadequate housing, 
        health care, and educational systems.
            (7) By expanding the middle class through promoting 
        microenterprise, improving the investment climate, and creating 
        a competitive workforce in Latin America and the Caribbean, the 
        United States will be able to help respective governments 
        improve economic development in the region, and the countries 
        of the region will become stronger trading partners with the 
        United States.
            (8) Working in partnership with the countries of the 
        region, the United States can play a positive role in 
        addressing these challenges.
            (9) As President George W. Bush said on March 5, 2007, 
        ``The working poor of Latin America need change, and the United 
        States of America is committed to that change. It is in our 
        national interests, it is in the interest of the United States 
        of America to help the people in democracies in our 
        neighborhood succeed. When our neighbors are prosperous and 
        peaceful, it means better opportunities and more security for 
        our own people. When there are jobs in our neighborhood, people 
        are able to find work at home and not have to migrate to our 
        country. When millions are free from poverty, societies are 
        stronger and more hopeful.''.
            (10) In order to effect significant reduction of poverty 
        and enhance sustainable development, the United States must 
        continue to make a long-term commitment of significant 
        resources to programs that impact on housing, health care, and 
        educational systems.

SEC. 3. AMENDMENT TO FOREIGN ASSISTANCE ACT OF 1961.

    Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
seq.) is amended by adding at the end the following new chapter:

   ``CHAPTER 13--SOCIAL INVESTMENT AND ECONOMIC DEVELOPMENT FOR THE 
                                AMERICAS

``SEC. 499H. AUTHORIZATION OF ASSISTANCE.

    ``(a) Assistance.--The President, acting through the Administrator 
of the United States Agency for International Development and working 
with foreign governments and civil society, shall provide increased and 
sustained assistance to reduce poverty, expand the middle class, and 
foster increased economic opportunity in the countries of the Western 
Hemisphere by helping to--
            ``(1) improve the quality of life and invest in human 
        capital, specifically by promoting education, improving health 
        and disease prevention, and increasing the access to and 
        quality of housing;
            ``(2) reduce crime, particularly violent crime, including 
        murder, kidnapping, gang violence, and violence against women;
            ``(3) generate rural development and reduce poverty in the 
        agricultural and non-agricultural rural sector;
            ``(4) strengthen the rule of law, governance, and democracy 
        through the establishment of independent judiciaries, efficient 
        processes to adjudicate claims, and trusted law enforcement 
        bodies; and
            ``(5) reduce poverty and eliminate the exclusion of 
        marginalized populations, including indigenous groups, people 
        of African descent, women, rural and urban poor, and people 
        with disabilities.
    ``(b) Contribution Requirement.--To receive United States 
assistance under this chapter, a recipient country must contribute at 
least 10 percent of the total value of the funds the United States 
provides for projects in the recipient country. Such contribution is in 
addition to the funds such country regularly provides for these types 
of programs. Additional contributions may be required at the discretion 
of the Administrator of the United States Agency for International 
Development.
    ``(c) Ineligibility To Receive Assistance.--The President shall be 
prohibited from providing assistance under this section to the 
government of a country that is ineligible to receive assistance under 
section 620, this part, or chapter 4 of part II.
    ``(d) Terms and Conditions.--Assistance under this chapter may be 
provided on such other terms and conditions as the President may 
determine.
    ``(e) Coordination With Other Federal Agencies.--The Administrator 
of the United States Agency for International Development shall 
coordinate with the heads of other Federal departments and agencies as 
necessary to carry out subsection (a).

``SEC. 499I. WESTERN HEMISPHERE ECONOMIC INVESTMENT AND DEVELOPMENT 
              ADVISORY COMMITTEE.

    ``(a) In General.--There is established within the United States 
Agency for International Development an advisory committee to be known 
as the Western Hemisphere Economic Investment and Development Advisory 
Committee (hereafter in this chapter referred to as the `Advisory 
Committee'). The Advisory Committee shall serve as a link among the 
United States Government, nongovernmental organizations, the private 
sector, and other interested parties and review projects funded under 
this Act.
    ``(b) Membership.--
            ``(1) In general.--The Advisory Committee shall be composed 
        of 6 members, of whom--
                    ``(A) 1 member, who shall act as co-chairperson, 
                shall be appointed by the President;
                    ``(B) 1 member, who shall act as co-chairperson, 
                shall be appointed by--
                            ``(i) the majority leader of the Senate, in 
                        consultation with the senior member of the 
                        leadership of the House of Representatives 
                        belonging to the same political party as the 
                        majority leader of the Senate, if the majority 
                        leader of the Senate does not belong to the 
                        same political party as the President; or
                            ``(ii) the minority leader of the Senate, 
                        in consultation with the senior member of the 
                        leadership of the House of Representatives 
                        belonging to the same political party as the 
                        minority leader of the Senate, if the majority 
                        leader of the Senate belongs to the same 
                        political party as the President;
                    ``(C) 1 member shall be appointed by the majority 
                leader of the Senate;
                    ``(D) 1 member shall be appointed by the minority 
                leader of the Senate;
                    ``(E) 1 member shall be appointed by the Speaker of 
                the House of Representatives; and
                    ``(F) 1 member shall be appointed by the minority 
                leader of the House of Representatives.
            ``(2) Qualifications.--Each member of the Advisory 
        Committee shall be--
                    ``(A) an individual with technical expertise with 
                respect to the development of Latin America or the 
                Caribbean; or
                    ``(B) a citizen of the United States with--
                            ``(i) regional experience related to 
                        development in Latin America or the Caribbean;
                            ``(ii) technical or functional experience 
                        with respect to development issues; or
                            ``(iii) extensive expertise in small 
                        business issues or international business 
                        experience in Latin America or the Caribbean.
    ``(c) Duties.--The Advisory Committee shall--
            ``(1) consult with, provide information to, and advise the 
        United States Agency for International Development and other 
        United States Government agencies, as appropriate, on, and work 
        closely with the United States Agency for International 
        Development Regional Director, the Assistant Secretary for 
        Western Hemisphere Affairs of the Department of State, and the 
        United States Executive Director of the Inter-American 
        Development Bank on, matters related to this chapter;
            ``(2) meet at least twice annually and at other times as 
        necessary;
            ``(3) serve as a liaison with, and provide information and 
        counsel to, the private sector and nongovernmental 
        organizations in relation to the projects covered under this 
        chapter; and
            ``(4) review all impact evaluations on projects proposed 
        for funding using assistance provided under section 499H(a) and 
        make recommendations and submit a written report to the 
        Administrator of the United States Agency for International 
        Development with respect to the effectiveness of the projects 
        and future changes to the program.
    ``(d) Conflicts of Interest.--A member of the Advisory Committee 
shall not be permitted to review an application submitted by an 
organization with which the member has been or is affiliated or in 
which the member has had a financial interest.
    ``(e) Staff and Travel.--Using funds appropriated pursuant to the 
authorization of appropriations under section 499L, the Advisory 
Committee may establish and maintain a staff of no more than 2 persons 
to provide administrative support and may maintain a budget for travel 
expenses.

``SEC. 499J. EVALUATION.

    ``(a) In General.--The Administrator of the United States Agency 
for International Development shall ensure that projects carried out 
under this chapter are subject to rigorous, independent impact 
evaluations at the original design stage and conclusion of the projects 
to determine if they are helping to reduce poverty and foster social 
and economic development in the countries of the Western Hemisphere. 
When possible, such evaluations shall be conducted in coordination with 
evaluations of similar projects funded by other donors in order to 
expand the evidence base for decision-making.
    ``(b) Use of Evaluations.--The Advisory Committee shall use 
information from the evaluations conducted under subsection (a) to 
inform future project decisions.

``SEC. 499K. REPORT.

    ``Not later than 1 year after the date of the enactment of the 
Social Investment and Economic Development for the Americas Act of 
2007, and annually thereafter, the President shall prepare and submit 
to Congress a report on the specific programs, projects, and activities 
carried out under this chapter during the preceding year, including an 
evaluation of the results of such programs, projects, and activities. 
This report may be submitted with the budget justification materials 
submitted to Congress together with the budget of the President under 
section 1105(a) of title 31, United States Code.

``SEC. 499L. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this chapter, including for purposes of reducing poverty, expanding 
the middle class, and fostering increased economic opportunity in the 
countries of the Western Hemisphere, in addition to amounts of United 
States Foreign Assistance Funds (Function 150) otherwise authorized and 
appropriated and the $820,000,000 in bilateral development assistance 
provided by the United States, on average, to Latin America and the 
Caribbean each year, the following amounts:
            ``(1) $50,000,000 for fiscal year 2008.
            ``(2) $75,000,000 for fiscal year 2009.
            ``(3) $100,000,000 for fiscal year 2010.
            ``(4) $125,000,000 for fiscal year 2011.
            ``(5) $150,000,000 for fiscal year 2012.
            ``(6) $150,000,000 for fiscal year 2013.
            ``(7) $150,000,000 for fiscal year 2014.
            ``(8) $150,000,000 for fiscal year 2015.
            ``(9) $150,000,000 for fiscal year 2016.
            ``(10) $150,000,000 for fiscal year 2017.
    ``(b) Additional Authorities.--Amounts appropriated pursuant to 
subsection (a)--
            ``(1) are authorized to remain available until expended;
            ``(2) are in addition to amounts otherwise available for 
        such purposes; and
            ``(3) may be used to fund staff and travel expenses of the 
        Advisory Committee.
    ``(c) Funding Limitation.--Not more than 7 percent of the amounts 
appropriated pursuant to subsection (a) for a fiscal year may be used 
for administrative expenses.''.

SEC. 4. AMENDMENT TO THE INTER-AMERICAN DEVELOPMENT BANK ACT.

    The Inter-American Development Bank Act (22 U.S.C. 283 et seq.) is 
amended by adding at the end the following new section:

``SEC. 39. SOCIAL INVESTMENT AND ECONOMIC DEVELOPMENT FUND FOR THE 
              AMERICAS.

    ``(a) In General.--The Secretary of the Treasury shall instruct the 
United States Executive Director at the Bank to use the voice, vote, 
and influence of the United States to urge the Bank to establish an 
account to be known as the `Social Investment and Economic Development 
Fund for the Americas' (in this section referred to as the `Fund'), 
which is to be operated and administered by the Board of Executive 
Directors of the Bank consistent with subsection (d). The United States 
Governor of the Bank may vote for a resolution transmitted by the Board 
of Executive Directors which provides for the establishment of such an 
account, and the operation and administration of the account consistent 
with subsection (d).
    ``(b) Other Contributions.--The Fund may accept funds from other 
member countries of the Bank, private entities in the United States and 
in other member countries of the Bank, and countries in Latin America 
and the Caribbean.
    ``(c) Matching Requirement.--No funds may be expended from the Fund 
until the total amount contributed by the United States in the first 
year of operation of the Fund has been matched.
    ``(d) Contribution Requirement.--To receive assistance under this 
section, a recipient country must contribute at least 10 percent of the 
total value of the funds the Fund provides for projects in the 
recipient country. Such contribution is in addition to the funds such 
country regularly provides for these types of programs. Additional 
contributions may be required at the discretion of the Board of 
Governors of the Bank.
    ``(e) Use of Funds.--The Fund shall be used to provide assistance 
to reduce poverty, expand the size of the middle class, and foster 
increased economic opportunity in the countries of the Western 
Hemisphere by helping to--
            ``(1) nurture public private partnerships and 
        microenterprise development;
            ``(2) reduce the time and cost of starting a business and 
        increase access to credit for small-and medium-sized 
        businesses;
            ``(3) leverage personal remittances and reduce the cost of 
        remittances sent to Latin America and the Caribbean, for the 
        purpose of advancing economic and social development by--
                    ``(A) increasing access to financial institutions 
                for the poor, and working with local financial 
                institutions to reduce fees and other costs associated 
                with sending or receiving remittances;
                    ``(B) working with local financial institutions to 
                develop programs whereby personal remittances can be 
                used as the basis for credit for mortgages and loans 
                for small business, microenterprises, housing, and 
                other enterprises;
                    ``(C) providing matching funds for private entities 
                in the United States that send donations for 
                development projects in Latin America and the 
                Caribbean; and
                    ``(D) fostering enabling environments for 
                partnerships between civil society and local 
                authorities that lead to greater accountability and 
                improved processes for establishing priorities for 
                remittances, including income-generating and wealth-
                building activities;
            ``(4) in conjunction with changes implemented by recipient 
        countries, improve the investment climate in individual 
        countries by strengthening the rule of law and implementing 
        judicial reforms to increase transparency and predictability in 
        judicial, tax, and regulatory systems;
            ``(5) increase workforce competitiveness in the global 
        economy, specifically by focusing on application of technology 
        and workforce training and development; and
            ``(6) reduce poverty and eliminate the exclusion of 
        marginalized populations, including indigenous groups, people 
        of African descent, women, rural and urban poor, and people 
        with disabilities.
    ``(f) Ineligibility To Receive Assistance.--The President shall be 
prohibited from providing assistance under this section to the 
government of a country that is ineligible to receive assistance under 
section 620, part I, or chapter 4 of part II of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2151 et seq.).
    ``(g) Terms and Conditions.--Assistance under this section may be 
provided on such other terms and conditions as the President may 
determine.
    ``(g) Authorization of Appropriations.--
            ``(1) Contributions.--There are authorized to be 
        appropriated to the Secretary of the Treasury for United States 
        contributions to the Fund for the purpose of carrying out this 
        section the following amounts:
                    ``(A) $50,000,000 for fiscal year 2008.
                    ``(B) $75,000,000 for fiscal year 2009.
                    ``(C) $100,000,000 for fiscal year 2010.
                    ``(D) $125,000,000 for fiscal year 2011.
                    ``(E) $150,000,000 for fiscal year 2012.
                    ``(F) $150,000,000 for fiscal year 2013.
                    ``(G) $150,000,000 for fiscal year 2014.
                    ``(H) $150,000,000 for fiscal year 2015.
                    ``(I) $150,000,000 for fiscal year 2016.
                    ``(J) $150,000,000 for fiscal year 2017.
            ``(2) Additional authorities.--Amounts appropriated 
        pursuant to paragraph (1)--
                    ``(A) are authorized to remain available until 
                expended; and
                    ``(B) are in addition to amounts otherwise 
                available for such purposes.
            ``(3) Funding limitation.--Not more than 7 percent of the 
        amounts appropriated pursuant to paragraph (1) for a fiscal 
        year may be used for administrative expenses.''.

SEC. 5. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the amounts authorized to be appropriated to carry out 
        this Act and the amendments made by this Act should be used to 
        help countries in Latin America and the Caribbean focus on 
        improving indicators in the area of investing in people, as 
        that term is used in section 607(b)(3) of the Millennium 
        Challenge Act of 2003 (22 U.S.C. 7706(b)(3)), and consistent 
        with the transformational development program of the Department 
        of State;
            (2) the Multilateral Investment Fund, which was fully 
        established in 1993 as part of President George H.W. Bush's 
        Enterprise for the Americas Initiative, has been successful in 
        promoting inclusive economic growth in Latin America and the 
        Caribbean;
            (3) creating a public-private partnership working in 
        coordination with the Multilateral Investment Fund will 
        accelerate the work of the Multilateral Investment Fund and 
        allow it to expand economic opportunity to the people in the 
        Western Hemisphere; and
            (4) as stated in section 499L of the Foreign Assistance Act 
        of 1961, as added by section 3, amounts authorized to be 
        appropriated pursuant to the amendments made by this Act for a 
        fiscal year for initiatives to reduce poverty, expand the 
        middle class, and foster increased economic opportunity in the 
        countries of the Western Hemisphere are in addition to amounts 
        that would be allocated or projected in the President's budget 
        request for Latin America and Caribbean for such fiscal year.

SEC. 6. PAYMENT OF ARREARS OWED BY UNITED STATES TO THE MULTILATERAL 
              INVESTMENT FUND.

    There is authorized to be appropriated to the Secretary of the 
Treasury $51,000,000 for payment to the Inter-American Development Bank 
of arrears owed by the United States to the Multilateral Investment 
Fund.
                                 <all>