[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6644 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6644

 To establish a framework for effective, transparent, and accountable 
       United States foreign assistance, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 11, 2012

 Mr. Berman (for himself and Mr. Connolly of Virginia) introduced the 
following bill; which was referred to the Committee on Foreign Affairs, 
  and in addition to the Committees on Ways and Means, Oversight and 
   Government Reform, Armed Services, and Rules, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
 To establish a framework for effective, transparent, and accountable 
       United States foreign assistance, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Global 
Partnerships Act of 2012''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings.
Sec. 3. Statement of policy.
Sec. 4. Principles of assistance.
Sec. 5. Purposes of assistance.
Sec. 6. Definitions.
    TITLE I--REDUCING GLOBAL POVERTY AND ALLEVIATING HUMAN SUFFERING

Sec. 1001. Findings.
Sec. 1002. Statement of policy.
Sec. 1003. Encouragement of United States private and voluntary 
                            cooperation.
Sec. 1004. Encouragement of United States business participation.
Sec. 1005. Development partnerships fellows program.
                  Subtitle A--Reducing Global Poverty

Sec. 1011. Findings.
Sec. 1012. Statement of policy.
Sec. 1013. Principles of assistance.
Sec. 1014. Goals of assistance.
Sec. 1015. Development Support Funds.
Sec. 1016. Innovation Fund.
Sec. 1017. United States Strategy for Global Development.
Sec. 1018. Country Development Cooperation Strategies.
Sec. 1019. Sector strategies for development.
Sec. 1020. Interagency Policy Committee on Global Development.
Sec. 1021. Global Development Council.
Sec. 1022. Development education.
Sec. 1023. Definitions.
                Chapter 1--Accelerating Economic Growth

Sec. 1101. Findings and statement of policy.
Sec. 1102. Goal and objectives.
Sec. 1103. Global Strategy for Economic Growth.
Sec. 1104. Assistance for economic growth.
Sec. 1105. Fiscal and contract transparency.
          subchapter a--microenterprise development assistance

Sec. 1111. Findings and statement of policy.
Sec. 1112. Microenterprise Fund.
Sec. 1113. Office of Microenterprise Development.
Sec. 1114. Definitions.
         subchapter b--small and medium enterprise development

Sec. 1121. Findings and statement of policy.
Sec. 1122. Assistance for small and medium enterprises.
Sec. 1123. Definition.
                      subchapter c--other programs

Sec. 1131. Development credit authority.
Sec. 1132. Technical assistance for financial management.
                   Chapter 2--Promoting Food Security

Sec. 1201. Findings and statement of policy.
Sec. 1202. Goal and objectives.
Sec. 1203. Global Strategy for Food Security.
Sec. 1204. Assistance for promoting food security.
Sec. 1205. Collaborative agricultural and nutrition research and 
                            innovation.
Sec. 1206. Board for International Food and Agricultural Development.
Sec. 1207. Assistance to international and regional organizations.
Sec. 1208. Definitions.
                      Chapter 3--Advancing Health

Sec. 1301. Findings and statement of policy.
Sec. 1302. Goal and objectives.
Sec. 1303. Global health strategy.
Sec. 1304. Assistance for health.
Sec. 1305. Health principles and restrictions.
            subchapter a--child survival and maternal health

Sec. 1311. Child survival.
Sec. 1312. Maternal and newborn health.
Sec. 1313. Assistance for orphans and other vulnerable children.
                    subchapter b--combating disease

Sec. 1321. Assistance to combat HIV/AIDS, tuberculosis, and malaria.
Sec. 1322. Assistance to combat neglected tropical diseases.
Sec. 1323. Assistance for disease prevention, control, and treatment.
         subchapter c--family planning and reproductive health

Sec. 1331. Assistance for family planning and reproductive health.
Sec. 1332. Reproductive health care in emergencies.
                 Chapter 4--Expanding Quality Education

Sec. 1401. Findings and statement of policy.
Sec. 1402. Goal and objectives.
Sec. 1403. Global education strategy.
Sec. 1404. Basic education assistance.
Sec. 1405. Higher education partnerships.
      Chapter 5--Protecting and Restoring the Natural Environment

Sec. 1501. Findings and statement of policy.
Sec. 1502. Goal and objectives.
Sec. 1503. Global conservation strategy.
Sec. 1504. Assistance for environmental sustainability.
Sec. 1505. Assistance for sustainable energy and natural resource 
                            management.
Sec. 1506. Environmental restrictions.
Sec. 1507. Environmental impact statements and assessments.
Sec. 1508. Definitions.
   Chapter 6--Improving Access to Safe Water, Sanitation, and Housing

Sec. 1601. Findings and statement of policy.
Sec. 1602. Goal and objectives.
Sec. 1603. Global strategy for water, sanitation and housing.
Sec. 1604. Assistance for water, sanitation and housing.
Sec. 1605. Definitions.
                  Chapter 7--Fostering Gender Equality

Sec. 1701. Findings and statement of policy.
Sec. 1702. Goal and objectives.
Sec. 1703. Global strategy for gender equality.
Sec. 1704. Assistance for gender equality.
Sec. 1705. Office of Gender Equality and Women's Empowerment.
Sec. 1706. Prevention of child marriage.
Sec. 1707. Coordination of efforts to prevent child marriage.
Sec. 1708. Definitions.
             Chapter 8--Strengthening Democratic Governance

Sec. 1801. Findings and statement of policy.
Sec. 1802. Goal and objectives.
Sec. 1803. Assistance for democratic strengthening.
Sec. 1804. Advisory Committee on Democracy Promotion.
Sec. 1805. Foreign government approval and conditionality.
Sec. 1806. Relationship to other laws.
Sec. 1807. Prohibiting assistance to influence the outcome of 
                            elections.
Sec. 1808. Protected speech.
                Subtitle B--Alleviating Human Suffering

Sec. 1901. Findings and statement of policy.
Sec. 1902. Goal and objectives.
Sec. 1903. Humanitarian principles.
Sec. 1904. International disaster assistance.
Sec. 1905. Emergency Humanitarian Response Fund.
Sec. 1906. Definitions.
           TITLE II--ADVANCING PEACE AND MITIGATING CONFLICT

Sec. 2001. Findings and statement of policy.
Sec. 2002. Definition.
                    Subtitle A--General Authorities

Sec. 2011. Peacekeeping.
Sec. 2012. Transition initiatives.
Sec. 2013. Limit on payment to United Nations and affiliated agencies.
Sec. 2014. Availability of aircraft.
Sec. 2015. Complex Crisis, Stabilization, and Prevention Fund.
Sec. 2016. Addressing violence against women and girls in humanitarian 
                            relief, peacekeeping, conflict, and post-
                            conflict settings.
Sec. 2017. Demining activities.
Sec. 2018. Disarmament, demobilization, reintegration, and 
                            rehabilitation activities.
            Subtitle B--Strategies, Assessments, and Reports

Sec. 2021. Regional conflict risk assessment and conflict mitigation 
                            strategy.
Sec. 2022. Data on costs incurred in support of United Nations 
                            peacekeeping operations.
Sec. 2023. Peace on Cyprus and in the Eastern Mediterranean.
                Subtitle C--Organizations and Personnel

Sec. 2031. Atrocities Prevention Board.
Sec. 2032. Under Secretary for Civilian Security, Democracy, and Human 
                            Rights.
Sec. 2033. Conflict and stabilization operations.
Sec. 2034. Danger pay.
Sec. 2035. Stability policing coordinator.
Sec. 2036. Training in conflict management and mitigation.
            TITLE III--SUPPORTING HUMAN RIGHTS AND DEMOCRACY

                     Subtitle A--General Provisions

Sec. 3101. Findings and statement of policy.
Sec. 3102. Country reports on human rights practices.
Sec. 3103. Action plans for human rights and democracy.
Sec. 3104. Human Rights and Democracy Fund.
Sec. 3105. Role of Bureau of Democracy, Human Rights, and Labor.
Sec. 3106. Discrimination related to sexual orientation.
Sec. 3107. Personnel awards and incentives.
       Subtitle B--International Violence Against Women and Girls

Sec. 3201. Statement of policy.
Sec. 3202. Duties of the Secretary of State.
Sec. 3203. Comprehensive international strategy to prevent and respond 
                            to violence against women and girls.
Sec. 3204. Assistance to prevent and respond to violence against women 
                            and girls internationally.
Sec. 3205. Definitions.
                        Subtitle C--Rule of Law

Sec. 3301. Findings.
Sec. 3302. Global Rule of Law Policy Committee.
Sec. 3303. Assistance for rule of law.
Sec. 3304. Definition.
                      Subtitle D--Child Protection

Sec. 3401. Findings.
Sec. 3402. Child Protection Compacts.
Sec. 3403. Authorization of assistance.
Sec. 3404. Suspension and termination of assistance.
Sec. 3405. Congressional notification.
Sec. 3406. Definitions.
       TITLE IV--BUILDING AND REINFORCING STRATEGIC PARTNERSHIPS

Sec. 4001. Findings.
Sec. 4002. Statement of policy.
Sec. 4003. Goals of assistance.
                   Subtitle A--Economic Support Fund

Sec. 4101. Findings and statement of policy.
Sec. 4102. Goal and objectives.
Sec. 4103. Economic Support Fund.
Sec. 4104. Cash transfer assistance.
                   Subtitle B--Security Partnerships

                     Chapter 1--General Authorities

Sec. 4211. Authorization of assistance.
Sec. 4212. Conditions of assistance.
Sec. 4213. Prohibition for misuse of United States assistance.
                     Chapter 2--Drawdown Authority

Sec. 4221. Authorization of emergency assistance.
Sec. 4222. Authorization of non-emergency assistance.
Sec. 4223. Commercial transportation and related services.
Sec. 4224. Report.
                  Chapter 3--Loans of Defense Articles

Sec. 4231. Loan requirements.
Sec. 4232. Cost of loans.
               Chapter 4--Stockpiling of Defense Articles

Sec. 4241. General authority.
Sec. 4242. Value of defense articles.
                 Chapter 5--Foreign Military Financing

Sec. 4251. General authority.
Sec. 4252. Rule of construction.
Sec. 4253. Audits.
Sec. 4254. Cash flow financing.
        Chapter 6--International Military Education and Training

Sec. 4261. Purpose.
Sec. 4262. Military education and training for foreign military and 
                            defense personnel.
Sec. 4263. Military education and training for foreign civilian 
                            personnel.
Sec. 4264. Locations of instruction.
Sec. 4265. Reimbursement.
Sec. 4266. Exchange of training and related support.
             Chapter 7--Transfer of Excess Defense Articles

Sec. 4271. Transfer of excess defense articles.
Sec. 4272. Terms of transfers.
Sec. 4273. Advance notification to Congress for transfer of certain 
                            excess defense articles.
Sec. 4274. Aggregate annual limitation.
Sec. 4275. Restrictions and conditions on transfers of naval vessels.
               Chapter 8--Cooperative Project Agreements

Sec. 4281. Authority to enter into cooperative project agreements.
Sec. 4282. Costs.
Sec. 4283. Charges.
Sec. 4284. Certification.
Sec. 4285. Authority in addition to other authorities.
             Subtitle C--Arms Sales and Related Assistance

Sec. 4301. Control of arms exports and imports.
           Chapter 1--Foreign Military Sales and Cooperation

Sec. 4311. General authority.
Sec. 4312. Procurement for foreign military cash sales.
Sec. 4313. Payments.
Sec. 4314. Charges.
Sec. 4315. Non-combat duties of United States personnel supporting 
                            foreign military sales.
Sec. 4316. Public information.
Sec. 4317. Standardization agreements.
Sec. 4318. Quality assurance and related services.
Sec. 4319. Restriction on sale of defense articles and defense services 
                            that would adversely affect United States 
                            combat readiness.
Sec. 4320. Acquisition of foreign-United States origin defense 
                            articles.
Sec. 4321. Return of defense articles.
Sec. 4322. Sale of obsolete naval vessels.
Sec. 4323. Annual estimate and justification for sales program.
Sec. 4324. Sales to United States companies for incorporation into end 
                            items.
Sec. 4325. Fiscal provisions relating to foreign military sales 
                            credits.
                    Chapter 2--Arms Export Controls

Sec. 4331. Licensing requirement for exporting or importing defense 
                            articles and defense services.
Sec. 4332. Impact of military expenditures on development.
Sec. 4333. Requirement for registration by exporters.
Sec. 4334. Identification of all consignees and freight forwarders.
Sec. 4335. Brokering activities.
Sec. 4336. Foreign persons.
Sec. 4337. Review of United States Munitions List.
Sec. 4338. Licensing of missiles and missile equipment or technology.
Sec. 4339. Special licensing authorization for certain exports to 
                            strategic United States allies.
                 Chapter 3--Leases of Defense Articles

Sec. 4351. Leasing authority.
Sec. 4352. Certification for leasing.
Sec. 4353. Congressional review and disapproval.
Sec. 4354. Application of other provisions of law.
Sec. 4355. Loan of materials, supplies, and equipment for research and 
                            development purposes.
Sec. 4356. Special leasing authority.
        Chapter 4--Retransfers of United States Defense Articles

Sec. 4361. Authority to approve retransfers.
Sec. 4362. Demilitarization for retransfer of significant defense 
                            articles.
Sec. 4363. Proceeds of sale of retransferred defense articles.
Sec. 4364. Certification.
          Chapter 5--Enforcement and Monitoring of Arms Sales

Sec. 4371. General authority.
Sec. 4372. Criminal and civil penalties.
Sec. 4373. Identification of persons of concern.
Sec. 4374. Standards to identify high-risk exports.
Sec. 4375. Requirement of exporters to report shipment.
Sec. 4376. End-use monitoring of defense articles and defense services.
Sec. 4377. Fees of military sales agents and other payments.
Sec. 4378. Prohibition on incentive payments.
             Chapter 6--Congressional Review of Arms Sales

Sec. 4381. Reports on commercial and governmental military exports; 
                            congressional action.
Sec. 4382. Congressional certification of sensitive foreign military 
                            sales and agreements.
Sec. 4383. Upgrade or enhancement.
Sec. 4384. Congressional review period and disapproval.
Sec. 4385. National security waiver of congressional review of arms 
                            sales.
Sec. 4386. Publication of arms sales notifications.
Sec. 4387. Certification requirement relating to Israel's qualitative 
                            military edge.
               Chapter 7--Landmines and Cluster Munitions

Sec. 4391. Landmines.
Sec. 4392. Cluster munitions.
    Subtitle D--General Administrative and Miscellaneous Provisions

Sec. 4401. General provisions.
Sec. 4402. Administrative expenses.
Sec. 4403. Detail of appropriate personnel.
Sec. 4404. Rule of construction.
Sec. 4405. Performance goals for processing of applications for 
                            licenses to export items on United States 
                            Munitions List.
Sec. 4406. Availability of information on the status of license 
                            applications.
Sec. 4407. Requirement to ensure adequate staff and resources for the 
                            Directorate of Defense Trade Controls of 
                            the Department of State.
Sec. 4408. Overseas management of assistance and sales programs.
Sec. 4409. Designation of major United States allies.
Sec. 4410. Depleted uranium ammunition.
Sec. 4411. Definitions.
               TITLE V--COUNTERING TRANSNATIONAL THREATS

                Subtitle A--Nonproliferation Authorities

                  Chapter 1--Nuclear Nonproliferation

Sec. 5111. Authorization of assistance to prohibit the proliferation of 
                            nuclear, chemical, and biological weapons.
Sec. 5112. Education and training to enhance nonproliferation and 
                            export control capabilities.
Sec. 5113. Opposition of withdrawal from Treaty on the Non-
                            Proliferation of Nuclear Weapons.
Sec. 5114. Matters relating to International Atomic Energy Agency.
Sec. 5115. Arms Control and Nonproliferation Scholarship Program.
Sec. 5116. Arms Control and Nonproliferation Rotation Program.
                  Chapter 2--Missile Nonproliferation

Sec. 5121. Licensing.
Sec. 5122. Denial of the transfer of missile equipment or technology by 
                            United States persons.
Sec. 5123. Transfers of missile equipment or technology by foreign 
                            persons.
Sec. 5124. Notification of admittance of MTCR adherents.
Sec. 5125. Authority relating to MTCR adherents.
Sec. 5126. Definitions.
          Chapter 3--Chemical and Biological Nonproliferation

Sec. 5131. Sanctions against certain foreign persons.
               Subtitle B--Counter-Narcotics Authorities

Sec. 5201. Findings.
Sec. 5202. Statement of policy.
Sec. 5203. Goal and objectives.
Sec. 5204. General authorities.
Sec. 5205. Authorization of Bureau of International Narcotics and Law 
                            Enforcement.
Sec. 5206. Use of funds.
Sec. 5207. Requirements relating to aircraft and other equipment.
Sec. 5208. Restrictions.
Sec. 5209. International counter-narcotics strategy.
Sec. 5210. International narcotics control assistance report.
Sec. 5211. Narcotics strategy evaluation.
               Subtitle C--Counter-Terrorism Authorities

Sec. 5301. Purposes.
Sec. 5302. Assistance to countries and multilateral organizations for 
                            counter-terrorism activities.
Sec. 5303. Counter-terrorism responsibilities of the Department of 
                            State.
              TITLE VI--SUSTAINING THE GLOBAL ENVIRONMENT

Sec. 6001. Findings and statement of policy.
                 Subtitle A--Debt-for-Nature Exchanges

Sec. 6101. Findings and statement of policy.
Sec. 6102. Definitions.
Sec. 6103. Establishment of the Facility.
Sec. 6104. Eligibility for benefits.
Sec. 6105. Authority to engage in debt-for-nature swaps and debt 
                            buybacks.
Sec. 6106. Reduction of debt owed to the United States as a result of 
                            concessional loans or credits under this 
                            Act and certain other provisions of law.
Sec. 6107. Debt-for-Nature Agreement.
Sec. 6108. Eligible activities.
Sec. 6109. Debt-for-Nature Fund.
Sec. 6110. Responsibilities to the Congress.
Sec. 6111. General savings clause.
            Subtitle B--Commercial Debt-for-Nature Exchanges

Sec. 6201. Commercial debt-for-nature exchange defined.
Sec. 6202. Authorization for commercial debt exchanges.
Sec. 6203. Eligible projects.
Sec. 6204. Eligible countries.
Sec. 6205. Prohibition.
      TITLE VII--EXPANDING PROSPERITY THROUGH TRADE AND INVESTMENT

Sec. 7001. Findings.
Sec. 7002. Authority for coordination.
          Subtitle A--Overseas Private Investment Corporation

Sec. 7101. Creation and purpose.
Sec. 7102. Prohibitions and restrictions.
Sec. 7103. Capital of the corporation.
Sec. 7104. Organization and management.
Sec. 7105.  Investment Insurance and Other Programs.
Sec. 7106. Issuing authority; direct loan authority; discharge of 
                            liabilities.
Sec. 7107. Income and revenues.
Sec. 7108. General provisions relating to insurance, guaranty, and 
                            financing program.
Sec. 7109. General provisions and powers.
Sec. 7110. Reports to the Congress.
Sec. 7111. Definitions.
         Subtitle B--United States Trade and Development Agency

Sec. 7201. United States Trade and Development Agency.
                      Subtitle C--Enterprise Funds

Sec. 7301. Findings.
Sec. 7302. Purposes.
Sec. 7303. Authority to designate enterprise funds.
Sec. 7304. GAO reports.
Sec. 7305. Operation provisions.
Sec. 7306. Best practices and procedures.
Sec. 7307. Experience of other enterprise funds.
 TITLE IX--STRATEGIC PLANNING, MONITORING AND EVALUATION, AND REPORTING

                     Subtitle A--Strategic Planning

Sec. 9101. Quadrennial Diplomacy, Development, and Security Review.
Sec. 9102. Comprehensive workforce and human resources strategy.
                 Subtitle B--Monitoring and Evaluation

Sec. 9201. Monitoring and evaluation of foreign assistance.
Sec. 9202. Monitoring and evaluation of humanitarian assistance.
                   Subtitle C--Reporting Requirements

Sec. 9301. Transparency and accountability in budgeting.
Sec. 9302. Congressional budget justification.
Sec. 9303. Report on allocation of assistance under this Act.
Sec. 9304. Security assistance database.
Sec. 9305. Classification of reports.
           Subtitle D--Congressional Notification Procedures

Sec. 9401. Notification of program changes.
Sec. 9402. Congressional notification parity.
Sec. 9403. Presidential findings and determinations.
          TITLE X--POLICY RESTRICTIONS AND SPECIAL AUTHORITIES

                    Subtitle A--Policy Restrictions

Sec. 10001. Definitions.
                        Chapter 1--Human Rights

Sec. 10101. Prohibition on assistance to governments that engage in 
                            violations of human rights.
Sec. 10102. Prohibition on assistance to certain human rights 
                            violators.
Sec. 10103. Prohibition on assistance to governments following coups 
                            d'etat.
Sec. 10104. Prohibition on assistance to governments that prohibit or 
                            impede delivery of humanitarian assistance.
Sec. 10105. Prohibition on use of funds to support or justify torture.
Sec. 10106. Prohibition on assistance to governments engaged in 
                            intimidation and harassment against 
                            individuals in the United States.
                      Chapter 2--Non-Proliferation

Sec. 10201. Prohibition on assistance to governments that transfer 
                            nuclear enrichment equipment, materials, or 
                            technology.
Sec. 10202. Prohibition on assistance to governments that transfer 
                            nuclear reprocessing equipment, materials, 
                            or technology or nuclear explosive devices.
Sec. 10203. Security assistance to Pakistan.
                          Chapter 3--Narcotics

Sec. 10301. Prohibition on assistance to drug traffickers.
Sec. 10302. Prohibition on assistance to state sponsors of drug 
                            trafficking.
Sec. 10303. Prohibition on reimbursements for drug crop eradications.
                          Chapter 4--Terrorism

                    subchapter a--general provisions

Sec. 10401. Prohibition on assistance to state sponsors of terrorism.
Sec. 10402. Prohibition on assistance to foreign governments supporting 
                            state sponsors of terrorism.
Sec. 10403. Prohibition on transactions with state sponsors of 
                            terrorism.
Sec. 10404. Transactions with countries not fully cooperating with 
                            United States counterterrorism efforts.
Sec. 10405. Withholding of United States proportionate share for 
                            certain programs of international 
                            organizations.
                  subchapter b--middle east provisions

Sec. 10411. Conditional contributions to certain international 
                            organizations.
Sec. 10412. Limitation on assistance to the Palestinian Authority.
Sec. 10413. Limitation on assistance for the West Bank and Gaza.
Sec. 10414. Palestinian statehood.
Sec. 10415. Restrictions concerning the Palestinian Authority.
Sec. 10416. Prohibition on assistance to the Palestinian Broadcasting 
                            Corporation.
Sec. 10417. Assistance for the West Bank and Gaza.
Sec. 10418. Limitation on assistance to the Palestinian Authority.
Sec. 10419. Limitation relating to Palestinian status in the United 
                            Nations.
                     Chapter 5--Trade and Commerce

Sec. 10501. Prohibition on assistance for exporting United States jobs.
Sec. 10502. Prohibition on assistance to governments that expropriate 
                            United States property.
Sec. 10503. Prohibition on assistance for compensation relating to 
                            expropriated or nationalized property.
Sec. 10504. Prohibition on assistance to governments that refuse 
                            extradition requests.
Sec. 10505. Prohibition on taxation of foreign assistance.
Sec. 10506. Reimbursement of parking fines and real property taxes owed 
                            by governments.
Sec. 10507. Limitation on assistance to countries in default.
Sec. 10508. Prohibition on promotion of tobacco.
Sec. 10509. Prohibition on assistance for official gifts.
                     Subtitle B--Policy Authorities

Sec. 10601. Contingencies.
Sec. 10602. Transfer between accounts.
Sec. 10603. Special waiver authority.
        TITLE XI--ORGANIZATION, MANAGEMENT, AND HUMAN RESOURCES

Sec. 11001. Definitions.
                        Subtitle A--Organization

           Chapter 1--Exercise and Coordination of Functions

Sec. 11101. Delegations; regulations.
Sec. 11102. Role of the Secretary of State.
Sec. 11103. Role of the Chief of Mission.
Sec. 11104. Role of the Secretary of Defense.
Sec. 11105. Office for Global Women's Issues.
Sec. 11106. Bureau for Energy Resources.
Sec. 11107. Bureau of Oceans, Environment and Science.
     Chapter 2--United States Agency for International Development

Sec. 11201. United States Agency for International Development.
Sec. 11202. Role of the Administrator.
Sec. 11203. Overseas missions.
Sec. 11204. Chairman of OECD Development Assistance Committee.
Sec. 11205. Responsibilities of the Inspector General of the United 
                            States Agency for International 
                            Development.
           Subtitle B--Management and Program Administration

      Chapter 1--Operating Expenses and Administrative Authorities

Sec. 11301. Operating expenses of the United States Agency for 
                            International Development.
Sec. 11302. Authorized uses of funds.
Sec. 11303. Operating expenses of the Office of the Inspector General.
Sec. 11304. Administrative authorities of the Department of Defense.
Sec. 11305. Working Capital Fund.
Sec. 11306. Suspension and debarment.
Sec. 11307. False claims and ineligible commodities.
Sec. 11308. Termination expenses.
Sec. 11309. Prohibition on certain first-class travel.
         Chapter 2--Assistance Authorities and Program Expenses

Sec. 11401. General assistance authorities.
Sec. 11402. Authority to conduct reimbursable programs.
Sec. 11403. Retention of interest.
Sec. 11404. Marking and branding of economic and humanitarian 
                            assistance.
Sec. 11405. Reductions in designated funds.
Sec. 11406. Requirement for authorization of appropriations.
Sec. 11407. Unexpended balances.
Sec. 11408. Authority for extended period of availability of 
                            appropriations.
Sec. 11409. Support for regional, international and nongovernmental 
                            organizations.
Sec. 11410. Protection of patents and technical information.
Sec. 11411. Private and voluntary organizations and cooperatives.
 Chapter 3--Procurement, Disposition, Transportation and Valuation of 
                                Articles

Sec. 11501. Procurement standards and procedures.
Sec. 11502. Local procurement.
Sec. 11503. United States competitiveness.
Sec. 11504. Small business.
Sec. 11505. Allocation or transfer of funds and reimbursement among 
                            agencies.
Sec. 11506. Retention and use of certain items and funds.
Sec. 11507. Foreign and domestic excess property.
Sec. 11508. Ocean freight differential.
Sec. 11509. Use of aircraft for additional purposes.
Sec. 11510. Streamlining and review of procurement process.
Sec. 11511. Overseas procurement flexibility.
Sec. 11512. Local guard contracts abroad.
Sec. 11513. Authority to pay transportation costs.
                  Chapter 4--Use of Foreign Currencies

Sec. 11601. Separate accounts for local currencies.
Sec. 11602. Use of certain foreign currencies.
Sec. 11603. Accounting and valuation of foreign currencies.
                      Subtitle C--Human Resources

                   Chapter 1--Personnel and Benefits

Sec. 11701. Employment of personnel.
Sec. 11702. Experts and consultants.
Sec. 11703. Prohibition of discrimination against Federal personnel.
Sec. 11704. Foreign service limited appointments.
Sec. 11705. Technical advisors.
Sec. 11706. Personal services contractors for USAID.
Sec. 11707. Personal services contractors for the Department of State.
Sec. 11708. Hiring authority of Inspector General of the United States 
                            Agency for International Development.
Sec. 11709. Public availability of consulting contracts.
Sec. 11710. Senior Foreign Service requirement.
Sec. 11711. Pay parity for criminal investigators.
             Chapter 2--Details, Fellowships, and Exchanges

Sec. 11801. Details to foreign governments and international 
                            organizations.
Sec. 11802. Details to United States Government agencies.
Sec. 11803. Science and technology fellowship programs.
Sec. 11804. Foreign relations exchange programs.
Sec. 11805. Guidelines for rotational assignments.
            Chapter 3--Training and Professional Development

Sec. 11901. Training of Federal personnel.
Sec. 11902. Career development.
Sec. 11903. Language skills development.
                   TITLE XII--AMENDMENTS AND REPEALS

                         Subtitle A--Amendments

Sec. 12101. Amendments relating to assistance to combat HIV/AIDS, 
                            tuberculosis, and malaria.
Sec. 12102. Amendments to the Millennium Challenge Act of 2003.
Sec. 12103. Amendments to the Migration and Refugee Assistance Act of 
                            1962.
Sec. 12104. Amendments to the Fulbright-Hays Act.
                          Subtitle B--Repeals

Sec. 12201. Repeal of laws incorporated in this Act.
Sec. 12202. Repeal of laws inconsistent with this Act.
Sec. 12203. Repeal of obsolete provisions of law.
Sec. 12204. Repeal of unnecessary reporting requirements.
                     Subtitle C--Savings Provisions

Sec. 12301. References to former authorities.
Sec. 12302. Repeal of provisions amending other laws.
Sec. 12303. Savings provisions.
Sec. 12304. Effective date.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In an increasingly interdependent world, the health, 
        prosperity, freedom, and security of the people of the United 
        States are strengthened when the people of all countries can 
        enjoy these same advantages.
            (2) The development of a healthier, more peaceful, 
        democratic, just and prosperous world requires the sustained 
        and substantial investment of United States human and financial 
        resources in fostering international cooperation and in 
        building the capacity of other countries to meet the needs of 
        their people and to conduct themselves responsibly in the 
        international system.
            (3) Foreign assistance is not only a reflection of the 
        values, generosity, and goodwill of the people of the United 
        States, but also an essential means for achieving United States 
        foreign policy, economic, and national security objectives.

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States to help build and sustain an 
international community composed of states that meet basic human needs, 
resolve conflicts peacefully, respect fundamental freedoms, cooperate 
to address issues that transcend national boundaries, use wisely the 
world's limited resources in a sustainable manner, and work toward the 
achievement of economic well-being for all people.

SEC. 4. PRINCIPLES OF ASSISTANCE.

    In order to maximize effectiveness and efficiency, United States 
foreign assistance should be carried out in accordance with the 
following principles:
            (1) Foreign assistance is not an end in itself. The purpose 
        of foreign assistance is to create the conditions under which 
        it is no longer needed.
            (2) United States foreign assistance should support the 
        development of human, financial, organizational, and technical 
        capacity of partner countries, both within government and among 
        civil society, that is sustainable over the long term and leads 
        to self-reliance.
            (3) United States foreign assistance, regardless of type, 
        purpose, or recipient, should respect human rights and 
        democratic processes.
            (4) United States embassies and United States Agency for 
        International Development missions in partner countries should 
        be accorded a central role in planning, budgeting, and 
        decisionmaking with respect to United States foreign assistance 
        to those countries.
            (5) United States foreign assistance programs should be 
        carried out in collaboration with a wide variety of partners, 
        including multilateral organizations, governments of partner 
        countries at all levels, intermediate representative 
        institutions, and international, United States, and local civil 
        society organizations.
            (6) Nonemergency United States foreign assistance should be 
        provided pursuant to well-coordinated strategies with specific 
        goals and measurable objectives, while preserving the 
        flexibility to respond to rapidly changing situations.
            (7) Monitoring and evaluation of United States foreign 
        assistance should be conducted systematically to ensure 
        financial accountability, evaluate performance, assess impact, 
        determine lessons learned, disseminate findings, and identify 
        steps for improvement.
            (8) Because gender equality is essential to democracy, 
        human rights and economic development, the needs, views, 
        rights, roles, and resources of women should be taken into 
        account in all stages of the foreign assistance process, 
        including strategic planning, budgeting, design, 
        implementation, monitoring, and evaluation.
            (9) Because natural resources and a healthy, functioning 
        environment underpin sustainable economic growth, health, and 
        food security, the likely impact of United States foreign 
        assistance policies and programs upon the environment should be 
        taken into account in all stages of the foreign assistance 
        process. Effective action should be taken to mitigate any 
        negative impacts and to ensure that all people enjoy the same 
        degree of protection from environmental and health hazards.
            (10) The United States Government should publish timely, 
        detailed, and comprehensive information on the budgeting, 
        delivery, and expenditure of United States foreign assistance 
        in order to enhance transparency and accountability for results 
        and should encourage and facilitate similar transparency by the 
        partner country regarding its national budget, government 
        contracts, and aid-related expenditures.
            (11) United States foreign assistance should be conducted 
        within a coherent and coordinated structure that establishes 
        clear lines of authority, delineates responsibilities, 
        rationalizes functions, closes gaps, promotes policy 
        consistency, and ensures civilian leadership.
            (12) To ensure that United States foreign assistance 
        achieves its intended objectives and to maximize its impact, 
        the United States Government should design and implement such 
        assistance in partnership with local stakeholders, including as 
        appropriate and feasible, governments, intermediate 
        representative institutions, civil society organizations, and 
        affected communities.
            (13) The success of United States foreign assistance in 
        meeting humanitarian, foreign policy, and national security 
        objectives depends on the sustained commitment of adequate and 
        reliable budgetary resources as well as on the development, 
        training, and maintenance of a diverse and experienced corps of 
        professionals to design, manage, implement, and monitor such 
        foreign assistance.

SEC. 5. PURPOSES OF ASSISTANCE.

    United States foreign assistance under this Act shall be provided 
in accordance with the policy set forth in section 3 and the principles 
set forth in section 4 to achieve the following interrelated and 
mutually reinforcing purposes:
            (1) Reducing global poverty and alleviating human 
        suffering.
            (2) Advancing peace and mitigating crises.
            (3) Supporting human rights and democracy.
            (4) Building and reinforcing strategic partnerships.
            (5) Countering transnational threats.
            (6) Sustaining the global environment.
            (7) Expanding prosperity through trade and investment.

SEC. 6. DEFINITIONS.

    Except as otherwise provided, in this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the United States Agency for International 
        Development.
            (2) Agency or usaid.--The term ``Agency'' or ``USAID'' 
        means the United States Agency for International Development.
            (3) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs 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.
            (4) Basic human needs.--The term ``basic human needs'' 
        means the requirements for sustaining life, health, and human 
        dignity.
            (5) Civil society organization.--The term ``civil society 
        organization'' means--
                    (A) a registered or unregistered nonprofit 
                organization, independent of the government and state, 
                including a private and voluntary organization, 
                community or faith-based organization, advocacy group, 
                business or trade association, cooperative, credit 
                union, labor union, or philanthropic foundation;
                    (B) an independent media, educational, or research 
                institution; or
                    (C) a private enterprise, including an 
                international development firm, bank or other financial 
                institution, or a business of any type.
            (6) Country.--The term ``country'' means the government, 
        civil society, and intermediate representative institutions of 
        a state or specially administered area.
            (7) Development assistance.--The term ``development 
        assistance'' means--
                    (A) assistance under--
                            (i) subtitle A of title I;
                            (ii) the Millennium Challenge Act of 2003 
                        (22 U.S.C. 7701 et seq.);
                            (iii) the United States Leadership Against 
                        HIV/AIDS, Tuberculosis, and Malaria Act of 2003 
                        (22 U.S.C. 7601 et seq.);
                            (iv) title V of the International Security 
                        and Development Cooperation Act of 1980 (22 
                        U.S.C. 290h et seq.; relating to the African 
                        Development Foundation); or
                            (v) section 401 of the Foreign Assistance 
                        Act of 1969 (22 U.S.C. 290f; relating to the 
                        Inter-American Foundation);
                    (B) official development assistance under any 
                provision of law; and
                    (C) reconstruction assistance under any provision 
                of law.
            (8) Economic assistance.--The term ``economic assistance'' 
        means foreign assistance, other than assistance under subtitle 
        B or C of title IV.
            (9) Federal agency.--The term ``Federal agency'' has the 
        meaning given the term Executive agency in section 105 of title 
        5, United States Code.
            (10) Foreign assistance.--The term ``foreign assistance'' 
        means any tangible or intangible item provided by the United 
        States Government to a foreign country or international 
        organization under this or any other Act, including any 
        training, service, or technical advice, any item of real, 
        personal, or mixed property, any agricultural commodity, any 
        gift, loan, sale, credit, guarantee, or export subsidy, United 
        States dollars, and any currencies of any foreign country which 
        are owned by the United States Government.
            (11) Fundamental freedoms.--The term ``fundamental 
        freedoms'' means the freedoms of association, assembly, 
        expression, and religion.
            (12) Genocide.--The term ``genocide'' means an offense as 
        described in section 1091 of title 18, United States Code.
            (13) Humanitarian assistance.--The term ``humanitarian 
        assistance'' means--
                    (A) assistance under subtitle B of title I;
                    (B) emergency food assistance under title II of the 
                Agricultural Trade Development and Assistance Act of 
                1954 (Public Law 83-480); and
                    (C) refugee and migration assistance under the 
                Migration and Refugee Act of 1962.
            (14) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given such 
        term under section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (15) Intermediate representative institution.--The term 
        ``intermediate representative institution'' means an 
        organization with the mandate to represent citizens in 
        government and in political processes, such as a legislature, 
        political party, advisory commission, or municipal council.
            (16) International organization.--The term ``international 
        organization'' means an international organization as defined 
        in section 1 of the International Organizations Immunities Act 
        (22 U.S.C. 288).
            (17) Marginalized group.--The term ``marginalized group''--
                    (A) means a group that is excluded by law, policy, 
                or practice from participating on a full and equal 
                basis in the political, economic, and social life of a 
                country, including the enjoyment of all rights and 
                freedoms; and
                    (B) includes women, poor people, youth, refugees, 
                displaced or stateless persons, persons belonging to 
                racial, national, ethnic, religious or linguistic 
                minorities, persons with disabilities, and persons 
                discriminated against on the basis of their sexual 
                orientation or gender identity.
            (18) Mass atrocities.--The term ``mass atrocities'' 
        includes war crimes, genocide or acts that may constitute 
        genocide, and other crimes against humanity.
            (19) Military education and training.--The term ``military 
        education and training'' includes formal or informal 
        instruction of foreign students in the United States or 
        overseas by officers or employees of the United States, 
        contract technicians, contractors (including instruction at 
        civilian institutions), or by correspondence courses, 
        technical, educational, or informational publications and media 
        of all kinds, training aids, orientation, and military advice 
        to foreign military units and forces.
            (20) Notwithstanding, etc.--The terms ``notwithstanding any 
        other provision of law'' and ``notwithstanding any provision of 
        this or any other Act'' shall not apply to title 31, United 
        States Code, the Congressional Budget and Impoundment Control 
        Act of 1974, or the Budget Enforcement Act of 1990.
            (21) Partner country.--The term ``partner country'' means a 
        country that is receiving or is eligible to receive foreign 
        assistance.
            (22) Private and voluntary organization.--The term 
        ``private and voluntary organization'' means a nonprofit, 
        nongovernmental organization.
            (23) Private partner.--The term ``private partner'' means--
                    (A) a non-United States Government entity that--
                            (i) enters into a contract, as described in 
                        section 6303 of title 31, United States Code, 
                        with the United States Government;
                            (ii) accepts a grant, as described in 
                        section 6304 of title 31, United States Code, 
                        from the United States Government; or
                            (iii) enters into a cooperative agreement, 
                        as described in section 6305 of title 31, 
                        United States Code, with the United States 
                        Government,
                relating to the use by that entity of foreign 
                assistance; and
                    (B) any subcontractor or subgrantee thereof.
            (24) Secretary.--The term ``Secretary'' means the Secretary 
        of State.
            (25) Security assistance.--The term ``security assistance'' 
        means foreign assistance under title IV or title V.
            (26) United states.--The term ``United States'', when used 
        in the geographic sense, includes each State of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, American Samoa, Guam, the Commonwealth of the Northern 
        Mariana Islands, the Virgin Islands of the United States, and 
        any other territory or possession of the United States.
            (27) United states armed forces.--The term ``United States 
        Armed Forces'' means the Army, Navy, Air Force, Marine Corps, 
        and Coast Guard.

    TITLE I--REDUCING GLOBAL POVERTY AND ALLEVIATING HUMAN SUFFERING

SEC. 1001. FINDINGS.

    Congress finds the following:
            (1) The abject and dehumanizing conditions of extreme 
        poverty, which affect more than a billion people around the 
        world, are inimical to the achievement of a healthy, peaceful, 
        democratic, just and prosperous world and an affront to shared 
        human values.
            (2) A principal objective of United States foreign policy 
        is reducing global poverty and its worst physical 
        manifestations through the encouragement and sustained support 
        of the people of developing countries in their efforts to 
        acquire the knowledge and resources essential to building the 
        economic, political, and social institutions that will improve 
        the quality of their lives.
            (3) Strengthening democratic governance and the political 
        voice of poor and marginalized groups not only directly combats 
        poverty but also helps build responsive, accountable state 
        institutions essential to sustain the positive impact of 
        foreign assistance over the long-term.
            (4) United States efforts to reduce global poverty and 
        alleviate human suffering reflect the compassion and generosity 
        of the American people, while also serving United States 
        economic and national security interests. Poor and unstable 
        countries make unreliable trading partners and weak markets for 
        United States goods and services. Violent extremism that 
        threatens United States national security flourishes where 
        democratic governance is weak, justice is uncertain, and legal 
        avenues for change are in short supply.
            (5) Complementing the long-term objective of reducing 
        global poverty, the humanitarian concern and tradition of the 
        people of the United States demands a commitment to saving 
        lives and alleviating human suffering resulting from natural 
        and human-caused disasters, and to taking effective action to 
        prevent, prepare for, and mitigate such disasters.
            (6) Pursuit of these interrelated objectives requires that 
        development and humanitarian concerns be fully reflected 
        throughout United States foreign policy, and that resources for 
        these purposes be adequately and reliably budgeted and 
        effectively and efficiently utilized.
            (7) In order to achieve United States foreign policy and 
        national security objectives, the United States should act in 
        concert with other countries and multilateral institutions to 
        mobilize adequate resources from public and private sources for 
        poverty reduction and humanitarian relief.

SEC. 1002. STATEMENT OF POLICY.

    It is the policy of the United States to undertake best efforts 
to--
            (1) reduce global poverty, including by establishing and 
        meeting, in cooperation with governments of developing 
        countries, other public and private donors, multilateral 
        institutions, nongovernmental organizations, businesses, and 
        affected communities, international targets for the reduction 
        of poverty; and
            (2) prevent, prepare for, mitigate, and respond to 
        humanitarian crises wherever such crises may occur.

SEC. 1003. ENCOURAGEMENT OF UNITED STATES PRIVATE AND VOLUNTARY 
              COOPERATION.

    (a) Findings.--Congress finds the following:
            (1) The sustained participation of United States private 
        and voluntary organizations, community and faith-based 
        organizations, charitable foundations, labor unions, 
        cooperatives, and credit unions in international development 
        and humanitarian relief, rehabilitation, and reconstruction 
        significantly reduces poverty and alleviates human suffering 
        through--
                    (A) application of accumulated expertise in the 
                discipline of development;
                    (B) provision of social services in underserved 
                communities;
                    (C) building the capacity of local organizations to 
                operate with maximum effectiveness, thereby 
                strengthening civil society and advancing self-
                reliance;
                    (D) establishing long-term partnerships with and 
                between local communities, civil society organizations 
                and governments of developing countries at all levels, 
                thus helping to strengthen accountability, reduce 
                corruption, build capable institutions, and sustain 
                progress;
                    (E) empowering marginalized groups through access 
                to information and a leadership role in decisionmaking 
                processes; and
                    (F) serving as a voice for the poor and bringing 
                best practices and lessons learned to bear on 
                policymaking processes in the United States and 
                worldwide.
            (2) Such organizations, foundations, unions, and 
        cooperatives, by mobilizing private United States financial and 
        human resources, reflect the values and goodwill of the people 
        of the United States and embody the American spirit of self-
        help.
            (3) Advocacy groups and organizations that represent 
        American political, legal, academic and business life have 
        developed long-standing relationships with their overseas 
        counterparts, helping to build people-to-people networks that 
        strengthen civil society, protect human rights, support 
        democratic institutions and foster a policy environment 
        conducive to economic development.
            (4) Similarly, the sustained participation of United States 
        educational and research institutions in building the 
        scientific, educational, and service capacities of developing 
        countries is vital to the economic and social development of 
        those countries, and at the same time strengthens the faculty 
        and programs available to United States students.
            (5) Because of their ability to attract and leverage 
        private contributions, the entities described in paragraphs (1) 
        through (4) are extremely cost-effective partners for providing 
        foreign assistance.
            (6) Because such entities, often using their own resources, 
        develop and maintain long-term and independent relationships 
        with their counterparts in foreign countries, they provide 
        great expertise in program implementation, an important source 
        of knowledge about local needs, attitudes, customs, and 
        conditions, and a critical means for building trust and 
        goodwill with local communities.
    (b) Statement of Policy.--It is the policy of the United States 
to--
            (1) encourage and facilitate, as appropriate, international 
        activities of United States private and voluntary 
        organizations, community and faith-based organizations, 
        charitable foundations, labor unions, cooperatives, credit 
        unions, and educational and research institutions in 
        furtherance of the goals of this title;
            (2) co-design, co-fund, and co-manage projects and 
        strategies with such entities to meet jointly agreed 
        development objectives;
            (3) strengthen the capacity of such entities, without 
        compromising their private and independent nature, to undertake 
        effective international assistance efforts; and
            (4) streamline and simplify the process by which such 
        entities may compete for resources made available under this 
        title.

SEC. 1004. ENCOURAGEMENT OF UNITED STATES BUSINESS PARTICIPATION.

    (a) Findings.--Congress finds the following:
            (1) United States businesses, including international 
        development firms, are significant contributors to humanitarian 
        relief and broad-based economic growth in developing countries, 
        through--
                    (A) the donation of financial resources, 
                technology, goods, and services;
                    (B) the sharing of training, technical, managerial, 
                and business skills;
                    (C) the investment of capital and the development 
                of trade relationships;
                    (D) the establishment and maintenance of 
                partnerships with the governments of developing 
                countries, local communities, and civil society 
                organizations;
                    (E) partnering with local businesses and 
                entrepreneurs;
                    (F) the expansion of job opportunities in 
                impoverished communities; and
                    (G) the encouragement of private sector development 
                and of the legal and institutional framework to support 
                such development.
            (2) Such businesses are often staffed by individuals with a 
        strong commitment to and knowledge of developing countries, 
        many of whom have served overseas, and who bring American 
        values, know-how, and spirit of innovation.
            (3) While some United States businesses have a long history 
        of engagement with international development, bringing 
        extensive experience, strong local ties and a proven track 
        record of achievement, many others seek to establish first-time 
        partnerships and new joint ventures.
            (4) By leveraging contributions of United States businesses 
        and facilitating public-private partnerships, the United States 
        Government can maximize the impact of its efforts to improve 
        social and economic conditions in developing countries.
    (b) Statement of Policy.--It is the policy of the United States 
to--
            (1) encourage and facilitate, to the maximum extent 
        practicable, participation by United States businesses in 
        achieving the purposes of this title;
            (2) promote awareness by United States businesses, 
        including small businesses, of opportunities to promote 
        economic growth and expand markets in developing countries;
            (3) facilitate partnerships between United States business 
        and international and local nongovernmental organizations, 
        including private and voluntary organizations, community and 
        faith-based organizations, charitable foundations, labor 
        unions, cooperatives, credit unions, and educational and 
        research institutions, to reduce poverty and alleviate human 
        suffering;
            (4) build strategic alliances with United States 
        businesses, drawing on their unique assets and experience, to 
        solve complex problems in developing countries; and
            (5) co-design, co-fund, and co-manage projects and 
        strategies with United States business partners to meet jointly 
        agreed development objectives.

SEC. 1005. DEVELOPMENT PARTNERSHIPS FELLOWS PROGRAM.

    (a) In General.--The Administrator is authorized and encouraged to 
establish a program of exchanges to strengthen individual and 
institutional capacity, share knowledge and best practices, build 
partnering skills and develop networks through professional exchanges 
between the Agency and the private sector, including businesses and 
nonprofit institutions.
    (b) Strategic Focus.--The exchanges authorized under subsection (a) 
should be designed to fill gaps and build capacity in areas of critical 
need, as determined by the Administrator and the private sector entity.
    (c) Competitive Awards.--The process for selecting individuals for 
the exchanges authorized under subsection (a) should be open and 
competitive, while offering opportunities to individuals with varying 
levels of professional experience.
    (d) Status of Employment.--Notwithstanding any other provision of 
law, during the period of exchange--
            (1) each participating individual (hereinafter referred to 
        as a ``Fellow'') shall continue to receive his or her salary, 
        benefits, and rights of employment from the Agency or private 
        sector entity, as the case may be; and
            (2) in the case of a Fellow who is an employee of a private 
        sector entity and is working at the Agency, the Fellow shall 
        not be considered to be a Federal employee of the Agency, 
        except for purposes of obtaining necessary access to buildings, 
        office supplies, equipment and facilities.
    (e) Parity in Exchange.--The Administrator shall ensure that the 
total number of Fellows who are employees of the Agency and are working 
at private sector entities is substantially equivalent to the total 
number of Fellows who are employees of private sector entities and are 
working at the Agency.
    (f) Other Costs and Expenses.--The Administrator shall prescribe 
policies and procedures regarding costs and expenses for Fellows other 
than policies and procedures regarding salaries and benefits.
    (g) Term of Service.--The Administrator shall determine appropriate 
lengths of service for Fellows, except that such service may not exceed 
a period of 2 years.

                  Subtitle A--Reducing Global Poverty

SEC. 1011. FINDINGS.

    Congress finds the following:
            (1) The goal of international development is to improve the 
        quality of life for all people while preserving that 
        opportunity for future generations.
            (2) Successful economic development includes the 
        eradication of extreme poverty and its worst physical 
        manifestations.
            (3) Abuses of power, failure to respect human rights, 
        exclusion of and discrimination against societal groups, and 
        unchecked violence, particularly against women and girls, are 
        impediments to economic development.
            (4) While each country must marshal its own economic and 
        human resources in order to build and maintain the political, 
        social, and economic institutions necessary to reduce poverty 
        and improve the quality of life for its people, the magnitude 
        of the need far exceeds the resources of most developing 
        countries.
            (5) The United States has acknowledged a collective 
        responsibility for, as well as a national interest in, the 
        reduction of global poverty through the promotion of long-term 
        development that is participatory, equitable, self-reliant, and 
        environmentally sustainable.
            (6) A human rights-based approach that focuses on 
        empowering women and girls has been shown to maximize 
        development outcomes.
            (7) Development is a long-term process that requires 
        sustained attention and resources. Foreign assistance to 
        achieve short-term political objectives or meet emergency 
        humanitarian needs should not come at the expense of efforts to 
        address the root causes of poverty and human suffering.

SEC. 1012. STATEMENT OF POLICY.

    It is the policy of the United States to reduce global poverty by 
helping poor people in developing countries to participate in a process 
of self-sustaining, equitable, and environmentally sound economic 
growth through productive work and to influence decisions that shape 
their lives, with the goal of increasing their incomes and their access 
to public services that will enable them to satisfy their basic needs, 
exercise their rights, and lead lives of decency, dignity, and hope.

SEC. 1013. PRINCIPLES OF ASSISTANCE.

    In order to maximize the reduction of global poverty, assistance 
under this subtitle should be carried out in accordance with the 
following principles:
            (1) Development is primarily the responsibility of the 
        people of developing countries themselves. Assistance should be 
        used in support of, rather than substitution for, the self-help 
        efforts that are essential to successful economic development.
            (2) Assistance should be demand-driven and designed to 
        support partner country ownership by respecting the development 
        goals chosen through an open and inclusive process in the 
        partner country.
            (3) The United States Government should work to broaden 
        country-level policy dialogue on development by promoting an 
        open and inclusive process for choosing development goals, and 
        by increasing the capacity of all stakeholders to participate 
        meaningfully in that process.
            (4) Persons affected by conflict or disaster--including 
        refugees, stateless persons, and internally displaced persons, 
        particularly those in protracted situations--are among the 
        world's most vulnerable to poverty, exclusion, exploitation and 
        other abuses. Although they have tremendous potential to 
        contribute to the growth and development of the communities and 
        countries where they reside, these populations often lack 
        access to development resources and programs. Such populations, 
        as well as other marginalized groups, must be explicitly 
        included in country development programs and national 
        development strategies.
            (5) Assistance should be concentrated in countries that 
        have the greatest need for outside assistance and that will 
        make the most effective use of such assistance in achieving the 
        purposes of this subtitle.
            (6) Program selection and design should be linked to 
        results, by using performance frameworks and indicators that 
        are included in or consistent with a developing country's 
        national development strategy, where possible, and by 
        strengthening the country's capacity and demand for results-
        based management.
            (7) When partner country systems are transparent, 
        accountable and effective, the United States Government should 
        use such systems for delivering assistance. Where use of such 
        systems is not feasible, the United States should establish 
        additional safeguards and measures in ways that strengthen 
        rather than undermine country systems.
            (8) Even in countries where there is a strong and capable 
        state, civil society should be included in the planning, 
        design, management, delivery, monitoring and evaluation of 
        foreign assistance.
            (9) Assistance should focus on building the self-
        sufficiency of developing countries by upgrading human, 
        technical, and institutional capacity, both inside and outside 
        government, to effectively plan, manage, implement, monitor, 
        and evaluate budgets, policies, and programs in a transparent 
        and accountable manner that supports development objectives.
            (10) The United States Government should take all 
        appropriate steps to harmonize its planning, funding, 
        conditionality, disbursement, monitoring, evaluation, and 
        reporting with governments of developing countries and with 
        other donors, including multilateral institutions, in order to 
        simplify and reduce the administrative burdens, achieve a more 
        effective division of labor that builds on donors' comparative 
        advantages, and improve accountability for results.
            (11) In consultation with Congress and in conjunction with 
        the Interagency Policy Committee on Global Development 
        established under section 1020, the Administrator should engage 
        in strategic and budgetary planning over a 3- to 5-year period 
        that will enable the disbursement of assistance in a more 
        timely and predictable manner.
            (12) Personnel and management systems of the Agency should 
        incorporate incentives for innovation and experimentation, with 
        tolerance of reasonable risk-taking and training on risk-
        management.
            (13) Poverty reduction efforts should promote a policy 
        environment and legal framework that is conducive to broad-
        based and sustainable economic growth, including--
                    (A) respect for the rule of law;
                    (B) fair, accessible, and timely administration of 
                justice;
                    (C) representative and accountable institutions of 
                governance;
                    (D) protection of human rights and fundamental 
                freedoms;
                    (E) mechanisms of accountability and transparency;
                    (F) security of person, property and investments;
                    (G) enforcement of contracts and intellectual 
                property rights;
                    (H) encouragement of private enterprise, free 
                markets and labor rights; and
                    (I) a vibrant and informed civil society.
            (14) An effective United States strategy to promote global 
        poverty reduction and contribute to broad-based, sustainable 
        economic growth must incorporate all United States policies 
        having an impact on development, which include foreign 
        assistance, debt relief, trade, agriculture, migration and 
        remittances, environmental protection, technology transfer, and 
        arms sales.
            (15) Assistance should be provided in a manner that is 
        flexible enough to adapt to the unique needs and capabilities 
        of specific developing countries and changing situations on the 
        ground, while remaining transparent and predictable enough to 
        allow developing countries and other partners to plan and 
        budget efficiently.
            (16) Assistance should give priority to undertakings that 
        will directly improve the lives of the poorest, most vulnerable 
        and marginalized groups, and strengthen their capacity to 
        participate in the political, economic, and social development 
        of their countries.
            (17) Investments in research, the fostering of innovation 
        and the application of technology are essential to expanding 
        the impact and effectiveness of development policies and 
        programs. To ensure that such research, innovation and 
        technology are appropriately harnessed, development assistance 
        policies and programs should promote data collection and 
        rigorous analysis, evidence-based decisionmaking, a culture of 
        learning, a mechanism for scaling up successful methods and 
        activities, and a process for sharing best practices.
            (18) Gender equality is a matter of fundamental human 
        rights, as well as being essential to the reduction of poverty 
        and to the health, education and well-being of families and 
        communities. Assistance should encourage and promote the full 
        participation of women and girls in the decisions that affect 
        their lives, elevate the role of women in their societies, 
        ensure that women are fully integrated into United States 
        policies and programs, afford women opportunities to support 
        themselves and their families, equip and empower women to serve 
        as leaders and as agents of transformation, and protect women 
        and girls against discrimination and violence.
            (19) Assistance should promote the wise and efficient use 
        of natural resources to ensure stable economic growth and a 
        healthy environment in which to live, learn, and work.
            (20) Policies and programs carried out under this subtitle 
        should promote, protect, and ensure the full and equal 
        enjoyment of all human rights and fundamental freedoms by all 
        persons with disabilities, respect their inherent dignity, and 
        encourage their full and effective participation in society on 
        an equal basis with others.
            (21) International and United Nations-affiliated agencies 
        and multilateral development institutions are essential 
        components of United States poverty reduction efforts. The 
        United States Government should recognize the comparative 
        advantages of such institutions, particularly with respect to 
        investments in capital-intensive projects and in countries and 
        regions where the United States does not have a large physical 
        presence, while supporting reforms to make such institutions 
        more accountable, responsive, and representative. In addition 
        to direct financial contributions, the United States Government 
        should provide technical and logistical assistance to such 
        institutions as appropriate.
            (22) Private investment and philanthropy and individual 
        remittances are increasingly important sources of development 
        resources. The United States Government should help to link the 
        United States private sector with appropriate local partners, 
        to encourage private investment in economic and social 
        development programs to which the United States lends support, 
        and to ensure complementarity between public and private 
        development efforts.
            (23) Assistance should be planned and utilized to encourage 
        regional cooperation among developing countries in the solution 
        of common problems and the development of shared resources.

SEC. 1014. GOALS OF ASSISTANCE.

    In order to reduce poverty in developing countries, assistance 
under this subtitle shall be designed to further the following goals:
            (1) Accelerating economic growth.
            (2) Promoting food security.
            (3) Advancing health.
            (4) Expanding quality education.
            (5) Protecting and restoring the natural environment.
            (6) Improving access to safe water, sanitation, and 
        housing.
            (7) Fostering gender equality.
            (8) Strengthening democratic governance.

SEC. 1015. DEVELOPMENT SUPPORT FUNDS.

    (a) Authorization of Assistance.--
            (1) In general.--The Administrator is authorized to provide 
        assistance, on such terms and conditions as the Administrator 
        may determine, to developing countries, in accordance with the 
        policy described in section 1012 and the principles described 
        in section 1013, to further the goals described in section 
        1014.
            (2) Country strategies.--The annual congressional budget 
        justification submitted under section 9302 shall specify the 
        amount of funds to be made available to prepare and carry out 
        Country Development Cooperation Strategies under section 1018.
            (3) Availability.--Funds made available under this section 
        for a fiscal year are authorized to remain available until 
        expended.
            (4) Designation of funds.--Assistance authorized under this 
        subsection shall be known as ``Development Support Funds''.
    (b) Sustainability and Local Procurement.--In providing assistance 
authorized under subsection (a), the Administrator--
            (1) shall, to the maximum extent feasible, emphasize the 
        development of local capacity and the establishment of 
        sustainable institutions in the partner country; and
            (2) should, to the extent feasible and if cost-effective, 
        procure required goods and services in the partner country, or, 
        if local procurement is not feasible or cost-effective, in 
        another developing country in the same region.
    (c) Factors.--In determining the amount of assistance to be 
provided for each country the Administrator shall take into account the 
following factors:
            (1) The absolute number and proportion of people in such 
        country living in poverty.
            (2) The country's ranking on the Human Development Index or 
        other similar measures of living standards and overall well-
        being.
            (3) The country's per capita income.
            (4) The availability of domestic resources for development 
        within such country.
            (5) The availability of resources from other donors and 
        investors in such country.
            (6) The extent to which there is a political, social, and 
        economic environment in such country that will enable funds to 
        be used effectively and accountably to achieve lasting results.
            (7) The performance record of the country in reducing 
        poverty and responsibly using foreign assistance, if any, in 
        the previous three to five-year period.
            (8) The country's demonstrated commitment to its own 
        development, including investments in its people.
            (9) Any other factors that the Administrator determines to 
        be appropriate.
    (d) Criteria and Methodology.--
            (1) Establishment.--The Administrator shall establish the 
        criteria and methodology for determining the amount of 
        assistance to be provided for each country under subsection 
        (a). Such criteria and methodology shall--
                    (A) be based on the factors listed in subsection 
                (c);
                    (B) use, to the maximum extent possible, objective 
                and quantifiable indicators; and
                    (C) ensure that an appropriate proportion of funds 
                are made available for each geographic region of the 
                world.
            (2) Congressional consultation.--The Administrator shall 
        consult with the appropriate congressional committees on the 
        criteria and methodology, including indicators, established 
        pursuant to paragraph (1).
            (3) Public availability.--The criteria and methodology, 
        including indicators, established pursuant to paragraph (1) 
        shall be made publicly available on the Internet website of the 
        Agency.
            (4) Annual budget submission.--For each fiscal year, the 
        Administrator shall include in the congressional budget 
        justification submitted under section 9302 the rankings of each 
        country according to the criteria and methodology established 
        pursuant to paragraph (1).
    (e) Full Funding of Projects and Activities.--
            (1) In general.--Subject to paragraph (2), funds may be 
        obligated to carry out a Country Development Cooperation 
        Strategy under section 1018 or a sector strategy for 
        development transmitted under section 1019 only pursuant to an 
        agreement for a project or activity that constitutes an 
        obligation of the full estimated amount of foreign assistance 
        for the life of such project or activity.
            (2) Rules of construction.--For purposes of this section--
                    (A) an obligation includes any sub-obligation of 
                funds initially obligated under a Strategic Objective 
                Agreement or other similar agreement;
                    (B) an agreement includes any grant, cooperative 
                agreement, or contract entered into by the United 
                States Government or a partner country with funds made 
                available to carry out this subtitle; and
                    (C) funds, in addition to those obligated pursuant 
                to subsection (a), may be obligated for a project or 
                activity if the Administrator determines, on a case-by-
                case basis, and reports such determination to the 
                appropriate congressional committees, that an 
                additional obligation of funds is necessary in order to 
                enable the Administrator to meet development objectives 
                that could otherwise not be met absent such additional 
                obligation.
            (3) Outlays and expenditures.--The requirement in paragraph 
        (1) shall not be construed to require outlays or expenditures 
        for a project or activity which does not meet all applicable 
        conditions relating to performance, accountability, and 
        eligibility.

SEC. 1016. INNOVATION FUND.

    (a) Establishment.--The Administrator is authorized to establish a 
fund to support innovative projects and evidence-based solutions that 
may be tested, replicated, and scaled up in partner countries to 
significantly improve development outcomes.
    (b) Funding.--The Administrator is authorized--
            (1) to transfer to the fund up to $50,000,000 of amounts 
        made available for a fiscal year under section 1015, which may 
        be used notwithstanding any other provision of law; and
            (2) to accept contributions to the fund from foundations, 
        corporations, and educational and nongovernmental 
        organizations.
    (c) Documentation.--A detailed description of all obligations and 
expenditures from the fund shall be made publicly available on the 
Internet website of the Agency, including a description of amounts, 
beneficiaries, locations, and intended purposes, at the time the 
obligation or expenditure is made.
    (d) Lessons Learned.--Each project supported by the fund shall be 
independently evaluated, and the results and lessons learned shall be 
made publicly available on the Internet website of the Agency.

SEC. 1017. UNITED STATES STRATEGY FOR GLOBAL DEVELOPMENT.

    (a) In General.--Under the direction of the President, and 
consistent with the results of the Quadrennial Diplomacy, Development, 
and Security Review, the Interagency Policy Committee on Global 
Development established under section 1020 shall prepare on a 
quadrennial basis a comprehensive strategy to further the United States 
foreign policy objective of promoting global development. Such strategy 
shall be known as the ``United States Strategy for Global 
Development''.
    (b) Elements.--The strategy required under subsection (a) shall--
            (1) establish clear and specific goals and objectives for 
        United States policies and programs to advance global 
        development that are consistent with the principles of section 
        1013, internationally agreed development goals, and developing 
        country priorities;
            (2) explain how such goals and objectives are informed by 
        and will be coordinated with internationally agreed goals, 
        developing country strategies, and the programs of other 
        bilateral and multilateral donors;
            (3) identify major policy changes and key priorities for 
        assistance that will be necessary to achieve such goals and 
        objectives;
            (4) provide evidence and data to support the proposed 
        strategy and demonstrate how it would improve development 
        effectiveness;
            (5) define the respective roles of each Federal agency in 
        carrying out the strategy;
            (6) outline a process to enhance coordination among each 
        such agency to ensure policy and program coherence;
            (7) review and improve mechanisms for consulting with other 
        development stakeholders;
            (8) describe how crosscutting themes such as gender 
        equality, human rights, environment, and conflict prevention 
        will be integrated throughout the strategy;
            (9) recommend mechanisms to ensure that the strategy can be 
        adjusted to respond to new information and changing situations 
        on the ground and to reflect best practices and lessons 
        learned;
            (10) estimate the requirements for human and financial 
        resources and overseas infrastructure to carry out the strategy 
        over the subsequent 4-year period; and
            (11) include a plan, budget, and timetable for implementing 
        the strategy, including any legislative requests and Executive 
        orders to be issued.
    (c) Consultation.--In preparing the strategy required under 
subsection (a), the Interagency Policy Committee on Global Development 
established under section 1020 shall consult with the appropriate 
congressional committees and relevant stakeholders.
    (d) Transmission to Congress.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act and every four years thereafter, the 
        President shall transmit to the appropriate congressional 
        committees a copy of the strategy required under subsection 
        (a).
            (2) Availability to public.--The strategy transmitted under 
        paragraph (1) shall be published on the Internet at the time of 
        transmission to the appropriate congressional committees.

SEC. 1018. COUNTRY DEVELOPMENT COOPERATION STRATEGIES.

    (a) In General.--Every 3 to 5 years, the Mission Director of the 
Agency in each country described in subsection (b) shall prepare a 
strategy for United States policies and programs relating to 
development in such country. Such strategy shall be known as the 
``Country Development Cooperation Strategy''.
    (b) Country Described.--A country described in this subsection is a 
country in which--
            (1) there is a full Agency mission; and
            (2) significant violent conflict is neither ongoing nor 
        likely.
    (c) Elements.--Each strategy required under subsection (a) shall be 
consistent with the principles of section 1013 and shall contain the 
following elements:
            (1) An overview of the country's own development strategy 
        and national sectoral plans, as reflected in its Poverty 
        Reduction Strategy Paper or other official documents.
            (2) An analysis of the process by which the country 
        established its development strategy, including the extent to 
        which the strategy reflects the input of marginalized groups 
        and affected communities.
            (3) An assessment of current gaps between relief and 
        development programming, the country's vulnerability to a 
        natural or human-caused disaster and to the outbreak of violent 
        conflict, and the steps being taken to close current 
        programming gaps and to prevent, prepare for, or mitigate such 
        a disaster or conflict.
            (4) An assessment of the country's vulnerability to climate 
        change, and the special challenges such change is likely to 
        pose.
            (5) An assessment of the progress the country has made 
        toward meeting its development goals and of the results of 
        foreign assistance in the previous 3 to 5 years.
            (6) An analysis of the major obstacles and challenges to 
        achievement of the country's development strategy, or in cases 
        in which there is no strategy or the strategy is deeply flawed, 
        the obstacles and challenges to achievement of internationally 
        agreed development goals in the country.
            (7) A description of the specific ways in which the United 
        States can most effectively invest in the country's 
        development, including a review of the roles of the various 
        donors and the areas of United States comparative advantage.
            (8) A description of the roles of each participating 
        Federal agency in carrying out the strategy.
            (9) A description of the consultative mechanisms used in 
        developing the strategy and the stakeholders consulted.
            (10) A description of the mechanisms by which United States 
        Government policies and programs relating to development will 
        be harmonized with the country's development strategy and 
        assistance from other donors.
            (11) A description of the linkages between the strategy and 
        relevant sector strategies for development, including any 
        assistance to be provided for the country pursuant to a sector 
        strategy.
            (12) An evaluation of the risks and tradeoffs contained in 
        the approach recommended in the strategy.
            (13) Specific, measurable goals and objectives for 
        development assistance to the country over the next 3 to 5 
        years, including a list of indicators to be used in assessing 
        impact, which to the maximum extent practicable shall reflect 
        the country's development strategy, shall be gender-
        disaggregated, and shall emphasize the reduction of extreme 
        poverty.
            (14) The total amount of development assistance requested 
        for the country over the period of the strategy, and the 
        estimated amount that would be devoted to each goal and 
        objective for such assistance.
            (15) A description of the types of projects and activities 
        to be supported in pursuit of each goal and objective for such 
        assistance.
            (16) A description of the likely types of partners for each 
        type of project or activity, which to the maximum extent 
        practicable shall utilize and strengthen local procurement and 
        delivery systems.
            (17) A description of the personnel resources needed to 
        implement the strategy, and any bureaucratic, logistical, or 
        infrastructural impediments to deploying such resources.
            (18) A description of how development assistance will build 
        local capacity, strengthen country ownership, improve country 
        systems, advance democratic governance, and reflect country 
        priorities.
            (19) A plan and budget for monitoring the performance and 
        evaluating the impact of development assistance, which to the 
        maximum extent practicable shall utilize and strengthen local 
        monitoring and evaluation systems, and shall include data on a 
        sex-disaggregated basis.
            (20) A description of how development assistance will help 
        to promote regional cooperation and integration.
    (d) Consultation.--In preparing the strategy required under 
subsection (a), the Mission Director shall consult with a wide range of 
relevant stakeholders to ensure that the strategy is appropriate to 
local needs and conditions and incorporates the views of the partner 
country.
    (e) Review and Coordination.--
            (1) By administrator.--Each strategy prepared under 
        subsection (a) shall be submitted to the Administrator for 
        review and approval.
            (2) By ipc.--Each strategy reviewed and approved under 
        paragraph (1) shall be transmitted to the Interagency Policy 
        Committee on Global Development established under section 1020 
        to ensure coordination with the United States Global 
        Development Strategy and all other United States policies and 
        programs relating to the partner country.
    (f) Transmission.--
            (1) To congress.--Each strategy prepared under subsection 
        (a) shall be transmitted to the appropriate congressional 
        committees.
            (2) To partner country.--Each strategy prepared under 
        subsection (a) shall be officially transmitted to the 
        government of the partner country at the same time it is 
        transmitted to the appropriate congressional committees under 
        paragraph (1).
            (3) Public availability.--Each strategy prepared under 
        subsection (a) shall be published on the Internet website of 
        the Agency not later than 3 days after it is transmitted to the 
        government of the partner country under paragraph (2).
            (4) Revisions.--
                    (A) In general.--A strategy prepared under 
                subsection (a) may be revised at any time, but any 
                significant revision to such strategy shall be subject 
                to the same consultation, review, and transmission 
                requirements that are applicable to a strategy prepared 
                under subsection (a).
                    (B) Definition.--In this paragraph, the term 
                ``significant revision'' means a change--
                            (i) to a goal, objective, or indicator;
                            (ii) of more than 20 percent in--
                                    (I) the amounts to be provided for 
                                a goal or objective; or
                                    (II) the number of personnel 
                                required; or
                            (iii) in the general nature of the projects 
                        or activities to be supported.
    (g) Implementation.--None of the funds made available under section 
1015 may be used to carry out a strategy prepared under subsection (a) 
until at least 15 days after the strategy is transmitted to the 
appropriate congressional committees under subsection (f)(1).

SEC. 1019. SECTOR STRATEGIES FOR DEVELOPMENT.

    (a) In General.--Every 4 years, the Administrator shall prepare, 
consistent with the results of the Quadrennial Diplomacy, Development, 
and Security Review prepared under section 9101 and the United States 
Strategy for Global Development prepared under section 1017, individual 
strategies for achieving each of the goals of assistance described in 
paragraphs (1) through (8) of section 1014.
    (b) Elements.--Each strategy required under subsection (a) shall 
include--
            (1) specific objectives for the next 4-year period, 
        including indicators and other measurements of success;
            (2) a description of how such objectives relate to, are 
        informed by, and will be coordinated with the development goals 
        and relevant sectoral plans of partner countries, as well as 
        with those of other bilateral and multilateral donors;
            (3) a description of the roles of each Federal agency in 
        carrying out the strategy, and the mechanisms for coordination;
            (4) a description of policies and programs needed to 
        achieve such objectives, and the proportion of resources to be 
        provided to such policies and programs;
            (5) a description of the ways in which research, 
        innovation, and technology will be deployed in support of such 
        objectives;
            (6) a list of priority countries, regions, and intended 
        beneficiaries on which resources would be focused;
            (7) a description of the gender considerations taken into 
        account, the role of women and girls as participants and 
        beneficiaries of the strategy, and the impact the strategy will 
        have on gender equality;
            (8) a description of how the policies, programs, objectives 
        and priorities have been informed by, and will respond to, 
        conflict strategies and assessments issued pursuant to section 
        2021;
            (9) an analysis of the key opportunities and challenges for 
        achieving favorable results in the next 4-year period;
            (10) a mechanism for ensuring that policies and programs 
        undertaken pursuant to the strategy inform and are informed by, 
        build upon, contribute to, and otherwise advance policies and 
        programs pursuant to each of the other sector strategies 
        required under this section;
            (11) the amounts devoted to similar purposes in the 
        previous 4-year period, the results achieved and the lessons 
        learned; and
            (12) the requirements for human and financial resources and 
        overseas infrastructure to carry out the strategy over the next 
        4-year period.
    (c) Consultation.--In preparing each strategy required under 
subsection (a), the Administrator shall consult with the appropriate 
congressional committees and a wide range of relevant stakeholders to 
ensure that the strategy is appropriate to local needs and conditions 
and incorporates the views of partner countries.
    (d) Review and Coordination.--Each strategy prepared under 
subsection (a) shall be transmitted to the Interagency Policy Committee 
on Global Development established under section 1020 to ensure 
coordination with the United States Global Development Strategy and all 
other United States policies and programs pertaining to that sector.
    (e) Transmission to Congress.--
            (1) Schedule.--At the time of transmission of the United 
        States Strategy for Global Development pursuant to section 
        1017, the Administrator shall transmit to the appropriate 
        congressional committees a schedule for the completion within 
        the next 2 years of an initial strategy for each of the goals 
        described in section 1014.
            (2) Regular transmission.--Each strategy prepared under 
        subsection (a) shall be transmitted to the appropriate 
        congressional committees.
            (3) Public availability.--Each strategy prepared under 
        subsection (a) shall be published on the Internet website of 
        the Agency not later than 3 days after it is transmitted to the 
        appropriate congressional committees.
            (4) Revisions.--
                    (A) In general.--A strategy prepared under 
                subsection (a) and transmitted pursuant to paragraph 
                (2) may be revised at any time, but any significant 
                revision to such strategy shall be subject to the same 
                consultation, review, and transmission requirements 
                that are applicable to a strategy prepared under 
                subsection (a).
                    (B) Definition.--In this paragraph, the term 
                ``significant revision'' means a change--
                            (i) to a goal, objective, or indicator;
                            (ii) in the general nature of the policies 
                        and programs to be supported;
                            (iii) in the priority countries, regions, 
                        or intended beneficiaries; or
                            (iv) of more than 10 percent of the 
                        proportion of resources to be provided to a 
                        policy or program.
    (f) Implementation.--None of the funds made available under section 
1015 may be used to carry out a strategy prepared under subsection (a) 
until at least 15 days after the strategy is transmitted to the 
appropriate congressional committees pursuant to subsection (e).

SEC. 1020. INTERAGENCY POLICY COMMITTEE ON GLOBAL DEVELOPMENT.

    (a) Establishment.--The President shall establish an Interagency 
Policy Committee on Global Development (in this section referred to as 
the ``Committee'') to coordinate United States budgets, policies, and 
programs affecting international development.
    (b) Membership.--The Committee shall be composed of the 
Administrator and a senior representative of each Federal agency with 
policies or programs significantly affecting international development.
    (c) Chairperson.--The President shall designate a member of the 
Committee to serve as its Chairperson, who shall report directly to the 
President.
    (d) Vice Chairperson.--If the Administrator is not designated as 
Chairperson pursuant to subsection (c), then the Administrator shall 
serve as Vice Chairperson of the Committee.
    (e) Meetings.--
            (1) Regular meetings.--Meetings of the Committee shall be 
        held not less often than quarterly.
            (2) Additional meetings.--In addition to its regular 
        meetings, the Committee shall meet subject to the call of the 
        Chairperson or the Vice Chairperson.
    (f) Subordinate Units.--The Committee may establish such 
subordinate units as it determines necessary.
    (g) Duties.--The Committee shall--
            (1) advise the President with respect to the coordination 
        of United States budgets, policies, and programs affecting 
        international development, including programs of bilateral and 
        multilateral development assistance;
            (2) promote policy consistency and coherence, and minimize 
        program gaps and duplication;
            (3) prepare, on a quadrennial basis, a comprehensive 
        strategy to further the United States foreign policy objective 
        of reducing global poverty, as described in section 1017;
            (4) review, upon completion, Country Development 
        Cooperation Strategies required under section 1018, and ensure 
        that such strategies are coordinated with the United States 
        Strategy for Global Development and all other United States 
        policies and programs relating to the partner country;
            (5) review, upon completion, the sector strategies for 
        development prepared under section 1019, and ensure that such 
        strategies are coordinated with the United States Strategy for 
        Global Development and all other United States policies and 
        programs relating to that sector;
            (6) monitor and evaluate the results and impact of the 
        development policies and programs carried out by each Federal 
        agency;
            (7) facilitate coordination, cooperation, and information 
        sharing among Federal agencies; and
            (8) define and rationalize the role of each Federal agency 
        in carrying out development policies and programs.
    (h) Staffing.--
            (1) In general.--The Administrator shall provide 
        administrative and staff support to the Committee.
            (2) Other agencies.--The head of a Federal agency 
        represented on the Committee may temporarily assign, upon the 
        request of the Chairperson, one or more employees from the 
        agency to the staff of the Committee.

SEC. 1021. GLOBAL DEVELOPMENT COUNCIL.

    (a) Policy.--To help protect national security and further United 
States economic, humanitarian, and strategic interests in the world, it 
is the policy of the United States Government to promote and elevate 
development as a core pillar of United States power and chart a course 
for development, diplomacy, and defense to reinforce and complement one 
another. The successful pursuit of development is essential to 
advancing United States national security objectives: security, 
prosperity, respect for universal values, and a just and sustainable 
international order. The effectiveness of this development policy will 
depend in large measure on how the United States engages with partners, 
beneficiaries of development assistance, and stakeholders. The United 
States will use evidence-based decisionmaking in all areas of United 
States development policy and programs, and will foster development 
expertise and learning worldwide.
    (b) Establishment.--
            (1) In general.--The President shall establish a Global 
        Development Council (in this section referred to as the 
        ``Council'') to advise and support the President in furtherance 
        of the policy set out in subsection (a).
            (2) Located within agency.--The Council shall be 
        established for administrative purposes within the Agency, 
        subject to the foreign policy and budgetary guidance of the 
        Secretary.
    (c) Membership.--
            (1) In general.--The Council shall be composed of the 
        following:
                    (A) Not more than 12 individuals from outside the 
                United States Government appointed by the President. 
                Such members may serve as representatives of a variety 
                of sectors, including, among others, institutions of 
                higher education, non-profit and philanthropic 
                organizations, civil society, and private industry.
                    (B) The Secretary of State, the Secretary of the 
                Treasury, the Secretary of Defense, the Administrator 
                of the United States Agency for International 
                Development, and the Chief Executive Officer of the 
                Millennium Challenge Corporation, who--
                            (i) shall serve as non-voting members of 
                        the Council; and
                            (ii) may designate, to perform the Council 
                        functions of the member, a senior-level 
                        official who is part of the member's 
                        department, agency, or office, and who is a 
                        full-time officer or employee of the Federal 
                        Government.
            (2) Chair and vice chair.--The President shall designate a 
        member of the Council to serve as Chair and another member to 
        serve as Vice Chair. The Chair shall convene and preside at 
        meetings of the Council, determine meeting agendas, and direct 
        its work. The Vice Chair shall perform the duties of the Chair 
        in the absence of the Chair and shall perform such other 
        functions as the Chair may assign.
            (3) Terms.--The term of office of a member appointed by the 
        President from outside the United States Government shall be 2 
        years, and such member shall be eligible for reappointment and 
        may continue to serve after the expiration of such term until 
        the President appoints a successor. A member appointed to fill 
        a vacancy shall serve only for the unexpired term of such 
        vacancy.
    (d) Functions.--The Council shall meet regularly and shall--
            (1) inform the policy and practice of United States global 
        development policy and programs by providing advice to the 
        President and other senior officials on issues including--
                    (A) innovative, scalable approaches to development 
                with proven demonstrable impact, particularly on 
                sustainable economic growth and good governance;
                    (B) areas for enhanced collaboration between the 
                United States Government and public and private sectors 
                to advance development policy;
                    (C) best practices for and effectiveness of 
                research and development in low and middle income 
                economies; and
                    (D) long-term solutions to issues central to 
                strategic planning for United States development 
                efforts;
            (2) support new and existing public-private partnerships 
        by--
                    (A) identifying key areas for enhanced 
                collaboration and any barriers to collaboration; and
                    (B) recommending concrete efforts that the private 
                and public sectors together can take to promote 
                economic development priorities and initiatives; and
            (3) increase awareness and action in support of development 
        by soliciting public input on current and emerging issues in 
        the field of global development as well as bringing to the 
        President's attention concerns and ideas that would inform 
        policy options.
    (e) Administration and Related Matters.--
            (1) In general.--The heads of executive departments and 
        agencies shall assist and provide information to the Council, 
        consistent with applicable law, as may be necessary to carry 
        out the functions of the Council.
            (2) Funding and administrative support.--Funding and 
        administrative support for the Council shall be provided by the 
        Agency to the extent permitted by law and within existing 
        appropriations.
            (3) Executive director.--The Administrator shall appoint an 
        Executive Director who shall be a Federal officer or employee 
        of the Agency and serve as a liaison to the Administrator and 
        the Executive Office of the President and consult with relevant 
        Federal departments, agencies, and offices on matters and 
        activities pertaining to the Council.
            (4) Compensation; travel expenses.--The members of the 
        Council who are appointed from outside the Federal Government 
        shall serve without compensation for their work on the Council. 
        Members of the Council may 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.
            (5) To the extent as the Federal Advisory Committee Act 
        applies to the Council, any functions of the President under 
        such Act, except functions relating to reporting to Congress, 
        shall be performed by the Administrator in accordance with the 
        guidelines issued by the Administrator of General Services.
    (f) Termination.--
            (1) In general.--Except as provided in paragraph (2), the 
        Council shall terminate on the date that is 2 years after the 
        date of the enactment of this Act.
            (2) Extension.--The Council may be extended by the 
        President for additional two-year periods.
            (3) Report.--Prior to exercising the authority under 
        paragraph (2) to extend the Council, the President shall submit 
        to the appropriate congressional committees a report on the 
        activities of the Council during the previous two-year period.

SEC. 1022. DEVELOPMENT EDUCATION.

    The Administrator is authorized to use up to $1,000,000 of amounts 
made available under section 1015 in any fiscal year to support 
expansion and improvement of United States education about global 
poverty, the process and challenges of international development, and 
the interdependence of the United States and developing countries.

SEC. 1023. DEFINITIONS.

    In this subtitle:
            (1) Agriculture.--The term ``agriculture'' means the 
        science and practice of activities related to food, feed, 
        livestock, or fiber production, processing, marketing, 
        distribution, utilization, and trade, and encompasses the study 
        and practice of family and consumer sciences, nutrition, food 
        sciences, forestry, wildlife, fisheries, aquaculture, 
        floraculture, livestock management, veterinary medicine, and 
        other environmental and natural resource sciences.
            (2) Agricultural development.--The term ``agricultural 
        development'' means methods to use agriculture as a basis for 
        food security, family livelihood, and economic growth by--
                    (A) increasing the productivity of those involved 
                in the production of food, fuel, and fiber, including 
                farmers, fishers, foresters, and pastoralists, 
                particularly those that operate on a small scale;
                    (B) linking producers to consumers through markets, 
                including postharvest activities such as storage, 
                processing, transport, and improving market efficiency;
                    (C) supporting a legal, regulatory, and policy 
                environment that is conducive to agricultural 
                investment and production; and
                    (D) strengthening technical, financial, and 
                business service providers that help food producers 
                grow their enterprises.
            (3) Country systems.--The term ``country systems'' means 
        the public financial management, procurement, disbursement, and 
        monitoring and evaluation systems of a country.
            (4) Developing country.--The term ``developing country'' 
        means a country or area that is on the List of Official 
        Development Assistance Recipients of the Development Assistance 
        Committee of the Organization for Economic Cooperation and 
        Development.
            (5) Development stakeholder.--The term ``development 
        stakeholder''--
                    (A) means an entity directly or indirectly affected 
                by the success of efforts to reduce poverty and promote 
                self-sustaining, equitable, and environmentally sound 
                economic growth in a partner country; and
                    (B) includes--
                            (i) national, regional, and local 
                        governments and administering authorities, 
                        intermediate representative institutions, civil 
                        society organizations, and intended 
                        beneficiaries, including marginalized groups;
                            (ii) Federal agencies, congressional 
                        committees, the Government Accountability 
                        Office, and private partners; and
                            (iii) bilateral, multilateral, and private 
                        donors.
            (6) Food security.--The term ``food security'' means that 
        all people at all times have both physical and economic access 
        to sufficient food to meet their dietary needs for a healthy 
        and active life.
            (7) Relevant stakeholder.--The term ``relevant 
        stakeholder''--
                    (A) means a party that is--
                            (i) directly or indirectly affected by a 
                        particular law, regulation, policy, process, 
                        program, project, or activity; or
                            (ii) involved in the funding, design, 
                        implementation, auditing, or oversight thereof; 
                        and
                    (B) includes--
                            (i) national, regional, and local 
                        governments and administering authorities, 
                        intermediate representative institutions, civil 
                        society organizations, and intended 
                        beneficiaries, including marginalized groups;
                            (ii) Federal agencies, congressional 
                        committees, the Government Accountability 
                        Office, and private partners; and
                            (iii) bilateral, multilateral, and private 
                        donors.

                CHAPTER 1--ACCELERATING ECONOMIC GROWTH

SEC. 1101. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Broad-based and sustainable economic growth is the most 
        powerful engine for reducing poverty, and is key to advancing 
        human development. It is the surest way for countries to 
        generate the resources they need to address illiteracy, poor 
        health, and other development challenges on their own.
            (2) By expanding incomes, economic growth helps families 
        and individuals not only to meet their basic needs, but also to 
        realize their unique capabilities, exercise greater freedom in 
        their lives, and achieve their full human potential.
            (3) Economic growth enables countries to offer better 
        markets for United States goods and services and to become more 
        effective partners with the United States in working toward a 
        more stable, healthy, and prosperous world.
            (4) Well-functioning, dynamic private markets promote 
        economic activity and accelerate growth, providing increased 
        incomes and employment.
            (5) To encourage entrepreneurship and private investment, 
        developing countries must create a favorable legal, policy and 
        regulatory environment; an efficient and accountable system of 
        public financial management; fair, transparent and predictable 
        enforcement of property rights and contracts; effective 
        procedures for resolving economic disputes among firms and 
        individuals; and rigorous efforts to stem bribery and 
        corruption.
            (6) Even where markets are functioning well, differential 
        access to education, technology, credit and other resources can 
        cause economic benefits to be uneven. Expanding economic 
        opportunity and access to the tools that help citizens engage 
        in the market economy enables the poor, women and other 
        marginalized groups to participate in and contribute to 
        economic growth.
            (7) An abundance of young people in a country with a weak 
        economy and non-responsive government can leave individuals 
        frustrated by the lack of jobs and opportunities. But youth are 
        also key human resources for growth and positive change. When 
        governments embrace policies that promote education, economic 
        opportunities, the empowerment of women, and equitable access 
        to resources, countries can capitalize on the productivity of a 
        growing workforce to boost economic growth.
            (8) Expanding trade regionally and internationally is 
        critical for many of the smallest and poorest developing 
        countries, where local demand is too weak to support large-
        scale expansion of production, employment, and incomes. 
        Building trade capacity and removing trade barriers are 
        essential to lasting economic growth.
            (9) Heavy debt burdens, often accumulated under prior, 
        undemocratic regimes, can undermine the ability of developing 
        countries to invest in their people and make progress fighting 
        poverty.
            (10) United States international trade and economic 
        policies are often formulated with little recognition or 
        consideration of their impact on developing countries. More 
        active participation by the Agency in interagency 
        decisionmaking processes can help achieve greater balance among 
        competing United States interests, ensuring that development is 
        duly considered as a priority of United States foreign policy.
    (b) Statement of Policy.--It is the policy of the United States to 
work in cooperation with the international community to help partner 
countries achieve broad-based and sustainable economic growth that--
            (1) includes all major income groups, marginalized groups 
        and women;
            (2) significantly reduces poverty;
            (3) uses natural resources responsibly; and
            (4) reduces dependence on foreign assistance.

SEC. 1102. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of assistance under this chapter is to 
accelerate broad-based and sustainable economic growth.
    (b) Objectives.--In furtherance of the goal described in subsection 
(a), assistance under this chapter shall be designed to help partner 
countries achieve the following objectives:
            (1) Increase income-generating opportunities.
            (2) Expand access to markets, capital, credit, land, and 
        other productive resources.
            (3) Enhance productivity through education and training.
            (4) Improve the legal, regulatory and policy environment 
        for business and trade.
            (5) Build human and institutional capacity to compete in 
        the global economy.

SEC. 1103. GLOBAL STRATEGY FOR ECONOMIC GROWTH.

    (a) In General.--The strategy required under section 1019 with 
respect to accelerating economic growth shall be known as the ``Global 
Strategy for Economic Growth''.
    (b) Contents.--The Global Strategy for Economic Growth shall 
include, in addition to the elements required under section 1019(b), 
plans for achieving the goal and objectives of section 1102.
    (c) Guidelines.--The Global Strategy for Economic Growth should--
            (1) specify the role of microfinance and microenterprise 
        development, including the resources to be devoted to promoting 
        microenterprise;
            (2) identify United States policies relating to trade, 
        agriculture, debt, and other matters that have an impact on 
        economic growth in developing countries, and recommend changes 
        that would enhance development objectives;
            (3) plan for long-term sustainability through linkages to 
        regional and international markets and private investment;
            (4) include mechanisms for increasing consultation, 
        cooperation, and coordination with the private sector, in order 
        to attract greater private sector participation in development 
        activities;
            (5) address the impact of remittances and identify ways 
        that their development impact can be maximized;
            (6) recommend methods for reducing illicit outflows of 
        natural resources and capital from developing countries; and
            (7) establish mechanisms for improving policy and program 
        coordination among Federal agencies engaged in economic growth 
        activities.

SEC. 1104. ASSISTANCE FOR ECONOMIC GROWTH.

    (a)  Authorization.--The Administrator is authorized to use funds 
made available under section 1015 to further the goal and objectives of 
this chapter in partner countries.
    (b) Activities.--Assistance authorized under subsection (a) shall 
include the following:
            (1) Expanding income generating opportunities for the poor, 
        including women.
            (2) Enhancing the workforce by, among other things, 
        providing job training and vocational skills appropriate to 
        local needs and conditions.
            (3) Improving access, particularly of women and the poor, 
        to markets and productive resources, including credit and 
        financial services, affordable and resource-conserving 
        technologies, technical and market-related information, and 
        property and inheritance rights.
            (4) Strengthening the legal, policy, and regulatory 
        framework for broad-based and sustainable economic growth, 
        including the protection of private property and intellectual 
        property.
            (5) Supporting the development of cooperatives, credit 
        unions, and labor unions.
            (6) Expanding local capacity and demand for collection and 
        analysis of statistical information.
            (7) Promoting the development, reform or restructuring, as 
        appropriate, of financial, monetary, fiscal and regulatory 
        systems.
            (8) Building and strengthening institutional capacities to 
        plan, analyze, implement, manage, monitor and evaluate economic 
        policies and programs.
            (9) Promoting sound financial management practices and 
        budgetary policies, and reducing corruption, waste, fraud and 
        abuse.
            (10) Increasing private sector competitiveness, 
        strengthening local and regional markets, building trade 
        capacity, and expanding trade ties.
            (11) Promoting collaboration between public and private 
        sector entities for the reduction of poverty and its worst 
        physical manifestations, and encouraging private sector 
        investment in projects benefitting the poor.
            (12) Facilitating the development of social safety nets, 
        pension plans, insurance networks, and other mechanisms 
        designed to improve income security.
            (13) Protecting internationally recognized worker rights, 
        especially with regard to child labor.
            (14) Developing and identifying analytical tools and 
        methodologies to enable effective targeting and measurement of 
        programs for women, the poor and very poor.
            (15) Increasing the transparency of budgets and procurement 
        processes, and the effectiveness of oversight, monitoring, 
        accountability and audit mechanisms.

SEC. 1105. FISCAL AND CONTRACT TRANSPARENCY.

    (a) Establishment of International Standards.--The United States 
Government should seek, in appropriate multilateral fora, to establish 
voluntary international standards of fiscal and contract transparency, 
such as the public disclosure of budget documentation, including 
receipts and expenditures by ministry, and government contracts and 
licenses for natural resource extraction, including bidding and 
concession allocation practices.
    (b) Partnerships for Transparency.--The Administrator is authorized 
to use funds made available under this chapter to support improvements 
to fiscal and contract transparency in partner countries.
    (c) Requirement.--The Administrator shall not provide direct 
government-to-government assistance under this Act for any government 
that fails to make its national budget publicly available on an annual 
basis.
    (d) Definition.--In this section, the term ``government-to-
government assistance'' means assistance for a project or activity that 
is managed directly by a partner government entity using its own 
financial management and procurement systems.

          Subchapter A--Microenterprise Development Assistance

SEC. 1111. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Access by women and the poor to financial and business 
        development services is a vital factor in reducing poverty and 
        promoting sustainable economic growth in developing countries.
            (2) Microfinance and microenterprise development programs 
        have demonstrated high impact and long-term sustainability 
        because they build capacity for self-help among the poor, 
        especially women, thereby broadening the base for and 
        increasing the inclusiveness of economic growth.
            (3) In order to ensure that microenterprise programs 
        promote the maximum financial inclusion of women, gender 
        analysis should be integrated into microenterprise program 
        design, implementation, monitoring and evaluation.
            (4) A comprehensive approach to microenterprise development 
        includes support for the provision of credit, savings, 
        insurance, education and training, technical assistance, 
        business development, and other financial services to women, 
        poor people, and other marginalized groups.
            (5) Microenterprise development and microfinance are 
        particularly important to enhancing the livelihoods of 
        refugees, displaced persons, and those affected by conflict, 
        whose routine employment opportunities and access to productive 
        resources have been reduced or disrupted.
            (6) Microenterprise and microfinance activities should be 
        thoroughly integrated into all aspects of development, 
        especially including agriculture and health.
            (7) United States Government support for microfinance and 
        microenterprise development should complement private 
        initiatives in this area by focusing on those who lack access 
        to formal financial services, and on countries and sectors that 
        have been underserved by private capital flows.
            (8) United States Government funds should be used to 
        catalyze and attract additional resources, including private 
        sector funds, investment funds, and the savings of the poor, 
        such as through matching fund opportunities and challenge 
        grants.
            (9) United States Government-supported microfinance lending 
        should accept a higher level of risk than private lending in 
        order to promote innovative products and methodologies and 
        serve poorer and harder-to-reach populations.
            (10) United States Government support for microenterprise 
        development and microfinance should build the capacity of local 
        institutions in order to enable them to better meet the credit, 
        savings, and training needs of microfinance and microenterprise 
        clients.
            (11) Microfinance and microenterprise activities, 
        especially those benefitting the very poor, should be a 
        significant component of development assistance.
    (b) Statement of Policy.--It is the policy of the United States to 
promote a global strategy of financial inclusion for all, and 
especially the very poor and women, through support for microfinance 
and microenterprise development in partner countries.

SEC. 1112. MICROENTERPRISE FUND.

    (a) In General.--The Administrator shall establish a centrally 
managed fund for microfinance and microenterprise development 
activities, to be known as the ``Microenterprise Fund''. Assistance 
provided through the Microenterprise Fund shall be in addition to 
assistance otherwise made available for such purposes.
    (b) Activities.--Assistance provided through the Microenterprise 
Fund shall be used to advance the policy described in section 1111(b), 
including through the following activities:
            (1) Expanding the availability of credit, savings and other 
        financial and nonfinancial services to microfinance and 
        microenterprise clients.
            (2) Training, technical assistance and business development 
        services for microenterprises.
            (3) Capacity-building for microfinance and microenterprise 
        institutions.
            (4) Improving the legal and regulatory environment for 
        microenterprise and for financial institutions that serve the 
        poor and very poor.
            (5) Developing new and innovative microfinance and 
        microenterprise products and services.
            (6) Developing, identifying and testing tools that 
        facilitate better targeting of programs to the very poor, 
        women, and other disadvantaged groups.
            (7) Providing targeted core support for microfinance and 
        microenterprise networks and other practitioners.
    (c) Targeting of Assistance.--
            (1) Very poor and women.--At least 50 percent of the 
        assistance provided through the Microenterprise Fund shall be 
        targeted to microenterprise clients who are very poor, and a 
        significant proportion of such assistance shall be targeted to 
        women.
            (2) Poverty assessment tools.--In targeting assistance 
        pursuant to paragraph (1), the Administrator shall identify, 
        field-test, and certify for use no fewer than two low-cost 
        methods to assess the poverty levels of incoming or prospective 
        clients of microenterprise institutions, and shall require that 
        all private partners use one of the certified methods.
    (d) Private Partners.--Assistance provided through the 
Microenterprise Fund shall emphasize the use of private partners who--
            (1) match such assistance, to the greatest extent 
        practicable, with non-United States Government resources, 
        including funds from other donors, commercial or concessional 
        borrowing, participant savings, and program income;
            (2) maintain low overhead and administrative costs;
            (3) are highly technically competitive;
            (4) design their programs to meet the needs of women;
            (5) target their resources at the very poor;
            (6) design their programs for maximum financial 
        sustainability; and
            (7) adopt robust client protection principles and 
        incorporate them into their practices.

SEC. 1113. OFFICE OF MICROENTERPRISE DEVELOPMENT.

    (a) Establishment.--There is established within the Agency an 
Office of Microenterprise Development (hereafter in this section 
referred to as the ``Office''), which shall be headed by a Director who 
shall be appointed by the Administrator and who should possess 
technical expertise and ability to offer leadership in the field of 
microenterprise development.
    (b) Responsibilities.--The Office shall be responsible for--
            (1) administering the Microenterprise Fund established 
        under section 1112;
            (2) developing a comprehensive and coherent plan, which 
        shall be made available to the public, for promoting financial 
        inclusion for all through microfinance and microenterprise 
        development programs;
            (3) ensuring that such plan is integrated into the Global 
        Strategy for Economic Growth described in section 1103 and 
        other country and sector strategies for development, as 
        appropriate;
            (4) advising and providing technical support to Agency 
        missions regarding the design and implementation of 
        microfinance and microenterprise development programs, 
        including through incorporation of such programs into Country 
        Development Cooperation Strategies;
            (5) setting performance goals and indicators to ensure that 
        microfinance and microenterprise development activities benefit 
        the very poor and women; and
            (6) collecting and disseminating detailed data to document 
        the impact of microfinance and microenterprise development 
        activities on the very poor and women.

SEC. 1114. DEFINITIONS.

    In this subchapter:
            (1) Microenterprise.--The term ``microenterprise'' means a 
        firm of 10 or fewer employees, including unpaid workers, which 
        is owned and operated by someone who is poor.
            (2) Microfinance.--The term ``microfinance'' means 
        activities to provide, or to increase the availability of, 
        credit, savings, insurance, and other financial services to 
        microenterprises.
            (3) Very poor.--The term ``very poor'' refers to 
        individuals whose incomes are--
                    (A) in the bottom 50 percent of those below the 
                poverty line in their country of residence; or
                    (B) below the World Bank international extreme 
                poverty line.

         Subchapter B--Small and Medium Enterprise Development

SEC. 1121. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Small and medium enterprises (SMEs) are key drivers of 
        competition, growth, and job creation, particularly in 
        developing countries. They make up an estimated 90 percent of 
        businesses and over 50 percent of employment worldwide.
            (2) Access to financial services for SMEs remains severely 
        constrained in many emerging markets.
            (3) The global financial crisis created a financing gap 
        that particularly affected SMEs, making it more difficult for 
        these enterprises to find the capital to grow their businesses 
        and create jobs.
            (4) Even as liquidity is restored to financial 
        institutions, lending volumes remain depressed and SMEs still 
        have limited access to financing.
            (5) The lack of agribusinesses in rural areas has 
        contributed to the growth of urban slums and a burgeoning 
        population of disaffected youth.
            (6) Increasing access to finance for SMEs is best achieved 
        by increasing the depth and breadth of local financial markets 
        and boosting the competitiveness of the private financial 
        sector.
            (7) Enabling growth--and ensuring that poor people can 
        participate--requires an environment where people are able to 
        start and grow businesses, as well as create more jobs.
    (b) Statement of Policy.--It is the policy of the United States to 
encourage entrepreneurship and expand the formal sector in partner 
countries by--
            (1) building the capacity of SMEs;
            (2) increasing SME access to financial services, 
        technology, training, and other resources; and
            (3) reducing the legal and bureaucratic hurdles to starting 
        a business.

SEC. 1122. ASSISTANCE FOR SMALL AND MEDIUM ENTERPRISES.

    The Administrator is authorized to use funds made available under 
this chapter for programs to encourage entrepreneurship and strengthen 
small and medium enterprises in partner countries, including:
            (1) Training in entrepreneurship, including basic business 
        management, accounting, bookkeeping, marketing, risk 
        management, and computer skills.
            (2) Agriculture entrepreneurship training, particularly to 
        increase employment opportunities in rural areas.
            (3) Establishing youth entrepreneurship programs in schools 
        or through community partnerships with business and youth 
        organizations to promote economic skills, ethics, integrity, 
        and healthy life skills among youth.
            (4) Strengthening laws, regulations, and enforcement 
        mechanisms to protect national and international intellectual 
        property rights and to protect the people and industries of 
        developing countries against imported counterfeit goods.
            (5) Combating anti-competitive, unethical, and corrupt 
        practices.
            (6) Improving the technology and information resources of 
        financial institutions and small and medium enterprises.
            (7) Promoting the establishment of lending programs of 
        financial institutions for small and medium enterprises.
            (8) Developing internal credit rating systems and credit 
        assessment tools that improve the ability of financial 
        institutions to evaluate risk.
            (9) Programs specifically targeted to small and medium 
        enterprises owned by women, youth, and displaced persons.

SEC. 1123. DEFINITION.

    In this subchapter, the term ``small and medium enterprise'' means 
a corporation, sole proprietorship, partnership, or other legal entity 
that--
            (1) has its principal place of business in a partner 
        country;
            (2) is owned or controlled by persons who are citizens of 
        such partner country; and
            (3) has fewer than 50 employees.

                      Subchapter C--Other Programs

SEC. 1131. DEVELOPMENT CREDIT AUTHORITY.

    (a) Authorization of Credit.--
            (1) In general.--The Administrator is authorized to provide 
        direct loans, loan guarantees, and other investments involving 
        the extension of credit to achieve any of the goals of this 
        subtitle in cases in which--
                    (A) the borrowers or activities are determined to 
                be sufficiently creditworthy and do not otherwise have 
                access to such credit; and
                    (B) the use of credit authority is appropriate to 
                the achievement of such goals.
            (2) Designation.--Assistance authorized under this 
        subsection shall be known as the ``Development Credit 
        Authority''.
    (b) Priority Activities.--To the maximum extent practicable, the 
Administrator shall give preference to providing assistance authorized 
under subsection (a) to promote--
            (1) the policy described in section 1111(b);
            (2) sustainable urban and environmental activities 
        described in chapters 5 and 6; and
            (3) policy and institutional reforms in accordance with the 
        objectives of this chapter.
    (c) Default and Commodity Provisions.--
            (1) Default provision.--For purposes of this Act, the 
        default of a private sector recipient of assistance provided 
        under this section shall not be considered to be the default of 
        the government of the country in which the private sector 
        recipient is located.
            (2) Commodity provision.--Assistance may be provided under 
        this section without regard to commodity restrictions (as such 
        term is defined in section 11001).
    (d) Terms and Conditions of Credit Assistance.--
            (1) In general.--Assistance provided under this section 
        shall be offered on such terms and conditions, including fees 
        charged, as the Administrator may determine.
            (2) Limitation.--The principal amount of loans made or 
        guaranteed under this section in any fiscal year, with respect 
        to any single country or borrower, may not exceed $100,000,000.
            (3) Fraud and misrepresentation.--No payment may be made 
        under any guarantee issued under this section for any loss 
        arising out of fraud or misrepresentation for which the party 
        seeking payment is responsible.
    (e) Full Faith and Credit.--All guarantees issued under this 
section shall constitute obligations, in accordance with the terms of 
such guarantees, of the United States of America and the full faith and 
credit of the United States of America is hereby pledged for the full 
payment and performance of such obligations to the extent of the 
guarantee.
    (f) Co-Financing and Risk Sharing.--
            (1) In general.--Assistance provided under this section 
        shall be in the form of co-financing or risk sharing.
            (2) Requirement.--Credit assistance may not be provided to 
        a borrower under this section unless the Administrator 
        determines that there are reasonable prospects of repayment by 
        such borrower.
            (3) Additional requirement.--The investment or risk of the 
        United States in any one development activity may not exceed 80 
        percent of the total outstanding investment or risk.
    (g) Eligible Borrowers.--
            (1) In general.--In order to be eligible to receive credit 
        assistance under this section, a borrower shall be sufficiently 
        credit worthy so that the estimated costs (as defined in 
        section 502(5) of the Federal Credit Reform Act of 1990) of the 
        proposed credit assistance for the borrower does not exceed 30 
        percent of the principal amount of credit assistance to be 
        received.
            (2) Additional requirement.--
                    (A) In general.--With respect to the eligibility of 
                a foreign government as an eligible borrower under this 
                section, the Administrator shall make a determination 
                that the additional debt of the government will not 
                exceed the debt repayment capacity of the government.
                    (B) Consultation.--In making a determination under 
                paragraph (A), the Administrator shall consult, as 
                appropriate, with international financial institutions 
                and other institutions or agencies that assess debt 
                service capacity.
    (h) Assessment of Credit Risk.--
            (1) In general.--The Administrator shall use the 
        Interagency Country Risk Assessment System (ICRAS) and the 
        methodology approved by the Office of Management and Budget to 
        assess the cost of risk credit assistance provided under this 
        section to foreign governments.
            (2) Consultation.--With respect to the provision of credit 
        to nongovernmental organizations, the Administrator--
                    (A) shall consult with appropriate private sector 
                institutions, including large United States private 
                sector debt rating agencies, prior to establishing the 
                risk assessment standards and methodologies to be used; 
                and
                    (B) shall periodically consult with such 
                institutions in reviewing the performance of such 
                standards and methodologies.
            (3) Use of cost and risk assessment determinations of 
        private sector co-financing entities.--In addition, if the 
        anticipated share of financing attributable to public sector 
        owned or controlled entities, including the Agency, exceeds 49 
        percent, the Administrator shall determine the cost (as defined 
        in section 502(5) of the Federal Credit Reform Act of 1990) of 
        such assistance by using the cost and risk assessment 
        determinations of the private sector co-financing entities.
    (i) Retention of Receipts Collected.--Receipts collected pursuant 
to this section, and the Federal Credit Reform Act of 1990, in an 
amount not to exceed the amount appropriated for a fiscal year, shall 
be credited as offsetting collections for Development Support Funds, 
and shall be used to reduce, on a dollar-for-dollar basis, 
appropriations for that purpose. Amounts collected in a fiscal year in 
excess of obligations shall remain available until expended.

SEC. 1132. TECHNICAL ASSISTANCE FOR FINANCIAL MANAGEMENT.

    (a) Establishment of Program.--
            (1) In general.--The Secretary of the Treasury, in 
        consultation with the Secretary of State and the Administrator, 
        is authorized to establish a program to provide technical 
        assistance to foreign governments and foreign central banks of 
        partner countries.
            (2) Role of secretary of state.--The Secretary of State 
        shall provide foreign policy guidance to the Secretary of the 
        Treasury to ensure that the program established under this 
        subsection is effectively coordinated with United States 
        foreign policy.
            (3) Role of administrator.--The Administrator shall provide 
        development guidance to the Secretary of the Treasury to ensure 
        that the program established under this subsection is 
        effectively coordinated with United States development policy 
        and furthers the goals of this subtitle.
    (b) Conduct of Program.--
            (1) In general.--In carrying out the program established 
        under subsection (a), the Secretary of the Treasury shall 
        provide economic and financial technical assistance to foreign 
        governments and foreign central banks of partner countries by 
        providing advisers with appropriate expertise to advance the 
        enactment of laws and establishment of administrative 
        procedures and institutions in such countries to promote 
        financial integrity, financial inclusion, consumer protection, 
        financial education, macroeconomic and fiscal stability, 
        efficient resource allocation, transparent and market-oriented 
        processes and sustainable private sector growth.
            (2) Additional requirements.--To the extent practicable, 
        such technical assistance shall be designed to establish--
                    (A) tax systems that are fair, objective, and 
                efficiently gather sufficient revenues for governmental 
                operations;
                    (B) debt issuance and management programs that rely 
                on market forces;
                    (C) budget planning and implementation that permits 
                responsible fiscal policy management;
                    (D) commercial banking sector development that 
                efficiently intermediates between savers and investors; 
                and
                    (E) financial law development and enforcement to 
                protect the integrity of financial systems, financial 
                institutions, and government programs.
            (3) Emphasis on anti-corruption.--Such technical assistance 
        shall include elements designed to combat anti-competitive, 
        unethical, and corrupt activities, including protection against 
        actions that may distort or inhibit transparency in market and 
        trade mechanisms and, to the extent applicable, privatization 
        procedures.
    (c) Administrative Requirements.--In carrying out the program 
established under subsection (a), the Secretary of the Treasury shall--
            (1) in consultation with the Secretary of State and the 
        Administrator, establish a methodology for identifying and 
        selecting foreign governments and foreign central banks to 
        receive assistance under the program;
            (2) prior to selecting a foreign government or foreign 
        central bank to receive assistance under the program, receive 
        the concurrence of the Secretary of State with respect to the 
        selection of such government or central bank and with respect 
        to the cost of the assistance to such government or central 
        bank;
            (3) consult with the heads of appropriate Federal agencies 
        and international financial institutions to avoid duplicative 
        efforts with respect to those foreign countries for which such 
        agencies or organizations provide similar assistance;
            (4) ensure that the program is consistent with the global, 
        sector, and country strategies being implemented by the Agency; 
        and
            (5) establish and carry out a plan to monitor and evaluate 
        the program, consistent with the requirements of section 9201.
    (d) Administrative Authorities.--The administrative authorities 
applicable to the Secretary of State with respect to funds made 
available under this Act shall also be applicable to the Secretary of 
the Treasury with respect to funds made available under this section.
    (e) Issuance of Regulations.--The Secretary of the Treasury is 
authorized to issue such regulations with respect to personal service 
contractors as the Secretary determines necessary to carry out this 
section.
    (f) Rule of Construction.--Nothing in this section shall be 
construed to infringe upon the powers or functions of the Secretary of 
State (including the powers or functions described in section 103 of 
the Omnibus Diplomatic Security and Antiterrorism Act of 1986 (22 
U.S.C. 4802)) or of any chief of mission (including the powers or 
functions described in section 207 of the Foreign Service Act of 1980 
(22 U.S.C. 3927)).
    (g) Termination of Assistance.--The Secretary of the Treasury shall 
conclude assistance activities for a recipient foreign government or 
foreign central bank under the program established under subsection (a) 
if the Secretary of the Treasury, after consultation with the 
appropriate officers of the United States, determines that such 
assistance has resulted in the enactment of laws or the establishment 
of institutions in that country that promote fiscal stability and 
administrative procedures, efficient resource allocation, transparent 
and market-oriented processes and private sector growth in a 
sustainable manner.
    (h) Definitions.--In this section:
            (1) International financial institution.--The term 
        ``international financial institution'' means the International 
        Monetary Fund, the International Bank for Reconstruction and 
        Development, the International Development Association, the 
        International Finance Corporation, the Multilateral Investment 
        Guarantee Agency, the Asian Development Bank, the Asian 
        Development Fund, the African Development Bank, the African 
        Development Fund, the Inter-American Development Bank, the 
        Inter-American Investment Corporation, the European Bank for 
        Reconstruction and Development, and the Bank for Economic 
        Cooperation and Development in the Middle East and North 
        Africa.
            (2) Technical assistance.--The term ``technical 
        assistance'' includes--
                    (A) the provision of expert advisers to assist 
                foreign governments and foreign central banks for the 
                purposes described in subsection (b)(1);
                    (B) training in the partner country, the United 
                States, or elsewhere for the purposes described in 
                subsection (b)(1);
                    (C) grants of goods, services, or funds to foreign 
                governments and foreign central banks for the purposes 
                described in subsection (b)(1);
                    (D) grants to United States or local nonprofit 
                organizations to provide services or products which 
                contribute to the provision of advice to foreign 
                governments and foreign central banks; and
                    (E) study tours for foreign officials in the United 
                States or elsewhere for the purpose of providing 
                technical information to such officials.
            (3) Foreign participant.--The term ``foreign participant'' 
        means a national of a partner country who has been designated 
        to participate in activities under the program established 
        under subsection (a).

                   CHAPTER 2--PROMOTING FOOD SECURITY

SEC. 1201. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Hunger robs the poor of a healthy and productive life 
        and stunts the mental and physical development of the next 
        generation. The persistence of widespread hunger and 
        malnutrition constitutes an affront to shared moral values and 
        humanitarian principles.
            (2) Food insecurity and chronic hunger are expanding 
        rapidly in developing countries, forcing millions of people 
        into poverty, contributing to political and social instability, 
        eroding economic growth, and undermining investments in basic 
        education, health, environmental protection, and democratic 
        institutions.
            (3) Volatility and real increases in food prices, which are 
        expected to grow as grain production fails to keep pace with 
        rising demand, cause food insecurity and hunger for poor people 
        even when sufficient food is available on the market.
            (4) The changing global climate, as well as the degradation 
        of land and water resources, threatens food security, 
        livelihoods and the environment worldwide but particularly for 
        those already most vulnerable: the millions of rural poor in 
        developing countries.
            (5) The pressures on world food supplies and agricultural 
        land use caused by population growth, rapid urbanization, 
        energy, agricultural and trade policies in industrialized 
        countries, water scarcity, and climate change require a global 
        commitment to sustainable agriculture and the environment.
            (6) Lack of transparent regulations, inconsistent and 
        unpredictable public policies in developing and developed 
        countries, and unreliable mechanisms to enforce contracts 
        between businesses serve to undermine development goals, deter 
        private investment, and limit the ability of agricultural 
        producers and businesses to access capital. This situation 
        reduces the incentives for agricultural producers to increase 
        the quantity, quality, and value of their agricultural 
        production.
            (7) Reducing chronic hunger is essential to build a 
        foundation for investments in health, education and economic 
        growth. It is critical to the security and productivity of 
        individuals, families, communities, and nations.
            (8) Approximately three-quarters of people in developing 
        countries live in rural areas, with the vast majority dependent 
        on agriculture for their livelihoods. Agricultural development 
        is a proven engine of growth that reduces global hunger and 
        poverty.
            (9) Women will be a pivotal force behind achieving a food 
        secure world. In many developing countries, farming is done 
        mostly by women. However, women only own 2 percent of land 
        worldwide and often have limited access to agriculture inputs, 
        loans, and opportunities to learn about improved techniques. 
        When gains in income are controlled by women, they are more 
        likely to be spent on food and children's needs, thus 
        amplifying the benefits of investments in women across families 
        and generations.
            (10) The 1,000 days between a woman's pregnancy and her 
        child's second birthday offer a unique window of opportunity to 
        help families, communities, and countries break the cycle of 
        poverty. Solutions to improve maternal and child nutrition in 
        the 1,000-day window are readily available, affordable, and 
        cost-effective, including vitamins and minerals and good 
        nutritional practices, such as breastfeeding.
            (11) A comprehensive approach to long-term food security 
        should encompass improvements in--
                    (A) food availability, such that sufficient 
                quantities of appropriate, necessary types of food are 
                consistently available to all persons;
                    (B) food access, such that individuals have 
                adequate incomes or other resources to consistently 
                maintain an adequate diet, and food is allocated 
                equitably within households;
                    (C) food utilization and consumption, such that 
                people have the knowledge and basic sanitary conditions 
                to choose, store, prepare and distribute food in a way 
                that results in good nutrition for all family members;
                    (D) stability, such that the ability to access and 
                utilize food remains stable and sustained over time, 
                regardless of adverse weather conditions, political 
                instability, or economic factors; and
                    (E) food quality and safety, such that food 
                supplies provide adequate nutritional value, are free 
                of contamination, and are fit for human consumption.
            (12) The greatest potential for significantly expanding 
        availability of food for people in rural areas and augmenting 
        world food production at relatively low cost lies in increasing 
        the productivity of small farmers, who constitute a majority of 
        the agricultural producers in developing countries.
            (13) However, increasing the efficiency of agricultural 
        producers alone will not result in higher incomes and reduced 
        hunger unless surplus harvest and products can be sold in well-
        functioning local, national, regional, or international 
        markets. Development of strong, integrated, local, national, 
        and regional agriculture and food markets will increase the 
        availability of safe and nutritious food, decrease local 
        prices, and expand economic growth.
            (14) The United States should emphasize policies and 
        programs that assist developing countries to increase their 
        national food security by improving their food policies and 
        management and by strengthening national food reserves, with 
        particular concern for the needs of the poor, through measures 
        encouraging domestic production.
            (15) The long-term food security of developing countries 
        requires that adequate legal and procedural mechanisms are in 
        place to protect local rights and the welfare of rural poor 
        people who depend on agriculture for their livelihoods.
            (16) While the United States cannot be expected to shoulder 
        the majority of global investments in ending hunger and 
        providing food security, the United States can and should lead 
        the international community by demonstrating a sustained 
        commitment and a comprehensive approach to meeting 
        international goals and targets for reducing hunger and 
        undernutrition.
            (17) Partner countries should decide their needs, 
        priorities, and strategies for agricultural development and 
        food security through an open, participatory and inclusive 
        process that takes into account the needs and views of poor 
        people, women, and other marginalized groups. International 
        efforts to improve food security and nutritional status are not 
        sustainable over the long term without robust leadership and 
        ownership by partner countries.
            (18) Nongovernmental organizations and cooperatives are 
        particularly important for combating food insecurity and 
        increasing the sustainability of public investments. Given 
        their close ties to local communities, such organizations and 
        cooperatives are often effective at ensuring that people who 
        are very poor and vulnerable are consulted about and benefit 
        from agricultural and nutrition programs.
            (19) Educational and research institutions play a key role 
        in developing the institutional capacity and human resources of 
        developing countries, including the establishment and 
        strengthening of agricultural research and extension services, 
        the development of networks for scientific collaboration, the 
        dissemination of improved methods and technologies, and the 
        training of students, teachers, researchers and practitioners.
            (20) With their convening authority and technical 
        expertise, multilateral institutions play a central role in 
        efforts to enhance food security by providing emergency 
        assistance, undertaking research and analysis, offering a 
        platform for sector-wide investments in agriculture, and 
        providing a significant portion of the external financing for 
        investment projects and programs in developing countries. They 
        are important not only to mobilizing and coordinating donor 
        country commitments, but also to promoting global mutual 
        accountability among donors, partner countries and other 
        stakeholders.
            (21) Public sector investments alone, while important, are 
        not sufficient to sustainably reduce poverty and food 
        insecurity. The private sector brings necessary financial 
        resources, human capital, technological resources, intellectual 
        property, market access, cutting-edge business practices, in-
        country networks, and other relevant experience.
    (b) Statement of Policy.--It is the policy of the United States to 
recognize the human right to food and to work in cooperation with the 
international community to end hunger and achieve universal food 
security.

SEC. 1202. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of assistance under this chapter is to 
sustainably reduce global hunger.
    (b) Objectives.--In furtherance of the goal of subsection (a), 
assistance under this chapter shall be designed to help partner 
countries achieve the following objectives:
            (1) Accelerating inclusive agriculture sector growth.
            (2) Improving nutritional status, especially of women and 
        children and other vulnerable populations.
            (3) Increasing resilience in vulnerable rural communities.

SEC. 1203. GLOBAL STRATEGY FOR FOOD SECURITY.

    (a) In General.--The strategy required under section 1019 with 
respect to food security shall be known as the ``Global Strategy for 
Food Security''.
    (b) Contents.--The Global Strategy for Food Security shall include, 
in addition to the elements required under section 1019(b), plans for 
achieving the goal and objectives of section 1202.
    (c) Guidelines.--The Global Strategy for Food Security should--
            (1) address the root causes of hunger that limit the 
        potential of millions of people;
            (2) reduce gender inequality and integrate gender concerns;
            (3) promote climate-resistant and environmentally 
        sustainable agricultural development;
            (4) concentrate efforts and resources on core countries 
        where the Rome Principles (as defined in section 1208) can best 
        be realized;
            (5) be tailored to improving the nutritional status of 
        women, infants and children, particularly during the 1,000 day 
        critical window of opportunity between a woman's pregnancy and 
        her child's second birthday, in which a set of proven nutrition 
        interventions can dramatically improve the child's chances of 
        surviving and living a healthy and prosperous life;
            (6) invest in country-owned plans that are designed through 
        an open, participatory, and inclusive process and support 
        results-based programs and partnerships;
            (7) strengthen strategic coordination to mobilize and align 
        the resources of diverse partners and stakeholders;
            (8) ensure a comprehensive approach that accelerates 
        inclusive agricultural-led growth and improves nutrition, while 
        also bridging humanitarian relief and sustainable development 
        efforts;
            (9) leverage the benefits of multilateral institutions so 
        that priorities and approaches are aligned, investments are 
        coordinated, and financial and technical assistance gaps are 
        filled; and
            (10) deliver on sustained and accountable commitments, 
        using benchmarks and targets to measure progress toward shared 
        goals, and hold the United States and other stakeholders 
        publicly accountable for achieving results.

SEC. 1204. ASSISTANCE FOR PROMOTING FOOD SECURITY.

    (a) Authorization.--The Administrator is authorized to use funds 
made available under section 1015 to further the goal and objectives of 
this chapter.
    (b) Activities.--Assistance authorized under subsection (a) shall 
include--
            (1) sustainably improving agricultural productivity by--
                    (A) increasing access to agricultural inputs, 
                techniques, and technologies that are affordable and 
                environmentally responsible;
                    (B) developing inputs, techniques, and technologies 
                that are adapted to local conditions;
                    (C) expanding access to knowledge through 
                agricultural extension;
                    (D) strengthening property rights to land and other 
                productive assets;
                    (E) enhancing sustainability and resilience of 
                production through sound environmental and natural 
                resource management;
                    (F) increasing access to dependable and affordable 
                financial and risk management services;
                    (G) strengthening agricultural producer 
                organizations; and
                    (H) strengthening regional harmonization and 
                coordination;
            (2) expanding markets and trade by--
                    (A) increasing the quality and availability of 
                market information for producers and enterprise owners;
                    (B) improving post-harvest market infrastructure;
                    (C) improving access to business development and 
                financial services;
                    (D) enhancing animal, plant and food safety;
                    (E) reducing the time and cost of moving goods 
                across borders;
                    (F) creating an enabling policy environment for 
                agribusiness growth and private investment, including 
                transparent regulations, consistent and predictable 
                public policies, and reliable contract enforcement 
                mechanisms;
                    (G) expanding access to larger and better 
                functioning regional markets; and
                    (H) supporting regional development corridors;
            (3) raising nutritional status by--
                    (A) supporting community-based programs to deliver 
                nutrition education;
                    (B) improving diet quality and diversity, including 
                in food assistance programs;
                    (C) expanding access to clean water and improved 
                sanitation and promoting good hygiene practices;
                    (D) expanding delivery of nutrition services; and
                    (E) facilitating supplementary and therapeutic 
                feeding;
            (4) increasing resilience in vulnerable rural communities 
        by--
                    (A) mitigating risks associated with drought, 
                natural disasters, and disease;
                    (B) promoting secure access to land and natural 
                resources;
                    (C) expanding access to financial services, 
                training, and technical assistance for microenterprises 
                and small businesses;
                    (D) supporting effective delivery and 
                implementation of productive safety nets and social 
                protection systems;
                    (E) building capacity to manage risk through early 
                warning systems, vulnerability assessment and mapping, 
                emergency response strategies, and micro-insurance;
                    (F) increasing the benefits of local and regional 
                food assistance procurement to smallholder farmers; and
                    (G) adopting and delivering extension and financial 
                services and improved technologies to very poor 
                communities; and
            (5) supporting a participatory and inclusive process for 
        determining needs, priorities, and strategies and holding 
        stakeholders accountable for results by--
                    (A) expanding and facilitating the inclusion of 
                women, rural poor people, and other marginalized groups 
                in decisionmaking;
                    (B) building the capacity of the groups described 
                in subparagraph (A) to participate effectively in 
                decisionmaking;
                    (C) developing and enforcing legal protections for 
                the rights and welfare of the groups described in 
                subparagraph (A);
                    (D) setting meaningful benchmarks and selecting 
                appropriate indicators for the chosen strategies;
                    (E) improving the quality and availability in 
                partner countries of relevant data and analysis; and
                    (F) establishing and strengthening mechanisms for 
                monitoring programs, measuring progress, evaluating 
                outcomes, disseminating findings, and integrating best 
                practices and lessons learned.

SEC. 1205. COLLABORATIVE AGRICULTURAL AND NUTRITION RESEARCH AND 
              INNOVATION.

    (a) Programs Authorized.--The Administrator is authorized to use 
funds made available under this chapter for collaborative agricultural 
and nutrition research and innovation programs, including--
            (1) advancing the institutional capacity and human 
        resources of developing countries, including the establishment 
        and strengthening of national agricultural research and 
        extension systems;
            (2) conducting long-term collaborative research support 
        programs with institutions of higher education in developing 
        countries, including the training of students, teachers, 
        extension specialists, nutritionists, and researchers;
            (3) developing a global network for scientific 
        collaboration on agricultural development, trade, research, and 
        extension services;
            (4) broadly disseminating agricultural research in 
        developing countries, in partnership with public and private 
        extension systems, cooperatives, and other civil society 
        organizations;
            (5) expanding learning opportunities about agriculture and 
        nutrition for students, teachers, small-scale food producers, 
        school administrators, community leaders, entrepreneurs, and 
        the general public in developing countries through 
        international internships and exchanges, graduate fellowships, 
        faculty positions, and other means of education and extension, 
        with a focus on reaching women food producers;
            (6) incentivizing the development of new and innovative 
        technology and methods to increase agricultural productivity 
        and improve nutritional status;
            (7) developing scalable and cost-effective programs for 
        training the next generation of agricultural researchers and 
        research administrators in partner countries;
            (8) advancing women's leadership in science and technology 
        through proactive recruitment, mentoring, and targeted research 
        support;
            (9) formulating approaches to improving agricultural and 
        nutrition education and extension that is relevant to 
        agricultural producers, their needs, and the local environment;
            (10) creating platforms for improving national capacity to 
        collect, develop, analyze, and disseminate agricultural, 
        nutrition, and market data; and
            (11) developing mechanisms to hold research institutions 
        accountable for delivering technologies to agricultural 
        producers.
    (b) Research Priorities.--In providing assistance for agricultural 
research under this section, the Administrator should give priority to 
research that--
            (1) is aimed at improving food security;
            (2) specifically addresses the nutritional needs of 
        vulnerable populations;
            (3) is appropriate to local conditions and practices;
            (4) conserves the environment and natural resources and 
        adapts to and mitigates the impacts of climate change; and
            (5) builds local capacity.

SEC. 1206. BOARD FOR INTERNATIONAL FOOD AND AGRICULTURAL DEVELOPMENT.

    (a) Establishment.--There is established a Board for International 
Food and Agricultural Development (hereafter in this section referred 
to as the ``Board''). The Board shall report to the Administrator.
    (b) Purpose.--The purpose of the Board is to advise and assist the 
Administrator regarding the design and administration of assistance 
under section 1205.
    (c) Duties.--The duties of the Board shall include--
            (1) participating in the formulation of criteria for 
        program design and project selection;
            (2) evaluating the qualifications of interested 
        institutions of higher education and the demonstrated 
        commitment of such institutions to the purposes of this 
        section;
            (3) recommending appropriate focus countries for programs 
        carried out under this section;
            (4) assessing the impact of programs carried out under this 
        section and making recommendations for improving the 
        effectiveness of such programs; and
            (5) advising the Administrator on such issues as the 
        Administrator may request.
    (d) Membership.--
            (1) Number and appointment.--The Board shall be composed of 
        at least 7 members, of whom--
                    (A) not less than four members shall be 
                representatives of institutions of higher education; 
                and
                    (B) not less than three members shall be 
                representatives of United States nongovernmental 
                organizations or consortia of such organizations 
                devoted to agricultural research, education, and 
                development.
            (2) Terms.--
                    (A) In general.--Subject to paragraph (2), the 
                Administrator shall establish the term of membership 
                for each member of the Board at the time of 
                appointment.
                    (B) Limitations.--A term of membership to the Board 
                may not exceed two years and a member of the Board may 
                serve not more than two consecutive terms during the 
                tenure of an Administrator.
    (e) Chairperson and Vice Chairperson.--The Chairperson and Vice 
Chairperson of the Board shall be designated by the Administrator at 
the time of appointment to the Board.
    (f) Report.--
            (1) In general.--The Board shall submit to the 
        Administrator on an annual basis a report that describes the 
        activities of the Board during the preceding year and contains 
        any other information that may be required by the 
        Administrator.
            (2) Availability to public.--The Administrator shall make 
        the report publicly available on the Internet website of the 
        Agency.
    (g) Meetings.--The Board shall hold not less than 3 meetings each 
year.
    (h) Subordinate Units.--The Board may create such subordinate units 
as may be appropriate for the performance of its duties.
    (i) Expenses.--The Administrator may, on a case-by-case basis as 
the Administrator determines appropriate, reimburse members of the 
Board for expenses incurred in the performance of their duties 
(including per diem in lieu of subsistence while away from their homes 
or regular place of business).

SEC. 1207. ASSISTANCE TO INTERNATIONAL AND REGIONAL ORGANIZATIONS.

    The Administrator is authorized to use funds made available under 
this chapter to build the long-term capacity of international, 
regional, and sub-regional organizations engaged in agricultural 
research and development and food security activities, including--
            (1) the Food and Agricultural Organization;
            (2) the World Food Program;
            (3) the International Fund for Agricultural Development;
            (4) the Global Agriculture and Food Security Program; and
            (5) the Consultative Group on International Agricultural 
        Research.

SEC. 1208. DEFINITIONS.

    In this chapter:
            (1) Food producers.--The term ``food producers'' includes 
        farmers, pastoralists, fishers, and other persons who cultivate 
        or harvest plants or raise animals (terrestrial or aquatic) for 
        consumption.
            (2) Institutions of higher education.--The term 
        ``institutions of higher education'' means--
                    (A) those colleges or universities in each State, 
                territory, or possession of the United States, or the 
                District of Columbia, now receiving, or which may 
                hereafter receive, benefits under the Act of July 2, 
                1862 (known as the First Morrill Act), or the Act of 
                August 30, 1890 (known as the Second Morrill Act), 
                which are commonly known as ``land-grant'' 
                universities;
                    (B) institutions now designated or which may 
                hereafter be designated as sea-grant colleges under the 
                Act of October 15, 1966 (known as the National Sea 
                Grant College and Program Act), which are commonly 
                known as sea-grant colleges;
                    (C) Native American land-grant colleges as 
                authorized under the Equity in Educational Land-Grant 
                Status Act of 1994 (7 U.S.C. 301 note); and
                    (D) other United States colleges and universities 
                which--
                            (i) have demonstrable capacity in teaching, 
                        research, and extension (including outreach) 
                        activities in the agricultural sciences; and
                            (ii) can contribute effectively to the 
                        advancement of the goal and objectives of this 
                        chapter.
            (3) Rome principles.--The term ``Rome Principles'' means 
        the Rome Principles for Sustainable Food Security, endorsed by 
        193 countries at the 2009 World Summit on Food Security, which 
        are as follows:
                    (A) Invest in country-owned plans, aimed at 
                channeling resources to well- designed and results-
                based programs and partnerships.
                    (B) Foster strategic coordination at national, 
                regional and global level to improve governance, 
                promote better allocation of resources, avoid 
                duplication of efforts and identify response-gaps.
                    (C) Strive for a comprehensive twin-track approach 
                to food security that consists of--
                            (i) direct action to immediately tackle 
                        hunger for the most vulnerable, and
                            (ii) medium- and long-term sustainable 
                        agricultural, food security, nutrition and 
                        rural development programs to eliminate the 
                        root causes of hunger and poverty, including 
                        through the progressive realization of the 
                        right to adequate food.
                    (D) Ensure a strong role for the multilateral 
                system by sustained improvements in efficiency, 
                responsiveness, coordination and effectiveness of 
                multilateral institutions.
                    (E) Ensure sustained and substantial commitment by 
                all partners to investment in agriculture and food 
                security and nutrition, with provision of necessary 
                resources in a timely and reliable fashion, aimed at 
                multi-year plans and programs.

                      CHAPTER 3--ADVANCING HEALTH

SEC. 1301. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Saving and enhancing lives through better health is a 
        moral imperative that reflects fundamental humanitarian values.
            (2) Strategic investments in global health can spur 
        progress in economic development, job creation, education, 
        agricultural development, gender equity and political 
        stability.
            (3) Because disease knows no national bounds and can breed 
        hopelessness and despair, support for global health bolsters 
        United States national security. Such support also builds 
        constructive partnerships with other governments, with 
        multilateral institutions, between public and private 
        enterprises, and from people to people.
            (4) United States global health programs should prioritize 
        the poorest and most vulnerable segments of the world's 
        population, including women, newborns and children, persons 
        with disabilities, and marginalized communities, and should be 
        designed with their participation wherever possible.
            (5) Research and innovation play a critical role in 
        achieving health objectives worldwide, fostering the 
        development and introduction of new and improved health 
        products and practices and contributing to better policies.
            (6) For maximum effectiveness, global health programs must 
        be closely integrated with efforts to advance nutrition, 
        improve hygiene, and expand access to clean water, sanitation, 
        and housing.
            (7) To make health investments sustainable over the long 
        term, the United States should help build the capacity of--
                    (A) governments of partner countries to plan and 
                budget responsibly, allocate and disburse funds 
                equitably, and provide reliable and cost-effective 
                health care; and
                    (B) civil society to participate in decisionmaking, 
                carry out activities and monitor service delivery.
            (8) In order to provide for sustainable financing of health 
        care, developing countries must create strong economies and 
        stable tax bases.
            (9) By setting clear goals and targets and identifying 
        appropriate resources, a comprehensive, multiyear global health 
        strategy can help to ensure policy focus and consistency, 
        promote program integration, strengthen transparency and 
        accountability, build congressional and public support, and 
        accelerate results.
            (10) Multilateral approaches offer a vital and necessary 
        complement to bilateral programs. By pooling their resources 
        and harmonizing priorities, the United States and multilateral 
        organizations are better able to meet global challenges, 
        mobilize effective leadership and extend the reach and impact 
        of programs.
    (b) Statement of Policy.--It is the policy of the United States to 
work in cooperation with the international community to save the 
greatest possible number of lives and to help countries develop their 
own capacity to improve the health of their own people.

SEC. 1302. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of assistance under this chapter is to achieve 
sustained improvements in health status and health systems in partner 
countries.
    (b) Objectives.--In furtherance of the goal of subsection (a), 
assistance under this chapter shall be designed to help partner 
countries achieve the following objectives, including by strengthening 
health systems:
            (1) Saving the lives of mothers and children.
            (2) Protecting communities from disease, both infectious 
        and noncommunicable.
            (3) Creating an AIDS-free generation.
            (4) Preventing unintended pregnancies and improving 
        reproductive health.

SEC. 1303. GLOBAL HEALTH STRATEGY.

    (a) In General.--The strategy required under section 1019 with 
respect to advancing health shall be known as the ``Global Health 
Strategy''.
    (b) Contents.--The Global Health Strategy shall include, in 
addition to the elements required under section 1019(b), plans for 
achieving the goal and objectives of section 1302.
    (c) Guidelines.--The Global Health Strategy should--
            (1) focus on women, girls, and gender equality;
            (2) encourage country ownership and invest in country-led 
        plans;
            (3) build sustainability through health systems 
        strengthening;
            (4) strengthen and leverage key multilateral organizations, 
        global health partnerships and private sector engagement;
            (5) increase impact through strategic coordination and 
        integration, including with efforts in related areas such as 
        nutrition, water, sanitation, and hygiene;
            (6) promote learning and accountability through monitoring 
        and evaluation;
            (7) accelerate results through research and innovation;
            (8) address the health-related challenges posed by climate 
        change and other environmental trends; and
            (9) safeguard the rights and dignity of health workers and 
        patients.

SEC. 1304. ASSISTANCE FOR HEALTH.

    (a) Authorization.--The Administrator is authorized to use funds 
made available under section 1015 to further the goal and objectives of 
this chapter in partner countries.
    (b) Activities.--Assistance authorized under subsection (a) shall 
include--
            (1) supporting the development, implementation, monitoring 
        and evaluation of a country's national health strategy;
            (2) supporting the recruitment, training, management, 
        retention, effectiveness and equitable distribution within each 
        country of skilled health workers;
            (3) facilitating the development of partnerships and 
        collaboration with educational and research institutions, 
        private corporations, nongovernmental organizations, 
        multilateral institutions and other donors, both public and 
        private;
            (4) building the capacity of local nongovernmental 
        organizations to participate effectively in the planning, 
        implementation, monitoring and evaluation of health strategies 
        and systems;
            (5) strengthening financial management, accounting, 
        auditing and reporting systems;
            (6) establishing surveillance systems to detect, identify, 
        and respond to emerging health threats, including monitoring 
        the spread of disease among animal and plant populations;
            (7) identifying, preparing for and responding to health-
        related threats posed by climate change, pollution and other 
        environmental factors;
            (8) improving the quality and availability of health 
        facilities at the national and local level;
            (9) establishing and strengthening procurement and supply 
        chain management systems to safely, efficiently, and equitably 
        distribute medical and laboratory supplies;
            (10) supporting the development and implementation of 
        national health information systems to securely track, compile 
        and manage data, with appropriate privacy safeguards;
            (11) supporting evidence-based public health education 
        initiatives that teach healthy habits and behaviors, increase 
        health literacy, and encourage better utilization of the health 
        system;
            (12) building government capacity to coordinate and 
        harmonize the delivery of health services provided by various 
        donors;
            (13) developing and improving laboratory research and 
        testing capacity; and
            (14) promoting a legal, policy and regulatory framework 
        conducive to the advancement of public health and sustainable 
        health care financing.
    (c) Programs.--Assistance under this chapter includes programs--
            (1) for child survival and maternal health, as described in 
        subchapter A;
            (2) to combat disease, as described in subchapter B;
            (3) for family planning and reproductive health, as 
        described in subchapter C; and
            (4) for research, innovation and development of health 
        technologies, products and practices to advance global health 
        and the objectives of this chapter.

SEC. 1305. HEALTH PRINCIPLES AND RESTRICTIONS.

    (a) Principles.--Funds made available to carry out this chapter 
shall be provided in accordance with the following principles:
            (1) Patients shall be provided with evidence-based, high-
        quality, courteous care that upholds internationally recognized 
        human rights and protects human dignity.
            (2) Patients shall have their privacy respected and the 
        confidentiality of their medical information protected to the 
        maximum extent practicable, with free access to their own 
        health records.
            (3) Patients shall be provided with accurate health 
        information and quality care on an equitable basis, without 
        discrimination of any kind, coercion or violence, and in a 
        manner that prevents and reduces stigma.
            (4) Patients shall have the right to make their own 
        decisions about their health, and shall be provided with 
        relevant, current, medically accurate and understandable 
        information concerning preventive health, diagnosis, all 
        available treatments, and prognosis, including the risks and 
        benefits of each treatment and any costs involved, except in 
        emergency situations where the patient lacks decisionmaking 
        capacity and the need for an intervention is urgent, or where 
        there is an imminent risk to public health.
            (5) Patients and individuals participating in biomedical 
        research and experimental treatments shall do so on a strictly 
        voluntary basis, with valid informed consent processes in 
        place, and shall be fully advised of potential risks and 
        benefits.
    (b) Restrictions.--None of the funds made available to carry out 
this title may be used--
            (1) for the performance of abortion as a method of family 
        planning;
            (2) to coerce any person to undergo an abortion;
            (3) for the performance of involuntary sterilization as a 
        method of family planning;
            (4) to coerce any person to undergo sterilization; or
            (5) for any biomedical research which relates, in whole or 
        in part, to methods of, or the performance of, abortion or 
        involuntary sterilization as a method of family planning.
    (c) Definitions.--In this section--
            (1) the term ``abortion as a method of family planning'' 
        does not include--
                    (A) abortions provided in the case of rape or 
                incest or to protect the life or health of a woman; or
                    (B) treatment for the complications of induced, 
                spontaneous, or unsafely performed abortions.
            (2) the term ``all available treatments'' means all 
        treatments that are legally available in the partner country; 
        and
            (3) the term ``patients'' includes the legal guardians of 
        minors and persons who are incapacitated.

            Subchapter A--Child Survival and Maternal Health

SEC. 1311. CHILD SURVIVAL.

    The Administrator is authorized, notwithstanding any other 
provision of law except for this chapter, to use funds made available 
under this chapter for programs to reduce child mortality, including 
the following:
            (1) Increasing access to and utilization of appropriate 
        interventions to treat life-threatening childhood illnesses, 
        such as polio, measles, diarrhea, and respiratory infections.
            (2) Improving child and maternal nutrition, including the 
        delivery of iron, folic acid, zinc, vitamin A, iodine, and 
        other key micronutrients and macronutrients.
            (3) Preventing the spread of childhood disease and 
        improving child nutrition by expanding access to clean water, 
        improving sanitation, and promoting good hygiene practices.
            (4) Reducing household dangers, including exposure to 
        environmental toxins and indoor smoke from cooking fires.
            (5) Strengthening early childhood development, including 
        through early nutrition, parenting programs and early 
        education.
            (6) Enhancing the quality, availability and sustainability 
        of key child health interventions by improving health care 
        systems, building local capacity, and promoting positive health 
        policies.

SEC. 1312. MATERNAL AND NEWBORN HEALTH.

    The Administrator is authorized, notwithstanding any other 
provision of law except for this chapter, to use funds made available 
under this chapter for programs to reduce the mortality of, and improve 
the health of, mothers and newborns, including the following:
            (1) Strengthening preparation for childbirth through 
        education, antenatal care, access to skilled birth attendants, 
        preventing, detecting, and treating infections, and planning 
        for transport.
            (2) Improving maternal and child nutritional status through 
        dietary improvements, nutrition education and appropriate 
        micronutrient interventions.
            (3) Actively discouraging, preventing and responding to 
        harmful behaviors, such as gender-based violence, child 
        marriage and female genital cutting.
            (4) Promoting safe delivery, birth spacing, and postpartum 
        care, including recognition, referral, and treatment of 
        maternal and newborn complications.
            (5) Promoting healthy practices such as breastfeeding, 
        proper rest, good hygiene, and nutrition.
            (6) Preventing and responding to long-term disability as a 
        result of pregnancy and birth, including obstetric fistula and 
        anemia.
            (7) Improving long-term capacity and systems of local 
        institutions to provide quality maternal health care.

SEC. 1313. ASSISTANCE FOR ORPHANS AND OTHER VULNERABLE CHILDREN.

    The Administrator is authorized to use funds made available under 
this chapter to provide basic care and services for orphans and other 
vulnerable children, including:
            (1) Enabling community-based organizations to provide basic 
        care for orphans and other vulnerable children.
            (2) Providing school feeding, including the purchase of 
        local or regional foodstuffs where appropriate.
            (3) Increasing primary school enrollment through the 
        elimination of school fees, where appropriate, or other 
        barriers to education while ensuring that adequate resources 
        exist for teacher training and infrastructure.
            (4) Providing employment training and related services for 
        orphans and other vulnerable children who are of legal working 
        age.
            (5) Protecting and promoting the legal and inheritance 
        rights of orphans, other vulnerable children, and widows, and 
        addressing discrimination they often face.
            (6) Providing culturally appropriate psychosocial support 
        to orphans and other vulnerable children.
            (7) Treating orphans and other vulnerable children with 
        HIV/AIDS through the provision of pharmaceuticals, the 
        recruitment and training of individuals to provide pediatric 
        treatment, and the purchase of pediatric-specific technologies.
            (8) Improving the capacity of foreign government agencies 
        and nongovernmental organizations to prevent child abandonment 
        and provide permanent homes through family reunification, 
        guardianship and adoptions, consistent with the Hague 
        Convention on the Protection of Children and Co-operation in 
        Respect of Inter-Country Adoption.
            (9) Increasing access to adequate housing and reliable, 
        safe drinking water, sanitation, and hygiene education and 
        supplies.
            (10) Integrating gender to ensure the unique needs of girl 
        and boy orphans and vulnerable children are met.

                    Subchapter B--Combating Disease

SEC. 1321. ASSISTANCE TO COMBAT HIV/AIDS, TUBERCULOSIS, AND MALARIA.

    (a) Findings.--Congress finds that--
            (1) the global HIV/AIDS pandemic poses a humanitarian, 
        economic and security crisis of unprecedented magnitude that 
        requires urgent and sustained attention;
            (2) worldwide, women of childbearing age account for more 
        than half of people living with HIV/AIDS;
            (3) tuberculosis is the leading killer of people with HIV/
        AIDS, and the spread of drug resistant tuberculosis presents a 
        persistent public health threat to the United States;
            (4) malaria imposes an enormous burden on the social and 
        economic development of poor countries, can be prevented 
        through cost-effective means, and can be cured if promptly 
        diagnosed and adequately treated;
            (5) the creation of the United States President's Emergency 
        Plan for AIDS Relief (PEPFAR) in 2003 was the largest 
        commitment by any nation to combat a single disease, 
        establishing and expanding the infrastructure necessary to 
        deliver prevention, care, and treatment services in low-
        resource settings;
            (6) due to PEPFAR and multilateral initiatives such as the 
        Global Fund to Fight AIDS, Tuberculosis and Malaria, 
        significant strides have been made in preventing new cases of 
        disease, treating affected persons, training health care 
        workers, and educating families and communities; and
            (7) to be most sustainable and have the greatest positive 
        impact, programs to combat HIV/AIDS, tuberculosis and malaria 
        should be coordinated and integrated with other global health 
        and health-related programs, including maternal and child 
        health, family planning and reproductive health, nutrition, and 
        water, sanitation, and hygiene.
    (b) Authorization.--The President is authorized to use funds made 
available under this chapter to--
            (1) carry out the United States Leadership Against HIV/
        AIDS, Tuberculosis, and Malaria Act of 2003 (Public Law 108-
        25), as amended by this Act, and other related laws, including 
        the Tom Lantos and Henry J. Hyde United States Global 
        Leadership Against HIV/AIDS, Tuberculosis, and Malaria 
        Reauthorization Act of 2008 (Public Law 110-293), the Global 
        AIDS and Tuberculosis Relief Act of 2000 (Public Law 106-264), 
        and the International Malaria Control Act of 2000 (Public Law 
        106-570); and
            (2) contribute to the Global Fund to Fight AIDS, 
        Tuberculosis and Malaria and the GAVI Alliance.
    (c) Other Laws Superseded.--The President may exercise the 
authority of subsection (b) notwithstanding any other provision of law, 
except the United States Leadership Against HIV/AIDS, Tuberculosis, and 
Malaria Act of 2003 (Public Law 108-25), as amended by this Act.
    (d) Coordination.--Assistance provided under the authorities of 
this section or the United States Leadership Against HIV/AIDS, 
Tuberculosis, and Malaria Act of 2003 (Public Law 108-25) shall be 
coordinated with all other health-related programs under this chapter 
and chapter 6, and shall be included in the Global Health Strategy 
required under section 1303.

SEC. 1322. ASSISTANCE TO COMBAT NEGLECTED TROPICAL DISEASES.

    (a) Findings.--Congress finds that--
            (1) more than 1,000,000,000 people worldwide suffer from 
        one or more painful, debilitating tropical diseases, which 
        disproportionately impact poor and rural populations, cause 
        severe sickness and disability, compromise mental and physical 
        development, contribute to childhood malnutrition, reduce 
        school enrollment, and hinder economic productivity;
            (2) many of these neglected tropical diseases (NTDs) can be 
        controlled and treated by providing safe and effective drug 
        treatments, improving access to clean water and improved 
        sanitation, and promoting good hygiene practices for 
        individuals in affected communities; and
            (3) an integrated approach to controlling NTDs will address 
        a root cause of poverty that affects a significant proportion 
        of the world's population.
    (b) Authorization.--The Administrator is authorized to use funds 
made available under this chapter for the prevention, treatment, 
control, and elimination of, and research on, neglected tropical 
diseases.

SEC. 1323. ASSISTANCE FOR DISEASE PREVENTION, CONTROL, AND TREATMENT.

    (a) Findings.--Congress finds that--
            (1) infectious diseases such as avian and pandemic 
        influenza not only cause death and debilitating illness in the 
        countries where new strains originate, but can quickly spread 
        around the world;
            (2) the development and spread of antimicrobial resistance 
        threatens to undermine global efforts to control tuberculosis 
        and other bacterial diseases;
            (3) developing countries are undergoing a rapid 
        epidemiological transition from infectious diseases such as 
        diarrhea and pneumonia to noncommunicable diseases such as 
        cardiovascular disease, cancer and diabetes, which threatens to 
        overwhelm their strapped health systems and cripple their 
        fragile economies;
            (4) mental health is an important but frequently overlooked 
        or stigmatized aspect of health that requires effective and 
        compassionate treatment and care;
            (5) improvement in the capacity of developing countries to 
        obtain and use good quality data for surveillance and effective 
        response to emerging health threats helps to protect the health 
        of United States citizens as well as that of local populations; 
        and
            (6) disease-focused interventions are most effective when 
        they--
                    (A) reflect an evidence-based approach;
                    (B) are integrated across health programs through a 
                common delivery platform; and
                    (C) support increased collaboration and 
                coordination among country-level stakeholders, 
                including partner country governments, other public and 
                private donors, and international and nongovernmental 
                organizations.
    (b) Authorization.--The Administrator is authorized to use funds 
made available under this chapter to provide assistance for the 
prevention, treatment, control, and elimination of, and research on, 
infectious and noncommunicable diseases in partner countries.

         Subchapter C--Family Planning and Reproductive Health

SEC. 1331. ASSISTANCE FOR FAMILY PLANNING AND REPRODUCTIVE HEALTH.

    (a) Findings.--Congress finds that--
            (1) reproductive health care is essential to reducing 
        poverty, improving living standards and protecting human 
        dignity;
            (2) throughout much of the world, the lack of access by 
        women, particularly poor women, to reproductive health care 
        contributes to death and suffering, limits women's ability to 
        make decisions that affect their lives, and undermines the 
        efforts of families to lift themselves out of poverty;
            (3) access to reproductive health care, including voluntary 
        family planning, has a direct and important impact on child 
        mortality, especially infant mortality;
            (4) closely spaced and ill-timed pregnancies and births 
        contribute to high infant mortality rates, and when mothers die 
        as a result of giving birth, their surviving infants have a 
        greater risk of mortality and poor health status;
            (5) in many developing countries where there are few 
        hospitals, few doctors, and poor transportation systems, and 
        where women are not highly valued, complications of labor often 
        result in death of the mother;
            (6) lack of availability of emergency obstetric care, along 
        with delays in seeking medical attention, in reaching a medical 
        facility, and in receiving medical care once arriving at a 
        facility, contribute to the development of obstetric fistula, 
        increasing the risk of death for both mother and child;
            (7) voluntary family planning allows women and couples to 
        freely choose the number, timing and spacing of pregnancies, 
        giving families and individuals greater control over their 
        lives;
            (8) young people are particularly at risk of engaging in 
        unsafe sexual practices, and should be provided with clear and 
        evidence-based information to help them make informed decisions 
        about their sexual and reproductive health and human rights, 
        including their right to be free from all forms of violence, 
        coercion and discrimination;
            (9) practices such as child marriage and female genital 
        cutting can harm the health of young people and deprive them of 
        their dignity and human rights. Reproductive health care can 
        play an important role in educating people about the dangers of 
        these practices, and is often the entry point for 
        identification of gender-based violence and sexual abuse;
            (10) integrating reproductive health care, including 
        voluntary family planning, with HIV prevention programs is 
        critical to combating HIV/AIDS, and can assist in decreasing 
        the stigma associated with a seropositive HIV status;
            (11) integration of reproductive health care with other 
        health-care and related social services increases the 
        effectiveness and efficiency of the health system and meets 
        people's needs for accessible, acceptable, convenient, client-
        centered care;
            (12) international goals and targets for reducing poverty 
        and improving maternal health require a significant investment 
        in family planning and reproductive health care;
            (13) international partnerships are required to provide 
        adequate financing for family planning and reproductive health 
        care;
            (14) cooperating with multilateral and bilateral donors and 
        the private sector can make commodities such as 
        antiretrovirals, maternal health equipment, and contraceptive 
        supplies more accessible for hard-to-reach populations; and
            (15) by investing in reproductive health care, including 
        voluntary family planning, the United States can improve 
        maternal and child health, lower HIV infection rates, reduce 
        poverty and hunger, advance girls' education, promote gender 
        equality, broaden civic participation in the development 
        process, and slow the depletion of natural resources.
    (b) Authorization.--The Administrator is authorized to use funds 
made available under this chapter for reproductive health care 
programs, including voluntary family planning, in partner countries.

SEC. 1332. REPRODUCTIVE HEALTH CARE IN EMERGENCIES.

    The Administrator is authorized to use funds made available under 
this subchapter and under subtitle B for programs to provide 
reproductive health care during humanitarian emergencies and complex 
crises, including:
            (1) Life-saving priority activities set out in the Sphere 
        Project's Humanitarian Charter and Minimum Standards in 
        Disaster Response.
            (2) Preventing sexual violence and providing medical care 
        and psychosocial services to survivors of sexual violence.
            (3) Voluntary family planning for the duration of 
        displacement.

                 CHAPTER 4--EXPANDING QUALITY EDUCATION

SEC. 1401. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Education is a basic human right, indispensable for 
        human capacity development and poverty eradication.
            (2) Basic education is fundamental to development. No 
        country has reached sustained economic growth without achieving 
        near universal primary education.
            (3) Quality education reduces poverty and inequity, lays 
        the foundation for sound governance, civic participation, and 
        strong institutions, and equips people with the knowledge, 
        skills, and self-reliance they need to increase income and 
        expand opportunities for employment.
            (4) While developing countries bear the ultimate 
        responsibility for educating their children, the United States 
        and others donors can and should do more to help developing 
        countries address their education needs.
            (5) Investing in girls' education delivers substantial 
        returns not only in educational attainment but also in 
        increasing women's and household incomes, delaying the start of 
        sexual activity, reducing infant mortality, increasing women's 
        political participation, spurring economic growth, and delaying 
        marriage.
            (6) Lack of access to adequate housing, safe drinking water 
        close to home, and to private latrines near home and at school 
        significantly impact girls' attendance and retention at school.
            (7) Education can help to protect children in conflict 
        situations from physical harm, exploitation, and sexual abuse, 
        as well as to avoid the recruitment of children into armed 
        groups and gangs.
            (8) The large number of children who are not enrolled in 
        school or who receive a poor quality education not only results 
        in a loss of human potential, but undermines stability and 
        progress within communities and across nations.
            (9) Expanded access to primary and secondary education will 
        increase the need for qualified teachers, and the demand for 
        quality colleges and universities.
            (10) Exchange programs which bring citizens of developing 
        countries to the United States for training, while helpful in 
        expanding individual opportunities for growth, will not by 
        themselves reach enough students and scholars to have a 
        transformational effect on the economies and human resources of 
        developing countries.
            (11) Partnerships between educational institutions in the 
        United States and developing countries are an important means 
        for sharing knowledge, experience and lessons learned for the 
        benefit of all students.
            (12) Resources to expand global education will be most 
        effective and efficient if they are transparent, increase 
        coordination among governments, private sector and civil 
        society, support national plans and hold all stakeholders 
        accountable.
    (b) Statement of Policy.--It is the policy of the United States to 
work in cooperation with the international community to achieve quality 
universal basic education.

SEC. 1402. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of assistance under this chapter is to increase 
access to quality education in partner countries.
    (b) Objectives.--In furtherance of the goal of subsection (a), 
assistance under this chapter shall be designed to help partner 
countries achieve the following objectives:
            (1) Expanding access to basic education for all children, 
        particularly marginalized and vulnerable groups.
            (2) Improving the quality of basic education.
            (3) Raising adult literacy, especially for women.
            (4) Reducing gender disparities in primary and secondary 
        education.
            (5) Strengthening higher education partnerships and 
        networks.

SEC. 1403. GLOBAL EDUCATION STRATEGY.

    (a) In General.--The strategy required under section 1019 with 
respect to expanding education shall be known as the ``Global Education 
Strategy''.
    (b) Contents.--The Global Education Strategy shall include, in 
addition to the elements required under section 1019(b), plans for 
achieving the goal and objectives of section 1402.
    (c) Guidelines.--The Global Education Strategy should--
            (1) contribute to meeting internationally agreed education 
        goals and targets;
            (2) be directly responsive to partner country needs, 
        capacity, and commitment, strengthen partner countries' 
        educational systems, and be coordinated, where possible, with 
        national education plans;
            (3) pay particular attention to expanding educational 
        opportunities for marginalized and vulnerable groups, including 
        girls, children affected by or emerging from armed conflict or 
        humanitarian crises, disabled children, children in remote or 
        rural areas, religious or ethnic minorities, indigenous 
        peoples, orphans and children impacted by HIV/AIDS, child 
        laborers, and victims of trafficking;
            (4) identify ways to reduce the adverse impact of HIV/AIDS 
        on education systems;
            (5) address the challenges posed by large numbers of out-
        of-school, unemployed youth;
            (6) encourage and integrate contributions of strategic 
        direction and financial resources from local and international 
        private sector and civil society organizations, including 
        organizations that represent teachers, students, and parents, 
        interested in supporting quality universal basic education 
        efforts;
            (7) outline plans for ensuring a transition and continuity 
        of educational activities in countries affected by or emerging 
        from armed conflict or humanitarian crises;
            (8) expand public-private partnerships in order to leverage 
        resources;
            (9) promote gender equity and improve educational 
        opportunities for women and girls, and strive to ensure safe 
        schools, equal access, workforce opportunities, leadership role 
        development, and the preservation of dignity and respect;
            (10) explain how basic education, higher education, 
        vocational and technical education, literacy instruction, and 
        other formal and nonformal training will be integrated with 
        other activities under this title; and
            (11) address the problem of financing education.

SEC. 1404. BASIC EDUCATION ASSISTANCE.

    (a) Authorization.--The Administrator is authorized to use funds 
made available under section 1015 for basic education in accordance 
with the goal and objectives of this chapter.
    (b) Activities.--Assistance authorized under subsection (a) shall 
include--
            (1) increasing the supply of trained quality teachers, and 
        building systems for the continuing support, training and 
        professional development of all educators;
            (2) developing and implementing effective, relevant 
        curricula;
            (3) building the institutional capacity of a country to 
        manage basic education systems and measure results;
            (4) increasing parent and community involvement in schools;
            (5) providing learning materials;
            (6) working with communities to achieve equity in schools 
        and address gender norms to build support for girls' education;
            (7) promoting the development and effective use of systems 
        for data collection, monitoring and evaluation of student-
        learning outcomes;
            (8) improving and expanding educational infrastructure;
            (9) reducing or eliminating fees for tuition, uniforms and 
        school materials, as well as other barriers to school 
        attendance, for poor and marginalized children;
            (10) improving young children's capacity to learn through 
        early childhood development programs;
            (11) supporting interventions that increase school 
        attendance and performance, such as scholarships, school lunch, 
        school health, and water and sanitation programs;
            (12) ensuring that schools are not incubators for violent 
        extremism;
            (13) providing life skills training and civic education, 
        including on human rights, gender equity, and conflict 
        resolution;
            (14) making schools safe and secure places for learning, 
        free of violence, harassment, exploitation, or intimidation;
            (15) increasing access to education, improving learning 
        outcomes and increasing educational opportunities for the most 
        disadvantaged populations;
            (16) ensuring continuation or reestablishment of 
        educational programs and the provision of safe spaces for 
        children in areas of armed conflict or humanitarian crisis;
            (17) increasing the relevance of formal education systems 
        to the needs of the poor and to disaffected youth, through 
        reform of curricula, teaching materials, and teaching methods, 
        and improved teacher training;
            (18) expanding vocational and entrepreneurship skills and 
        opportunities, especially for out-of-school youth, in close 
        linkage with the private sector and in response to market 
        needs;
            (19) supporting multilateral coordination and financing 
        initiatives for education; and
            (20) promoting the value of education and increasing 
        community and family awareness of the positive impact of 
        education.
    (c) Definition.--In this chapter, the term ``basic education'' 
means an education, generally consisting of completion of 9-10 years of 
schooling, including efforts to improve early childhood development, 
primary education, secondary education, literacy and numeracy training, 
and life-skills training that prepares an individual to be an active, 
productive member of society and the workforce.

SEC. 1405. HIGHER EDUCATION PARTNERSHIPS.

    (a) Findings.--Congress finds that--
            (1) basic and higher education are interrelated and 
        together play a critical role in reducing poverty, promoting 
        economic growth, strengthening democracy, stemming corruption, 
        alleviating ethnic tensions, and enhancing stability;
            (2) higher education institutions foster critical thinking, 
        scientific discovery, entrepreneurship and innovation in local 
        communities as well as at the national and international level;
            (3) higher education is essential for developing human 
        capacity to create the next generation of political, 
        professional and business leadership, build an effective and 
        accountable civil service, improve the quality and availability 
        of social services, and strengthen the rule of law;
            (4) partnerships between institutions of higher education 
        in the United States and developing countries can--
                    (A) increase the quality and availability of, and 
                access to, higher education for secondary school 
                graduates;
                    (B) support the professional development of faculty 
                and staff, strengthen institutional and financial 
                management, and streamline administrative procedures;
                    (C) expand course offerings, academic resources and 
                research opportunities for students and faculty;
                    (D) foster continuing professional relationships 
                that build international understanding and 
                collaboration; and
                    (E) facilitate the sharing of knowledge, the 
                identification of common research interests and 
                challenges, and the resolution of complex problems; and
            (5) partnerships between businesses and higher education 
        institutions in developing countries can help to meet the 
        significant and growing demand for business professionals 
        within both the private and public sectors in developing 
        countries.
    (b) Statement of Policy.--It is the policy of the United States to 
encourage the expansion and strengthening of higher education in 
developing countries, through partnerships with educational 
institutions, businesses, and nonprofit organizations in the United 
States.
    (c) Authorization.--The Administrator is authorized to use 
assistance made available under this chapter to expand and strengthen 
institutions of higher education in developing countries through 
partnerships with--
            (1) institutions of higher education in the United States;
            (2) businesses in the United States;
            (3) nonprofit organizations with experience in the areas of 
        academic institution-building and entrepreneurial and 
        managerial development; and
            (4) international organizations.
    (d) Activities.--Assistance provided under subsection (c) shall 
include--
            (1) building the capacity of higher education institutions 
        in partner countries;
            (2) developing academic programs and centers of excellence 
        in areas critical to the partner country's economic 
        development; and
            (3) improving the quality and availability of, and access 
        to, higher education for students in partner countries.

      CHAPTER 5--PROTECTING AND RESTORING THE NATURAL ENVIRONMENT

SEC. 1501. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Sound natural resource management, healthy levels of 
        species diversity, and functioning natural ecosystems are vital 
        to sustainably reducing poverty in developing countries.
            (2) Natural ecosystems, when properly managed, provide 
        economic value to local communities in the form of water, food, 
        medicine, energy, household products, tourism and trade, as 
        well as contributing to the global common good.
            (3) Nature provides important services for human well-
        being. For example, forests, floodplains, and wetlands are a 
        natural bulwark against catastrophic flooding and severe 
        drought, and coral reefs and mangroves reduce the impact of 
        large storms on coastal populations, thereby reducing damages 
        from extreme weather and the need for disaster assistance.
            (4) Natural ecosystems serve as a buffer between wildlife 
        and human populations, minimizing the transmission of highly 
        infectious diseases from animals to people.
            (5) Many of the most commonly prescribed medicines in the 
        United States are derived directly from natural compounds or 
        patterned after them. The preservation of natural areas and 
        wild species offers the world a rich source of potential cures 
        and treatments for disease and pain.
            (6) The survival of many animal and plant species is 
        endangered by poaching and excessive harvesting, by the 
        presence of toxic chemicals in water, air and soil, and by the 
        destruction of habitats.
            (7) Degradation of land and water resources impedes efforts 
        to improve agricultural productivity, which will be critical to 
        feeding the world's growing population and is a key engine of 
        economic growth in developing countries.
            (8) The construction of dams and expansion in biofuel 
        production in developing countries without the necessary 
        environmental safeguards or consultation with the local 
        populations threatens the sustainability of aquatic ecosystems 
        and the services they provide for purifying, storing, and 
        delivering water.
            (9) The continuing and accelerating alteration, 
        destruction, and loss of forests and other natural habitats in 
        developing countries can result in--
                    (A) shortages of fuel;
                    (B) loss of biologically productive wetlands;
                    (C) siltation of lakes, reservoirs, and irrigation 
                systems;
                    (D) floods, soil erosion and landslides;
                    (E) decimation and dislocation of indigenous 
                peoples;
                    (F) extinction of plant and animal species;
                    (G) reduced capacity for food production;
                    (H) loss of genetic resources;
                    (I) desertification;
                    (J) increased greenhouse gas emissions; and
                    (K) destabilization of the earth's climate.
            (10) Women often are especially vulnerable to the impact of 
        natural resource degradation and climate change because they 
        produce most of the food and collect most of the water and 
        firewood in many countries.
            (11) Mismanagement and unregulated exploitation of natural 
        resources has fueled conflict and corruption in many developing 
        countries.
            (12) Illicit trade in natural resources not only robs poor 
        countries of valuable economic and environmental resources, but 
        often perpetrates political instability and human rights 
        abuses, including sexual violence and the use of children as 
        soldiers, bonded labor and sex slaves.
            (13) Illegal logging, fishing, and mining in developing 
        countries flood the international market with low-cost products 
        that undercut the competitiveness of responsible companies in 
        the United States.
            (14) Economic growth generally raises energy consumption, 
        and often results in increased emissions of greenhouse gases as 
        well as greater pollution of air, land, and water.
            (15) If current trends in the degradation of natural 
        resources in developing countries continue, they will severely 
        undermine the best efforts to meet basic human needs, to 
        achieve sustained economic growth, and to prevent international 
        tension and conflict.
            (16) Animals, including livestock, companion animals, and 
        wildlife, are important to human economic, environmental, and 
        social development as well as to human quality of life. Animals 
        and the people who depend upon them in developing countries 
        will be particularly vulnerable to climate-related natural 
        disasters unless adaptation and mitigation measures are 
        utilized.
            (17) The world faces enormous, urgent, and complex 
        challenges in conserving and protecting natural resources while 
        fostering economic development, requiring extensive and 
        sustained cooperation between the United States, developing 
        countries and the international community as a whole.
    (b) Statement of Policy.--It is the policy of the United States to 
work in cooperation with the international community to reduce 
biodiversity loss and the degradation of natural ecosystems, adapt to 
and mitigate climate change, and integrate principles of environmental 
sustainability into policies and programs for international 
development.

SEC. 1502. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of assistance under this chapter is to help 
partner countries maximize the environmental sustainability of their 
development policies and programs.
    (b) Objectives.--In furtherance of the goal described in subsection 
(a), assistance under this chapter shall be designed to help partner 
countries achieve the following objectives:
            (1) Protecting and restoring natural ecosystems.
            (2) Conserving biological diversity.
            (3) Mitigating and adapting to climate change.
            (4) Reducing pollution of air, land and water.
            (5) Increasing energy efficiency.
            (6) Expanding access to clean, renewable energy sources and 
        technologies.
            (7) Building capacity for sound natural resource 
        management.
    (c) Implementation.--Assistance under this chapter should be 
implemented in a manner that--
            (1) incorporates and aligns with partner country 
        strategies, plans and priorities;
            (2) gives due regard to the rights and interests of local 
        and forest-dependent communities, indigenous peoples, and 
        marginalized and vulnerable social groups, and ensures their 
        full and effective participation in all stages of program 
        planning, implementation, and evaluation; and
            (3) promotes and integrates women's empowerment and gender 
        equality.

SEC. 1503. GLOBAL CONSERVATION STRATEGY.

    (a) In General.--The strategy required under section 1019 with 
respect to protecting and restoring the natural environment shall be 
known as the ``Global Conservation Strategy''.
    (b) Contents.--The Global Conservation Strategy shall include, in 
addition to the elements required under section 1019(b), plans for 
achieving the goal and objectives of section 1502.
    (c) Guidelines.--The Global Conservation Strategy should--
            (1) establish priority countries, regions or natural 
        ecosystems for reducing environmental degradation;
            (2) identify the economic, health, and conflict-prevention 
        benefits to be achieved through implementation of the strategy;
            (3) establish policy guidance to link investments in 
        specific conservation programs to the broader goals of reducing 
        poverty and alleviating human suffering, and to integrate 
        environmental goals into country-based and sector-based 
        strategies;
            (4) identify and improve United States policies that affect 
        the conservation of critical natural resources and biodiversity 
        abroad;
            (5) seek to encourage and leverage participation from the 
        private sector, other donor governments, governments of 
        developing countries, international financial institutions, and 
        other international organizations to implement the strategy;
            (6) address the anticipated effects of climate change on 
        highly vulnerable communities and populations and on the 
        achievement of key objectives; and
            (7) include a review of all executive orders and 
        regulations that may have an impact on the strategy.

SEC. 1504. ASSISTANCE FOR ENVIRONMENTAL SUSTAINABILITY.

    (a) Authorization.--The Administrator is authorized to use funds 
made available under section 1015 to further the goal and objectives of 
this chapter in partner countries.
    (b) Activities.--Assistance provided under subsection (a) shall 
include the following:
            (1) Protecting and restoring natural ecosystems.--
                    (A) Conserving, sustainably managing, and restoring 
                natural ecosystems.
                    (B) Establishing, restoring, protecting, and 
                maintaining protected areas, parks and reserves.
                    (C) Developing and improving governance structures, 
                resource rights and responsibilities, and land use 
                planning to reduce degradation, destruction, and 
                illegal use of natural ecosystems.
                    (D) Reducing greenhouse gas emissions from land use 
                and land-use change, the destruction of wetlands and 
                peatlands and forestry, including deforestation and 
                forest degradation and enhancement of forest carbon 
                stocks.
                    (E) Studying and assessing the economic value of 
                natural ecosystems and their contributions to 
                addressing poverty-related issues.
                    (F) Developing alternatives and disincentives to 
                destructive farming, fishing, and forestry practices.
            (2) Conserving biological diversity.--
                    (A) Protecting and maintaining wildlife and plant 
                habitats, both land and sea.
                    (B) Developing sound wildlife management and plant 
                conservation policies and programs at the local, 
                national, and international levels.
                    (C) Identifying, studying, and cataloging animal 
                and plant species.
                    (D) Establishing effective policies and regulations 
                to reduce loss of biological diversity.
                    (E) Enacting and enforcing anti-poaching measures, 
                including through alternative livelihood opportunities.
                    (F) Educating local communities, including civil 
                society organizations, governments and intermediate 
                representative institutions, about the importance and 
                benefits of conserving biological diversity.
            (3) Mitigating and adapting to climate change.--
                    (A) Researching and assessing climatological and 
                socioeconomic factors to identify and prioritize 
                vulnerable populations and natural ecosystems and 
                likely impacts.
                    (B) Developing national and regional climate change 
                adaptation and mitigation plans.
                    (C) Planning, financing and implementing adaptation 
                programs and activities.
                    (D) Increasing resilience to and preparedness for 
                climate change and its impacts among highly vulnerable 
                communities and populations, including through capacity 
                building.
                    (E) Supporting the identification and adoption of 
                appropriate renewable and efficient energy 
                technologies.
            (4) Reducing pollution of air, land and water.--
                    (A) Monitoring, regulating, and mitigating 
                pollutants to air, land and water.
                    (B) Designing, promoting and utilizing clean 
                technologies and practices.
                    (C) Increasing the quality, quantity, and 
                transparency of data regarding the monitoring, 
                regulation and mitigation of pollutants.
                    (D) Developing public awareness campaigns and 
                promoting civic participation in environmental 
                stewardship.

SEC. 1505. ASSISTANCE FOR SUSTAINABLE ENERGY AND NATURAL RESOURCE 
              MANAGEMENT.

    (a) Findings.--Congress finds the following:
            (1) Access to energy is essential for economic growth, 
        public health, clean water, sanitation, transportation, 
        communication, agricultural activities, and the overall 
        progress of developing countries.
            (2) Many developing countries lack access to the financial 
        resources and technology necessary to locate, explore, and 
        develop indigenous natural resources.
            (3) Black carbon contributes to pollution, health concerns, 
        and significantly warms the Earth's climate system by absorbing 
        radiation, converting it into heat, and releasing heat energy 
        into the atmosphere.
            (4) Clean, efficient and renewable energy sources are vital 
        to sustain economic growth and protect human health.
            (5) Energy must be accessible to the poor in order to 
        ensure that basic human needs are met.
            (6) Title V of the Nuclear Non-Proliferation Act of 1978 
        (22 U.S.C. 3261 et seq.) requires the United States to work 
        with developing countries in assessing and finding ways to meet 
        their energy needs through alternatives to nuclear energy that 
        are consistent with economic factors, material resources, and 
        environmental protection.
            (7) Proper management of natural resources can provide the 
        basis for sustainable development while the mismanagement and 
        unregulated exploitation of natural resources has fueled 
        conflict and corruption in many countries around the world.
    (b) Authorization.--The Administrator is authorized to use funds 
made available under this chapter for programs to promote clean energy 
technologies, responsible stewardship of natural resources, and 
reliable access by the poor to energy.
    (c) Activities.--Assistance authorized under subsection (b) shall 
include the following:
            (1) Increasing energy efficiency.--
                    (A) Development of sound national energy and 
                electricity plans.
                    (B) Improving the efficiency of electricity 
                transmission, distribution, and consumption.
                    (C) Building local capacity to monitor and regulate 
                the energy sector.
            (2) Expanding access to clean, renewable energy sources and 
        technologies.--
                    (A) Improving the availability of renewable 
                electricity generation from wind, solar, sustainably 
                and locally produced biomass, geothermal, marine, or 
                hydrokinetic sources.
                    (B) Expanding the deployment of low or zero 
                emission technologies.
                    (C) Increasing access to clean energy technologies, 
                especially in rural areas.
                    (D) Improving transportation system and vehicle 
                efficiency.
                    (E) Reducing black carbon emissions, including 
                through the use of clean cookstoves.
                    (F) Building local capacity to operate, maintain 
                and improve clean energy technologies.
                    (G) Mitigating the impacts of energy alternatives 
                on natural resources and natural ecosystems
            (3) Building capacity for sound natural resource 
        management.--
                    (A) Enhancing the transparency of revenues 
                generated from natural resource extraction.
                    (B) Improving the security of land tenure and 
                property rights, especially for marginalized groups.
                    (C) Building local capacity to assess, monitor, and 
                regulate access to natural resources and to evaluate 
                the social and environmental effects of extraction.
                    (D) Improving local capacity to assess the value of 
                environmental services.

SEC. 1506. ENVIRONMENTAL RESTRICTIONS.

    (a) Restriction.--Assistance authorized under this subtitle shall 
not be provided for programs, projects, and activities that--
            (1) introduce invasive and nonnative plant species;
            (2) cause the destruction or degradation of existing 
        natural ecosystems, natural parks, or similar protected areas;
            (3) result in or cause a loss of biological diversity or 
        adversely impact rare, threatened, or endangered plant and 
        animal species;
            (4) involve destructive farming, fishing, and forest 
        harvesting practices such as slash and burn agriculture; or
            (5) provide for the construction of dams or other water 
        control structures that flood natural ecosystems.
    (b) Waiver.--The Administrator may waive the restrictions contained 
in subsection (a) if the Administrator determines and reports to the 
appropriate congressional committees that--
            (1) the proposed program, project, or activity is vital to 
        improving the livelihoods of the rural poor;
            (2) the proposed program will be conducted in an 
        environmentally sound manner that supports sustainable 
        development; and
            (3) appropriate mitigation activities will be undertaken.

SEC. 1507. ENVIRONMENTAL IMPACT STATEMENTS AND ASSESSMENTS.

    (a) In General.--In implementing programs, projects, and activities 
under this subtitle, the Administrator shall take fully into account 
the impact of such programs and projects upon the environment and 
natural resources of developing countries.
    (b) Required Statements and Assessments.--Subject to such 
procedures as the Administrator considers appropriate, the 
Administrator shall require that all agencies and officials responsible 
for programs, projects, and activities under this subtitle prepare and 
take fully into account--
            (1) an environmental impact statement for any proposed 
        program, project, or activity significantly affecting the 
        environment of the global commons outside the jurisdiction of 
        any country, the environment of the United States, or other 
        aspects of the environment which the Administrator may specify; 
        and
            (2) an environmental assessment of any proposed program, 
        project, or activity significantly affecting the environment of 
        any foreign country.
    (c) Matters To Be Included.--Environmental impact statements and 
environmental assessments undertaken pursuant to subsection (b) shall 
include--
            (1) recommendations for possible alternatives and 
        mitigation measures;
            (2) an estimate of greenhouse gas emissions attributable to 
        the program, project, or activity; and
            (3) a special review of any project that will emit more 
        than 100,000 tons of carbon dioxide.
    (d) Local Technical Resources.--Environmental impact statements and 
environmental assessments undertaken pursuant to paragraph (b) should, 
to the maximum extent feasible, use local technical resources.
    (e) Exceptions.--The Administrator may establish exceptions from 
the requirements of this section for emergency conditions and for cases 
in which the Administrator determines that compliance with those 
requirements would be seriously detrimental to the foreign policy 
interests of the United States.
    (f) Public Availability.--
            (1) In the united states.--All environmental impact 
        statements and environmental assessments shall be published on 
        the Internet website of the Agency not later than 30 days 
        following their completion, and may be accompanied by the 
        Agency's response to the findings therein.
            (2) In affected countries.--To the extent feasible, all 
        environmental assessments shall be translated into the local 
        language(s) of the affected communities and made available to 
        the partner government, local and international nongovernmental 
        organizations, and affected communities.

SEC. 1508. DEFINITIONS.

    In this chapter:
            (1) Natural ecosystem.--The term ``natural ecosystem'' 
        means a dynamic set of living organisms, including plants, 
        animals, and microorganisms interacting among themselves and 
        with the environment in which they live, and includes tropical 
        forests, freshwater, coastal, estuarian and fisheries habitats, 
        coral reefs, natural grasslands, and mangrove forests.
            (2) Greenhouse gas.--The term ``greenhouse gas'' means 
        carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, 
        hydrofluorocarbons emitted from a chemical manufacturing 
        process at an industrial stationary source, any 
        perfluorocarbon, nitrogen trifluoride, any other anthropogenic 
        gas designated as a greenhouse gas by the Administrator for 
        purposes of this chapter.
            (3) Highly vulnerable communities and populations.--The 
        term ``highly vulnerable communities and populations'' means 
        communities and populations that are at risk of substantial 
        adverse impacts of climate change and have limited capacity to 
        respond to such impacts, including impoverished communities, 
        children, women, and indigenous peoples.
            (4) Most vulnerable developing countries.--The term ``most 
        vulnerable developing countries'' means, as determined by the 
        Administrator, developing countries that are at risk of 
        substantial adverse impacts of climate change and have limited 
        capacity to respond to such impacts, considering the approaches 
        included in any international treaties and agreements.

   CHAPTER 6--IMPROVING ACCESS TO SAFE WATER, SANITATION, AND HOUSING

SEC. 1601. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Clean water and sanitation are among the most powerful 
        drivers for human development. They extend opportunity, enhance 
        dignity, and help create a virtuous cycle of improving health 
        and rising wealth.
            (2) Unsafe drinking water, inadequate sanitation, and 
        unsuitable and unhygienic living conditions exact an enormous 
        toll on human health in developing countries, particularly for 
        infants and children.
            (3) Diseases linked to unsafe water and poor sanitation, as 
        well as the time and energy women often devote to collecting 
        water, significantly reduce economic productivity in less 
        developed countries and promote lifecycles of disadvantage.
            (4) Water scarcity has negative consequences for 
        agricultural productivity and food security, and seriously 
        threatens international ability to increase food production at 
        the rate required to meet the needs of the world's growing 
        population.
            (5) The underlying cause of water scarcity in the large 
        majority of cases is institutional and political, and requires 
        sustainable and effective water resource management.
            (6) Demand for water resources has contributed to armed 
        conflict in many parts of the world, while conflict and civil 
        strife often reduce access to clean water and sanitation for 
        displaced persons and other innocent victims.
            (7) The continued degradation of watersheds threatens the 
        benefits that healthy natural systems provide, and on which 
        people rely.
            (8) The effects of climate change are expected to produce 
        severe consequences for water availability and resource 
        management in many developing countries, which could result in 
        severe and chronic water shortages.
            (9) Unsuitable and unhygienic living conditions can exact a 
        heavy toll on human health and productivity. Adequate housing 
        is often a precondition for the enjoyment of various civic and 
        human rights, including the rights to work, vote, obtain 
        education, receive health care, and access other social 
        services.
            (10) Rapid urbanization and future population growth are 
        expected to exacerbate already limited access to water, as well 
        as to adequate housing.
            (11) Approximately half the world's population lives in 
        cities, often in slums characterized by unsafe water, poor 
        sanitation, lack of basic services, overcrowding, inferior 
        construction and insecure tenure. Because slum populations are 
        growing rapidly, they require increased attention and better 
        integrated programming.
            (12) Inadequate laws, policies and enforcement mechanisms 
        to protect real property use, lease, and ownership rights often 
        subject slum dwellers to arbitrary, often supra-market rents, 
        forced evictions, threats, and harassment.
            (13) Insecurity of tenure severely inhibits economic 
        development by undermining investment incentives and 
        constraining the growth of credit markets, imperils the ability 
        of families to achieve sustainable livelihoods and assured 
        access to housing, and often contributes to conflict over 
        property rights.
            (14) Women are affected disproportionately by forced 
        evictions and insecure tenure as a result of gender 
        discrimination, often including gender-biased laws that define 
        women as legal minors or otherwise prevent them from owning or 
        leasing land, property, and housing, making them more 
        vulnerable to poverty, violence, and sexual abuse.
            (15) Expanding access to clean water, sanitation, and 
        housing is essential for reducing the global burden of disease, 
        advancing economic and social development, protecting basic 
        human rights, and mitigating sources of conflict.
    (b) Statement of Policy.--It is the policy of the United States to 
recognize the human right to water and adequate housing, and to work in 
cooperation with the international community to ensure access to safe 
water, sanitation and adequate housing for all people.

SEC. 1602. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of assistance under this chapter is to improve 
living conditions and basic human dignity for the world's poorest 
people.
    (b) Objectives.--In furtherance of the goal of subsection (a), 
assistance under this chapter shall be designed to help partner 
countries achieve the following objectives:
            (1) Expanding access to sufficient, safe, and affordable 
        water for personal and domestic use.
            (2) Upgrading and expanding basic sanitation.
            (3) Increasing access to adequate housing.
            (4) Improving the management of water and related resources 
        for greater sustainability.
            (5) Enhancing planning for sustainable urban development.

SEC. 1603. GLOBAL STRATEGY FOR WATER, SANITATION AND HOUSING.

    (a) In General.--The strategy required under section 1019 with 
respect to improving access to safe water, sanitation, and housing 
shall be known as the ``Global Water, Sanitation and Housing 
Strategy''.
    (b) Contents.--The Global Water, Sanitation and Housing Strategy 
shall include, in addition to the elements required under section 
1019(b), plans for achieving the goal and objectives of section 1602.
    (c) Guidelines.--The Global Water, Sanitation and Housing Strategy 
should--
            (1) include targets for providing, on a sustainable basis, 
        first-time access to safe water, basic sanitation, and adequate 
        housing;
            (2) prioritize improvements for the poorest people living 
        under the most inadequate conditions;
            (3) explain how policies and programs relating to water, 
        sanitation and housing will be integrated with other policies 
        and programs under this title;
            (4) explain how programs and policies under the strategy 
        will contribute to meeting internationally agreed targets 
        relating to access to safe drinking water and basic sanitation 
        and improving the lives of slum dwellers;
            (5) maximize efficiency in water use and sustainability of 
        water supplies;
            (6) identify and promote best practices for mobilizing and 
        leveraging public-private partnerships;
            (7) address the effects of climate change on achieving the 
        goal of this chapter;
            (8) evaluate the impact of urbanization and general 
        migration trends on water, sanitation, and housing;
            (9) utilize expertise within the United States Government 
        by improving policy and program coordination among relevant 
        Federal agencies, including the Department of State, the United 
        States Agency for International Development, the Millennium 
        Challenge Corporation, the Centers for Disease Control and 
        Prevention, the National Oceanic and Atmospheric 
        Administration, the United States Geological Survey, and the 
        Environmental Protection Agency; and
            (10) strengthen strategic coordination with, build on the 
        expertise of, and encourage contributions from, a wide variety 
        of stakeholders, including partner governments, the private 
        sector and nongovernmental organizations.

SEC. 1604. ASSISTANCE FOR WATER, SANITATION AND HOUSING.

    (a) Authorization.--The Administrator is authorized to use funds 
made available under section 1015 to further the goal and objectives of 
this chapter in partner countries.
    (b) Activities.--Assistance authorized under subsection (a) shall 
include the following:
            (1) Expanding access to clean water and sanitation.--
                    (A) Assessing water, sanitation, and hygiene needs.
                    (B) Developing additional, affordable, accessible, 
                and reliable water supplies.
                    (C) Expanding the coverage of existing water and 
                sanitation systems to reach previously underserved 
                populations.
                    (D) Improving water and sanitation infrastructure.
                    (E) Increasing the safety, reliability, and 
                sustainability of, and equity in access to, water 
                supplies, sanitation infrastructure, and hygiene 
                services.
                    (F) Promoting more efficient and sustainable use of 
                water supplies.
                    (G) Fostering integrated river basin and watershed 
                management.
                    (H) Increasing awareness and use of healthy hygiene 
                practices.
                    (I) Building the capacity of partner countries to 
                plan and manage water resources in an efficient, 
                transparent, inclusive and environmentally sustainable 
                manner.
                    (J) Promoting international and regional 
                cooperation to share technologies and best practices.
                    (K) Mitigating conflict over water resources.
                    (L) Conducting research and developing technology 
                to further the goal and objectives of this chapter.
            (2) Expanding access to adequate housing.--
                    (A) Assessing housing and infrastructure needs.
                    (B) Upgrading existing housing to meet 
                international humanitarian standards.
                    (C) Incentivizing the construction of affordable 
                housing units.
                    (D) Improving community infrastructure, such as 
                sidewalks, drainage ditches, and public lighting.
                    (E) Enhancing recognition and protection of legal 
                rights to the ownership, lease and use of real 
                property.
                    (F) Reducing gender and other discrimination in 
                housing, property ownership, and municipal services.
                    (G) Developing and enforcing reasonable housing and 
                construction codes to protect low-income residents and 
                buyers.
                    (H) Encouraging the development and expansion of 
                commercially oriented housing markets in partner 
                countries, including home mortgage and insurance 
                markets and financing for municipal infrastructure.
                    (I) Building the capacity of partner countries for 
                improved urban planning and management.

SEC. 1605. DEFINITIONS.

    In this chapter--
            (1) the term ``adequate housing'' means housing that meets 
        international humanitarian standards and includes--
                    (A) legal security of tenure;
                    (B) availability of services, materials, 
                facilities, and infrastructure;
                    (C) affordability;
                    (D) habitability;
                    (E) accessibility;
                    (F) location; and
                    (G) cultural adequacy; and
            (2) the term ``living conditions'' means the adequacy of 
        water, sanitation, and housing for human habitation.

                  CHAPTER 7--FOSTERING GENDER EQUALITY

SEC. 1701. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Women and girls are the majority of the world's poor, 
        unschooled, unhealthy, and underfed.
            (2) Women around the world often work under substandard 
        conditions, for longer hours, and with lower compensation, less 
        income stability and fewer economic opportunities than men.
            (3) Women are often excluded by law or practice from 
        participating fully and equally in the political, economic, and 
        social life of their country.
            (4) Women own significantly less land than men and 
        experience numerous barriers to ownership. Access to land and 
        property rights offers women greater economic opportunity and 
        security, greater protection from physical harm, better access 
        to health, education, and financial services, and improved 
        social status.
            (5) Displaced, refugee, and stateless women and girls in 
        humanitarian emergencies, conflict settings, and natural 
        disasters are at extreme risk of violence, exploitation and 
        intimidation.
            (6) Violence against women dramatically impedes progress in 
        meeting global health goals, including efforts to reduce 
        maternal mortality and reverse the spread of HIV/AIDS.
            (7) Ensuring that women have the ability to effectively 
        plan families is one of the keys to expanding their economic 
        opportunities. Yet hundreds of millions of women lack access to 
        affordable, effective, and appropriate contraceptive methods 
        and reproductive health care, putting them at greater risk of 
        unintended pregnancies and serious health complications.
            (8) Studies have shown that investments in women and girls 
        have broad multiplier effects, particularly in the areas of 
        health and education, which over the long run can significantly 
        improve the future of communities and countries.
            (9) Investments in women and girls can play a key role in 
        reducing poverty, countering violent extremism, promoting 
        stability, fostering tolerance and reconciliation, and building 
        strong and vibrant civil societies.
            (10) Increasing women's access to economic opportunities is 
        crucial to preventing and responding to domestic and sexual 
        violence.
            (11) Fostering gender equality requires strengthening 
        rules, practices, and institutions that protect the rights of 
        women and men, girls and boys, as well as including them in the 
        design, implementation, and monitoring of programs to reduce 
        poverty and alleviate human suffering.
    (b) Statement of Policy.--It is the policy of the United States 
to--
            (1) invest in women and girls in partner countries as a 
        matter of justice and human rights as well as to promote 
        sustainable development and achieve internationally agreed 
        development goals;
            (2) include women and the organizations that represent them 
        in the design, implementation, and monitoring of programs under 
        this title;
            (3) mainstream into the design, implementation, and 
        evaluation of policies and programs at all levels an 
        understanding of the distinctive impact that such policies and 
        programs may have on women and girls, men and boys; and
            (4) promote equal opportunities for all people, regardless 
        of sex, to achieve their personal potential and maximize their 
        contributions to the development of their families, 
        communities, and countries.

SEC. 1702. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of assistance under this chapter is to promote 
women's empowerment, gender equality, and gender integration.
    (b) Objectives.--In furtherance of the goal of subsection (a), 
assistance under this chapter shall be designed to help partner 
countries achieve the following objectives:
            (1) Increasing educational, economic, and political 
        opportunities for women and girls.
            (2) Building the capacity of women and girls to participate 
        fully in decisions that affect their lives.
            (3) Reducing legal and social barriers to women's 
        participation in economic activity and political processes.
            (4) Expanding the collection of sex-disaggregated data and 
        the use of gender analysis.
            (5) Integrating gender considerations into all 
        international development policies and programs, including 
        those carried out by all USAID bureaus, offices, and missions.

SEC. 1703. GLOBAL STRATEGY FOR GENDER EQUALITY.

    (a) In General.--The strategy required under section 1019 with 
respect to fostering gender equality shall be known as the ``Global 
Strategy for Gender Equality''.
    (b) Contents.--The Global Strategy for Gender Equality shall 
include, in addition to the elements required under section 1019(b), 
plans for achieving the goal and objectives in section 1702.
    (c) Guidelines.--The Global Strategy for Gender Equality should--
            (1) be coordinated and integrated with the comprehensive 
        international strategy to prevent and respond to violence 
        against women and girls, as required under section 3203, and 
        with each sector strategy of development, as described in 
        section 1019;
            (2) include plans for preventing child marriage;
            (3) address the ways in which the exclusion of, and 
        discrimination against, women hinders economic growth and 
        heightens the risks of conflict and instability;
            (4) discuss exclusionary and discriminatory practices that 
        are particularly harmful for the achievement of United States 
        development goals and identify the countries in which such 
        practices occur;
            (5) include plans for hiring, training, deploying and 
        retaining a diverse USAID workforce with appropriate expertise 
        and responsibility for promoting women's empowerment, gender 
        equality and gender integration around the world;
            (6) establish policy and guidance for integrating gender 
        considerations into all other international development 
        strategies and programs;
            (7) ensure that the goal and objectives of this chapter are 
        reflected in the USAID's procurement regulations and 
        procedures; and
            (8) build accountability for gender integration into 
        monitoring and evaluation systems.
    (d) Preparation.--The Global Strategy for Equality shall be 
prepared by the Director of the Office of Gender Equality and Women's 
Empowerment, in coordination with the Policy, Planning and Learning 
Bureau and the Ambassador-at-Large for Global Women's Issues.

SEC. 1704. ASSISTANCE FOR GENDER EQUALITY.

    (a) In General.--The Administrator is authorized to use funds made 
available under section 1015 to further the goal and objectives of this 
chapter in partner countries.
    (b) Activities.--Assistance authorized under subsection (a) shall 
include--
            (1) integrating women into the political, social, and 
        economic systems of partner countries;
            (2) developing laws, regulations, and policies that promote 
        equal rights and prohibit discrimination in partner countries;
            (3) providing leadership and technical training that 
        improves the capacity of women and girls in partner countries 
        to participate fully in decisions that affect their lives;
            (4) enhancing the capacity of partner countries to 
        undertake analysis of the specialized needs of women and girls 
        in health, water, sanitation, housing, education, food, legal 
        and financial services, and other sectors, and to develop 
        policies and programs to meet those needs;
            (5) enhancing the capacity of partner countries to prevent 
        and respond to violence against women and girls; and
            (6) research and innovation to improve the design, 
        implementation, and monitoring and evaluation of United States 
        foreign assistance for greater effectiveness in promoting 
        gender equality and reducing sexual and gender-based violence.

SEC. 1705. OFFICE OF GENDER EQUALITY AND WOMEN'S EMPOWERMENT.

    (a) Establishment.--There is established, within the United States 
Agency for International Development, an Office of Gender Equality and 
Women's Empowerment (referred to in this section as the ``Office'').
    (b) Director.--The Office shall be headed by a Director (referred 
to in this section as the ``Director''), who shall be highly qualified 
in matters relating to international development and gender 
integration. The Director shall report directly to the Administrator 
and consult regularly with the Ambassador-at-Large for Global Women's 
Issues.
    (c) Duties.--The Director shall--
            (1) advise the Administrator on matters relating to the 
        advancement of women's global development;
            (2) lead and coordinate all efforts of the United States 
        Agency for International Development to empower women and 
        promote gender equality in developing countries, including 
        efforts to prevent and respond to gender-based violence;
            (3) direct the preparation of the Global Strategy for 
        Gender Equality under section 1703;
            (4) mainstream into the design, implementation, and 
        evaluation of policies and programs at all levels an 
        understanding of the distinctive impact that such policies and 
        programs may have on women and girls;
            (5) assist other bureaus, offices, and overseas missions in 
        designing and revising strategies, programs, projects and 
        activities to empower women and promote gender equality;
            (6) monitor and evaluate the impact on women and girls of 
        programs carried out by USAID; and
            (7) disseminate information about lessons learned and best 
        practices for advancing women's global development throughout 
        USAID and other relevant Federal agencies.

SEC. 1706. PREVENTION OF CHILD MARRIAGE.

    (a) Findings.--Congress finds the following:
            (1) Child marriage, also known as ``forced marriage'' or 
        ``early marriage'', is a harmful traditional practice that 
        deprives girls of their dignity and human rights.
            (2) Child marriage as a traditional practice, as well as 
        through coercion or force, is a violation of article 16 of the 
        Universal Declaration of Human Rights, which states, ``Marriage 
        shall be entered into only with the free and full consent of 
        intending spouses''.
            (3) Factors perpetuating child marriage include poverty, a 
        lack of educational or employment opportunities for girls, 
        parental concerns to ensure sexual relations within marriage, 
        the dowry system, and the perceived lack of value of girls.
            (4) Child marriage has negative effects on the health of 
        girls, including significantly increased risk of maternal death 
        and morbidity, infant mortality and morbidity, obstetric 
        fistula, and sexually transmitted diseases, including HIV/AIDS.
            (5) Most countries with high rates of child marriage have a 
        legally established minimum age of marriage, yet child marriage 
        persists due to strong traditional norms and the failure to 
        enforce existing laws.
            (6) Investments in girls' schooling, creating safe 
        community spaces for girls, and programs to build skills for 
        out-of-school girls are all effective and demonstrated 
        strategies for preventing child marriage by addressing 
        conditions of poverty, low status, and social norms that 
        contribute to child marriage.
    (b) Statement of Policy.--It is the policy of the United States to 
seek the elimination of the practice of child marriage.
    (c) Authorization.--The Administrator is authorized to use funds 
made available under this chapter for programs to prevent the incidence 
of child marriage in partner countries through the promotion of 
educational, health, economic, social, and legal rights of girls and 
women.
    (d) Priority.--In providing assistance authorized under subsection 
(c), the Administrator should give priority to--
            (1) areas or regions in developing countries in which 40 
        percent or more of girls under the age of 18 are married; and
            (2) activities to--
                    (A) expand and replicate existing community-based 
                programs that are successful in preventing the 
                incidence of child marriage;
                    (B) establish pilot projects to prevent child 
                marriage; and
                    (C) share evaluations of successful programs, 
                program designs, experiences, and lessons.

SEC. 1707. COORDINATION OF EFFORTS TO PREVENT CHILD MARRIAGE.

    (a) Designation.--The Administrator shall designate an official to 
lead and coordinate policies and programs of the Agency to prevent 
child marriage.
    (b) Additional Duties.--In addition to the responsibilities 
described in subsection (a), the official designated under subsection 
(a) shall--
            (1) ensure that efforts to prevent child marriage are 
        integrated into the relevant country and sector strategies 
        prepared in accordance with sections 1018 and 1019; and
            (2) collect and disseminate information on--
                    (A) best practices for preventing and reducing the 
                incidence of child marriage;
                    (B) the incidence of child marriage in partner 
                countries where the practice of child marriage is 
                prevalent; and
                    (C) the relationship between prevalence of child 
                marriage and the achievement of development goals.
    (c) Consultation.--In carrying out the duties under this section, 
the official designated under subsection (a) shall consult with a wide 
range of relevant stakeholders.

SEC. 1708. DEFINITIONS.

    In this chapter:
            (1) Child marriage.--The term ``child marriage'' means the 
        marriage of a girl or a boy who has not reached the minimum 
        legal age for marriage in the country of residence, or where 
        there is no such law, under the age of 18.
            (2) Gender analysis.--The term ``gender analysis'' means 
        the systematic examination of the different roles, rights, 
        resources, constraints, and opportunities of men and women, 
        boys and girls, in a society, economy, community or family.
            (3) Gender equality.--The term ``gender equality'' means 
        equal opportunities for all people, regardless of sex, to 
        achieve their personal potential and maximize their 
        contributions to the development of their families, 
        communities, and countries.
            (4) Gender integration.--The term ``gender integration'' 
        means incorporating gender analysis and the resulting 
        recommendations in all policies, budgets, programming, and 
        performance monitoring and evaluation.

             CHAPTER 8--STRENGTHENING DEMOCRATIC GOVERNANCE

SEC. 1801. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Democratic development, political pluralism, and 
        respect for internationally recognized human rights are 
        intrinsically linked to economic and social progress. Efforts 
        to reduce poverty and promote broad-based economic growth are 
        more effective and sustainable in a political environment in 
        which fundamental freedoms and the rule of law are respected, 
        government institutions are broadly representative, and 
        corruption is held to a minimum.
            (2) Violent extremism that threatens United States national 
        security flourishes where democratic governance is weak, 
        justice uncertain, and legal avenues for change in short 
        supply.
            (3) Democracy can only be sustained in a society in which 
        the legitimacy of the government rests firmly on the expressed 
        consent of the governed; the rights of all citizens, including 
        minorities, are respected and protected; and there is effective 
        civilian control over the military and security forces.
            (4) There is a growing worldwide movement toward more open, 
        just and democratic societies. This trend is essential to 
        achieving the United States ultimate objective of worldwide 
        respect for human rights and fundamental freedoms without 
        distinction as to race, sex, language, religion, sexual 
        orientation, or gender identity. At the same time, this trend 
        holds great promise for promoting the peace of the world and 
        the foreign policy, security, and general welfare of the United 
        States.
            (5) Preventing mass atrocities is a core national security 
        interest and a core moral responsibility of the United States. 
        Governmental engagement on atrocities too often arrives too 
        late, when opportunities for prevention or low-cost, low-risk 
        action have been missed. By helping partner countries to 
        strengthen democratic institutions and practices and to manage 
        diversity peacefully, responsibly and equitably, USAID can 
        address many of the structural conditions that give rise to 
        mass atrocities.
            (6) Persons belonging to racial, ethnic, religious, and 
        linguistic minorities, as well as lesbians, gays, bisexuals, 
        and transgender individuals, and persons with disabilities are 
        often subjected to discrimination, harassment, exploitation, 
        intimidation, and exclusion. United States policies and 
        programs should seek to foster equal opportunity and equal 
        access to justice for all people, including marginalized 
        groups.
            (7) Civil society organizations and activists worldwide 
        contribute in unique and essential ways to development as 
        innovative agents of change and social transformation. In 
        particular, such organizations have an important role to play 
        in bringing the voices of the poor to influence government 
        policies, and to hold governments and other powerful actors to 
        account for their actions. A diverse, strong, and independent 
        civil society sector is critical for the sustainable reduction 
        of poverty.
            (8) Democracy cannot be imposed from without. However, the 
        United States should encourage all states to meet their 
        obligations under international law to uphold and protect human 
        rights and fundamental freedoms, and should support the 
        aspirations of those who seek through peaceful means to make 
        their governments more democratic and accountable.
            (9) Democracy takes time to become firmly rooted in society 
        and in the political system. While short-term interventions can 
        be important and effective means for preventing abuses and 
        opening windows of opportunity, democratic development 
        generally requires sustained effort and a comprehensive 
        approach.
    (b) Statement of Policy.--It is the policy of the United States 
to--
            (1) support democratic aspirations and values, foster the 
        spread of democratic institutions, and encourage universal 
        respect for internationally recognized human rights, including 
        civil and political liberties;
            (2) recognize that, to be successful, such support must not 
        be defined narrowly in terms of parties and elections and 
        government institutional capacity building, but must include 
        other, equally important, aspects of democratic development, 
        including--
                    (A) independent and balanced media;
                    (B) impartial and competent judicial processes that 
                deliver access to justice;
                    (C) respect for human rights and fundamental 
                freedoms; and
                    (D) a vibrant civil society that engages 
                meaningfully with government; and
            (3) take into consideration a country's commitment to good 
        governance, respect for the rule of law and protection of 
        internationally recognized human rights in providing assistance 
        under this subtitle.

SEC. 1802. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of assistance under this chapter is to 
strengthen democratic institutions and practices and promote human 
rights in partner countries.
    (b) Objectives.--In furtherance of the goal of subsection (a), 
assistance under this chapter shall be designed to help partner 
countries achieve the following objectives:
            (1) Improving government responsiveness, accountability, 
        transparency and effectiveness.
            (2) Increasing the capacity and participation of civil 
        society.
            (3) Strengthening the observance of internationally 
        recognized human rights and the rule of law.
            (4) Fostering political competition and consensus-building.
            (5) Protecting and expanding democratic space for civil 
        society organizations to operate.

SEC. 1803. ASSISTANCE FOR DEMOCRATIC STRENGTHENING.

    (a) In General.--The Administrator is authorized to use funds made 
available under section 1015 to further the goal and objectives of this 
chapter in partner countries.
    (b) Activities.--Assistance authorized under subsection (a) shall 
include support for the following:
            (1) Conducting free, legitimate, credible, and fair 
        national, state, and local elections.
            (2) Developing and strengthening open, democratic, peaceful 
        and effective political parties.
            (3) Enhancing the responsiveness and effectiveness of 
        public administration.
            (4) Building professional, transparent and responsible 
        legislatures.
            (5) Developing and strengthening free, independent and 
        professional media.
            (6) Fostering inclusive and transparent legislative and 
        regulatory processes at all levels of government.
            (7) Decentralization efforts and the development of 
        capable, representative local government institutions.
            (8) Strengthening civilian, democratic control over the 
        military.
            (9) Combating corruption and promoting financial integrity.
            (10) Improving the independence, impartiality, transparency 
        and competence of judicial officials and processes.
            (11) Revising and modernizing laws, constitutions, and 
        legal frameworks.
            (12) Expanding access of crime victims and witnesses to 
        legal information and services.
            (13) Promoting official recognition of, and respect in 
        practice for, internationally recognized human rights.
            (14) Supporting and assisting international and domestic 
        courts and tribunals investigating and prosecuting instances of 
        mass atrocities.
            (15) Rehabilitating victims of torture, including 
        activities specifically designed to treat the physical and 
        psychological effects of torture.
            (16) Preventing and responding to abuses such as human 
        trafficking, sexual and gender-based violence, the conscription 
        of children into armed forces, the use of child labor and the 
        practice of child marriage.
            (17) Strengthening the capacity of civil society 
        organizations to participate effectively in public life and 
        provide input into government decisions.
            (18) Increasing citizen awareness of rights and 
        responsibilities, and encouraging greater participation in 
        political processes.
            (19) Promoting tolerance, dialogue, and peaceful dispute 
        resolution.
            (20) Reducing the risk of mass atrocities through early 
        warning and early action.
            (21) Fostering equal rights and equal opportunities for 
        marginalized groups.
            (22) Countering laws, regulations, policies, and practices 
        that restrict civil space.
            (23) Expanding public access to information and 
        communications, including through the Internet.
            (24) Implementing Action Plans for Human Rights and 
        Democracy prepared pursuant to section 3103.

SEC. 1804. ADVISORY COMMITTEE ON DEMOCRACY PROMOTION.

    (a) Establishment.--There is established an Advisory Committee on 
Democracy Promotion (in this section referred to as the ``Advisory 
Committee''). The Advisory Committee shall report to the Secretary and 
the Administrator.
    (b) Purpose.--The purpose of the Advisory Committee is to review 
and make recommendations on how to improve United States Government 
efforts to promote democracy internationally.
    (c) Duties.--The duties of the Advisory Committee shall include 
consulting with, providing information to, and advising the Secretary 
and the Administrator on issues relating to democracy promotion in the 
formulation and implementation of United States foreign policy and 
foreign assistance, including such matters as--
            (1) the means by which the United States Government should 
        promote democracy, depending on circumstances in foreign 
        countries;
            (2) the integration of democracy considerations into United 
        States diplomatic and development efforts;
            (3) the special challenges of setting indicators and 
        measuring impact in the field of democracy and governance;
            (4) lessons learned and best practices in international 
        democracy promotion;
            (5) the balance between strengthening civil society and 
        strengthening governance;
            (6) the application of principles of country ownership in 
        undemocratic or democratic transition countries;
            (7) the application of marking and branding rules to 
        democracy programs;
            (8) the consistency of democracy policies and programs 
        across Federal agencies; and
            (9) the parameters for operating in undemocratic and 
        conflict settings.
    (d) Membership.--
            (1) Number and appointment.--The Advisory Committee shall 
        be composed of 8 individuals appointed by the Secretary and 7 
        individuals appointed by the Administrator who are experts in 
        various aspects of the field of international democracy, human 
        rights, and good governance.
            (2) Terms.--Members of the Advisory Committee shall serve a 
        term of 2 years, and may be appointed to consecutive terms.
            (3) Individual capacity.--Members of the Advisory Committee 
        shall serve in an individual, not a representative, capacity.
            (4) Chairperson and vice chairperson.--The Chairperson of 
        the Advisory Committee shall be designated by the Secretary, 
        and the Vice Chairperson of the Advisory Committee shall be 
        designated by the Administrator, at the time of their 
        appointment to the Advisory Committee.
    (e) Report.--
            (1) In general.--The Advisory Committee shall submit to the 
        Secretary and the Administrator on an annual basis a report 
        that describes the activities of the Advisory Committee during 
        the preceding year.
            (2) Availability to public.--The report required by 
        paragraph (1) shall be made publicly available on the Internet.
    (f) Meetings.--The Advisory Committee shall hold not less than 4 
meetings each year.
    (g) Subcommittees.--The Advisory Committee may establish 
subcommittees and special task forces, as determined necessary by the 
Advisory Committee. Any such subcommittee or special task force shall 
meet subject to the call of the Chairperson of the subcommittee or 
special task force, as the case may be.

SEC. 1805. FOREIGN GOVERNMENT APPROVAL AND CONDITIONALITY.

    (a) Foreign Government Approval.--The Administrator shall not 
require the approval or agreement of a foreign government for--
            (1) specific programs, projects, or activities authorized 
        under this chapter; or
            (2) specific organizations carrying out assistance 
        authorized under this chapter.
    (b) Foreign Government Conditionality.--The Administrator shall not 
terminate assistance authorized under this chapter for a country 
pursuant to, or in order to conclude, an agreement to provide other 
forms of assistance for such country.

SEC. 1806. RELATIONSHIP TO OTHER LAWS.

    Assistance authorized under this chapter to promote human rights, 
strengthen civil society, and foster a free and fair election, 
referendum, or vote may be made available notwithstanding any provision 
of law that restricts assistance to a foreign country.

SEC. 1807. PROHIBITING ASSISTANCE TO INFLUENCE THE OUTCOME OF 
              ELECTIONS.

    (a) In General.--No assistance authorized under this chapter shall 
be used to influence the outcome of any elections in any country.
    (b) Exception.--The prohibition in subsection (a) shall not be 
construed to prohibit programs that make a good faith effort to assist 
all democratic parties with equitable levels of assistance.

SEC. 1808. PROTECTED SPEECH.

    Notwithstanding any other provision of law, regulation, or policy, 
in determining eligibility for assistance under this title, foreign 
nongovernmental organizations--
            (1) shall not be ineligible for such assistance solely on 
        the basis of health or medical services, including counseling 
        and referral services, provided by such organizations with non-
        United States Government funds, if such services--
                    (A) do not violate the laws of the country in which 
                they are being provided, and
                    (B) would not violate United States Federal law if 
                provided in the United States; and
            (2) shall not be subject to requirements relating to the 
        use of non-United States Government funds for advocacy and 
        lobbying activities other than those that apply to United 
        States nongovernmental organizations receiving assistance under 
        this title.

                Subtitle B--Alleviating Human Suffering

SEC. 1901. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Natural disasters can temporarily overwhelm the 
        capacity of countries, regardless of wealth and technological 
        advancement, to meet basic human needs and protect people from 
        harm. Such disasters are likely to increase in number and 
        severity along with the changes in the world's climate, the 
        degradation of the environment, and the expansion of the 
        world's population.
            (2) Conflict, weak and poor governance, corruption, and 
        repression increase vulnerability to humanitarian crisis, 
        aggravate the impact of physical and environmental shocks, 
        complicate the ability to respond effectively, and lengthen the 
        recovery period.
            (3) Conflicts, human rights violations, and natural 
        disasters often uproot people within their own countries. 
        Forced to abandon their homes and livelihoods, and without 
        access to the rights and resources available to those who cross 
        an international border, these internally displaced persons are 
        among the world's most vulnerable and neglected people.
            (4) Persons affected by conflict are at greatly heightened 
        risk of sexual and gender-based violence. Such risk can be 
        mitigated through proper design and implementation of 
        humanitarian programs, especially those relating to water and 
        sanitation, health, shelter, food, education, energy, and 
        livelihoods, as well as through specific protection measures.
            (5) In protracted crises, humanitarian resources are often 
        exhausted before the essential conditions are in place for 
        long-term, sustainable development. In addition, lack of 
        expertise and training, inadequate coordination, and unclear or 
        narrow mandates often leave programming gaps. Coordinated 
        action is required to address basic human needs at every stage 
        of the transition, from emergency relief to recovery, 
        rehabilitation, reconstruction, and development.
            (6) Continuity of educational activities for all children 
        is an essential humanitarian need. Assistance to countries 
        affected by conflict or crisis should include formal and 
        informal education services to ensure that children are able to 
        continue their schooling and are protected from physical harm, 
        psychological and social distress, recruitment into armed 
        groups, family separation, and abuses related to their 
        displacement.
            (7) Nongovernmental organizations play a leading role in 
        humanitarian action, not only by delivering relief in 
        underserved areas, but also by contributing a significant 
        proportion of the international resources, by developing 
        effective and innovative techniques and methodologies, by 
        maintaining long-term relationships of trust with affected 
        communities, by establishing reputations for independence, 
        impartiality and neutrality, by integrating knowledge and 
        expertise about local languages, customs, conditions, and 
        needs, by bridging the gaps between relief and development, and 
        by advocating for those in greatest need.
            (8) The United Nations plays a central, unique, and vital 
        role in leading and coordinating international humanitarian 
        assistance. Its organs and affiliated agencies have 
        capabilities and expertise that far exceed the ability of any 
        single donor to respond to humanitarian needs. The collective 
        voice of these partners frequently enhances United States 
        bilateral efforts and often plays a useful role in gaining 
        access and achieving results where United States influence 
        might otherwise be limited.
            (9) Multilateralism allows the United States to leverage 
        its humanitarian contributions as part of a wider international 
        donor effort and helps ensure that United States efforts 
        complement those of other donors. To be effective, United 
        States engagement with multilateral humanitarian organizations 
        requires predictable funding and strong diplomatic engagement 
        in policy development and institutional management.
    (b) Statement of Policy.--It is the policy of the United States to 
save lives, alleviate human suffering wherever possible, and protect 
vulnerable populations, taking action solely on the basis of need, 
without discrimination between or within affected populations, without 
regard to diplomatic, economic, military, or other objectives of the 
United States, and without favoring any side in an armed conflict or 
other dispute.

SEC. 1902. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of assistance under this subtitle is to save 
lives, alleviate suffering, maintain human dignity, and protect and 
uphold the rights of extremely vulnerable people.
    (b) Objectives.--In furtherance of the goal of subsection (a), 
assistance under this subtitle shall be designed to achieve the 
following objectives:
            (1) Provide quick and effective relief in the aftermath of 
        disasters, whether natural or human-caused.
            (2) Facilitate the transition to self-sufficiency and safe 
        lives and livelihoods.
            (3) Protect civilians affected by conflict, disaster, and 
        displacement from physical harm, persecution, exploitation, 
        abuse, malnutrition and disease, family separation, gender-
        based violence, forcible recruitment and other threats to human 
        rights.
            (4) Build capacity to prevent and mitigate the effects of 
        conflict, disasters, and displacement.

SEC. 1903. HUMANITARIAN PRINCIPLES.

    (a) In General.--United States humanitarian action shall be carried 
out in accordance with the following principles:
            (1) The central purpose of humanitarian action is to save 
        lives, alleviate human suffering, and protect vulnerable 
        population wherever possible.
            (2) Humanitarian action should be impartial, based solely 
        on and in proportion to need, without discrimination between or 
        within affected populations, and without regard to the 
        political views, national origin, or religious affiliation of 
        the beneficiaries.
            (3) Humanitarian action should be neutral, without 
        furthering a political or religious agenda or favoring any side 
        in an armed conflict or other dispute where such humanitarian 
        action is carried out.
            (4) Humanitarian action should be independent, without 
        regard to the political, economic, military, or other 
        objectives that any actor may hold in relation to the affected 
        areas and populations.
            (5) Humanitarian action should be undertaken in accordance 
        with international human rights law, international humanitarian 
        law, refugee law, and the United Nations Guiding Principles on 
        Internal Displacement.
            (6) Humanitarian action should meet international 
        standards, using the SPHERE Minimum Standards for Disaster 
        Response and the Inter-Agency Standing Committee guidelines as 
        benchmarks, should be informed by the INEE Minimum Standards, 
        and should promote the principles and practices of Good 
        Humanitarian Donorship.
            (7) Protection of civilians affected by conflict, disaster, 
        and displacement from physical harm, persecution, exploitation, 
        abuse, malnutrition and disease, family separation, sexual and 
        gender-based violence, forcible recruitment, and other threats 
        to human rights is a core element of humanitarian action.
            (8) Humanitarian action should be primarily civilian in 
        nature. The Department of Defense should provide humanitarian 
        assistance overseas only as a last resort when there is no 
        comparable civilian alternative and when the use of military or 
        civil defense assets can uniquely meet a critical humanitarian 
        need.
            (9) When the military is required to support a humanitarian 
        response, its participation should be subject to the overall 
        leadership, coordination and policy guidance of civilian 
        agencies, who must be provided the requisite resources and 
        authorities to perform this leadership role.
            (10) The United States should adopt, between the Department 
        of State and USAID, a lead-agency approach with a clear 
        division of leadership and responsibility for humanitarian 
        response. Under the guidance of the President, the Secretary 
        should lead for operations responding to political and security 
        crises, while the Administrator should lead for operations in 
        response to humanitarian crises resulting from large-scale 
        natural or industrial disasters, famines, disease outbreaks, 
        and other natural phenomena.
            (11) Humanitarian action should be undertaken in a timely, 
        flexible, and efficient manner on the basis of assessed needs.
            (12) In addition to providing funding for relief efforts, 
        the United States should use its leverage to assist 
        humanitarian agencies in obtaining secure, unfettered access to 
        survivors in crisis situations.
            (13) To ensure impartiality, neutrality, independence, and 
        the appearance thereof, humanitarian action should be 
        implemented by intergovernmental and nongovernmental 
        international humanitarian organizations, in partnership with 
        local communities, indigenous organizations, and affected 
        governments whenever possible.
            (14) Individuals affected by conflict, disaster, 
        persecution, and displacement have the greatest stake in the 
        performance of humanitarian programs and should, to the 
        greatest possible extent, be involved in the design, 
        implementation, monitoring, and evaluation of such programs.
            (15) Humanitarian, reconstruction, and development programs 
        should be coordinated, planned, and funded to ensure continuity 
        of life-sustaining services during transition phases.
            (16) Humanitarian, development, and other economic 
        assistance programs should be designed with an eye toward 
        reducing the risk and impact of future conflict and crisis and 
        building resiliency among the most vulnerable populations.
            (17) United States humanitarian action should strive to 
        ensure that refugees, internally displaced persons, and other 
        conflict-affected individuals and communities are treated 
        equally in the application of policy and the allocation of 
        resources.
            (18) To promote learning, accountability, transparency, and 
        the efficient use of resources, the United States should 
        support independent monitoring and evaluation of all 
        humanitarian assistance.
    (b) Definition.--In this section--
            (1) the term ``United States humanitarian action'' or 
        ``humanitarian action'' means--
                    (A) humanitarian assistance as defined in section 
                6;
                    (B) assistance under any provision of law to save 
                lives, alleviate human suffering, and protect 
                vulnerable populations in an international disaster; 
                and
                    (C) diplomatic and military activities in support 
                of the goal and objectives of this chapter; and
            (2) the term ``INEE Minimum Standards'' means the standards 
        for education developed by the Inter-Agency Network on 
        Education in Emergencies for use in emergency response, 
        emergency preparedness, and humanitarian advocacy.

SEC. 1904. INTERNATIONAL DISASTER ASSISTANCE.

    (a) Authorization.--Notwithstanding any other provision of this or 
any other Act, the Administrator is authorized to provide assistance to 
any foreign country, international organization, or private voluntary 
organization, on such terms and conditions as the Administrator may 
determine, for international disaster relief, recovery, and 
reconstruction, including assistance relating to disaster preparedness, 
and to the prediction of, and contingency planning for, disasters and 
humanitarian crises abroad.
    (b) Availability of Funds.--Amounts made available under this 
section are authorized to remain available until expended.
    (c) Reimbursement Authority.--In addition to amounts otherwise 
available to carry out this section, up to $100,000,000 of amounts made 
available under subtitle A in any fiscal year may be obligated for the 
purposes of, and in accordance with the authorities of, this section. 
Amounts subsequently made available under this section may be used to 
reimburse any account under which obligations were incurred under this 
subsection.

SEC. 1905. EMERGENCY HUMANITARIAN RESPONSE FUND.

    (a) Authority.--Whenever the Administrator determines it to be 
important to the national interest of the United States, the 
Administrator is authorized to provide, on such terms and conditions as 
the Administrator may determine, assistance under this section for the 
purpose of meeting unexpected urgent humanitarian and food assistance 
needs, notwithstanding any other provision of law.
    (b) Establishment.--There is established a United States Emergency 
Humanitarian Response Fund to carry out the purposes of this section 
(in this section referred to as the ``Fund'').
    (c) Transfer Authority; Availability of Funds.--In addition to 
amounts otherwise available to carry out this section, the President is 
authorized to transfer to the Fund from amounts made available under 
any other provision of this Act such sums as may be necessary to carry 
out the purposes of this section, except that the total amount in the 
Fund at any time shall not exceed $500,000,000. Amounts in the Fund are 
authorized to remain available until expended.
    (d) Notification.--The President shall keep the appropriate 
congressional committees currently informed of the use of funds and the 
exercise of functions authorized in this section.

SEC. 1906. DEFINITIONS.

    In this subtitle:
            (1) Disaster.--The term ``disaster'' means a human-caused 
        or natural occurrence that causes loss of life, health, 
        property, or livelihood, inflicting severe destruction and 
        distress.
            (2) International disaster relief, recovery, and 
        reconstruction.--The term ``international disaster relief, 
        recovery, and reconstruction'' means--
                    (A) disaster planning and preparedness, disaster 
                risk reduction, and other actions to mitigate death and 
                destruction in the event of a disaster;
                    (B) immediate actions intended to save lives, 
                alleviate human suffering, and protect vulnerable 
                populations during and after a disaster;
                    (C) short-term measures to facilitate the 
                transition to self-sufficiency and safe lives and 
                livelihoods following a disaster; and
                    (D) actions to begin to reconstitute basic services 
                and facilities following a disaster.
            (3) Protect.--The terms ``protect'' and ``protection''--
                    (A) mean all activities aimed at obtaining full 
                respect for the rights of the individual in accordance 
                with international human rights law, international 
                humanitarian law, refugee law, and the United Nations 
                Guiding Principles on Internal Displacement; and
                    (B) include activities to prevent, reduce, or 
                mitigate the impact of violence, coercion, deprivation, 
                or abuse on individuals or groups during international 
                disasters.

           TITLE II--ADVANCING PEACE AND MITIGATING CONFLICT

SEC. 2001. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Peacebuilding involves the full range of approaches, 
        processes, and stages of transforming violent conflict into 
        stable, peaceful relationships.
            (2) Because many of the greatest threats to United States 
        national security have emerged from failed states, it is in the 
        national security interest of the United States to support 
        peacebuilding efforts to stabilize and secure fragile states 
        and states under stress.
            (3) United States peacebuilding efforts are most effective 
        when they are undertaken in cooperation with the international 
        community, and when they build local capacity to prevent and 
        stop violence and mass atrocities.
            (4) In the event that prevention fails, the United States 
        has an obligation to work both multilaterally and bilaterally 
        to mobilize diplomatic, humanitarian, financial, and when 
        necessary and appropriate, military resources to save lives and 
        protect civilian populations.
            (5) Civil society organizations, including international 
        nongovernmental organizations and local community groups, play 
        an important role in promoting nonviolent conflict resolution, 
        fostering harmony among religions, ethnic groups, communities, 
        and factions, and facilitating second-track diplomacy. By 
        coordinating with and working through such organizations, the 
        United States can strengthen the effectiveness of its 
        peacebuilding programs.
    (b) Statement of Policy.--It is the policy of the United States to 
promote civilian security and long-term sustainable, secure, and stable 
communities.

SEC. 2002. DEFINITION.

    In this title, the term ``peacebuilding'' means activities to 
prevent armed conflict, prevent and respond to mass atrocities, 
stabilize weak and fragile states, protect civilians in conflict zones, 
mitigate crises, help countries to rebuild and recover after conflict, 
and support transitions to peace, stability, and democracy.

                    Subtitle A--General Authorities

SEC. 2011. PEACEKEEPING.

    (a) Statement of Policy.--It is the policy of the United States to 
employ a variety of unilateral, bilateral, and multilateral means to 
respond to international conflicts and crises, placing a high priority 
upon timely, preventive diplomatic efforts and exercising a leadership 
role in promoting international efforts to end crises peacefully.
    (b) Authorization.--The Secretary is authorized to provide 
assistance to foreign countries, international organizations, and 
regional arrangements, on such terms and conditions as the Secretary 
may determine, for peacekeeping operations in furtherance of the 
national security interests of the United States.
    (c) Reimbursement.--Such assistance may include reimbursement for 
expenses incurred pursuant to section 7 of the United Nations 
Participation Act of 1945 (22 U.S.C. 287d-1), except that such 
reimbursements may not exceed $5,000,000 in any fiscal year unless a 
greater amount is specifically authorized by law.
    (d) Determination.--If the President determines that, as the result 
of an unforeseen emergency, the provision of assistance under this 
section in amounts in excess of amounts otherwise made available for 
such assistance is important to the national interests of the United 
States, the President may--
            (1) exercise the authority of section 10602 to transfer 
        amounts made available to carry out section 4103 for use under 
        this section without regard to the 20 percent increase 
        limitation contained in section 10602, except that the total 
        amount so transferred in any fiscal year may not exceed 
        $15,000,000; and
            (2) in the event the President also determines that such 
        unforeseen emergency requires the immediate provision of 
        assistance under this section, direct the drawdown of 
        commodities and services from the inventory and resources of 
        any agency of the United States Government of an aggregate 
        value not to exceed $25,000,000 in any fiscal year.

SEC. 2012. TRANSITION INITIATIVES.

    (a) Authorization.--The Administrator is authorized to provide, 
notwithstanding any other provision of law, assistance to support the 
transition to peace, democracy, and sustainable development of a 
country or region that is at risk of, in, or in transition from, 
conflict or civil strife.
    (b) Use of Funds.--Assistance under this section includes support 
for the following:
            (1) Developing or strengthening democratic institutions and 
        processes.
            (2) Short-term economic and political stabilization.
            (3) Reconstructing or revitalizing basic infrastructure.
            (4) Fostering reconciliation and the peaceful resolution of 
        conflict.
    (c) Transfer Authority.--If the Secretary determines that it is 
important to the national interests of the United States to provide 
transition assistance in excess of amounts appropriated or otherwise 
made available under this section, up to $25,000,000 of the funds made 
available under this Act may be used for purposes of this section and 
under the authorities applicable to funds made available under this 
section.
    (d) Notification.--
            (1) By administrator.--The Administrator shall notify the 
        appropriate congressional committees not less than 5 days 
        before beginning a new program of assistance under this 
        section.
            (2) By secretary.--The Secretary shall notify the 
        appropriate congressional committee not less than 5 days before 
        making a transfer pursuant to subsection (c).

SEC. 2013. LIMIT ON PAYMENT TO UNITED NATIONS AND AFFILIATED AGENCIES.

    Section 404(b) of the Foreign Relations Authorization Act, Fiscal 
Years 1994 and 1995 (Public Law 103-236; 22 U.S.C. 287e note) is 
amended--
            (1) by striking ``Contributions.--'' and all that follows 
        through ``Funds authorized'' and inserting ``Contributions.--
        Funds authorized''; and
            (2) by striking paragraph (2).

SEC. 2014. AVAILABILITY OF AIRCRAFT.

    (a) In General.--The Secretary of Defense is authorized to make 
available, on a nonreimbursable basis, aircraft maintained and operated 
by the Department of Defense, to transport Department of State 
personnel to prevent or respond to a conflict or civil strife, 
including for use by Assistant Secretaries of State to conduct 
emergency diplomatic missions in their regions of concern. Such 
aircraft may include those aircraft assigned to combatant commanders in 
the Unified Command Plan.
    (b) Request.--A request to utilize the aircraft referred to in 
subsection (a) shall be provided to the Secretary of Defense by the 
Secretary of State.

SEC. 2015. COMPLEX CRISIS, STABILIZATION, AND PREVENTION FUND.

    (a) Establishment of Fund.--
            (1) In general.--The Secretary is authorized to establish a 
        fund, to be known as the ``Complex Crisis, Stabilization, and 
        Prevention Fund'' (referred to in this section as the 
        ``Fund''), to provide assistance to a country or region 
        designated by the Secretary as a country at risk of, in, or in 
        transition from, conflict or civil strife and for other 
        purposes authorized in this section.
            (2) Congressional notification.--The Secretary shall notify 
        the appropriate congressional committees at least five days in 
        advance of an obligation of funds under this section.
            (3) Waiver.--The requirement for notification under 
        paragraph (2) may be waived if--
                    (A) failure to do so would pose a substantial risk 
                to human health or welfare;
                    (B) the appropriate congressional committees are 
                notified not later than three days after an obligation 
                of funds; and
                    (C) such notification contains an explanation of 
                the emergency circumstances necessitating such waiver.
            (4) Purpose of assistance.--Assistance may be provided 
        under this section for the following purposes:
                    (A) Fostering reconstruction or stabilization.
                    (B) Mitigating or responding to emerging or 
                unforeseen complex crises, including urgent political, 
                social, or economic challenges that threaten stability.
                    (C) Addressing systemic and immediate causes of 
                crises and conflict.
                    (D) Undertaking preventive measures to reduce the 
                risk of crises and conflict and their impact on 
                vulnerable populations.
    (b) Limitation.--The Secretary shall ensure that assistance 
provided under this section is not used for--
            (1) assistance of a military nature or for a military 
        purpose; or
            (2) participation by an officer or employee of the United 
        States in a foreign police action.
    (c) Conflict Prevention.--Not less than 25 percent of amounts made 
available to carry out this section shall be used to support programs 
and activities to prevent an outbreak or escalation of violence in a 
country at risk of, in, or in transition from, conflict or civil 
strife.
    (d) Transfer.--
            (1) In general.--The President may transfer up to 
        $500,000,000 of amounts made available under any other 
        provision of law to be used to implement the purposes of this 
        section.
            (2) Additional amounts.--Notwithstanding any other 
        provision of law, up to $5,000,000 or five percent, whichever 
        is less, of any amounts that are specifically designated by 
        this or any other Act for particular programs or activities may 
        be transferred to carry out the purposes of this section.
    (e) Relationship to Other Laws.--Assistance provided from the Fund 
may be made available notwithstanding any other provision of law.

SEC. 2016. ADDRESSING VIOLENCE AGAINST WOMEN AND GIRLS IN HUMANITARIAN 
              RELIEF, PEACEKEEPING, CONFLICT, AND POST-CONFLICT 
              SETTINGS.

    (a) Activities of the Department of State and Agency.--
            (1) Duties.--The Secretary and the Administrator are 
        authorized to--
                    (A) provide assistance to programs carried out by 
                international organizations, international and local 
                nongovernmental organizations, and governments, as 
                appropriate, that--
                            (i) prevent and respond to violence against 
                        women and girls in humanitarian relief, in a 
                        country or region at risk of, in, or in 
                        transition from, conflict or civil strife;
                            (ii) build the capacity of humanitarian 
                        organizations and government authorities, as 
                        appropriate, to address the special protection 
                        needs of women and children;
                            (iii) support efforts to provide immediate 
                        assistance to survivors of violence and 
                        reintegrate such individuals through education, 
                        psychosocial assistance, trauma counseling, 
                        family and community reinsertion and 
                        reunification, medical assistance, and economic 
                        opportunity programs; and
                            (iv) provide legal services for women and 
                        girls who are victims of violence;
                    (B) work to incorporate activities to prevent and 
                respond to violence against women and girls 
                internationally into any multilateral or bilateral 
                disarmament, demobilization, rehabilitation, and 
                reintegration efforts by--
                            (i) providing protection and suitable 
                        separate facilities in demobilization and 
                        transit centers for women and girls formerly 
                        involved in, or associated with, fighting 
                        forces;
                            (ii) ensuring equitable reintegration 
                        activities and opportunities for such women and 
                        girls, including access to schooling, 
                        vocational training, employment, and childcare;
                            (iii) providing essential medical care and 
                        psychosocial support for such women and girls 
                        who are victims of violence; and
                            (iv) incorporating prevention and response 
                        to violence against women and girls into 
                        programs for former combatants;
                    (C) designate and deploy specialists in violence 
                against women and girls, as appropriate, as an integral 
                part of the Agency's Disaster Assistance Response Teams 
                to ensure the integration of prevention and response to 
                violence against women and girls internationally in 
                strategies and programming; and
                    (D) strive to ensure that all private partners and 
                others carrying out humanitarian relief in a country or 
                region at risk of, in, or in transition from conflict 
                or civil strife--
                            (i) train all humanitarian workers in 
                        preventing and responding to violence against 
                        women and girls, including in the use of 
                        mechanisms to report violence against women and 
                        girls;
                            (ii) conduct appropriate public outreach to 
                        make known to the host community the mechanisms 
                        to report violence against women and girls; and
                            (iii) promptly and appropriately respond to 
                        reports of violence against women and girls and 
                        treat survivors in accordance with best 
                        practices regarding confidentiality.
    (b) Coordination of United States Government Efforts.--The 
Secretary of Defense and the Attorney General shall coordinate with the 
Secretary of State and the Administrator when carrying out programs 
relevant to the purposes of this section.
    (c) Enhancing United States Leadership and Advocacy in the United 
Nations.--
            (1) Strengthening united nations procedures.--The 
        Secretary, in consultation with the Administrator and the 
        United States Permanent Representative to the United Nations, 
        is authorized to promote United Nations efforts to--
                    (A) develop and implement appropriate training 
                programs for peacekeeping and humanitarian personnel in 
                prevention and response to violence against women and 
                girls internationally;
                    (B) meet staffing goals for women military and 
                police peacekeepers, including all-women teams and 
                units;
                    (C) enhance the deployment of civilian women at all 
                levels to serve in peacekeeping missions, including 
                through innovative staffing formulas;
                    (D) institute effective protection mechanisms in 
                and around United Nations-managed refugee and 
                internally displaced persons camps;
                    (E) implement a zero tolerance policy for sexual 
                exploitation and abuse in United Nations peacekeeping 
                and humanitarian operations;
                    (F) support countries that contribute troops and 
                police in--
                            (i) taking appropriate actions to prevent 
                        violence and abuse;
                            (ii) providing materials for pre-deployment 
                        and in-theater awareness training; and
                            (iii) taking other actions to promote full 
                        accountability in cases of abusive conduct 
                        involving the personnel of such countries;
                    (G) continue to expand appropriate mechanisms to 
                permit individuals to safely bring to the attention of 
                United Nations peacekeeping commanders and heads of 
                humanitarian missions allegations of violence against 
                women and girls internationally; and
                    (H) ensure the capacity of the United Nations 
                Office of Internal Oversight to investigate in a timely 
                and efficient manner all credible allegations of 
                violence against women and girls internationally, while 
                protecting the whistleblower.
    (d) Emergency Response to Violence Against Women and Girls.--
            (1) Emergency response.--Not later than 45 days after 
        receiving a credible report of serious or widespread incidents 
        of violence against women and girls in a situation of armed 
        conflict or civil strife, the Secretary and the Administrator 
        shall, in consultation with relevant stakeholders, identify and 
        implement emergency response measures.
            (2) Consultation.--For the purposes of paragraph (1), the 
        term ``relevant stakeholders'' includes, as appropriate--
                    (A) affected populations;
                    (B) international, multilateral, and 
                nongovernmental organizations operating in the affected 
                area;
                    (C) the government of the country in which the 
                violence is occurring;
                    (D) governments in the region in which the violence 
                is occurring; and
                    (E) donor governments.
            (3) Congressional briefings.--The Secretary shall brief the 
        appropriate congressional committees not less than quarterly on 
        the status of incidents of violence against women and girls in 
        situations of armed conflict or civil strife, emergency 
        response measures taken, and consultations with relevant 
        stakeholders.

SEC. 2017. DEMINING ACTIVITIES.

    (a) In General.--The Secretary is authorized, notwithstanding any 
other provision of law, to provide assistance to foreign countries for 
demining activities, including--
            (1) clearance of unexploded ordinance;
            (2) the destruction of small arms; and
            (3) related activities.
    (b) Special Authority.--Subject to such terms and conditions as the 
Secretary may prescribe, the Secretary is authorized to make grants of 
demining equipment to foreign countries and international 
organizations, for the purposes identified in this section.

SEC. 2018. DISARMAMENT, DEMOBILIZATION, REINTEGRATION, AND 
              REHABILITATION ACTIVITIES.

    (a) In General.--The Secretary, in coordination with the 
Administrator, is authorized to carry out programs in foreign countries 
to assist the disarmament, demobilization, reintegration, and 
rehabilitation of former combatants.
    (b) Coordination.--The programs referred to in subsection (a) shall 
be coordinated, as appropriate, with international nongovernmental 
organizations and the government of the country in which any such 
program is carried out.

            Subtitle B--Strategies, Assessments, and Reports

SEC. 2021. REGIONAL CONFLICT RISK ASSESSMENT AND CONFLICT MITIGATION 
              STRATEGY.

    (a) Findings.--Congress finds the following:
            (1) Armed conflict and civil strife often stem from 
        dynamics that transcend traditional state borders and require 
        cross-border and regional approaches.
            (2) United States diplomacy is often conducted on a 
        bilateral, state-centric basis that fails to address problems 
        comprehensively or to identify and assess the full range of 
        issues and opportunities.
            (3) A comprehensive approach towards conflict prevention is 
        required, incorporating cross border and regional dynamics and 
        non-state actors.
    (b) Conflict Assessment.--The Secretary, acting through the Under 
Secretary for Civilian Security, Democracy, and Human Rights and in 
consultation with the Administrator, shall be responsible for ensuring 
that an annual regional conflict risk assessment is conducted for each 
geographic region represented by an Assistant Secretary. Each 
assessment shall include the following:
            (1) An identification of ongoing violent conflicts in the 
        region.
            (2) An evaluation of the potential for outbreaks of violent 
        conflict in the region.
            (3) A list of those conflicts determined to be at high risk 
        of outbreak of escalation.
            (4) A description of new opportunities and challenges for 
        conflict mitigation in the region.
    (c) Conflict Mitigation Strategy.--For each conflict identified in 
subsection (b)(3), the relevant office or diplomatic or consular post 
of the Department of State, in consultation with the relevant office or 
overseas mission of the Agency, shall develop a conflict mitigation 
strategy. Such strategy shall include the following elements:
            (1) An analysis of the key drivers of potential conflict.
            (2) An analysis of the impact of current United States 
        policies and programs on the drivers referred to in paragraph 
        (1).
            (3) Specific objectives in mitigating conflict for the next 
        1- to 3-year period, including indicators and other 
        measurements of progress.
            (4) A plan for ensuring that basic human needs are met and 
        civilians are protected during the period of the strategy.
            (5) A description of policies and programs needed to 
        achieve the objectives identified in paragraph (3).
            (6) A description of how such policies and programs will be 
        coordinated with the policies and programs of local partners 
        and the international community.
            (7) A description of the roles of each Federal agency in 
        carrying out the conflict mitigation strategy, and the 
        mechanisms for interagency coordination.
            (8) The requirements for human and financial resources to 
        carry out the conflict mitigation strategy over the next 1- to 
        3-year period.
    (d) Consultation.--In preparing each conflict mitigation strategy 
required under subsection (c), the relevant office or diplomatic or 
consular post of the Department of State shall consult with a wide 
range of local stakeholders, including civil society organizations.
    (e) Transmission to Congress.--Each conflict mitigation strategy 
required under subsection (c) shall be transmitted to the appropriate 
congressional committees.

SEC. 2022. DATA ON COSTS INCURRED IN SUPPORT OF UNITED NATIONS 
              PEACEKEEPING OPERATIONS.

    (a) Quarterly Reports.--The Secretary of Defense shall submit, on a 
quarterly basis, to the Committee on Armed Services of the House of 
Representatives, the Committee on Armed Services of the Senate, the 
Committee on Foreign Affairs of the House of Representatives, and the 
Committee on Foreign Relations of the Senate a report setting forth all 
costs (including incremental costs) incurred by the Department of 
Defense during the preceding quarter in implementing or supporting 
resolutions of the United Nations Security Council, including any such 
resolution calling for international sanctions, international 
peacekeeping operations, or humanitarian missions undertaken by the 
Department of Defense. Each quarterly report shall include an aggregate 
of all such Department of Defense costs by operation or mission.
    (b) United States Costs.--The President shall annually transmit to 
the Secretary General of the United Nations the information required 
under subsection (a).
    (c) United Nations Member State Costs.--The President shall direct 
the permanent representative of the United States to the United Nations 
to request that the United Nations compile and publish information 
concerning costs incurred by United Nations Member States in support of 
the resolutions described in subsection (a).

SEC. 2023. PEACE ON CYPRUS AND IN THE EASTERN MEDITERRANEAN.

    (a) Policy and Principles.--United States policy regarding Cyprus, 
Greece, and Turkey shall be directed toward the establishment of 
stability and peace in the Eastern Mediterranean region and shall 
therefore be governed by the following principles:
            (1) The United States shall actively support the resolution 
        of differences in the Eastern Mediterranean region through 
        negotiations, encourage all parties to avoid provocative 
        actions, and strongly oppose any attempt to resolve disputes 
        through force or threat of force.
            (2) The United States shall provide defense articles to 
        Greece and Turkey only with full consideration for maintaining 
        balance and stability in the Eastern Mediterranean.
            (3) Sustained improvement in Greek-Turkish bilateral 
        relations is in the interests of the United States, the North 
        Atlantic Treaty Organization, and the countries of the Eastern 
        Mediterranean region.
            (4) Consistent with longstanding United States policy, the 
        United States recognizes and shall continue to recognize the 
        sovereignty of the Republic of Cyprus over the whole of Cyprus, 
        other than the British Sovereign Base Areas. Accordingly, the 
        United States recognizes the Republic of Cyprus' rights to its 
        territorial seas and economic exclusion zone (EEZ).
            (5) The near-term achievement of a just and lasting 
        settlement to the Cyrus problem is a central objective of 
        United States foreign policy.
            (6) A just settlement on Cyprus must involve the re-
        unification of the island based on a bi-zonal, bi-communal 
        federation with a single sovereignty, international 
        personality, and citizenship, with its independence and 
        territorial integrity safeguarded, and comprising two 
        politically equal communities, as provided for in relevant 
        United Nations Security Council resolutions.
            (7) Freedom of religion and respect for the cultural and 
        religious heritage of all Cypriot communities shall be 
        protected and promoted throughout the island.
            (8) Agreement on the near-term return of Greek Cypriot 
        refugees to Famagusta (Varosha) would constitute an important 
        confidence-building measure.
            (9) The United States shall use its influence to ensure the 
        continuation of the ceasefire on Cyprus until an equitable 
        negotiated settlement is reached.
            (10) The United States shall use its influence to achieve 
        the withdrawal of Turkish military forces from Cyprus and to 
        effect an end to Turkey's illegal transfer of its citizens to 
        Cyprus.
    (b) Quarterly Report.--
            (1) Sense of congress.--Because progress toward a Cyprus 
        settlement is a high priority of United States policy in the 
        Eastern Mediterranean region, it is the sense of Congress that 
        the President should continually review that progress and 
        should determine United States policy in the region 
        accordingly.
            (2) Report.--To facilitate such a review, the President 
        shall, not later than 90 days after the date of the enactment 
        of this Act and at the end of each succeeding 90-day period 
        thereafter, transmit to the Committee on Foreign Affairs of the 
        House of Representatives and the Committee on Foreign Relations 
        of the Senate a report describing efforts to achieve the 
        demilitarization of Cyprus and a negotiated solution to the 
        Cyprus problem.
    (c) Certification.--In order to ensure that security assistance to 
Greece and Turkey is provided consistent with the policies established 
in this section, the Secretary shall, whenever transmitting a 
certification pursuant to section 4382 for Greece or Turkey, include in 
that certification a full explanation of how the proposed sale accords 
with the principles set forth in subsection (a).
    (d) Restriction.--
            (1) In general.--Beginning on the day after the date of the 
        enactment of this Act, no articles, information, technology or 
        services controlled for export pursuant to this Act, the former 
        authority of the Arms Export Control Act, or the Export 
        Administration Act of 1979 (as continued in effect under the 
        International Emergency Economic Powers Act) may be exported, 
        re-exported, transferred, or provided to a military end-user, 
        or for a military end-use, in the internationally recognized 
        territory of the Republic of Cyprus, including Turkish-occupied 
        northern Cyprus.
            (2) Report.--The President shall submit to Congress a 
        report on any credible information that articles, information, 
        technology, or services have been used in a manner inconsistent 
        with this subsection.
    (e) Limitation on Funds.--Funds made available for Cyprus under 
this Act shall be provided only for programs and activities that are 
consistent with the goal of reunification of Cyprus and the achievement 
of a bi-communal, bi-zonal federation.

                Subtitle C--Organizations and Personnel

SEC. 2031. ATROCITIES PREVENTION BOARD.

    (a) Findings.--Congress makes the following findings:
            (1) Non-combatants comprise most of the casualties in 
        modern conflict.
            (2) In many cases, civilian deaths are the result of 
        belligerents deliberately targeting civilians on a wide scale.
            (3) Civilians are vulnerable both during interstate 
        conflict and intrastate situations, such as civil wars, 
        insurgencies, and anarchic conditions associated with failed 
        states.
            (4) There are common variables to situations giving rise to 
        atrocities, including past history of such occurrences, 
        persistence of articulated and non-articulated tensions, and 
        poor or malevolent leadership.
            (5) Most tellingly, atrocities--including genocide--often 
        occur when displaced persons attempt to flee conflict.
            (6) The United States is committed to working with our 
        allies, and to strengthening our own internal capabilities, in 
        order to ensure that the United States and the international 
        community are proactively engaged in a strategic effort to 
        prevent mass atrocities and genocide. In the event that 
        prevention fails, the United States will work both 
        multilaterally and bilaterally to mobilize diplomatic, 
        humanitarian, financial, and--in certain instances--military 
        means to prevent and respond to genocide and mass atrocities.
            (7) Preventing mass atrocities and genocide is a core 
        national security interest and a core moral responsibility of 
        the United States.
            (8) United States security is affected when masses of 
        civilians are slaughtered, refugees flow across borders, and 
        murderers wreak havoc on regional stability and livelihoods.
            (9) Governmental engagement on atrocities and genocide too 
        often arrives too late, when opportunities for prevention or 
        low-cost, low-risk action have been missed.
            (10) Ensuring that a full range of options is available to 
        senior policy makers requires a level of governmental 
        organization that matches the methodical organization 
        characteristic of mass killings.
    (b) Establishment of Interagency Atrocities Prevention Board.--The 
President shall establish an Interagency Atrocities Prevention Board 
(in this section referred to as the ``Board'') with the following 
responsibilities:
            (1) Coordinate and synchronize a whole of government 
        approach to preventing mass atrocities.
            (2) Integrate the early warning systems of national 
        security agencies, including intelligence agencies, with 
        respect to incidents of mass atrocities and coordinate the 
        policy response to such incidents.
            (3) Conduct gaming and contingency planning exercises 
        regarding atrocities prevention and response.
            (4) Oversee the development and implementation of 
        comprehensive atrocities prevention and response strategies.
            (5) Identify available resources and policy options 
        necessary to prevent the emergence or escalation of mass 
        atrocities, including--
                    (A) foreign assistance;
                    (B) diplomatic initiatives;
                    (C) deployment of civilian expertise;
                    (D) use of sanctions; and
                    (E) military options.
            (6) Identify and close gaps in expertise, readiness, and 
        planning for atrocities prevention and early action across 
        Federal agencies.
            (7) Ensure that risk assessments and policies to mitigate 
        identified risks are communicated in a timely fashion to the 
        relevant Federal agencies and integrated into activities.
    (c) Leadership.--
            (1) In general.--The Board shall be headed by a senior 
        director selected by the President, and who shall report to the 
        Assistant to the President for National Security Affairs 
        (commonly referred to as the ``National Security Advisor'').
            (2) Responsibilities.--The senior director shall have 
        primary responsibility for promoting United States Government 
        policies to protect individuals affected by conflict and 
        atrocities and carrying out the responsibilities identified in 
        subsection (b).
    (d) Composition.--The Board shall be composed of representatives 
from the following agencies, and such others as the President 
determines appropriate:
            (1) The Department of Defense.
            (2) The United States Agency for International Development.
            (3) The Department of State.
            (4) The Department of Justice.
            (5) The Department of the Treasury.
            (6) The Department of Homeland Security.
            (7) The Central Intelligence Agency.
            (8) The Office of the Director of National Intelligence.
            (9) The United States Mission to the United Nations.

SEC. 2032. UNDER SECRETARY FOR CIVILIAN SECURITY, DEMOCRACY, AND HUMAN 
              RIGHTS.

    (a) In General.--Section 1(b) of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2651a(b)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Under secretary for civilian security, democracy, and 
        human rights.--There shall be in the Department of State, among 
        the Under Secretaries authorized by paragraph (1), an Under 
        Secretary for Civilian Security, Democracy, and Human Rights, 
        who shall have primary responsibility to assist the Secretary 
        and the Deputy Secretary in the formation and implementation of 
        policy, activities, and oversight related to crisis prevention 
        and response, democracy, human rights, and labor, and refugees 
        and migration. The Under Secretary for Civilian Security, 
        Democracy, and Human Rights shall--
                    ``(A) coordinate and implement civilian responses 
                to conflict, including deployment of the Civilian 
                Response Corps;
                    ``(B) oversee the full spectrum of conflict-related 
                policies and programs in the Department of State;
                    ``(C) conduct strategic planning and budgeting for 
                conflict-related activities within the Department of 
                State;
                    ``(D) manage prevention and response to refugee and 
                humanitarian crises, including support for major 
                international organizations involved in aid to conflict 
                affected populations; and
                    ``(E) advance human rights and democratic 
                values.''.
    (b) Abolition.--The position of Under Secretary for Democracy and 
Global Affairs is hereby abolished.
    (c) Transfer.--Responsibilities for the position of Under Secretary 
for Democracy and Global Affairs shall be transferred to the Under 
Secretary for Civilian Security, Democracy and Human Rights, as 
appropriate. The individual serving in the capacity of Under Secretary 
for Democracy and Global Affairs as of the date of the enactment of 
this Act may continue serve in the capacity of the Under Secretary for 
Civilian Security, Democracy, and Human Rights.
    (d) Conforming Amendment.--Section 2113(a) of the Implementing 
Recommendations of the 9/11 Commission Act of 2007 (22 U.S.C. 8213(a); 
Public Law 110-53) is amended by striking ``Under Secretary of State 
for Democracy and Global Affairs'' and inserting ``Under Secretary of 
State for Civilian Security, Democracy, and Human Rights''.

SEC. 2033. CONFLICT AND STABILIZATION OPERATIONS.

    (a) In General.--Section 62 of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2734) is amended to read as follows:

``SEC. 62. CONFLICT AND STABILIZATION OPERATIONS.

    ``(a) Bureau of Conflict and Stabilization Operations.--
            ``(1) Establishment.--There is established within the 
        Department of State the Bureau of Conflict and Stabilization 
        Operations.
            ``(2) Assistant secretary for conflict and stabilization 
        operations.--The head of the Bureau shall be the Assistant 
        Secretary for Conflict and Stabilization Operations. The 
        Assistant Secretary shall report directly to the Under 
        Secretary for Civilian Security, Democracy, and Human Rights.
            ``(3) Functions.--The functions of the Bureau of Conflict 
        and Stabilization Operations shall include the following:
                    ``(A) Training, equipping, and deploying the 
                Civilian Response Corps described in subsection (b)(1).
                    ``(B) Developing, at the request of a Chief of 
                Mission, a strategy or plan, and designing relevant 
                programming, for stabilization and reconstruction, as 
                appropriate to the local context.
                    ``(C) At the request of a Chief of Mission, 
                mobilizing and deploying members of the Civilian 
                Response Corps as needed.
                    ``(D) Entering into appropriate arrangements with 
                agencies to carry out activities under this section and 
                the Reconstruction and Stabilization Civilian 
                Management Act of 2008 (title XVI of the Duncan Hunter 
                National Defense Authorization Act for Fiscal Year 
                2009; Public Law 110-417).
                    ``(E) Identifying and recruiting personnel in State 
                and local governments, including law enforcement 
                personnel, and in the private sector who are available 
                to participate in the Reserve Corps established under 
                subsection (b)(1)(B) or to otherwise participate in or 
                contribute to reconstruction and stabilization 
                activities.
                    ``(F) Taking steps to ensure that training and 
                education of civilian personnel to perform such 
                reconstruction and stabilization operations is adequate 
                and is carried out, as appropriate, with other offices 
                in the Department of State and the United States Agency 
                for International Development involved with 
                reconstruction and stabilization activities.
                    ``(G) Maintaining the capacity to field on short 
                notice an evaluation team consisting of personnel from 
                all relevant agencies to undertake on-site needs 
                assessment.
                    ``(H) Maintaining a staff of experts to provide 
                technical support for crisis mitigation, including 
                mediation and negotiation support teams.
                    ``(I) Establishing and maintaining a cadre of 
                deployable personnel to conduct contingency acquisition 
                support.
                    ``(J) Establishing and maintaining on active status 
                a contingency contracting office for the purpose of 
                procuring goods, equipment, and services for use in 
                contingency operations and for assistance to support 
                reconstruction and stabilization activities.
    ``(b) Civilian Response Corps.--
            ``(1) In general.--The Secretary of State shall establish 
        and maintain a Civilian Response Corps (referred to in this 
        section as the `Corps') to provide assistance in support of 
        reconstruction and stabilization activities in countries or 
        regions that are at risk of, in, or are in transition from, 
        conflict or civil strife. The Corps shall be composed of active 
        and reserve components.
                    ``(A) Active corps.--
                            ``(i) In general.--The Active Corps shall 
                        be composed of not more than 200 positions 
                        identified by the Secretary of State, in 
                        consultation with the Administrator, based on 
                        the skillsets identified by the Coordinator.
                            ``(ii) Membership.--The Active Corps shall 
                        consist of United States Government personnel, 
                        including employees of the Department of State, 
                        the United States Agency for International 
                        Development, and other agencies.
                            ``(iii) Duties.--Members of the Active 
                        Corps shall--
                                    ``(I) serve as liaisons between the 
                                Bureau of Conflict and Stabilization 
                                Operations and regional bureaus of the 
                                Department of State;
                                    ``(II) unless deployed abroad, be 
                                employed by the Under Secretary for 
                                Civilian Security, Democracy, and Human 
                                Rights; and
                                    ``(III) deploy, within 72 hours, 
                                anywhere outside the United States 
                                where the Secretary of State directs.
                            ``(iv) Surge.--Members of the Active Corps 
                        may be detailed by the Assistant Secretary for 
                        Conflict and Stabilization Operations to 
                        regional bureaus of the Department of State to 
                        augment crisis and conflict planning and 
                        response.
                    ``(B) Reserve corps.--
                            ``(i) In general.--The Reserve Corps shall 
                        consist of United States Government personnel, 
                        individuals employed by State or local 
                        governments, or other experts who have the 
                        skills necessary for supporting reconstruction 
                        and stabilization activities, or who shall be 
                        trained and employed to carry out such 
                        activities, and who have volunteered for such 
                        purpose.
                            ``(ii) List.--The Secretary shall maintain 
                        and continually update a database composed of 
                        personnel who have volunteered for the Reserve 
                        Corps.
                            ``(iii) Duties.--Members of the Reserve 
                        Corps shall--
                                    ``(I) on a voluntary basis, deploy 
                                within 72 hours, anywhere outside the 
                                United States, where the Secretary of 
                                State directs; and
                                    ``(II) maintain appropriate skills 
                                and conditioning to deploy to assist in 
                                reconstruction and stabilization 
                                activities.
            ``(2) Mitigation of domestic impact.--The establishment and 
        deployment of any Reserve Corps shall be undertaken in a manner 
        that avoids substantively impairing the capacity and readiness 
        of the Federal Government or any State or local government from 
        which Reserve Corps personnel may be drawn.
            ``(3) Existing training and education programs.--The 
        Secretary of State shall ensure that personnel of the 
        Department of State, and, in coordination with the 
        Administrator of the United States Agency for International 
        Development, that personnel of USAID, have access to and make 
        use of the relevant existing training and education programs 
        offered within the Federal Government, such as those at the 
        Center for Stabilization and Reconstruction Studies at the 
        Naval Postgraduate School and the Interagency Training, 
        Education, and After Action Review Program at the National 
        Defense University.
            ``(4) In general.--
                    ``(A) Appointments to foreign service.--Individuals 
                who serve in the Civilian Response Corps shall be 
                eligible to be appointed as a member of the Foreign 
                Service pursuant to section 303 of the Foreign Service 
                Act of 1980 (22 U.S.C. 3943) for a term of up to three 
                years.
                    ``(B) Deployment.--Not less than 60 percent of the 
                Active Corps should be deployed outside of the United 
                States at any one time.
                    ``(C) Promotion.--Individuals who are career 
                members of the Foreign Service shall be considered for 
                promotion on the same basis as individuals who are 
                assigned to diplomatic or consular posts with one-year 
                tours of duty.
                    ``(D) Chain-of-command.--Once deployed abroad, a 
                member of the Civilian Response Corps shall report to 
                and serve under the operational control of the chief of 
                mission of the country or region in which such member 
                is deployed.
                    ``(E) Limitation on deployment.--The Secretary of 
                State is authorized to deploy to a foreign country 
                members of the Active Corps for a period of not longer 
                than one year. Such period may be extended on a 
                voluntary basis.
            ``(5) Temporary appointments for certain individuals.--The 
        Secretary of State, acting through the Assistant Secretary for 
        Conflict and Stabilization Operations, is authorized to appoint 
        individuals with acquisition backgrounds to the Active or 
        Reserve Corps on a one-year basis to implement contracts for 
        contingency operations.
    ``(c) Employment for Contingency Operations.--
            ``(1) Foreign service limited positions.--Pursuant to the 
        authority of section 309 of the Foreign Service Act of 1980 (22 
        U.S.C. 3949), and notwithstanding the limitation specified in 
        section 305 of such Act (22 U.S.C. 3945), the Administrator of 
        the United States Agency for International Development (USAID) 
        may appoint to the Senior Foreign Service up to ten individuals 
        to be assigned to or support contingency operations.
            ``(2) Waiver.--The provisions of section 8344 or 8468 of 
        title 5, United States Code, may be waived on a case-by-case 
        basis by--
                    ``(A) the Administrator of USAID, with respect to 
                the employment in USAID, or
                    ``(B) the Inspector General of USAID, with respect 
                to the employment in the Office of Inspector General,
        of an annuitant in a position for which there is exceptional 
        difficulty in recruiting or retaining a qualified employee, or 
        when a temporary emergency hiring need exists.
            ``(3) Procedures.--If the authority referred to in 
        paragraph (1) is delegated, the Administrator of USAID or the 
        Inspector General of USAID, as appropriate, shall prescribe 
        criteria and procedures for the exercise of any authority under 
        this section.
            ``(4) Status of employment.--A Federal employee for whom a 
        waiver under this section is in effect shall not be considered 
        an employee for purposes of subchapter III of chapter 83, or 
        chapter 84 of title 5, United States Code.
    ``(d) Exception.--
            ``(1) In general.--The Secretary of State may select and 
        appoint employees to carry out conflict and stabilization 
        activities without regard to the provisions of title 5, United 
        States Code, governing appointment in the competitive service 
        and may fix the basic compensation of such employees without 
        regard to chapter 51 and subchapter III of chapter 53 of such 
        title.
            ``(2) Delegation.--The Secretary of State may authorize the 
        head of any agency to exercise the authority described in 
        paragraph (1).
            ``(3) Definition.--For the purpose of this subsection, the 
        term `employees' means individuals who qualify as an employee 
        as defined in section 2105 of title 5, United States Code, and 
        who are appointed on a time-limited basis solely to carry out 
        reconstruction and stabilization activities under or consistent 
        with this section.''.
    (b) Special Authority.--Notwithstanding any other provision of law, 
including section 304(c) of the Omnibus Diplomatic Security and 
Antiterrorism Act of 1986 (22 U.S.C. 4834(c); Public Law 99-399), 
personnel designated by the Secretary, including members of the 
Civilian Response Corps, shall not be bound by the regulations and 
guidance provided by the Bureau of Diplomatic Security and shall deploy 
at the direction of the Secretary.
    (c) Personnel.--The Reconstruction and Stabilization Civilian 
Management Act of 2008 (title XVI of Public Law 110-417) is amended--
            (1) in section 1603 (22 U.S.C. 2734a note), by amending 
        paragraph (5) to read as follows:
            ``(5) Personnel.--The term `personnel' means--
                    ``(A) individuals serving in any service described 
                in section 2101 of title 5, United States Code, other 
                than in the legislative or judicial branch;
                    ``(B) individuals employed by personal services 
                contract, including individuals employed pursuant to--
                            ``(i) section 2(c) of the State Department 
                        Basic Authorities Act of 1956 (22 U.S.C. 
                        2669(c)); or
                            ``(ii) section 636(a)(3) of the Foreign 
                        Assistance Act of 1961 (22 U.S.C. 2396(a)(3));
                    ``(C) individuals appointed under section 303 of 
                the Foreign Service Act of 1980 (22 U.S.C. 3943); and
                    ``(D) locally employed staff who are employed by 
                participating agencies.''; and
            (2) in section 1606(b) (22 U.S.C. 2734a(b)), by inserting 
        ``and to provide any related support'' after ``assign personnel 
        of such agency''.

SEC. 2034. DANGER PAY.

    Section 151 of the Foreign Relations Authorization Act, Fiscal 
Years 1990 and 1991 (5 U.S.C. 5928 note; Public Law 101-246) is 
amended--
            (1) by striking ``or'' after ``Drug Enforcement 
        Administration'' and inserting ``, the''; and
            (2) inserting ``, or the Civilian Response Corps'' after 
        ``Federal Bureau of Investigation''.

SEC. 2035. STABILITY POLICING COORDINATOR.

    The State Department Basic Authorities Act of 1956 is amended by 
adding after section 62 (as amended by 2031 of this Act) the following 
new section:

``SEC. 63. OFFICE OF THE STABILITY POLICING COORDINATOR.

    ``(a) Establishment.--There is established within the Department of 
State the Office of the Stability Policing Coordinator (in this section 
referred to as the `Office').
    ``(b) Coordinator for Police Training.--The head of the Office 
shall be the Coordinator for Stability Policing (in this section 
referred to as the `Coordinator'). The Coordinator shall report 
directly to the Assistant Secretary for Conflict and Stabilization 
Operations.
    ``(c) Responsibilities.--The Coordinator shall be responsible for 
developing a unified, coherent, comprehensive, and effective program of 
law enforcement assistance in support of reconstruction and 
stabilization activities in countries or regions that are at risk of, 
in, or are in transition from, conflict or civil strife. Such program 
shall include the following elements:
            ``(1) Developing and overseeing curricula for police 
        training specifically oriented towards reconstruction and 
        stabilization activities.
            ``(2) Developing and implementing policies and procedures 
        to ensure that human rights, and in particular those of women 
        and girls, are protected.
            ``(3) In coordination with the Bureau of Conflict and 
        Stabilization Operations, as appropriate, recruiting, vetting, 
        and training personnel to serve as police trainers.
            ``(4) Ensuring proper direction and oversight of 
        contractors hired to implement police training programs under 
        this section.
            ``(5) Establishing benchmarks to measure the progress of 
        police training programs conducted under this section.
            ``(6) Coordinating assistance carried out by the Office 
        with similar assistance provided by other Federal agencies and 
        international donors.
            ``(7) Overseeing procurement and delivery of supplies and 
        equipment, and monitoring the end use of such supplies and 
        equipment.
            ``(8) Providing policy guidance and program support to the 
        United States diplomatic and consular missions in the country 
        or region undertaking police training operations.
            ``(9) Providing guidance to the Bureau of Conflict and 
        Stabilization Operations regarding the selection and training 
        of law enforcement and judicial personnel for the Readiness 
        Response Corps.
    ``(d) Relationship to Global Rule of Law Policy Committee.--The 
Coordinator shall ensure that the activities of the Office are 
consistent with the coordination plan established pursuant to section 
3202 of the Global Partnerships Act of 2012.''.

SEC. 2036. TRAINING IN CONFLICT MANAGEMENT AND MITIGATION.

    Section 708 of the Foreign Assistance Act of 1980 (22 U.S.C. 4028) 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) instruction on methods for conflict management and 
        mitigation and on the necessary skills to be able to function 
        successfully in countries or regions that are at risk of, in, 
        or are in transition from, conflict or civil strife, 
        including--
                    ``(A) recognizing patterns of escalation and early 
                warning signs of potential atrocities or violence, 
                including gender-based violence; and
                    ``(B) methods of early action, prevention, and 
                response.''; and
            (2) by adding at the end the following new subsection:
    ``(d) The training described in subsection (a)(4) shall be 
mandatory for all Foreign Service officers assigned to a position, or 
otherwise made available for service, in the department or agency or at 
a post overseas with responsibilities in the subject matters described 
in such subsection. Training opportunities should include, as 
appropriate for the department and agency, respectively, fellowships, 
details, and exchanges with relevant Federal agencies, international 
organizations, and nongovernmental organizations.''.

            TITLE III--SUPPORTING HUMAN RIGHTS AND DEMOCRACY

                     Subtitle A--General Provisions

SEC. 3101. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) All human beings are born free and equal in dignity and 
        rights. Recognition of the inherent dignity and of the equal 
        and inalienable rights of all members of the human family is 
        the foundation of freedom, justice and peace in the world.
            (2) A democratic political system, in which the will of the 
        people, as expressed in periodic and genuine elections, is the 
        basis of the authority of government, is the best guarantor of 
        freedom of speech and belief and freedom from fear and want.
            (3) Democracy is a necessary but insufficient condition for 
        the effective protection of human rights. Majority rule must be 
        tempered by guarantees for the dignity and rights of 
        minorities.
            (4) The advancement of human rights and the 
        institutionalization of democracy are important to the 
        achievement of other United States foreign policy goals, such 
        as reducing poverty, building peace, expanding prosperity and 
        sustaining the global environment.
            (5) Human rights and fundamental freedoms can be 
        effectively advanced by--
                    (A) bilateral and multilateral diplomatic 
                overtures;
                    (B) the development and implementation of 
                international norms and standards, including voluntary 
                codes of conduct;
                    (C) support for the establishment and strengthening 
                of laws, policies and institutions that protect rights 
                and freedoms, including technical assistance and 
                training to governments and civil society 
                organizations;
                    (D) support for and protection of individuals and 
                civil society organizations who defend and exercise 
                their human rights and democratic freedoms;
                    (E) research and reporting on violations of human 
                rights, including identifying those who commit such 
                violations;
                    (F) the threat or imposition of sanctions against 
                violators, including criminal prosecution where 
                appropriate; and
                    (G) offering diplomatic and economic incentives for 
                improved performance.
            (6) United States support for human rights and democracy 
        should be open and explicit, with due regard for the safety and 
        independence of local partners and impartiality among peaceful, 
        democratic political parties and factions.
    (b) Statement of Policy.--It is the policy of the United States, in 
keeping with its constitutional heritage and traditions and in 
accordance with its international obligations as set forth in the 
Charter of the United Nations and the Universal Declaration of Human 
Rights, to promote and encourage increased respect for human rights and 
fundamental freedoms throughout the world without distinction as to 
race, sex, language, religion, sexual orientation or gender identity.

SEC. 3102. COUNTRY REPORTS ON HUMAN RIGHTS PRACTICES.

    (a) Report Required.--The Secretary shall submit to the appropriate 
congressional committees, by February 25 of each year, a comprehensive 
report regarding the status of internationally recognized human rights 
in each covered country.
    (b) Contents.--The report required under subsection (a) shall 
include, for each covered country, information relating to--
            (1) respect for the integrity of the person, including 
        freedom from--
                    (A) arbitrary or unlawful deprivation of life;
                    (B) disappearance;
                    (C) torture and other cruel, inhuman or degrading 
                treatment or punishment;
                    (D) arbitrary arrest or detention;
                    (E) denial of fair public trial; and
                    (F) arbitrary interference with privacy, family, 
                home or correspondence;
            (2) respect for civil liberties, including--
                    (A) freedom of speech and press, including Internet 
                freedom;
                    (B) freedom of peaceful assembly and association;
                    (C) freedom of religion and conscience;
                    (D) freedom of movement; and
                    (E) provision of asylum and resettlement of 
                refugees;
            (3) respect for political rights, including the right of 
        citizens--
                    (A) to change their government;
                    (B) to take part in the conduct of public affairs; 
                and
                    (C) to vote and be elected at genuine periodic 
                elections;
            (4) respect for worker rights, including--
                    (A) the right of association;
                    (B) the right to organize and bargain collectively;
                    (C) prohibition of forced or compulsory labor;
                    (D) prohibition of child labor; and
                    (E) acceptable conditions of work;
            (5) protection of all citizens, including marginalized 
        groups, against violence, intimidation and discrimination, 
        including, wherever applicable--
                    (A) mass atrocities;
                    (B) trafficking in persons;
                    (C) sexual and gender-based violence;
                    (D) criminalization of homosexuality or deprivation 
                of fundamental freedoms due to sexual orientation or 
                gender identity;
                    (E) violations of the principles of voluntarism and 
                informed choice in health care, including coerced 
                abortion and involuntary sterilization;
                    (F) child marriage; and
                    (G) compulsory recruitment and conscription of 
                individuals under the age of 15 by armed forces of the 
                government of the country, government-supported 
                paramilitaries, or other armed groups; and
            (6) official accountability, including--
                    (A) government corruption and transparency;
                    (B) government participation in, facilitation of, 
                or condoning of, violations of internationally 
                recognized human rights;
                    (C) steps taken by such government to prevent and 
                respond to violations of internationally recognized 
                human rights;
                    (D) the extent of cooperation by such government in 
                permitting an unimpeded investigation by international 
                organizations, including nongovernmental organizations, 
                of alleged violations of internationally recognized 
                human rights; and
                    (E) wherever applicable, such government's votes in 
                the United Nations Human Rights Council.
    (c) Consultation.--In compiling data and making assessments for 
purposes of subsection (b), United States diplomatic mission personnel 
in each covered country shall consult with relevant international and 
nongovernmental organizations.
    (d) Translation and Publication.--For each covered country, the 
report required by this section shall be translated into the principal 
languages of the country and made available on the Internet website of 
the United States diplomatic mission to the country, or, where there is 
no diplomatic mission, on the Internet website of the Department of 
State.
    (e) Definitions.--In this section--
            (1) the term ``covered country'' means a country that--
                    (A) receives assistance under this Act; or
                    (B) is a member of the United Nations; and
            (2) the term ``child marriage'' means the marriage of a 
        girl or a boy who has not reached the minimum legal age for 
        marriage in the country of residence, or where there is no such 
        law, under the age of 18.

SEC. 3103. ACTION PLANS FOR HUMAN RIGHTS AND DEMOCRACY.

    (a) Action Plan Required.--
            (1) In general.--Except as provided in paragraph (2), 
        beginning 3 years after the date of the enactment of this Act 
        and every 3 to 5 years thereafter, the Secretary, in 
        coordination with the Administrator as appropriate, shall 
        develop an action plan for human rights and democracy in each 
        country that is included in the report under section 3102.
            (2) Exception.--The Secretary is not required to develop an 
        action plan under this subsection for any country with respect 
        to which the Secretary determines, based on the information 
        required in the report under section 3102, that human rights 
        and fundamental freedoms are generally respected.
    (b) Preparation of Plans.--The action plan required under 
subsection (a) shall be prepared--
            (1) in each country with a United States diplomatic 
        mission, by the Chief of Mission, in coordination with the 
        Mission Director of the Agency, if a Mission Director is 
        assigned to such country, and in consultation with the 
        Assistant Secretary for Democracy, Human Rights, and Labor; or
            (2) in each country without a United States diplomatic 
        mission, by the Assistant Secretary of State for Democracy, 
        Human Rights, and Labor, in coordination with the Assistant 
        Administrator for Democratic and Civic Development and the 
        relevant regional bureaus of the Department of State and United 
        States Agency for International Development.
    (c) Elements.--The action plan required under subsection (a) shall 
contain the following elements:
            (1) A description of the major barriers in such country to 
        fundamental rights and freedoms.
            (2) Specific improvements in the areas identified under 
        paragraph (1) that the United States will seek over the next 3 
        to 5 years.
            (3) A description of the policies and programs, including 
        assistance, to be undertaken in order to foster the 
        improvements identified in paragraph (2).
            (4) A description of the roles of each participating 
        Federal agency in carrying out the policies and programs 
        identified in paragraph (3).
            (5) A description of the budgetary and personnel resources 
        needed to carry out the policies and programs identified in 
        paragraph (3).
    (d) Consultation.--In preparing the action plan required under 
subsection (a), the relevant officials shall consult with a wide range 
of nongovernmental organizations in the country and with 
nongovernmental organizations having significant experience in or 
knowledge about the country.
    (e) Transmission.--
            (1) To congress.--The action plan required under subsection 
        (a) shall be transmitted to the appropriate congressional 
        committees.
            (2) Public availability.--At a minimum, the elements of the 
        action plan described in paragraphs (1) and (2) of subsection 
        (c) shall be published on the Internet website of the 
        Department of State and, in countries in which a United States 
        diplomatic mission is established, on the mission's Internet 
        website.
    (f) Strategic Coordination.--In order to avoid duplication and 
policy inconsistency, the Secretary shall ensure that the action plan 
required under subsection (a) is coordinated with all other relevant 
diplomatic and development strategies, in particular the strategies 
prepared pursuant to--
            (1) section 1703, relating to Global Strategy for Gender 
        Equality;
            (2) section 1018, relating to Country Development 
        Cooperation Strategies;
            (3) section 2012, relating to Conflict Mitigation Strategy; 
        and
            (4) section 3203, relating to Comprehensive International 
        Strategy to Prevent and Respond to Violence Against Women and 
        Girls.

SEC. 3104. HUMAN RIGHTS AND DEMOCRACY FUND.

    (a) Establishment.--There is established a Human Rights and 
Democracy Fund (in this section referred to as the ``Fund'') to be 
administered by the Assistant Secretary of State for Democracy, Human 
Rights, and Labor.
    (b) Purpose.--The purpose of the Fund is to protect and promote 
fundamental freedoms and internationally recognized human rights by--
            (1) supporting defenders of human rights and advocates of 
        democracy;
            (2) assisting victims of human rights violations;
            (3) preventing and responding to violence against women and 
        girls, in accordance with subtitle A;
            (4) carrying out child protection compacts in accordance 
        with section 3402; and
            (5) responding to emergencies and unanticipated 
        opportunities in the areas of human rights and democracy.
    (c) Consultation.--In administering the Fund, the Assistant 
Secretary of State for Democracy, Human Rights, and Labor shall consult 
with the Ambassador-at-Large for Global Women's Issues and the 
Assistant Administrator for Democratic and Civic Development of the 
United States Agency for International Development.
    (d) Additional Funds.--Funds made available under this section for 
a fiscal year are in addition to funds otherwise available for such 
purposes.
    (e) Special Authority.--Funds made available under this section for 
a fiscal year are authorized to be made available notwithstanding any 
provision of law that restricts assistance to a foreign country.

SEC. 3105. ROLE OF BUREAU OF DEMOCRACY, HUMAN RIGHTS, AND LABOR.

    Section 1(c)(2) of the State Department Basic Authorities Act of 
1956 (22 U.S.C. 2651a(c)(2)) is amended to read as follows:
            ``(2) Assistant secretary of state for democracy, human 
        rights, and labor.--
                    ``(A) In general.--There shall be in the Department 
                of State an Assistant Secretary of State for Democracy, 
                Human Rights, and Labor who shall be responsible to the 
                Secretary of State for matters pertaining to human 
                rights and humanitarian affairs (including matters 
                relating to prisoners of war and members of the United 
                States Armed Forces missing in action) in the conduct 
                of foreign policy and such other related duties as the 
                Secretary may from time to time designate. The 
                Assistant Secretary shall carry out the Secretary's 
                responsibilities under section 3102 of the Global 
                Partnerships Act of 2012.
                    ``(B) Duties.--The Assistant Secretary of State for 
                Democracy, Human Rights, and Labor shall maintain 
                continuous observation and review all matters 
                pertaining to human rights and humanitarian affairs 
                (including matters relating to prisoners of war and 
                members of the United States Armed Forces missing in 
                action) in the conduct of foreign policy, including the 
                following:
                            ``(i) Gathering detailed information 
                        regarding humanitarian affairs and the 
                        observance of and respect for internationally 
                        recognized human rights in each country to 
                        which the requirements of sections 3102 and 
                        3103, respectively, of the Global Partnerships 
                        Act of 2012 are relevant.
                            ``(ii) Preparing the country reports and 
                        action plans required under sections 3102 and 
                        3103 of the Global Partnerships Act of 2012.
                            ``(iii) Making recommendations to the 
                        Secretary of State and the Administrator of the 
                        United States Agency for International 
                        Development regarding implementation of the 
                        human rights policies, principles, restrictions 
                        and authorities of the Global Partnerships Act 
                        of 2012.
                            ``(iv) Administering the Human Rights and 
                        Democracy Fund established under section 3104 
                        of the Global Partnerships Act of 2012.
                            ``(v) Performing other responsibilities 
                        which serve to promote increased observance of 
                        internationally recognized human rights by all 
                        countries.
                    ``(C) Consultation.--The Assistant Secretary of 
                State for Democracy, Human Rights, and Labor shall be 
                consulted in the determinations of which countries 
                shall receive United States foreign assistance and the 
                nature of the assistance to be provided to each 
                country.
                    ``(D) Certain assignments.--Any assignment of an 
                individual to a political officer position at a United 
                States mission abroad that has the primary 
                responsibility for monitoring human rights developments 
                in a foreign country shall be made upon the 
                recommendation of the Assistant Secretary of State for 
                Democracy, Human Rights, and Labor in conjunction with 
                the head of the Department of State's regional bureau 
                having primary responsibility for that country.''.

SEC. 3106. DISCRIMINATION RELATED TO SEXUAL ORIENTATION.

    (a) Designation of Officer.--The Assistant Secretary of State for 
Democracy, Human Rights, and Labor shall designate an officer or 
officers who shall be responsible for tracking violence, 
criminalization, and restrictions on the enjoyment of fundamental 
freedoms, consistent with United States law, in foreign countries based 
on actual or perceived sexual orientation and gender identity.
    (b) International Efforts.--The Secretary shall work through 
appropriate United States Government employees at United States 
diplomatic and consular missions to encourage the governments of other 
countries to reform or repeal laws of such countries criminalizing 
homosexuality or consensual homosexual conduct, or restricting the 
enjoyment of fundamental freedoms, consistent with United States law, 
by homosexual individuals or organizations.
    (c) Training for Foreign Service Officers.--Section 708(a) of the 
Foreign Service Act of 1980 (22 U.S.C. 4028(a)) is amended--
            (1) in the matter preceding paragraph (1), by inserting 
        ``the Assistant Secretary for Democracy, Human Rights, and 
        Labor,'' before ``the Ambassador at Large'';
            (2) in paragraph (2), by striking ``and'' at the end;
            (3) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(4) instruction, in courses covering human rights 
        reporting and advocacy work, on identifying violence, 
        discrimination, and restrictions on the enjoyment of 
        fundamental freedoms, consistent with United States law, based 
        on actual or perceived sexual orientation and gender 
        identity.''.

SEC. 3107. PERSONNEL AWARDS AND INCENTIVES.

    Section 2143 of the ADVANCE Democracy Act of 2007 (22 U.S.C. 8243) 
is amended by striking the matter preceding paragraph (1) and inserting 
the following:
    ``The Secretary shall expand the range of awards and incentives to 
encourage members of the Foreign Service and other employees of the 
Department to take assignments relating to the promotion of democracy 
and the protection of human rights, which may include the following:''.

       Subtitle B--International Violence Against Women and Girls

SEC. 3201. STATEMENT OF POLICY.

    It is the policy of the United States to--
            (1) promote the equal participation of women in the 
        political, economic and social lives of their countries;
            (2) build the capacity of foreign governments and civil 
        societies to prevent and respond to violence against women and 
        girls;
            (3) ensure that all private partners under this Act take 
        appropriate steps to prevent and respond to violence against 
        women and girls; and
            (4) systematically integrate efforts to prevent and respond 
        to violence against women and girls into United States foreign 
        policy and foreign assistance programs.

SEC. 3202. DUTIES OF THE SECRETARY OF STATE.

    (a) Designation.--The Secretary shall designate a senior official 
in the Department of State to conduct the activities of the Secretary 
under this subtitle.
    (b) Duties.--The Secretary's designee shall work with the Assistant 
Secretary for Democracy, Human Rights, and Labor, the Ambassador-at-
Large for Global Women's Issues, and the heads of other of relevant 
bureaus and offices of the Department of State and other Federal 
agencies to--
            (1) prepare the comprehensive international strategy 
        required under section 3203;
            (2) collect and analyze data about violence against women 
        and girls internationally; and
            (3) compile and disseminate information about effective 
        methods of prevention and response, including through the 
        preparation of public reports.

SEC. 3203. COMPREHENSIVE INTERNATIONAL STRATEGY TO PREVENT AND RESPOND 
              TO VIOLENCE AGAINST WOMEN AND GIRLS.

    (a) Development of Strategy.--Not later than 1 year after the date 
of the enactment of this Act, and every 5 years thereafter, the 
Secretary, with the assistance of the Administrator, shall--
            (1) develop a comprehensive, 5-year international strategy 
        to prevent and respond to violence against women and girls 
        internationally;
            (2) submit the strategy developed under paragraph (1) to 
        the appropriate congressional committees; and
            (3) make the strategy available to the public.
    (b) Collaboration and Coordination.--In developing the strategy 
under subsection (a), the Secretary shall consult with--
            (1) Federal agencies with expertise preventing and 
        responding to violence against women and girls or administering 
        international programs;
            (2) the Senior Policy Operating Group on Trafficking in 
        Persons; and
            (3) representatives of civil society organizations with 
        demonstrated experience in combating violence against women and 
        girls or promoting women's health or women's development issues 
        internationally.
    (c) Content.--The strategy developed under subsection (a) shall--
            (1) identify 5 to 20 countries with significant levels of 
        violence against women and girls, including within displaced 
        communities, that have the government or nongovernment 
        organizational capacity to manage and implement gender-based 
        violence prevention and response program activities;
            (2) include individual, comprehensive plans for prevention 
        and response in each of the countries identified under 
        paragraph (1) (hereafter in this chapter referred to as 
        ``country plans'');
            (3) estimate the resource requirements for carrying out 
        each country plan, including the proposed sources of funding 
        and amounts to be contributed by or sought from partner 
        countries and other public and private donors;
            (4) specify the roles and responsibilities of each Federal 
        agency in carrying out the strategy;
            (5) ensure that the country plans are integrated with 
        Country Development Cooperation Strategies required under 
        section 1018 and action plans for human rights and democracy 
        required under section 3103, as appropriate;
            (6) explain the mechanisms and processes for consultation 
        and coordination with partner countries and other public and 
        private donors in all stages of planning and implementation of 
        each country plan; and
            (7) describe the monitoring and evaluation mechanisms to be 
        used for each country plan.
    (d) Activities.--Each country plan should incorporate at least 2 of 
the following activities:
            (1) Enhancing the capacity of the health sector to prevent 
        and respond to violence against women and girls.
            (2) Developing and enforcing civil and criminal legal and 
        judicial sanctions, protections, training, and capacity.
            (3) Supporting efforts to change social norms and attitudes 
        so that violence against women and girls is neither condoned 
        nor tolerated.
            (4) Expanding access of women and girls to quality 
        education.
            (5) Increasing economic opportunities for women, including 
        through access to credit, vocational training, property 
        ownership, and inheritance rights.

SEC. 3204. ASSISTANCE TO PREVENT AND RESPOND TO VIOLENCE AGAINST WOMEN 
              AND GIRLS INTERNATIONALLY.

    (a) In General.--The Secretary and the Administrator are authorized 
to use funds made available for economic assistance to carry out the 
comprehensive international strategy and country plans developed under 
section 3203 and to conduct research and collect and analyze data in 
accordance with section 3202.
    (b) Coordination of Assistance.--The Secretary and the 
Administrator shall seek to ensure that programs, projects, and 
activities carried out under this subtitle are coordinated with related 
programs, projects, and activities carried out under other provisions 
of law.

SEC. 3205. DEFINITIONS.

    In this subtitle:
            (1) Prevention and response.--The term ``prevention and 
        response'' means activities designed to prevent and respond to 
        violence against women and girls.
            (2) Violence against women and girls.--The term ``violence 
        against women and girls''means any act of violence that results 
        in, or is likely to result in, physical, sexual, or 
        psychological harm or suffering to women or girls, including 
        threats of such acts, coercion, or arbitrary deprivations of 
        liberty, whether occurring in public or private life.

                        Subtitle C--Rule of Law

SEC. 3301. FINDINGS.

    Congress finds the following:
            (1) Human security depends upon the existence of a system 
        under which citizens are protected against arbitrary and 
        abusive use of power, law and order are consistently 
        maintained, and justice is effectively administered.
            (2) The rule of law must be carried out in accordance with 
        international human rights standards, which include the 
        equality and accountability of all individuals before the law 
        regardless of political or social status; the protection of 
        individuals against arbitrary or discriminatory treatment by, 
        or with the acquiescence of, the government; the independence 
        of the judiciary and the legal profession from other branches 
        of government; the professional maintenance of law and order; 
        and the transparent and fair administration of justice.
            (3) Responsible and effective criminal justice systems not 
        only build the foundations for democracy and economic growth in 
        developing countries, but also help to stem illicit activities, 
        such as drug trafficking and terrorism, that threaten United 
        States national interests.
            (4) Provision of rule of law assistance to foreign police 
        and security forces is an inherently governmental function, 
        which should be performed by, or under the direct supervision 
        of, United States Government employees.
            (5) The United States should provide assistance to foreign 
        law enforcement agencies only--
                    (A) if such agencies have demonstrated a commitment 
                to improving protection of the security, human rights 
                and dignity of the civilian population;
                    (B) within the context of a comprehensive program 
                to strengthen the rule of law and improve the 
                administration of justice; and
                    (C) in conjunction with a system to monitor and 
                evaluate the impact of such advice, training, and 
                equipment.

SEC. 3302. GLOBAL RULE OF LAW POLICY COMMITTEE.

    (a) Establishment.--The President shall establish a Global Rule of 
Law Policy Committee (hereafter in this section referred to as the 
``Committee''), to include the Secretary of State, the Attorney 
General, the Secretary of Homeland Security, the Secretary of the 
Treasury, the Secretary of Defense, the Administrator, and the heads of 
other Federal agencies engaged in rule of law assistance.
    (b) Purpose.--The purpose of the Committee shall be to promote 
coordination among Federal agencies carrying out rule of law assistance 
and to build capacity to provide such assistance effectively.
    (c) Review.--The Committee shall have the authority to review any 
proposed legislative or legal advice to be provided by private 
contractors to foreign law enforcement agencies.
    (d) Coordination Plan.--Not later than 180 days after the date of 
the enactment of this Act, the Committee shall establish a plan for the 
coordination of rule of law assistance, including--
            (1) building capacity within the United States Government 
        to provide expert, long-term advice and training for foreign 
        civilian law enforcement agencies and judicial systems;
            (2) utilizing such capacity currently existing within other 
        donor countries and international and nongovernmental 
        organizations;
            (3) delineating the roles and responsibilities of each 
        Federal agency in carrying out rule of law assistance;
            (4) establishing general policies and principles guiding 
        the provision of rule of law assistance; and
            (5) ensuring policy and program coordination among Federal 
        agencies carrying out rule of law assistance.
    (e) Transmission to Congress.--The coordination plan required under 
subsection (d) shall be transmitted to the appropriate congressional 
committees and made publicly available on the Internet.
    (f) Definition.--In this section, the term ``rule of law 
assistance'' means assistance under this or any other Act to combat 
crime, improve law enforcement, and strengthen the administration of 
justice in a foreign country, including assistance under sections 1803, 
3303, and 5203.

SEC. 3303. ASSISTANCE FOR RULE OF LAW.

    (a) Nonlethal Assistance.--The President is authorized to provide 
training, advice, and nonlethal equipment to eligible foreign law 
enforcement agencies to improve the capacity of such agencies to--
            (1) protect the safety and security of civilian 
        populations, including through community policing;
            (2) promote respect for human rights and due process of 
        law;
            (3) prevent and respond to violence against women and 
        girls;
            (4) reduce organized crime, corruption, and financial 
        crimes;
            (5) carry out investigative and forensic functions;
            (6) bring penal institutions into conformity with 
        international humanitarian standards;
            (7) develop training curricula;
            (8) manage human and financial resources and carry out 
        administrative functions, including internal discipline 
        procedures;
            (9) conduct strategic planning and institutional reform 
        consistent with civilian democratic control;
            (10) institute effective mechanisms for accountability and 
        oversight;
            (11) develop constructive relationships with the 
        communities they serve;
            (12) prevent disputes from escalating into violence;
            (13) respond appropriately and effectively in disasters and 
        emergencies;
            (14) control and protect land, air and maritime borders, 
        and enforce customs;
            (15) participate in international peace support operations;
            (16) monitor and enforce sanctions regimes;
            (17) detect and interdict trafficking in persons, weapons, 
        narcotics, and other contraband;
            (18) conduct maritime law enforcement and border control; 
        and
            (19) combat terrorism and violent extremism.
    (b) Administration of Justice.--The President is authorized to 
assist eligible foreign law enforcement agencies to improve 
administration of justice, including through--
            (1) revision and modernization of legal codes and 
        procedures;
            (2) improving transparency and efficiency of judicial 
        processes;
            (3) professional training, scholarships, and exchanges of 
        lawyers, judges, and other judicial officials;
            (4) building administrative and financial management 
        capacity in the justice sector;
            (5) programs to enhance protection of witnesses and 
        participants in judicial cases;
            (6) strengthening professional organizations in order to 
        promote services to members and the role of the bar in judicial 
        selection, enforcement of ethical standards, and legal reform;
            (7) increasing the availability of legal materials and 
        publications;
            (8) developing systems to ensure competent defense of 
        indigent clients charged with crimes;
            (9) enhancing access of crime victims to legal information 
        and services; and
            (10) programs to strengthen respect for the rule of law and 
        internationally recognized human rights.
    (c) Eligible Agencies.--A foreign law enforcement agency shall be 
eligible for assistance under this section only if--
            (1) the President determines, and reports to the 
        appropriate congressional committees not less than 15 days in 
        advance of providing such assistance, that such agency has 
        demonstrated a commitment to improving protection of the 
        security, human rights, and dignity of the civilian population;
            (2) the assistance will be used to strengthen democratic 
        control over the police or prison authority or to improve 
        adherence to international human rights standards; and
            (3) such agency is not otherwise prohibited by any 
        provision of this Act from receiving assistance.
    (d) Accountability.--The Comptroller General of the United States 
shall, not later than 1 year after the date of the enactment of this 
Act, conduct a review of the effectiveness and results of rule of law 
programs supported by the United States Government over the prior 5-
year period, including their outcomes for human rights, in order to 
determine best practices and lessons learned for future programming.
    (e) Participation in Foreign Police Actions.--
            (1) Prohibition on effecting an arrest.--No officer or 
        employee of the United States may directly effect an arrest in 
        any foreign country as part of any foreign police action, 
        notwithstanding any other provision of law.
            (2) Participation in arrest actions.--Paragraph (1) does 
        not prohibit an officer or employee of the United States, with 
        the approval of the United States chief of mission, from being 
        present when foreign officers are effecting an arrest or from 
        assisting foreign officers who are effecting an arrest.
            (3) Exception for exigent, threatening circumstances.--
        Paragraph (1) does not prohibit an officer or employee from 
        taking direct action to protect life or safety if exigent 
        circumstances arise which are unanticipated and which pose an 
        immediate threat to United States officers or employees, 
        officers or employees of a foreign government, or members of 
        the public.
            (4) Exception for maritime law enforcement.--With the 
        agreement of a foreign country, paragraph (1) does not apply 
        with respect to maritime law enforcement operations in the 
        territorial sea or archipelagic waters of that country.
            (5) Exception for status of forces arrangements.--This 
        subsection does not apply to the activities of the United 
        States Armed Forces in carrying out their responsibilities 
        under applicable status of forces arrangements.

SEC. 3304. DEFINITION.

    In this subtitle, the term ``foreign law enforcement agency'' means 
an agency--
            (1) with domestic arrest powers;
            (2) responsible for internal security, including the 
        protection of life and property; and
            (3) that does not report to a defense ministry or similar 
        or related entity of a foreign government and is not a military 
        force.

                      Subtitle D--Child Protection

SEC. 3401. FINDINGS.

    Congress finds that--
            (1) the Trafficking Victims Protection Act of 2000 (Public 
        Law 106-386) and subsequent reauthorization Acts establish a 
        comprehensive framework for monitoring and combating human 
        trafficking, including that of children;
            (2) under the Trafficking Victims Protection Act of 2000, 
        the Secretary annually identifies countries that do not comply 
        with minimum standards for the elimination of trafficking, some 
        of which are making significant efforts to bring themselves 
        into compliance;
            (3) additional incentives should be provided to encourage 
        countries to protect and rescue children subjected to severe 
        forms of trafficking or sexual exploitation; and
            (4) such incentives can be provided in the form of 
        assistance to countries that--
                    (A) have a significant prevalence of trafficking in 
                children;
                    (B) agree to address institutional weaknesses 
                within the government that result in the failure to 
                protect vulnerable children and to rescue and properly 
                rehabilitate victims; and
                    (C) agree to enhance efforts to apprehend 
                perpetrators who engage in severe forms of trafficking 
                in children and bring them to justice in national 
                courts of law.

SEC. 3402. CHILD PROTECTION COMPACTS.

    (a) Authorization.--The Secretary, acting through the Office to 
Monitor and Combat Trafficking in Persons and in consultation with the 
Senior Policy Operating Group on Trafficking in Persons, is authorized 
to enter into a compact described in subsection (b) with an eligible 
country described in subsection (c) to protect and rescue children 
subjected to severe forms of trafficking or sexual exploitation. Such 
compact shall be known as a ``Child Protection Compact''.
    (b) Compact.--
            (1) In general.--A compact described in this subsection is 
        an agreement between the United States and an eligible country 
        that establishes a multiyear plan to protect and rescue 
        children subjected to severe forms of trafficking or sexual 
        exploitation.
            (2) Elements.--A compact 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) the particular programs or initiatives to be 
                undertaken in the achievement of such objectives and 
                the amount of funding to be allocated to each program 
                or initiative;
                    (D) regular outcome indicators to monitor and 
                measure progress toward achieving such objectives, 
                including indicators for each program or initiative;
                    (E) a multi-year financial plan, including the 
                estimated amount of contributions by the United States 
                and the country; and
                    (F) the strategy of the country to sustain progress 
                made toward achieving such objectives after expiration 
                of the compact.
            (3) Programs and initiatives.--Programs and initiatives 
        under a compact may include--
                    (A) evaluating legal standards and practices and 
                recommending improvements that will increase the 
                likelihood of successful prosecutions;
                    (B) training anti-trafficking police and 
                investigators;
                    (C) increasing public awareness of the risks and 
                dangers of child trafficking;
                    (D) building cooperation between domestic 
                nongovernmental organizations and law enforcement 
                agencies to identify and rescue victims;
                    (E) making courts more friendly to victims;
                    (F) providing rehabilitation and reintegration 
                services for rescued children;
                    (G) supporting innovative technology and improved 
                data collection to prevent child trafficking, aid in 
                the prosecution of criminals, and rescue victims; and
                    (H) developing regional cooperative plans with 
                neighboring countries to prevent cross-border 
                trafficking of children and child sex tourism.
    (c) Eligible Countries.--A country is eligible for a compact if the 
country--
            (1) is a developing country, in that term is defined in 
        section 1023;
            (2) is a Tier II country or Tier II Watch List country;
            (3) has a documented high prevalence of trafficking of 
        children; and
            (4) has demonstrated political will and sustained 
        commitment by the government to undertake meaningful measures 
        to address severe forms of trafficking of children, including--
                    (A) enactment and enforcement of laws criminalizing 
                trafficking in children with punishments commensurate 
                with the crime, including, when necessary, against 
                complicit government officials;
                    (B) cooperation with local and international 
                nongovernmental organizations with demonstrated 
                expertise in combating the trafficking in children; and
                    (C) the treatment of child trafficking victims in 
                accordance with Article 6(3) of the Protocol to 
                Prevent, Suppress and Punish Trafficking in Persons, 
                Especially Women and Children, Supplementing the United 
                Nations Convention Against Transnational Organized 
                Crime.

SEC. 3403. AUTHORIZATION OF ASSISTANCE.

    (a) In General.--The Secretary is authorized to use funds made 
available under this Act for economic assistance to--
            (1) develop a Child Protection Compact between the United 
        States and an eligible country under section 3402; and
            (2) provide assistance to an eligible entity described in 
        subsection (b) to carry out a Child Protection Compact.
    (b) Eligible Entities.--In carrying out a Child Protection Compact, 
the Secretary may provide assistance to--
            (1) the national government of the eligible country under 
        section 3402;
            (2) regional or local governmental units of an eligible 
        country under section 3402;
            (3) a regional or international organization; or
            (4) a nongovernmental organization or a private entity with 
        expertise in the protection of vulnerable children, the 
        investigation and prosecution of those who engage in or benefit 
        from child trafficking, or the rescue of child victims of 
        trafficking.

SEC. 3404. SUSPENSION AND TERMINATION OF ASSISTANCE.

    (a) Suspension and Termination of Assistance.--The Secretary shall 
suspend or terminate assistance under section 3403 in whole or in part 
for an eligible entity under section 3403 if the Secretary determines 
that--
            (1) the entity is engaged in activities that are contrary 
        to the national security interests of the United States;
            (2) the 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 entity has failed to adhere to its responsibilities 
        under the Child Protection Compact.
    (b) Reinstatement.--The Secretary may reinstate assistance that has 
been suspended or terminated under subsection (a) only if the Secretary 
determines that the entity has demonstrated a commitment to correcting 
each condition for which assistance was suspended or terminated.
    (c) Congressional Notification.--Not later than 3 days after the 
date on which the Secretary suspends or terminates assistance under 
subsection (a) for an entity, or reinstates assistance under subsection 
(b) for an entity, the Secretary shall submit to the appropriate 
congressional committees a report that contains the determination of 
the Secretary under subsection (a) or subsection (b), as the case may 
be.

SEC. 3405. CONGRESSIONAL NOTIFICATION.

    (a) Prior Consultation.--Not later than 15 days prior to the start 
of negotiations of a Child Protection Compact with a country, the 
Ambassador shall consult with the appropriate congressional committees.
    (b) Congressional Notification.--Not later than 10 days after 
entering into a Child Protection Compact with a country, the Ambassador 
shall notify the appropriate congressional committees, and shall 
provide a detailed summary of the Compact and a copy of the text of the 
Compact.
    (c) Monitoring and Evaluation.--The Ambassador shall ensure that 
regular monitoring reports for each compact are prepared and made 
available to the appropriate congressional committees, and that an 
independent impact evaluation is conducted upon the completion of a 
compact.

SEC. 3406. DEFINITIONS.

    In this subtitle:
            (1) Ambassador.--The term ``Ambassador'' means the 
        Ambassador-at-Large of the Department of State's Office to 
        Monitor and Combat Trafficking in Persons.
            (2) Child protection.--The term ``child protection'' means 
        efforts to prevent and respond to violence, exploitation, and 
        abuse against children.
            (3) Compact.--The term ``Child Protection Compact'' or 
        ``Compact'' means a Child Protection Compact described in 
        section 3402.
            (4) Severe forms of trafficking.--The term ``severe forms 
        of trafficking in persons'' means--
                    (A) sex trafficking in which a commercial sex act 
                is induced by force, fraud, or coercion, or in which 
                the person induced to perform such act has not attained 
                18 years of age; or
                    (B) the recruitment, harboring, transportation, 
                provision, or obtaining of a person for labor or 
                services, through the use of force, fraud, or coercion 
                for the purpose of subjection to involuntary servitude, 
                peonage, debt bondage, or slavery.
            (5) Tier ii countries and tier ii watch list countries.--
        The terms ``Tier II countries'' and ``Tier II Watch List 
        countries'' mean those countries designated by the Secretary as 
        not meeting minimum standards for the elimination of 
        trafficking.

       TITLE IV--BUILDING AND REINFORCING STRATEGIC PARTNERSHIPS

SEC. 4001. FINDINGS.

    Congress finds the following:
            (1) The ultimate goal of the United States continues to be 
        a world which is free from the scourge of war and the dangers 
        and burdens of armaments, in which the use of force has been 
        subordinated to the rule of law, and in which international 
        adjustments to a changing world are achieved peacefully.
            (2) In furtherance of that goal, it remains the policy of 
        the United States to encourage regional arms control and 
        disarmament agreements; discourage arms races; and encourage 
        restraint in the provision of armaments, especially small arms 
        and light weapons and advanced conventional weapons, to 
        countries in regions of instability.
            (3) The efforts of the United States and other friendly 
        countries to promote peace and security continue to require 
        measures of support based upon the principle of effective self-
        help and mutual aid.
            (4) The peace of the world and the security of the United 
        States are endangered so long as hostile countries continue by 
        threat of military action, by the use of economic pressure, by 
        their active or permissive support of terrorists, terrorist 
        organizations and extremism, and by internal subversion, or 
        other means to attempt to undermine the peace, security, human 
        rights, political freedoms, civil rights, or prosperity of 
        others.
            (5) Peace and security for all is endangered by the failure 
        of countries to live up to their sovereign responsibilities to 
        protect civilian populations from violence, reduce terrorism, 
        halt the spread of dangerous materials, and control 
        transnational crime.
            (6) It is in the interest of the United States to help 
        foreign countries build capable and accountable military, 
        police, customs, and other security forces, under civilian 
        democratic control, in order to exercise their sovereign 
        responsibilities.
            (7) Extreme poverty and underdevelopment are threats to 
        peace. The provision of foreign assistance under this title to 
        developing countries must take into account how the foreign 
        assistance will affect such countries' social and economic 
        development and whether the foreign assistance is diverting 
        resources away from development efforts that meet basic needs 
        of the population and address root causes of instability.
            (8) Weapons and weapons systems are not and should not be 
        considered to be normal commodities for international trade, 
        and the United States should permit such sales only to the 
        extent that such sales directly support United States foreign 
        policy and national security objectives.
            (9) Foreign assistance under this title should not be 
        provided if such foreign assistance will likely--
                    (A) contribute to an arms race or regional 
                instability;
                    (B) increase the possibility of outbreak or 
                escalation of conflict, either within or across the 
                borders of the recipient country;
                    (C) support international terrorism;
                    (D) prejudice the development of bilateral or 
                multilateral arms control arrangements;
                    (E) adversely affect the arms control or 
                nonproliferation policy of the United States;
                    (F) be in excess to the legitimate defense needs of 
                the recipient country in terms of the actual threats to 
                its national security it faces; or
                    (G) undermine the objectives and purposes to 
                promote and protect human rights and democracy under 
                title III.

SEC. 4002. STATEMENT OF POLICY.

    It is the policy of the United States--
            (1) to promote the peace of the world and the foreign 
        policy, security, and general welfare of the United States by 
        fostering an improved climate of security, political 
        independence and individual liberty, improving the ability of 
        friendly countries and international organizations to deter or, 
        if necessary, defeat aggression in whatever form, facilitating 
        arrangements for individual and collective security, assisting 
        friendly countries to provide for their legitimate defense 
        needs, and creating an environment of security and stability in 
        the developing friendly countries essential to their more rapid 
        social, economic, and political progress;
            (2) to exert leadership in the world community to bring 
        about arrangements for reducing the international trade in 
        implements of war and to lessen the danger of outbreak of 
        regional conflict and the burdens of armaments;
            (3) to exert maximum efforts to achieve universal control 
        of weapons of mass destruction, the securing and control of the 
        means to produce and deliver them, and universal regulation and 
        reduction of armaments, including armed forces, under adequate 
        safeguards to protect complying countries against violation, 
        aggression, and invasion;
            (4) to administer United States programs for or procedures 
        governing the export, sale, and grant of defense articles and 
        defense services to foreign countries and international 
        organizations in a manner consistent with the goals described 
        in section 4003;
            (5) to achieve international peace and security through the 
        United Nations and the diplomatic settlement of disputes so 
        that armed force shall not be used except for individual or 
        collective self-defense;
            (6) to encourage all other countries to join in a common 
        undertaking to meet the goals described in section 4003; and
            (7) to give priority for the provision of foreign 
        assistance under this title to the needs of those countries in 
        danger of becoming victims of aggression, terrorism, or 
        intimidation by conventional or non-conventional military 
        means.

SEC. 4003. GOALS OF ASSISTANCE.

    (a) In General.--The provision of foreign assistance under this 
title to any country or organization shall be furnished solely to 
achieve the following goals:
            (1) To improve the ability of the country or organization 
        to meet its legitimate defense and internal security needs.
            (2) To assist and encourage the country or organization to 
        recognize and effectively address problems that threaten United 
        States security, including terrorism, proliferation of weapons 
        and dangerous technologies, environmental destruction, the 
        spread of deadly disease, and transnational crime.
            (3) To protect civilian populations from violence, 
        including criminal violence.
            (4) To permit the country or organization to participate in 
        regional or collective arrangements or measures requested by 
        the United Nations, or consistent with the Charter of the 
        United Nations, for the purpose of maintaining or restoring 
        international peace and security.
            (5) To increase the professionalization, transparency, 
        accountability, humanitarian and disaster response capacity, or 
        human rights record of the security forces of the country or 
        organization, and the effective control of such security forces 
        by civilian democratic authorities.
            (6) To promote a social, economic, and political 
        environment conducive to stable peace in the country or region.
    (b) Biennial Review and Report.--
            (1) Review.--In carrying out the requirements of section 
        9201 with respect to security assistance, the Secretary shall, 
        for each country to which such assistance is provided--
                    (A) review the extent to which such assistance is 
                achieving the goals of subsection (a);
                    (B) review the impact of such assistance on 
                internationally recognized human rights; and
                    (C) incorporate the results of such review into 
                decisions regarding the provision and design of 
                security assistance.
            (2) Biennial report.--Not later than 2 years after the date 
        of the enactment of this Act, and every 2 years thereafter, the 
        President shall submit to the appropriate congressional 
        committees a report on the result of the review required under 
        paragraph (1) and the steps taken to incorporate the results of 
        such review into security assistance decisionmaking.

                   Subtitle A--Economic Support Fund

SEC. 4101. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Conflict, violence, anarchy, and instability, fueled by 
        problems such as tyranny and oppression, corruption and 
        financial mismanagement, ethnic and religious discrimination 
        and discord, competition over resources, and other sources of 
        tension, are among the greatest threats to United States 
        national security.
            (2) Terrorism and violent extremism undermine the stability 
        and survival of states, the protection of democratic freedoms, 
        the vitality of economies and markets, and the lives of 
        civilian populations.
            (3) United States leadership is essential to countering 
        terrorism and violent extremism, fostering political and 
        economic stability, and reaching comprehensive, just and 
        lasting peace agreements.
            (4) To reduce the need for military force, the United 
        States must develop and maintain a broad range of efficient and 
        effective diplomatic and economic tools to promote peaceful 
        resolution of conflict and to prevent the collapse of weak and 
        fragile states.
            (5) Efforts to promote international peace and stability 
        are most effective when undertaken on a multilateral basis, in 
        concert with strategic partners.
            (6) Prudent investment of United States resources to 
        assist, through bilateral and collective efforts, in preventing 
        or containing armed conflict, in restoring peace and stability, 
        and in addressing the sources of conflict, is essential for 
        achieving a peaceful world.
            (7) While stability is a necessary precursor to long-term 
        development, stabilization programming often has different 
        objectives, beneficiaries, modalities, and measurement tools 
        than long-term development programming, and should be 
        justified, budgeted, and evaluated according to different 
        criteria.
    (b) Statement of Policy.--It is the policy of the United States to 
deepen engagement with close allies and partners, and to develop 
relations with new partners, to prevent violent conflict, resolve 
underlying grievances fairly, and build sustainable peace.

SEC. 4102. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of foreign assistance under this subtitle is to 
expand strategic partnerships to prevent violent conflict, resolve 
underlying grievances fairly, and build sustainable peace.
    (b) Objectives.--In furtherance of the goal described in subsection 
(a), foreign assistance under this subtitle shall be designed to 
achieve the following objectives:
            (1) Promoting and supporting peace agreements.
            (2) Increasing economic and political stability.
            (3) Facilitating participation in collective diplomatic and 
        security efforts.
            (4) Strengthening democratic governance.

SEC. 4103. ECONOMIC SUPPORT FUND.

    (a) Authorization.--The President is authorized to provide foreign 
assistance under this subtitle to countries and organizations, on such 
terms and conditions as the President may determine, in order to 
achieve the goal and objectives of this subtitle. Such foreign 
assistance shall be known as ``Economic Support Fund'' assistance.
    (b) Relationship to Development Assistance.--Foreign assistance 
under this subtitle--
            (1) should be designed to complement assistance under title 
        I and should be linked with subsequent medium-term and long-
        term development programs;
            (2) shall be provided, to the maximum extent feasible, 
        consistent with the policy directions, purposes, and programs 
        of title I; and
            (3) is authorized to be provided for countries in amounts 
        that could not be justified solely under assistance under title 
        I.
    (c) Role of the Secretary.--The Secretary shall be responsible for 
policy decisions and justifications for foreign assistance under this 
subtitle, including determinations of whether to provide foreign 
assistance to a country or organization and the amount of such foreign 
assistance. The Secretary shall exercise this responsibility in 
coordination with the Administrator.
    (d) Information To Be Provided.--The annual congressional budget 
justification required under section 9302 and the database required 
under section 9301 shall include information concerning the amounts and 
kinds of cash grant transfers, the amounts and kinds of budgetary and 
balance-of-payments support provided, and the amounts and kinds of 
project assistance provided with funds made available under this 
subtitle.
    (e) Non-Military Purposes.--Amounts made available to carry out 
this subtitle may not be used for military or paramilitary purposes and 
may not be carried out by military forces.
    (f) Availability of Funds.--Amounts made available to carry out 
this subtitle are authorized to remain available until expended.

SEC. 4104. CASH TRANSFER ASSISTANCE.

    (a) In General.--The Secretary is authorized to provide foreign 
assistance under this subtitle in the form of cash grant transfers, 
balance-of-payments support, or other non-project assistance only to 
the extent and in the amounts justified in the annual congressional 
budget justification required under section 9302 or as subsequently 
notified to Congress pursuant to section 9401.
    (b) Separate Accounts.--A country or organization receiving foreign 
assistance in the form of cash transfers or non-project sector 
assistance shall be required to maintain such funds in a separate 
account and not commingle them with any other funds.
    (c) Use of Funds.--Funds placed into a separate account pursuant to 
subsection (b) may be obligated and expended notwithstanding commodity 
restrictions (as defined in section 11001).

                   Subtitle B--Security Partnerships

                     CHAPTER 1--GENERAL AUTHORITIES

SEC. 4211. AUTHORIZATION OF ASSISTANCE.

    (a) Authorization.--
            (1) In general.--The President is authorized to provide 
        foreign assistance under this subtitle to any country or 
        organization that is eligible to receive such assistance in 
        order to promote security in the country or region.
            (2) Terms and conditions.--The President may provide 
        foreign assistance under this subtitle on such terms and 
        conditions as the President may determine.
    (b) Types of Assistance.--Assistance provided under subsection (a) 
includes--
            (1) acquiring from any source and providing by grant any 
        defense article or defense service;
            (2) assigning or detailing members of the United States 
        Armed Forces and other personnel of the Department of Defense, 
        the Department of State, or any other Federal agency, to 
        perform duties of a non-combatant nature; or
            (3) transferring such amounts made available under this 
        title as the President may determine for assistance to the 
        country or organization to the account in which amounts for the 
        procurement of defense articles and defense services under 
        section 4311 and section 4312 have been deposited for the 
        country or organization, to be merged with such deposited 
        funds, and to be used solely to meet obligations of the country 
        or organization for payment for sales of defense items and 
        services under this title.
    (c) Exclusion of Certain Costs.--Sales that are wholly paid from 
funds transferred under subsection (b)(3) or from funds made available 
on a non-repayable basis under section 4311 shall be priced to exclude 
the costs of salaries of members of the United States Armed Forces 
(other than the Coast Guard).

SEC. 4212. CONDITIONS OF ASSISTANCE.

    (a) In General.--Consistent with the requirements of sections 4361 
and 4362, foreign assistance authorized under this subtitle, including 
defense articles, defense services, or related training, may be 
provided to any country or organization if the country or organization 
(as the case may be) has agreed that--
            (1) it will not transfer title to, or possession or use of, 
        any defense article, defense service, or related training so 
        provided to it, or produced pursuant to a cooperative project 
        agreement, to anyone who is not an officer, employee, or agent 
        of the country or organization (as the case may be) or the 
        specific member countries (other than the United States) in the 
        case of a cooperative project agreement, without the prior 
        consent of the President;
            (2) it will maintain the security of such articles, 
        services, or related training and will provide substantially 
        the same degree of security protection afforded to such 
        articles, services, or related training by the United States 
        Government;
            (3) it will, as the President may require, permit 
        continuous observation and review by, and provide necessary 
        information to, representatives of the United States Government 
        with regard to the use of such articles, services, or related 
        training; and
            (4) unless the President consents to other disposition, it 
        will return to the United States Government for such use or 
        disposition as the President considers in the best interests of 
        the United States, such articles, services, or related training 
        which are no longer needed for the purposes for which provided.
    (b) Certification.--
            (1) In general.--The Secretary may not give consent under 
        section 4361 to the retransfer of any defense article or 
        defense service that would be, if it were a sale, subject to 
        the requirements of section 4382 (regarding congressional 
        certification of sensitive foreign military sales and 
        agreements), unless the Secretary submits to the appropriate 
        congressional committees a written certification with respect 
        to such proposed retransfer containing--
                    (A) the name of the country or organization 
                proposing to make such retransfer;
                    (B) a description of such article or service 
                proposed to be retransferred, including its acquisition 
                cost;
                    (C) the name of the proposed recipient of such 
                article or service;
                    (D) the reasons for such proposed retransfer; and
                    (E) the date on which such retransfer is proposed 
                to be made.
            (2) Form.--Any certification submitted to the appropriate 
        congressional committees pursuant to paragraph (1)--
                    (A) shall be submitted in unclassified form, except 
                that information regarding the dollar value and number 
                of defense articles or defense services proposed to be 
                retransferred may be submitted in classified form if 
                public disclosure thereof would be clearly detrimental 
                to the security of the United States; and
                    (B) shall be subject to the requirements of 
                sections 4384.
            (3) Exception.--Paragraph (1) shall not apply to an export 
        that has been exempted from the licensing requirements of this 
        title pursuant to an agreement pursuant to section 4341.
    (c) Exception for Incorporated Components.--The consent of the 
President under subsection (a)(1) shall not be required for the 
transfer by a foreign country or international organization of defense 
articles sold by the United States under this Act if--
            (1) such articles constitute components incorporated into 
        foreign defense articles;
            (2) the recipient is the government of a strategic United 
        States ally;
            (3) the recipient is not a country designated under section 
        10401;
            (4) the United States-origin components are not--
                    (A) significant military equipment;
                    (B) defense articles for which notification to 
                Congress is required under section 4382; and
                    (C) identified by regulation as Missile Technology 
                Control Regime items; and
            (5) the foreign country or international organization 
        provides notification of the transfer of the defense articles 
        to the United States Government not later than 30 days after 
        the date of such transfer.

SEC. 4213. PROHIBITION FOR MISUSE OF UNITED STATES ASSISTANCE.

    (a) Prohibition.--No foreign assistance may be provided under this 
subtitle, subtitle C, or any predecessor Act to any country or 
organization if the Secretary has credible information the country or 
organization (as the case may be) uses or has used assistance, 
including defense articles or defense services, provided under this 
title or any predecessor Act in substantial violation (either in terms 
of quantities or in terms of the gravity of the consequences regardless 
of the quantities involved) of any agreement entered into pursuant to 
this title or any such Act--
            (1) by using such articles or services for a purpose not 
        authorized under section 4301 or, if such agreement provides 
        that such articles or services may only be used for purposes 
        more limited than those authorized under section 4301, for a 
        purpose not authorized under such agreement; or
            (2) by transferring such articles or services to, or 
        permitting any use of such articles or services by, anyone not 
        an officer, employee, or agent of the country or organization 
        without the prior consent of the United States; or
            (3) by failing to maintain the security of such articles or 
        services, including attempts to obtain classified or 
        proprietary information or technology from such articles or 
        services.
    (b) Congressional Notification.--
            (1) In general.--The Secretary shall notify the appropriate 
        congressional committees promptly upon the receipt of credible 
        information that a country or organization may have committed a 
        violation described in subsection (a), and what actions are 
        being taken to implement the prohibition under that subsection. 
        The President shall ensure that the appropriate United States 
        Government departments and agencies provide to the Secretary 
        without delay any and all information relating to a violation 
        described in subsection (a).
            (2) Timing.--The notification required under paragraph (1) 
        with respect to a country or organization shall occur before a 
        certification required under chapter 6 of subtitle C relating 
        to a proposed export of a defense article or defense service to 
        the country or organization.
    (c) Reinstatement.--The prohibition on assistance under subsection 
(a) shall cease to be effective for any country or organization if the 
Secretary determines and notifies the appropriate congressional 
committees that--
            (1) the violation for which the prohibition was imposed has 
        ceased;
            (2) the country or organization (as the case may be) has 
        given assurances satisfactory to the Secretary that the 
        violation will not recur; and
            (3) the country or organization (as the case may be) has 
        taken sufficient steps to prevent a recurrence of any similar 
        violation; or
            (4) the Secretary has determined that the violation did not 
        in fact occur.
    (d) Waiver.--The Secretary may waive the prohibition on assistance 
under subsection (a) for any country or organization if the Secretary 
determines and notifies the appropriate congressional committees that 
such prohibition on assistance would have a significant adverse impact 
on the security of the United States.
    (e) Review and Report.--
            (1) Review.--Not later than 180 days after the date of the 
        enactment of this Act, and every 3 years thereafter, the 
        Inspector General of the Department of State shall conduct a 
        review of investigations by the Department of State of any and 
        all possible occasions of misuse of defense articles and 
        defense services by countries and organizations to determine 
        whether the Department of State has fully complied with the 
        requirements of this section, as well as with the Department of 
        State's internal procedures (and whether such procedures are 
        adequate), for reporting to Congress any information regarding 
        the unlawful use or transfer of defense articles and defense 
        services by such countries and organizations.
            (2) Report.--The Inspector General of the Department of 
        State shall submit to the appropriate congressional committees 
        for each of fiscal years 2014 through 2017 a report that 
        contains the findings and results of the review conducted under 
        paragraph (1). The report shall be submitted in unclassified 
        form to the maximum extent possible, but may include a 
        classified annex.

                     CHAPTER 2--DRAWDOWN AUTHORITY

SEC. 4221. AUTHORIZATION OF EMERGENCY ASSISTANCE.

    (a) Authorization.--If the President determines that--
            (1) an unforeseen emergency exists which requires the 
        immediate provision of assistance authorized under this 
        subtitle to a country or organization, and
            (2) the emergency requirement cannot be met under the 
        authority of any other provision of law except this section,
the President may direct, in order to meet the goals described in 
section 4003, the drawdown of articles and services, including 
training, from any Federal agency of an aggregate value of not to 
exceed $250,000,000 in any fiscal year.
    (b) Congressional Notification.--The President may exercise the 
authority of subsection (a) with respect to an emergency described in 
subsection (a) only if the President first notifies the appropriate 
congressional committees.

SEC. 4222. AUTHORIZATION OF NON-EMERGENCY ASSISTANCE.

    (a) In General.--If the President determines that it is in the 
national interest of the United States to drawdown articles and 
services from the inventory and resources of any Federal agency, 
including military education and training from the Department of 
Defense, the President may direct the drawdown of such articles, 
services, and military education and training--
            (1) for purposes of providing foreign assistance, as 
        administered by the Department of State, under this Act;
            (2) for purposes of providing assistance under the 
        Migration and Refugee Assistance Act of 1962; or
            (3) to support cooperative efforts with Vietnam, Cambodia, 
        or Laos to locate and repatriate members of the United States 
        Armed Forces and civilians employed directly or indirectly by 
        the United States Government who remain unaccounted for from 
        the Vietnam War, including for purposes of--
                    (A) ensuring the safety of United States Government 
                personnel engaged in such cooperative efforts; and
                    (B) supporting Department of Defense-sponsored 
                humanitarian projects associated with such efforts.
    (b) Limitation.--An aggregate value of not to exceed $250,000,000 
in any fiscal year of such articles, services, and military education 
and training may be provided pursuant to subsection (a).
    (c) Notification.--The authority contained in this section shall be 
effective for any such drawdown only upon notification to the 
appropriate congressional committees at least 15 days prior to such 
drawdown in accordance with the procedures applicable to reprogramming 
notifications.

SEC. 4223. COMMERCIAL TRANSPORTATION AND RELATED SERVICES.

    For purposes of this chapter, a drawdown of articles or services 
may include the supply of commercial transportation and related 
services that are acquired by contract for the purposes of the drawdown 
in question if the cost to acquire such commercial transportation and 
related services is less than the cost to the United States Government 
of providing such services from existing assets of the applicable 
Federal agency.

SEC. 4224. REPORT.

    (a) In General.--The Secretary shall keep the appropriate 
congressional committees fully and currently informed of assistance 
provided to a country or organization under this chapter, including by 
submitting to the appropriate congressional committees a report 
describing such assistance delivered to each country or organization 
upon delivery of such articles or upon completion of such services or 
education and training.
    (b) Publication on Website.--The Secretary shall publish each 
report required under subsection (a) on the Internet website of the 
Department of State upon submission of the report to the appropriate 
congressional committees.

                  CHAPTER 3--LOANS OF DEFENSE ARTICLES

SEC. 4231. LOAN REQUIREMENTS.

    In addition to such other terms and conditions as the President may 
determine pursuant to section 4211, defense articles and defense 
services may be loaned under such section only if--
            (1) there is a bona fide reason, other than the shortage of 
        funds, for providing such articles on a loan basis rather than 
        on a grant basis;
            (2) there is a reasonable expectation that such articles 
        will be returned to the Federal agency making the loan at the 
        end of the loan period unless the loan is then renewed;
            (3) the loan period is of fixed duration not exceeding five 
        years, during which such article may be recalled for any reason 
        by the United States;
            (4) the agency making the loan is reimbursed for the loan 
        according to the provisions of section 4232; and
            (5) the loan agreement provides that--
                    (A) if the defense article is damaged while on 
                loan, the country or organization to which it was 
                loaned will reimburse the United States for the cost of 
                restoring or replacing the defense article; and
                    (B) if the defense article is lost or destroyed 
                while on loan, the country or organization to which it 
                was loaned will pay to the United States an amount 
                equal to the replacement cost (less any depreciation in 
                the value) of the defense article.

SEC. 4232. COST OF LOANS.

    (a) In General.--In the case of any loan of a defense article or 
defense service made under section 4211, there shall be a charge to the 
appropriation for security assistance for any fiscal year while such 
article or service is on loan in an amount based on--
            (1) the out-of-pocket expenses authorized to be incurred in 
        connection with such loan during such fiscal year; and
            (2) the depreciation which occurs during such year while 
        such article is on loan.
    (b) Inapplicability.--The provisions of this chapter shall not 
apply to any defense article or defense service, or portion thereof, 
acquired with funds made available for assistance under this title.

               CHAPTER 4--STOCKPILING OF DEFENSE ARTICLES

SEC. 4241. GENERAL AUTHORITY.

    (a) In General.--The President is authorized to set aside, reserve, 
or otherwise earmark defense articles in the inventory of the 
Department of Defense, consistent with the provisions of this Act, for 
future use by any foreign country that is a strategic United States 
ally.
    (b) Notification.--
            (1) In general.--Except as provided in paragraph (2), not 
        later than 15 days before making a defense article that has 
        been set aside, reserved, or otherwise earmarked under the 
        authority of this section made available to or for use by a 
        foreign country described in subsection (a), the President 
        shall transmit a notification of the proposed transfer to the 
        appropriate congressional committees and to the Committees on 
        Armed Services of the House of Representatives and the Senate. 
        The notification shall identify the items to be transferred and 
        the concessions to be received.
            (2) Exception.--If the President determines that an 
        emergency exists that requires making a defense article 
        available to a foreign country described in subsection (a), the 
        President is authorized to make such defense article available 
        immediately upon notification to the appropriate congressional 
        committees. The President shall set forth the reasons for 
        determining that such an emergency exists that warrants the 
        immediate use of this authority.
    (c) Rule of Construction.--No defense article transferred from any 
stockpile which is made available to or for use by any foreign country 
under this section may be considered an excess defense article for the 
purpose of determining the value thereof.

SEC. 4242. VALUE OF DEFENSE ARTICLES.

    (a) In General.--The value of defense articles to be set aside, 
reserved, or earmarked or intended for use under this chapter in 
stockpiles located in foreign countries may not exceed $300,000,000 for 
a fiscal year, of which up to $200,000,000 may be made available for 
stockpiles in the State of Israel.
    (b) Value Defined.--For purposes of this section, the term 
``value'' means the acquisition cost plus crating, packing, handling, 
and transportation costs incurred in carrying out section 4241.

                 CHAPTER 5--FOREIGN MILITARY FINANCING

SEC. 4251. GENERAL AUTHORITY.

    The President is authorized to finance the procurement of defense 
articles, defense services, and design and construction services by 
foreign countries and international organizations, on such terms and 
conditions as the President may determine consistent with the 
requirements of this chapter.

SEC. 4252. RULE OF CONSTRUCTION.

    References in any law to credits extended under this chapter or 
section 21 of the Arms Export Control Act shall be deemed to include 
reference to participations in credits.

SEC. 4253. AUDITS.

    For each fiscal year, the Secretary of Defense, as requested by the 
Director of the Defense Security Assistance Agency, shall conduct 
audits on a nonreimbursable basis of private firms that have entered 
into contracts with countries or organizations under which defense 
articles, defense services, or design and construction services are to 
be procured by such firms for such countries or organizations from 
financing under this chapter.

SEC. 4254. CASH FLOW FINANCING.

    The Secretary may approve cash flow financing for Israel and Egypt 
for the procurement of defense articles, defense services, or design 
and construction services in excess of $100,000,000.

        CHAPTER 6--INTERNATIONAL MILITARY EDUCATION AND TRAINING

SEC. 4261. PURPOSE.

    The purpose of this chapter is to provide military education and 
training activities under this chapter that are designed--
            (1) to encourage effective and mutually beneficial 
        relations and increased understanding between the United States 
        and foreign countries in furtherance of the goals of 
        international peace and security;
            (2) to improve the ability of foreign countries to utilize 
        their resources, including defense articles and defense 
        services obtained by such countries from the United States, 
        with maximum effectiveness, thereby contributing to greater 
        self-reliance by such countries; and
            (3) to increase the awareness of nationals of foreign 
        countries participating in such activities of basic issues 
        involving respect and observance of internationally recognized 
        human rights, the importance of civilian oversight and 
        authority over security and national defense forces, and of 
        accountability of defense personnel to civilian governments and 
        courts.

SEC. 4262. MILITARY EDUCATION AND TRAINING FOR FOREIGN MILITARY AND 
              DEFENSE PERSONNEL.

    (a) Authority.--The Secretary is authorized to provide, on such 
terms and conditions as the Secretary may determine, military education 
and training to foreign military and defense personnel.
    (b) Requirements.--Professional military education and training 
provided under subsection (a) shall be designed to--
            (1) contribute to greater cooperation between the United 
        States and the government of such foreign military and defense 
        personnel on United States counternarcotics, counterterrorism, 
        or counterproliferation efforts; and
            (2) foster greater respect for, and understanding of--
                    (A) democracy and the rule of law, including the 
                principle of civilian control of the military; and
                    (B) internationally recognized human rights.
    (c) Selection of Participants.--The selection of foreign military 
and defense personnel for training under this chapter shall be made in 
consultation with the Secretary of Defense.
    (d) Foreign Military and Defense Personnel Defined.--In this 
section, the term ``foreign military and defense personnel'' means 
members of the armed forces and civilian personnel of the defense 
ministry of a foreign country.

SEC. 4263. MILITARY EDUCATION AND TRAINING FOR FOREIGN CIVILIAN 
              PERSONNEL.

    (a) Authority.--The Secretary is authorized to provide, on such 
terms and conditions as the Secretary may determine, military education 
and training to foreign civilian personnel, if such military education 
and training would contribute to--
            (1) civilian, democratic control of the military;
            (2) responsible defense resource management;
            (3) cooperation between military and law enforcement 
        personnel with respect to counternarcotics, counterterrorism, 
        or counterproliferation activities; or
            (4) improved military justice systems and procedures in 
        accordance with internationally recognized human rights.
    (b) Foreign Civilian Personnel Defined.--In this section, the term 
``foreign civilian personnel'' includes legislators, representatives of 
civil society, and foreign governmental personnel of ministries other 
than ministries of defense.

SEC. 4264. LOCATIONS OF INSTRUCTION.

    Military education and training activities carried out under this 
chapter may be provided through--
            (1) attendance at military educational and training 
        facilities in the United States (other than Service academies) 
        and abroad;
            (2) attendance in special courses of instruction at schools 
        and institutions of learning or research in the United States 
        and abroad; and
            (3) observation and orientation visits to military 
        facilities and related activities in the United States and 
        abroad.

SEC. 4265. REIMBURSEMENT.

    The Secretary shall seek reimbursement for military education and 
training provided under this chapter from countries using assistance 
under section 4251 to purchase such military education and training at 
a rate comparable to the rate charged to countries receiving grant 
assistance for military education and training under this chapter.

SEC. 4266. EXCHANGE OF TRAINING AND RELATED SUPPORT.

    (a) Authority.--Subject to subsection (b), the Secretary, in 
consultation with the Secretary of Defense, is authorized to provide 
training and related support to foreign military and defense personnel 
(as defined in section 4262) and to foreign civilian personnel (as 
defined in section 4263). Such training and related support shall be 
provided by the Secretary of Defense and may include the provision of 
transportation, food services, health services, and logistics and the 
use of facilities and equipment.
    (b) Agreement or Other Arrangement Required.--
            (1) In general.--Training and related support may be 
        provided under this section only pursuant to an agreement or 
        other arrangements providing for the provision by the country 
        or organization, on a reciprocal basis, of comparable training 
        and related support to the United States.
            (2) Reasonable period of time.--Such reciprocal training 
        and related support shall be provided within a reasonable 
        period of time (which may not be more than one year) of the 
        provision of training and related support by the United States 
        Government under this chapter.
    (c) Reimbursement Requirement.--To the extent that a country or 
organization to which training and related support is provided under 
this section does not provide such comparable training and related 
support to the United States within a reasonable period of time, the 
Secretary shall require a country or organization to reimburse the 
United States for the full costs of the training and related support 
provided by the United States.
    (d) Regulations.--The President shall prescribe regulations for the 
provision of training and related support under this section.

             CHAPTER 7--TRANSFER OF EXCESS DEFENSE ARTICLES

SEC. 4271. TRANSFER OF EXCESS DEFENSE ARTICLES.

    (a) Authority.--To further the goals and objectives of United 
States foreign policy and the goals of this Act, the Secretary is 
authorized to transfer to foreign countries and international 
organizations excess defense articles under this section that have been 
designated by the Secretary of Defense as excess to the military needs 
of the United States, except for naval vessels subject to section 4275.
    (b) Limitations on Transfers.--The Secretary may authorize the 
transfer of excess defense articles under this section only if--
            (1) such articles are drawn from existing stocks of the 
        Department of Defense;
            (2) funds available to the Department of Defense for the 
        procurement of defense equipment are not expended in connection 
        with the transfer;
            (3) the transfer of such articles will not have, in the 
        judgment of the Secretary of Defense, an adverse impact on the 
        military readiness of the United States;
            (4) with respect to a proposed transfer of such articles on 
        a grant basis, such a transfer is preferable to a transfer on a 
        sales basis, after taking into account the potential proceeds 
        from, and likelihood of, such sales, and the comparative 
        foreign policy benefits that may accrue to the United States as 
        the result of a transfer on either a grant or sales basis; and
            (5) the transfer of such articles will not have an adverse 
        impact on the national technology and industrial base and, 
        particularly, will not reduce the opportunities of entities in 
        the national technology and industrial base to sell new or used 
        equipment to the countries to which such articles are 
        transferred.

SEC. 4272. TERMS OF TRANSFERS.

    (a) In General.--Excess defense articles may be transferred under 
section 4271 without cost to the recipient country or international 
organization.
    (b) Waiver of Requirement for Reimbursement of Department of 
Defense Expenses.--Section 11505(c) shall not apply with respect to the 
transfer to foreign countries and international organizations of excess 
defense articles (including transportation and related costs) under 
section 4271.
    (c) Transportation and Related Costs.--
            (1) In general.--Except as provided in paragraph (2), funds 
        available to the Department of Defense may not be expended for 
        crating, packing, handling, and transportation of excess 
        defense articles transferred under the authority of section 
        4271.
            (2) Exception.--Excess defense articles may be transported 
        to a recipient country or international organization without 
        charge if--
                    (A) the Secretary determines that it is in the 
                national interest of the United States to do so;
                    (B) the total weight of the transfer does not 
                exceed 50,000 pounds; and
                    (C) such transportation is accomplished on a space 
                available basis.

SEC. 4273. ADVANCE NOTIFICATION TO CONGRESS FOR TRANSFER OF CERTAIN 
              EXCESS DEFENSE ARTICLES.

    (a) In General.--The Secretary may not transfer excess defense 
articles that are significant military equipment (as defined in section 
4411) or excess defense articles valued (in terms of original 
acquisition cost) at $10,000,000 or more, under section 4271 until 30 
days after the date on which the Secretary has provided notice of the 
proposed transfer to the appropriate congressional committees in 
accordance with procedures applicable to reprogramming notifications 
under section 9401.
    (b) Contents.--Such notification shall include--
            (1) a statement outlining the purposes for which the 
        article is being provided to the country, including whether 
        such article has been previously provided to such country;
            (2) an assessment of the impact of the transfer on the 
        military readiness of the United States;
            (3) an assessment of the impact of the transfer on the 
        national technology and industrial base and, particularly, the 
        impact on opportunities of entities in the national technology 
        and industrial base to sell new or used equipment to the 
        countries to which such articles are to be transferred;
            (4) a statement describing the current value of such 
        article and the value of such article at acquisition; and
            (5) an assessment, if the article is a small arm or light 
        weapon, of the risk that such article or article could be 
        illicitly transferred to terrorist or criminal persons or 
        groups or otherwise used for unauthorized purposes.

SEC. 4274. AGGREGATE ANNUAL LIMITATION.

    The aggregate value of excess defense articles transferred to 
countries under section 4271 in any fiscal year may not exceed 
$500,000,000.

SEC. 4275. RESTRICTIONS AND CONDITIONS ON TRANSFERS OF NAVAL VESSELS.

    (a) In General.--A naval vessel that is in excess of 3,000 tons or 
that is less than 20 years of age may not be disposed of to a foreign 
country (whether by sale, lease, grant, loan, barter, transfer, or 
otherwise) unless the disposal of that vessel, or of a vessel of the 
class of that vessel, is authorized by law. A lease or loan of such a 
vessel under such a law may be made only in accordance with the 
provisions of this title. In the case of an authorization by law for 
the disposal of such a vessel that names a specific vessel as being 
authorized for such disposal, the Secretary of Defense may substitute 
another vessel of the same class, if the vessel substituted has 
virtually identical capabilities as the named vessel.
    (b) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by this section shall be 
charged to the recipient (notwithstanding section 4272(c)).
    (c) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the Secretary shall require, as a condition 
of the transfer of a vessel covered by this chapter, that the recipient 
to which the vessel is transferred have such repair or refurbishment of 
the vessel as is needed, before the vessel joins the naval forces of 
the recipient, performed at a shipyard located in the United States, 
including a United States Navy shipyard.

               CHAPTER 8--COOPERATIVE PROJECT AGREEMENTS

SEC. 4281. AUTHORITY TO ENTER INTO COOPERATIVE PROJECT AGREEMENTS.

    (a) Authority.--The President is authorized to enter into a 
cooperative project agreement with one or more foreign countries that 
is undertaken in order to--
            (1) further the objectives of standardization, 
        rationalization, and interoperability of the armed forces of 
        the foreign country and the United States; or
            (2) enhance an ongoing multinational effort of the parties 
        to the agreement to improve the conventional defense 
        capabilities of the parties.
    (b) Matters To Be Included.--
            (1) In general.--A cooperative project agreement described 
        in subsection (a) shall provide that each of the parties to the 
        agreement will contribute to the cooperative project its 
        equitable share of the full costs of the cooperative project 
        and will receive an equitable share of the results of such 
        cooperative project.
            (2) Full costs described.--The full costs of the 
        cooperative project includes overhead costs, administrative 
        costs, and costs of claims.
            (3) Contribution of funds or defense articles and defense 
        services.--A party to the cooperative project agreement 
        described in subsection (a) may contribute its equitable share 
        of the full cost of the cooperative project in funds or in 
        defense articles or defense services needed for the cooperative 
        project.
            (4) Limitation on assistance.--Assistance provided under 
        this Act to a foreign country may not be used by the foreign 
        country to provide its equitable share of the full costs of the 
        cooperative project under this section.
            (5) Limitation on worksharing, etc.--A cooperative project 
        agreement described in subsection (a) may not impose a 
        requirement on any party to the agreement for worksharing or 
        other industrial or commercial compensation that is not 
        specified in the terms of the agreement.

SEC. 4282. COSTS.

    The President may enter into contracts or incur other obligations 
for a cooperative project described in section 4281 on behalf of the 
other parties to the cooperative project agreement described in section 
4281, without charge to any appropriation or contract authorization, if 
each of the other parties to the cooperative project agreement agrees--
            (1) to pay its equitable share of the contract or other 
        obligation; and
            (2) to make such funds available in such amounts and at 
        such times as may be required by the contract or other 
        obligation and to pay any damages and costs that may accrue 
        from the performance of or cancellation of the contract or 
        other obligation in advance of the time such payments, damages, 
        or costs are due.

SEC. 4283. CHARGES.

    (a) In General.--The President may reduce or waive the charge or 
charges that would otherwise be considered appropriate under section 
4314 in connection with sales under sections 4311 and 4312 if--
            (1) such sales are made as part of a cooperative project 
        described in section 4281; and
            (2) the other parties to the cooperative project agreement 
        described in section 4281 agree to reduce or waive 
        corresponding charges.
    (b) Administrative Surcharges; Reimbursement.--Notwithstanding 
sections 4314(a)(1) and 4402(b), administrative surcharges shall not be 
increased on other sales made under this title in order to compensate 
for reductions or waivers of such surcharges under this section. Funds 
received pursuant to such other sales shall not be available to 
reimburse the costs incurred by the United States Government for which 
reduction or waiver is approved by the President under this section.

SEC. 4284. CERTIFICATION.

    Not less than 30 days before a cooperative project agreement 
described in section 4281 is signed on behalf of the United States, the 
President shall transmit to the appropriate congressional committees 
and the Committee on Armed Services of the House of Representatives and 
the Committee on Armed Services of the Senate, a numbered certification 
with respect to such proposed agreement, setting forth--
            (1) a detailed description of the cooperative project with 
        respect to which the certification is made;
            (2) an estimate of the quantity of the defense articles 
        expected to be produced in furtherance of such cooperative 
        project;
            (3) an estimate of the full cost of the cooperative 
        project, with an estimate of the part of the full cost to be 
        incurred by the United States Government, including an estimate 
        of the costs as a result of waivers of sections 4314(a)(1) and 
        4402(b), for its participation in such cooperative project and 
        an estimate of that part of the full costs to be incurred by 
        the other participants;
            (4) an estimate of the dollar value of the funds to be 
        contributed by the United States and each of the other 
        participants on behalf of such cooperative project;
            (5) a description of the defense articles and defense 
        services expected to be contributed by the United States and 
        each of the other participants on behalf of such cooperative 
        project;
            (6) a statement of the foreign policy and national security 
        benefits anticipated to be derived from such cooperative 
        project; and
            (7) to the extent known, whether it is likely that prime 
        contracts will be awarded to particular prime contractors or 
        that subcontracts will be awarded to particular subcontractors 
        to comply with the proposed agreement.

SEC. 4285. AUTHORITY IN ADDITION TO OTHER AUTHORITIES.

    The authority under this chapter is in addition to the authority 
under sections 4311 and 4312 and under any other provision of law.

             Subtitle C--Arms Sales and Related Assistance

SEC. 4301. CONTROL OF ARMS EXPORTS AND IMPORTS.

    (a) In General.--The President is authorized to control the import 
and the export of defense articles and defense services and to provide 
foreign policy guidance to persons of the United States involved in the 
export and import of such articles and services.
    (b) Composition of United States Munitions List.--
            (1) In general.--The President is authorized to designate 
        those items that shall be considered as defense articles and 
        defense services for the purposes of this section and to 
        promulgate regulations for the import and export of such 
        articles and services. The items so designated shall constitute 
        the United States Munitions List.
            (2) Factors.--The President shall designate a defense 
        article or defense service if it--
                    (A) provides a critical military or intelligence 
                advantage to the United States; or
                    (B) would provide a military or intelligence 
                advantage to countries other than the United States or 
                to non-state actors to the detriment of the national 
                security of United States friends and allies, or to the 
                achievement of the foreign policy and national security 
                objectives of the United States.
    (c) Purposes for Which United States Military Sales Are 
Authorized.--Defense articles and defense services shall be sold or 
leased by the United States Government under this title to countries 
solely to meet the goals of assistance under section 4003.
    (d) Factors.--Decisions on issuing export licenses under this 
section shall ensure that the export of a defense article or defense 
service--
            (1) is justified in terms of its military utility related 
        to the actual security threat by the recipient country; and
            (2) will not--
                    (A) contribute to an arms race or regional 
                instability;
                    (B) aid in the development of weapons of mass 
                destruction;
                    (C) support domestic or international terrorism;
                    (D) increase the possibility of outbreak or 
                escalation of conflict, either within or across the 
                borders of the recipient country;
                    (E) prejudice the development of bilateral or 
                multilateral arms control arrangements;
                    (F) adversely affect the arms control or 
                nonproliferation policy of the United States;
                    (G) conflict with any international agreements, 
                treaties or arrangements to which the United States is 
                a party or adherent;
                    (H) support blackmarket or greymarket trade in 
                arms, either those transferred or obsolete arms to be 
                replaced by the arms sale; or
                    (I) undermine the objectives and purposes to 
                promote and protect human rights and democracy under 
                title III.
    (e) Sale Requirement.--In exercising the authorities conferred by 
this section, the President may require that any defense article or 
defense service be sold under this title as a condition of its 
eligibility for export, and may require that persons engaged in the 
negotiation for the export of defense articles and defense services 
keep the President fully and currently informed of the progress and 
future prospects of such negotiations.

           CHAPTER 1--FOREIGN MILITARY SALES AND COOPERATION

SEC. 4311. GENERAL AUTHORITY.

    (a) Sales From Defense Articles and Defense Services.--The 
President may sell defense articles and defense services from the 
stocks of the Department of Defense and the Coast Guard, or design and 
construction services, to a foreign country or international 
organization if the country or international organization agrees to pay 
in United States dollars--
            (1) in the case of a defense article not intended to be 
        replaced at the time such agreement is entered into, not less 
        than the actual value thereof;
            (2) in the case of a defense article intended to be 
        replaced at the time such agreement is entered into, the 
        estimated cost of replacement of such article, including the 
        contract or production costs less any depreciation in the value 
        of such article; or
            (3) in the case of a defense service (other than training 
        covered in subsection (b)), or design and construction 
        services, the full cost to the United States Government of 
        providing such service.
    (b) Training.--
            (1) In general.--In the case of training sold to a foreign 
        country or international organization that is concurrently 
        receiving international military education and training 
        assistance under this title, the country or international 
        organization agrees to pay in United States dollars only those 
        additional costs that are incurred by the United States 
        Government in providing such assistance.
            (2) Other countries.--The President may provide training to 
        a foreign country not receiving assistance under chapter 6 of 
        subtitle B if the President determines and so notifies the 
        appropriate congressional committees in each fiscal year for 
        which such training is to be provided that providing such 
        training to the country is in the national interest of the 
        United States and the reasons for such determination.

SEC. 4312. PROCUREMENT FOR FOREIGN MILITARY CASH SALES.

    (a) In General.--
            (1) Contracts.--Except as otherwise provided in this 
        section, the President may, without requirement for charge to 
        any appropriation or contract authorization otherwise provided, 
        enter into contracts for the procurement of defense articles or 
        defense services or design and construction services for sale 
        for United States dollars to any foreign country or 
        international organization if such country or international 
        organization provides the United States Government with a 
        dependable undertaking--
                    (A) to pay the full amount of such contract which 
                will assure the United States Government against any 
                loss on the contract; and
                    (B) to make funds available in such amounts and at 
                such times as may be required to meet the payments 
                required by the contract and any damages and costs that 
                may accrue from the cancellation of such contract, in 
                advance of the time such payments, damages, or costs 
                are due.
            (2) Interest.--Interest shall be charged on any net amount 
        by which any such country or international organization is in 
        arrears under all of its outstanding unliquidated dependable 
        undertakings, considered collectively. The rate of interest 
        charged shall be a rate not less than a rate determined by the 
        Secretary of the Treasury taking into consideration the current 
        average market yield on outstanding short-term obligations of 
        the United States as of the last day of the month preceding the 
        net arrearage and shall be computed from the date of net 
        arrearage.
    (b) Letters of Offer.--
            (1) In general.--The President may, if the President 
        determines it to be in the national interest of the United 
        States, issue letters of offer under this section that provide 
        for billing upon delivery of the defense article or rendering 
        of the defense service and for payment within 120 days after 
        the date of billing.
            (2) Requirement.--The authority of paragraph (1) may be 
        exercised only if the President determines that the emergency 
        requirements of the purchaser for acquisition of such defense 
        articles and defense services exceed the ready availability to 
        the purchaser of funds sufficient to make payments on a 
        dependable undertaking basis and submits both determinations to 
        Congress together with a special emergency request for 
        authorization and appropriation of additional funds to finance 
        such purchases under this Act.
            (3) Appropriations.--Appropriations available to the 
        Department of Defense may be used to meet the payments required 
        by the contracts for the procurement of defense articles and 
        defense services and shall be reimbursed by the amounts 
        subsequently received from the country or international 
        organization to whom articles or services are sold.
    (c) Renegotiation Act of 1951.--The provisions of the Renegotiation 
Act of 1951 do not apply to procurement contracts entered into under 
this section or predecessor provisions of law before, on, or after the 
date of the enactment of this Act.
    (d) Competitive Pricing.--
            (1) Procurement contracts.--Procurement contracts made in 
        implementation of sales under this section for defense articles 
        and defense services wholly paid for from funds made available 
        on a nonrepayable basis shall be priced on the same costing 
        basis with regard to profit, overhead, independent research and 
        development, bid and proposal, and other costing elements, as 
        is applicable to procurements of like items purchased by the 
        Department of Defense for its own use.
            (2) Direct costs.--Direct costs associated with meeting 
        additional or unique requirements of the purchaser shall be 
        allowable under contracts described in paragraph (1). Loadings 
        applicable to such direct costs shall be permitted at the same 
        rates applicable to procurement of like items purchased by the 
        Department of Defense for its own use.

SEC. 4313. PAYMENTS.

    (a) In General.--Except as provided in subsection (b), payment for 
defense articles or defense services under this chapter shall be made 
in advance or, if the President determines it to be in the national 
interest of the United States, upon delivery of the defense article or 
rendering of the defense service.
    (b) Exception.--If the President determines it to be in the 
national interest of the United States pursuant to subsection (a), 
billings for sales made under letters of offer issued under this 
section after the date of the enactment of this subsection may be dated 
and issued upon delivery of the defense article or rendering of the 
defense service and shall be due and payable upon receipt thereof by 
the purchasing country or international organization.
    (c) Interest.--
            (1) In general.--Interest shall be charged on any net 
        amount due and payable which is not paid within 60 days after 
        the date of such billing. The rate of interest charged shall be 
        a rate not less than a rate determined by the Secretary of the 
        Treasury taking into consideration the current average market 
        yield on outstanding short-term obligations of the United 
        States as of the last day of the month preceding the billing 
        and shall be computed from the date of billing.
            (2) Extension.--The President may extend such 60-day period 
        to 120 days if the President determines that emergency 
        requirements of the purchaser for acquisition of such defense 
        articles or defense services exceed the ready availability to 
        the purchaser of funds sufficient to pay the United States in 
        full for such articles or services within such 60-day period 
        and submits that determination to the Congress together with a 
        special emergency request for the authorization and 
        appropriation of additional funds to finance such purchases 
        under this Act.

SEC. 4314. CHARGES.

    (a) In General.--Letters of offer for the sale of defense articles 
or defense services that are issued pursuant to section 4311 or 4312 
shall include appropriate charges for--
            (1) administrative services, calculated on an average 
        percentage basis to recover the full estimated costs (excluding 
        a pro rata share of fixed base operations costs) of 
        administration of sales made under this Act to all purchasers 
        of such articles and services as specified in section 4402(b) 
        and (c);
            (2) a proportionate amount of any nonrecurring costs of 
        research, development, and production of major defense 
        equipment (except for equipment wholly paid for either from 
        funds transferred under section 4211(b)(3) or from funds made 
        available on a nonrepayable basis under section 4251; and
            (3) the recovery of ordinary inventory losses associated 
        with the sale from stock of defense articles that are being 
        stored at the expense of the purchaser of such articles.
    (b) Waiver.--
            (1) Administrative charges.--The President may waive the 
        charges for administrative services that would otherwise be 
        required by--
                    (A) subsection (a)(1) in connection with any sale 
                to a foreign country, if the President determines that 
                a waiver--
                            (i) is in the national security interests 
                        of the United States; and
                            (ii) will facilitate the ability of that 
                        country to detect, deter, prevent, defeat, or 
                        counter terrorist activities, or participate 
                        in, or support, military operations, coalition 
                        operations, or stability operations of the 
                        United States; or
                    (B) subsection (a)(2) in connection with any sale 
                to the Maintenance and Supply Agency of the North 
                Atlantic Treaty Organization in support of--
                            (i) a weapon system partnership agreement; 
                        or
                            (ii) a NATO/SHAPE project.
            (2) Major defense equipment.--The President may reduce or 
        waive the charge or charges that would otherwise be considered 
        appropriate under subsection (a)(2) for a particular sale or 
        for sales if the President determines that--
                    (A) the reduction or waiver would significantly 
                advance United States Government interests in 
                standardization with the armed forces of a foreign 
                country that is a strategic United States ally, or 
                would promote foreign procurement in the United States 
                under coproduction arrangements;
                    (B) imposition of the charge or charges likely 
                would result in the loss of the sale; or
                    (C) in the case of a sale of major defense 
                equipment that is also being procured for the use of 
                the United States Armed Forces, the waiver of the 
                charge or charges would (through a resulting increase 
                in the total quantity of the equipment purchased from 
                the source of the equipment that causes a reduction in 
                the unit cost of the equipment) result in a savings to 
                the United States on the cost of the equipment procured 
                for the use of the United States Armed Forces that 
                substantially offsets the revenue foregone by reason of 
                the waiver of the charge or charges.
            (3) Increase in charges.--The President may waive, for 
        particular sales of major defense equipment, any increase in a 
        charge or charges previously considered appropriate under 
        paragraph (2) of subsection (a) if the increase results from a 
        correction of an estimate (reasonable when made) of the 
        production quantity base that was used for calculating the 
        charge or charges for purposes of such paragraph.

SEC. 4315. NON-COMBAT DUTIES OF UNITED STATES PERSONNEL SUPPORTING 
              FOREIGN MILITARY SALES.

    (a) In General.--United States personnel performing defense 
services sold under this title may not perform any duties of a 
combatant nature, including any duties related to training and advising 
that may engage United States personnel in combat activities, outside 
the United States in connection with the performance of those defense 
services.
    (b) Report.--Within 48 hours of the existence of, or a change in 
status of significant hostilities or terrorist acts or a series of such 
acts, that may endanger lives or property of United States personnel, 
involving a country in which United States personnel are performing 
defense services pursuant to this title, the President shall submit to 
the Speaker of the House of Representatives and to the President pro 
tempore of the Senate a report, in writing, classified if necessary, 
setting forth--
            (1) the identity of such country;
            (2) a description of such hostilities or terrorist acts; 
        and
            (3) the number of members of the United States Armed Forces 
        and the number of United States civilian personnel that may be 
        endangered by such hostilities or terrorist acts.

SEC. 4316. PUBLIC INFORMATION.

    Any contract entered into between the United States and a foreign 
country under the authority of section 4311 or section 4312 shall be 
prepared in a manner that will permit the contract to be made available 
for public inspection to the fullest extent possible consistent with 
the national security of the United States. Such information shall be 
posted on the Internet website of the Department of State in a timely 
fashion.

SEC. 4317. STANDARDIZATION AGREEMENTS.

    (a) In General.--The President may enter into North Atlantic Treaty 
Organization standardization agreements in carrying out section 814 of 
the Department of Defense Appropriation Authorization Act, 1976 (Public 
Law 94-106), and may enter into similar agreements with a country that 
is a strategic United States ally, for the cooperative furnishing of 
training on a bilateral or multilateral basis, if the financial 
principles of such agreements are based on reciprocity.
    (b) Reimbursement.--Each agreement shall include reimbursement for 
all direct costs but may exclude reimbursement for indirect costs, 
administrative surcharges, and costs of billeting of trainees (except 
to the extent that members of the United States Armed Forces occupying 
comparable accommodations are charged for such accommodations by the 
United States).
    (c) Congressional Notification.--Each agreement shall be 
transmitted promptly to--
            (1) the appropriate congressional committees; and
            (2) the Committees on Appropriations and the Committees on 
        Armed Services of the House of Representatives and the Senate.

SEC. 4318. QUALITY ASSURANCE AND RELATED SERVICES.

    (a) In General.--The President is authorized to provide, without 
charge, quality assurance, inspection, contract administration 
services, and contract audit defense services under this chapter--
            (1) in connection with the placement or administration of 
        any contract or subcontract for defense articles, defense 
        services, or design and construction services entered into 
        under this Act on behalf of, a government that is a strategic 
        United States ally, if such government provides such services 
        in accordance with an agreement on a reciprocal basis, without 
        charge, to the United States Government; or
            (2) in connection with the placement or administration of 
        any contract or subcontract for defense articles, defense 
        services, or design and construction services pursuant to the 
        North Atlantic Treaty Organization's Security Investment 
        program in accordance with an agreement under which the foreign 
        governments participating in such program provide such 
        services, without charge, in connection with similar contracts 
        or subcontracts.
    (b) Cataloging Data and Cataloging Services.--In carrying out the 
objectives of this section, the President is authorized to provide, 
without charge, cataloging data and cataloging services to the North 
Atlantic Treaty Organization or to any strategic United States ally if 
that Organization or ally provides such data and services in accordance 
with an agreement on a reciprocal basis, without charge, to the United 
States Government.

SEC. 4319. RESTRICTION ON SALE OF DEFENSE ARTICLES AND DEFENSE SERVICES 
              THAT WOULD ADVERSELY AFFECT UNITED STATES COMBAT 
              READINESS.

    (a) Restriction.--The President may not sell defense articles and 
defense services if the sale of such articles or services would have 
significant adverse effect on the combat readiness of the United States 
Armed Forces.
    (b) Waiver and Congressional Notification.--
            (1) In general.--The President may waive the restriction in 
        subsection (a) if the President determines that the possible 
        significant adverse effect on the combat readiness of the 
        United States Armed Forces is outweighed by the benefits to 
        United States national security and transmits such 
        determination to the appropriate congressional committees and 
        to the Committees on Armed Services of the House of the 
        Representatives and the Senate.
            (2) Statement.--Each such determination shall be 
        accompanied with a statement that shall include the following 
        information:
                    (A) The country or international organization to 
                which the sale is proposed to be made.
                    (B) The amount of the proposed sale.
                    (C) A description of the defense article or service 
                proposed to be sold.
                    (D) A full description of the impact which the 
                proposed sale will have on the United States Armed 
                Forces.
                    (E) A justification for such proposed sale, 
                including an explanation as to why, in the President's 
                judgment, benefits to United States national security 
                from the sale outweighs the adverse impact on the 
                readiness of the United States Armed Forces.

SEC. 4320. ACQUISITION OF FOREIGN-UNITED STATES ORIGIN DEFENSE 
              ARTICLES.

    (a) In General.--The President may acquire a repairable defense 
article from a foreign country or international organization if such 
defense article--
            (1) previously was transferred to such country or 
        organization under this Act or predecessor Act (as in effect on 
        the day before the date of the enactment of this Act);
            (2) is not an end item; and
            (3) will be exchanged for a defense article of the same 
        type that is in the stocks of the Department of Defense.
    (b) Limitation.--The President may exercise the authority provided 
in subsection (a) only to the extent that the Department of Defense--
            (1)(A) has a requirement for the defense article being 
        returned; and
            (B) has available sufficient funds authorized and 
        appropriated for such purpose; or
            (2)(A) is accepting the return of the defense article for 
        subsequent transfer to another foreign government or 
        international organization pursuant to a letter of offer and 
        acceptance implemented in accordance with this Act or 
        predecessor Act (as in effect on the day before the date of the 
        enactment of this Act); and
            (B) has available sufficient funds provided by or on behalf 
        of such other foreign government or international organization 
        pursuant to a letter of offer and acceptance implemented in 
        accordance with this Act or predecessor Act (as in effect on 
        the day before the date of the enactment of this Act).
    (c) Requirement.--
            (1) In general.--The foreign government or international 
        organization receiving a new or repaired defense article in 
        exchange for a repairable defense article pursuant to 
        subsection (a) shall, upon the acceptance by the United States 
        Government of the repairable defense article being returned, be 
        charged the total cost associated with the repair and 
        replacement transaction.
            (2) Cost.--The total cost charged pursuant to paragraph (1) 
        shall be the same as that charged the United States Armed 
        Forces for a similar repair and replacement transaction, plus 
        an administrative surcharge in accordance with section 
        4314(a)(1).
    (d) Relationship to Certain Other Provisions of Law.--The authority 
of the President to accept the return of a repairable defense article 
as provided in subsection (a) shall not be subject to chapter 137 of 
title 10, United States Code, or any other provision of law relating to 
the conclusion of contracts.

SEC. 4321. RETURN OF DEFENSE ARTICLES.

    (a) In General.--The President may accept the return of a defense 
article from a foreign country or international organization if such 
defense article--
            (1) previously was transferred to such country or 
        organization under this Act or predecessor Act (as in effect on 
        the day before the date of the enactment of this Act);
            (2) is not significant military equipment (as defined in 
        section 4411); and
            (3) is in fully functioning condition without need of 
        repair or rehabilitation.
    (b) Limitation.--The President may exercise the authority provided 
in subsection (a) only to the extent that the Department of Defense--
            (1)(A) has a requirement for the defense article being 
        returned; and
            (B) has available sufficient funds authorized and 
        appropriated for such purpose; or
            (2)(A) is accepting the return of the defense article for 
        subsequent transfer to another foreign government or 
        international organization pursuant to a letter of offer and 
        acceptance implemented in accordance with this Act or 
        predecessor Act (as in effect on the day before the date of the 
        enactment of this Act); and
            (B) has available sufficient funds provided by or on behalf 
        of such other foreign government or international organization 
        pursuant to a letter of offer and acceptance implemented in 
        accordance with this Act or predecessor Act (as in effect on 
        the day before the date of the enactment of this Act).
    (c) Credit for Transaction.--Upon acquisition and acceptance by the 
United States Government of a defense article under subsection (a), the 
appropriate Foreign Military Sales account of the provider shall be 
credited to reflect the transaction.
    (d) Relationship to Certain Other Provisions of Law.--The authority 
of the President to accept the return of a defense article as provided 
in subsection (a) shall not be subject to chapter 137 of title 10, 
United States Code, or any other provision of law relating to the 
conclusion of contracts.

SEC. 4322. SALE OF OBSOLETE NAVAL VESSELS.

    For purposes of section 4311(a), the actual value of a naval vessel 
of 3,000 tons or less and 20 years or more of age shall be considered 
to be not less than the greater of the scrap value or fair value 
(including conversion costs) of such vessel, as determined by the 
Secretary of Defense.

SEC. 4323. ANNUAL ESTIMATE AND JUSTIFICATION FOR SALES PROGRAM.

    (a) Report.--Except as provided in subsection (d), not later than 
February 1 of each year, the President shall transmit to the 
appropriate congressional committees, as a part of the annual 
presentation materials for security assistance programs proposed for 
the next fiscal year, a report which sets forth--
            (1) an Arms Sales Proposal covering all sales and licensed 
        commercial exports under this title of major weapons or 
        weapons-related defense equipment for $7,000,000 or more, or of 
        any other weapons or weapons-related defense equipment for 
        $25,000,000 or more, which are considered eligible for approval 
        during the current calendar year and are deemed most likely 
        actually to result in the issuance of a letter of offer or of 
        an export license during such year;
            (2) an estimate of the total amount of sales and licensed 
        commercial exports expected to be made to each foreign country 
        from the United States;
            (3) the United States national security considerations 
        involved in expected sales or licensed commercial exports to 
        each country, an analysis of the relationship between 
        anticipated sales to each country and arms control efforts 
        concerning such country and an analysis of the impact of such 
        anticipated sales on the stability of the region that includes 
        such country;
            (4) an estimate with regard to the international volume of 
        arms traffic to and from countries purchasing arms as set forth 
        in paragraphs (1) and (2), together with best estimates of the 
        sale and delivery of weapons and weapons-related defense 
        equipment by all major arms suppliers to all major recipient 
        countries during the preceding calendar year;
            (5)(A) an estimate of the aggregate dollar value and 
        quantity of defense articles and defense services, military 
        education and training, grant military assistance, and credits 
        and guarantees, to be furnished by the United States to each 
        foreign country and international organization in the next 
        fiscal year; and
            (B) for each country that is proposed to be furnished 
        credits or guaranties under this Act in the next fiscal year 
        and that has been approved for cash flow financing in excess of 
        $100,000,000 as of October 1 of the current fiscal year--
                    (i) the amount of such approved cash flow 
                financing;
                    (ii) a description of administrative ceilings and 
                controls applied, and
                    (iii) a description of the financial resources 
                otherwise available to such country to pay such 
                approved cash flow financing;
            (6) an analysis and description of the services performed 
        during the preceding fiscal year by officers and employees of 
        the United States Government carrying out functions on a full-
        time basis under this Act for which reimbursement is provided 
        under section 4402(b) or section 4311(a), including the number 
        of personnel involved in performing such services;
            (7) the status of--
                    (A) each loan and each contract of guaranty or 
                insurance theretofore made under this title, 
                predecessor Acts, or any Act authorizing international 
                security assistance, with respect to which there 
                remains outstanding any unpaid obligation or potential 
                liability; and
                    (B) each extension of credit for the procurement of 
                defense articles or defense services, and of each 
                contract of guaranty in connection with any such 
                procurement, theretofore made under this title or 
                predecessor Acts with respect to which there remains 
                outstanding any unpaid obligation or potential 
                liability;
            (8)(A) a detailed accounting of all articles, services, 
        credits, guarantees, or any other form of assistance furnished 
        by the United States to each country and international 
        organization, including payments to the United Nations, during 
        the preceding fiscal year for the detection and clearance of 
        landmines, including activities relating to the furnishing of 
        education, training, and technical assistance for the detection 
        and clearance of landmines; and
            (B) for each provision of law making funds available or 
        authorizing appropriations for demining activities described in 
        subparagraph (A), an analysis and description of the objectives 
        and activities undertaken during the preceding fiscal year, 
        including the number of personnel involved in performing such 
        activities;
            (9) a list of weapons systems that are significant military 
        equipment, and numbers thereof, that are believed likely to 
        become available for transfer as excess defense articles during 
        the next 12 months; and
            (10) such other information as the President may deem 
        necessary.
    (b) Additional Information.--Not later than 30 days following the 
receipt of a request made by any of the appropriate congressional 
committees for additional information with respect to any information 
submitted pursuant to subsection (a), the President shall submit such 
information to such committees.
    (c) Form.--The President shall make every effort to submit all of 
the information required by subsection (a) or (b) wholly in 
unclassified form. Whenever the President submits any such information 
in classified form, the President shall submit such classified 
information in an addendum and shall also submit simultaneously a 
detailed summary, in unclassified form, of such classified information.
    (d) Additional Requirement.--The information required by subsection 
(a)(4) of this section shall be transmitted to Congress not later than 
April 1 of each year.

SEC. 4324. SALES TO UNITED STATES COMPANIES FOR INCORPORATION INTO END 
              ITEMS.

    (a) General Authority.--
            (1) In general.--Subject to the conditions specified in 
        subsection (b), the President may, on a negotiated contract 
        basis, under cash terms--
                    (A) sell defense articles at not less than their 
                estimated replacement cost (or actual cost in the case 
                of services); or
                    (B) procure or manufacture and sell defense 
                articles at not less than their contract or 
                manufacturing cost to the United States Government, to 
                any United States company for incorporation into end 
                items (and for concurrent or follow-on support) to be 
                sold by such a company either--
                            (i) on a direct commercial basis to a 
                        foreign country or international organization 
                        pursuant to an export license or approval under 
                        section 4301; or
                            (ii) in the case of ammunition parts 
                        subject to subsection (b), using commercial 
                        practices which restrict actual delivery 
                        directly to a foreign country or international 
                        organization pursuant to approval under section 
                        4301.
            (2) Additional authority.--The President may also sell 
        defense services in support of such sales of defense articles, 
        subject to the requirements of this chapter. Such services may 
        be performed only in the United States. The amount of 
        reimbursement received from such sales shall be credited to the 
        current applicable appropriation, fund, or account of the 
        selling agency of the United States Government.
    (b) Additional Requirements.--Defense articles and defense services 
may be sold, procured and sold, or manufactured and sold, pursuant to 
subsection (a) only if--
            (1) the end item to which the articles apply is to be 
        procured for the armed forces of a country or international 
        organization;
            (2) the articles would be supplied to the prime contractor 
        as government-furnished equipment or materials if the end item 
        were being procured for the use of the United States Armed 
        Forces; and
            (3) the articles and services are available only from 
        United States Government sources or are not available to the 
        prime contractor directly from United States commercial sources 
        at such times as may be required to meet the prime contractor's 
        delivery schedule.

SEC. 4325. FISCAL PROVISIONS RELATING TO FOREIGN MILITARY SALES 
              CREDITS.

    (a) In General.--Cash payments received under sections 4311 and 
funds received under section 4324 shall be available solely for 
payments to suppliers (including the military departments) and refunds 
to purchasers and shall not be available for financing credits.
    (b) Repayments for Credits, Disposition of Certain Instruments, and 
Other Collections.--Amounts received from foreign governments and 
international organizations as repayments for any credits extended 
pursuant to section 4251, and other collections (including fees and 
interest) shall be transferred to the miscellaneous receipts of the 
United States Treasury.

                    CHAPTER 2--ARMS EXPORT CONTROLS

SEC. 4331. LICENSING REQUIREMENT FOR EXPORTING OR IMPORTING DEFENSE 
              ARTICLES AND DEFENSE SERVICES.

    (a) In General.--Except as otherwise specifically provided in 
regulations issued under section 4301, defense articles, defense 
services, and design and construction services designated by the 
President under section 4301 may only be licensed for export or import 
in accordance with this title and regulations issued under this title.
    (b) Exceptions.--No license may be required for exports or imports 
made by or for a Federal agency--
            (1) for official use by personnel of a Federal agency; or
            (2) for carrying out any foreign assistance or sales 
        program authorized by law and subject to the control of the 
        President by other means.

SEC. 4332. IMPACT OF MILITARY EXPENDITURES ON DEVELOPMENT.

    (a) Review.--The Secretary shall conduct a review of the military 
expenditures of developing countries to--
            (1) identify those countries which the Secretary has 
        credible evidence to believe--
                    (A) are diverting official development assistance 
                from any source to military purposes;
                    (B) are devoting budgetary resources to arms 
                purchases to a degree that materially interferes with 
                the development of such countries; or
                    (C) are accumulating unsustainable levels of debt 
                to finance arms purchases;
            (2) take such action as the Secretary deems appropriate, 
        including cessation of United States arms sales and working 
        with other countries to do likewise, to reduce the impact of 
        the military activities of the countries identified under 
        paragraph (1) and acquisition of arms on the economic and 
        political development of such countries.
    (b) Timing of Review and Report to Congress.--The Secretary shall 
complete the first review required under subsection (a) and submit to 
the appropriate congressional committees not later than one year after 
the enactment of this Act a report on all elements of subsection (a), 
including the actions the Secretary will take under subsection (a)(2), 
and the results of any such actions taken since the submission of the 
prior report to such committees. Subsequent reviews shall be conducted 
on a quadrennial basis, and reported to the appropriate congressional 
committees on the quadrennial anniversary of the first report.

SEC. 4333. REQUIREMENT FOR REGISTRATION BY EXPORTERS.

    (a) In General.--As prescribed in regulations issued under section 
4301, every person (other than an officer or employee of the United 
States Government acting in an official capacity) who engages in the 
business of manufacturing, exporting, or importing defense articles or 
defense services designated by the President under section 4301 shall 
register with the Department of State, and shall pay a registration fee 
which shall be prescribed by such regulations.
    (b) Prohibition.--
            (1) In general.--Such regulations shall prohibit the return 
        to the United States for sale in the United States (other than 
        for the United States Armed Forces or its allies or for any 
        State for local law enforcement agency) of any military 
        firearms or ammunition of United States manufacture furnished 
        to foreign governments by the United States under this Act, or 
        predecessor Act, or any other foreign assistance or sales 
        program of the United States, whether or not enhanced in value 
        or improved in condition in a foreign country.
            (2) Exception.--The prohibition in paragraph (1) shall not 
        extend to similar firearms that have been so substantially 
        transformed as to become, in effect, articles of foreign 
        manufacture.

SEC. 4334. IDENTIFICATION OF ALL CONSIGNEES AND FREIGHT FORWARDERS.

    The President shall require that each applicant for a license to 
export an item on the United States Munitions List identify in the 
application all consignees and freight forwarders involved in the 
proposed export.

SEC. 4335. BROKERING ACTIVITIES.

    (a) In General.--As prescribed in regulations issued under this 
section, every person (other than an officer or employee of the United 
States Government acting in an official capacity) who engages in the 
business of brokering activities with respect to the manufacture, 
export, import, or transfer of any defense article or defense service 
designated by the President under section 4301, or in the business of 
brokering activities with respect to the manufacture, export, import, 
or transfer of any foreign defense article or defense service (as 
defined in subsection (c)), shall register with the United States 
Government agency charged with the administration of this section, and 
shall pay a registration fee which shall be prescribed by such 
regulations.
    (b) Brokering Activities Described.--Such brokering activities 
shall include the financing, transportation, freight forwarding, or 
taking of any other action that facilitates the sale, manufacture, 
export, or import of a defense article or defense service.
    (c) Licensing Requirement.--No person may engage in the business of 
brokering activities described in subsection (a) without a license, 
issued in accordance with this title, except that no license shall be 
required for such activities undertaken by or for a Federal agency--
            (1) for use by a Federal agency; or
            (2) for carrying out any foreign assistance or sales 
        program authorized by law and subject to the control of the 
        President by other means.
    (d) Review of Registration.--A copy of each registration made under 
this section shall be transmitted to the Secretary of the Treasury for 
review regarding law enforcement concerns. The Secretary shall report 
to the President regarding such concerns as necessary.

SEC. 4336. FOREIGN PERSONS.

    (a) In General.--A license to export an item on the United States 
Munitions List may not be issued to a foreign person (other than a 
foreign government or international organization).
    (b) License Requirement.--The President may require a license or 
other form of authorization before any item on the United States 
Munitions List is sold or otherwise transferred to the control or 
possession of a foreign person or a person acting on behalf of a 
foreign person.

SEC. 4337. REVIEW OF UNITED STATES MUNITIONS LIST.

    (a) In General.--The President shall periodically review the items 
on the United States Munitions List to determine what items, if any, no 
longer warrant export controls under this title. The results of such 
reviews shall be reported to the appropriate congressional committees.
    (b) Congressional Notification and Review.--The President may not 
remove any item from the United States Munitions List until 45 days 
after the date on which the President has provided notice of the 
proposed removal to the appropriate congressional committees in 
accordance with the procedures applicable to reprogramming 
notifications under section 9401, consistent with subsection (c) of 
this section. Such notice shall describe the nature of any controls to 
be imposed on that item under any other provision of law, and should 
provide a description of the item to be removed such that the 
appropriate congressional committees can fully assess the capabilities 
of the item and the potential impact on United States national security 
and foreign policy from its removal from the Munitions List. If the 
President proposes to remove classes or categories of items from the 
United States Munitions List, without enumerating individual items, 
then the President shall provide the appropriate congressional 
committees with a listing of items approved for export during the 
previous five years that would no longer be required for licenses under 
this title by virtue of being removed from the Munitions List.
    (c) Congressional Disapproval.--The President may not remove any 
item from the United States Munitions List if, during the 45 days 
required under subsection (b), Congress enacts a joint resolution of 
disapproval of the removal of such item, according to the procedures 
under section 4384(c) for consideration of a joint resolution.

SEC. 4338. LICENSING OF MISSILES AND MISSILE EQUIPMENT OR TECHNOLOGY.

    (a) Establishment of List of Controlled Items.--The Secretary, in 
consultation with the Secretary of Defense and the heads of other 
appropriate Federal agencies, shall establish and maintain, as part of 
the United States Munitions List, a list of all items on the MTCR Annex 
the export of which is not controlled under section 6(l) of the Export 
Administration Act of 1979 (as continued in effect under the 
International Emergency Economic Powers Act) or similar provisions of 
any successor Act.
    (b) Referral of License Applications.--
            (1) In general.--A determination of the Secretary to 
        approve a license for the export of an item on the list 
        established under subsection (a) may be made only after the 
        license application is referred to the Secretary of Defense.
            (2) Referral.--Within 10 days after a license is issued for 
        the export of an item on the list established under subsection 
        (a), the Secretary shall provide to the Secretary of Defense 
        and the Secretary of Commerce the license application and 
        accompanying documents issued to the applicant, to the extent 
        that the relevant Secretary indicates the need to receive such 
        application and documents.
    (c) Information Sharing.--The Secretary shall establish a procedure 
for sharing information with appropriate officials of the intelligence 
community, as determined by the Director of National Intelligence, and 
with other appropriate Federal agencies, that will ensure effective 
monitoring of transfers of MTCR equipment or technology and other 
missile technology.
    (d) Exports to Space Launch Vehicle Programs.--
            (1) In general.--Within 15 days after the issuance of a 
        license (including any brokering license) for the export of 
        items valued at less than $50,000,000 that are controlled under 
        this Act pursuant to United States obligations under the MTCR 
        and are goods or services that are intended to support the 
        design, utilization, development, or production of a space 
        launch vehicle system listed in Category I of the MTCR Annex, 
        the Secretary shall transmit to Congress a report describing 
        the licensed export and rationale for approving such export, 
        including the consistency of such export with United States 
        missile nonproliferation policy.
            (2) Applicability.--The requirement contained in paragraph 
        (1) shall not apply to licenses for exports to countries that 
        are members of the MTCR as of as of the date of the enactment 
        of this Act.

SEC. 4339. SPECIAL LICENSING AUTHORIZATION FOR CERTAIN EXPORTS TO 
              STRATEGIC UNITED STATES ALLIES.

    (a) Authorization.--The President may provide for special licensing 
authorization for exports of United States-manufactured spare and 
replacement parts or components listed in an application for such 
special licensing authorization in connection with defense items 
previously exported to a strategic United States ally. A special 
licensing authorization issued pursuant to this subsection shall be 
effective for a period not to exceed 5 years.
    (b) Certification.--An authorization may be issued under subsection 
(a) only if the applicable government of the country described in 
subsection (a), acting through the applicant for the authorization, 
certifies that--
            (1) the export of spare and replacement parts or components 
        supports a defense item previously lawfully exported;
            (2) the spare and replacement parts or components will be 
        transferred to a defense agency of the country that is a 
        previously approved end-user of the defense item and not to a 
        distributor or a foreign consignee of the defense item;
            (3) the spare and replacement parts or components will not 
        to be used to materially enhance, optimize, or otherwise modify 
        or upgrade the capability of the defense item;
            (4) the spare and replacement parts or components relate to 
        a defense item that is owned, operated, and in the inventory of 
        the armed forces of the country;
            (5) the export of spare and replacement parts or components 
        will be effected using the freight forwarder designated by the 
        purchasing country's diplomatic mission as responsible for 
        handling transfers as required under regulations; and
            (6) the spare and replacement parts or components to be 
        exported under the special licensing authorization are 
        specifically identified in the application.
    (c) Limitation.--An authorization may not be issued under 
subsection (a) for purposes of establishing offshore procurement 
arrangements or producing defense articles offshore.
    (d) Definition.--
            (1) In general.--In this section, the term ``United States-
        manufactured spare and replacement parts or components'' or 
        ``spare and replacement parts or components'' means spare and 
        replacement parts or components--
                    (A) with respect to which--
                            (i) United States-origin content costs 
                        constitute at least 85 percent of the total 
                        content costs;
                            (ii) United States manufacturing costs 
                        constitute at least 85 percent of the total 
                        manufacturing costs; and
                            (iii) foreign content, if any, is limited 
                        to content from countries eligible to receive 
                        exports of items on the United States Munitions 
                        List (other than de minimis foreign content);
                    (B) that were last substantially transformed in the 
                United States; and
                    (C) that are not--
                            (i) classified as significant military 
                        equipment; or
                            (ii) listed on the MTCR Annex.
            (2) Additional rule.--For purposes of paragraph (1)(A)(i) 
        and (ii), the costs of non-United States-origin content and the 
        costs of non-United States manufacturing shall be determined 
        using the final price or final cost associated with the non-
        United States-origin content and non-United States 
        manufacturing.
    (e) Inapplicability Provisions.--
            (1) In general.--The provisions of this section shall not 
        apply with respect to re-exports or re-transfers of spare and 
        replacement parts or components and related services of defense 
        items described in subsection (a).
            (2) Congressional notification.--The congressional 
        notification requirements contained in this title shall not 
        apply with respect to an authorization issued under subsection 
        (a).

                 CHAPTER 3--LEASES OF DEFENSE ARTICLES

SEC. 4351. LEASING AUTHORITY.

    (a) In General.--The President may lease defense articles in the 
stocks of the Department of Defense to a foreign country or 
international organization if--
            (1) the President determines that there are compelling 
        foreign policy and national security reasons for providing such 
        articles on a lease basis rather than on a sales basis under 
        this subtitle;
            (2) the President determines that the articles are not for 
        the time needed for public use;
            (3) the President first considers the effects of the lease 
        of the articles on the national technology and industrial base, 
        particularly the extent, if any, to which the lease reduces the 
        opportunities of entities in the national technology and 
        industrial base to sell new equipment to the country or 
        countries to which the articles are leased; and
            (4) the country or international organization has agreed to 
        pay in United States dollars all costs incurred by the United 
        States Government in leasing such articles, including 
        reimbursement for depreciation of such articles while leased, 
        the costs of restoration or replacement if the articles are 
        damaged while leased, and, if the articles are lost or 
        destroyed while leased--
                    (A) in the event the United States intends to 
                replace the articles lost or destroyed, the replacement 
                cost (less any depreciation in the value) of the 
                articles; or
                    (B) in the event the United States does not intend 
                to replace the articles lost or destroyed, an amount 
                not less than the actual value (less any depreciation 
                in the value) specified in the lease agreement.
    (b) Exceptions.--
            (1) In general.--The requirement of subsection (a)(4) shall 
        not apply to leases entered into for purposes of cooperative 
        research or development, military exercises, or communications 
        or electronics interface projects.
            (2) Waivers.--The President may waive the requirement of 
        subsection (a)(4)--
                    (A) for reimbursement of depreciation for any 
                defense article which has passed three-quarters of its 
                normal service life if the President determines that to 
                do so is important to the national security interest of 
                the United States;
                    (B) with respect to a lease which is made in 
                exchange with the lessee for a lease on substantially 
                reciprocal terms of defense articles for the Department 
                of Defense, except that this waiver authority--
                            (i) may be exercised only if the President 
                        submits to the appropriate congressional 
                        committees, and in addition the Committees on 
                        Appropriations of the House of Representatives 
                        and the Senate, a detailed notification for 
                        each lease with respect to which the authority 
                        is exercised; and
                            (ii) may be exercised only--
                                    (I) on a fiscal year basis; and
                                    (II) with respect to one country or 
                                international organization for each 
                                lease.
            (3) Rule of construction.--Paragraph (2) does not 
        constitute authorization of appropriations for payments by the 
        United States for leased articles.
    (c) Duration.--
            (1) In general.--Each lease agreement under this section 
        shall be for a fixed duration which may not exceed--
                    (A) 5 years; and
                    (B) a specified period of time required to complete 
                major refurbishment work of the leased articles to be 
                performed prior to the delivery of the leased articles, 
                of not to exceed 5 years.
            (2) Termination.--Each lease agreement under this section 
        shall provide that, at any time during the duration of the 
        lease, the President may terminate the lease and require the 
        immediate return of the leased articles.
            (3) Definition.--In this subsection, the term ``major 
        refurbishment work'' means work for which the period of 
        performance is 6 months or more.
    (d) Limitation.--Defense articles in the stocks of the Department 
of Defense may be leased or loaned to a foreign country or 
international organization only under the authority of this chapter or 
chapter 3 of subtitle B, and may not be leased to a foreign country or 
international organization under the authority of section 2667 of title 
10, United States Code.

SEC. 4352. CERTIFICATION FOR LEASING.

    (a) In General.--Before entering into or renewing any agreement 
with a foreign country or international organization to lease any 
defense article under this chapter, or to loan any defense article this 
title for a period of 1 year or longer, the President shall transmit to 
the appropriate congressional committees and the Committees on Armed 
Services of the House of Representatives and the Senate, a written 
certification which specifies--
            (1) the country or international organization to which the 
        article is to be leased or loaned;
            (2) the type, quantity, and value (in terms of replacement 
        cost) of the article to be leased or loaned;
            (3) the terms and duration of the lease or loan; and
            (4) a justification for the lease or loan, including an 
        explanation of why the article is being leased rather than sold 
        under this subtitle.
    (b) Waiver.--
            (1) In general.--The President may waive the requirements 
        of this section (and in the case of an agreement described in 
        section 4353, may waive the provisions of that section) if the 
        President states in the certification required by subsection 
        (a) that an emergency exists which requires that it is in the 
        national security interests of the United States to enter into 
        the lease or loan immediately.
            (2) Justification.--If the President states in the 
        certification that such an emergency exists, the President 
        shall set forth in the certification a detailed justification 
        for the President's determination, including a description of 
        the emergency circumstances that necessitate that the lease be 
        entered into immediately and a discussion of the national 
        security interests involved.
    (c) Deadline.--The certification required by subsection (a) shall 
be transmitted--
            (1) not less than 15 calendar days before the agreement is 
        entered into or renewed in the case of an agreement with a 
        strategic United States ally; or
            (2) not less than 30 calendar days before the agreement is 
        entered into or renewed in the case of an agreement with any 
        other country or organization.

SEC. 4353. CONGRESSIONAL REVIEW AND DISAPPROVAL.

    (a) Congressional Review and Disapproval.--
            (1) In general.--Subject to paragraph (2), in the case of 
        any agreement involving the lease or loan under this title, to 
        any foreign country or international organization for a period 
        of 1 year or longer of any defense articles that are either--
                    (A) major defense equipment valued (in terms of its 
                replacement cost less any depreciation in its value) at 
                $14,000,000 or more, or
                    (B) defense articles valued (in terms of their 
                replacement cost less any depreciation in their value) 
                at $50,000,000 or more,
        the agreement may not be entered into or renewed if Congress, 
        within the 15-day or 30-day period specified in section 
        4384(a)(1) or (2), as the case may be, enacts a joint 
        resolution prohibiting the proposed lease or loan.
            (2) Certain agreements.--In the case of an agreement 
        described in paragraph (1) that is entered into with a 
        strategic United States ally, the limitations in paragraph (1) 
        shall apply only if the agreement involves a lease or loan of--
                    (A) major defense equipment valued (in terms of its 
                replacement cost less any depreciation in its value) at 
                $25,000,000 or more; or
                    (B) defense articles valued (in terms of their 
                replacement cost less any depreciation in their value) 
                at $100,000,000 or more.
    (b) Senate Procedures.--Any joint resolution under subsection (a) 
shall be considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and Arms Export 
Control Act of 1976.
    (c) House Procedures.--For the purpose of expediting the 
consideration and enactment of joint resolutions under subsection (a), 
a motion to proceed to the consideration of any such resolution after 
it has been reported by the appropriate committee shall be treated as 
highly privileged in the House of Representatives.

SEC. 4354. APPLICATION OF OTHER PROVISIONS OF LAW.

    Any reference to sales of defense articles under this subtitle in 
any provision of law restricting the countries or organizations to 
which such sales may be made shall be deemed to include a reference to 
leases of defense articles under this chapter.

SEC. 4355. LOAN OF MATERIALS, SUPPLIES, AND EQUIPMENT FOR RESEARCH AND 
              DEVELOPMENT PURPOSES.

    (a) Authority To Loan.--
            (1) In general.--Except as provided in subsection (c), the 
        Secretary of Defense, with the concurrence of the Secretary, 
        may loan to a country that is a strategic United States ally or 
        a major United States ally materials, supplies, or equipment 
        for the purpose of carrying out a program of cooperative 
        research, development, testing, or evaluation. The Secretary of 
        Defense may accept as a loan or a gift from a country that is a 
        strategic United States ally or a major United States ally 
        materials, supplies, or equipment for such purpose.
            (2) Agreement.--Each loan or gift transaction entered into 
        by the Secretary of Defense under this section shall be 
        provided for under the terms of a written agreement between the 
        Secretary of Defense and the country concerned.
            (3) Testing or evaluation.--A program of testing or 
        evaluation for which the Secretary of Defense may loan 
        materials, supplies, or equipment under this section includes a 
        program of testing or evaluation conducted solely for the 
        purpose of standardization, interchangeability, or technical 
        evaluation if the country to which the materials, supplies, or 
        equipment are loaned agrees to provide the results of the 
        testing or evaluation to the United States without charge.
    (b) Materials, Supplies, or Equipment.--The materials, supplies, or 
equipment loaned to a country under this section may be expended or 
otherwise consumed in connection with any testing or evaluation program 
without a requirement for reimbursement of the United States if the 
Secretary of Defense--
            (1) determines that the success of the research, 
        development, test, or evaluation depends upon expending or 
        otherwise consuming the materials, supplies, or equipment 
        loaned to the country; and
            (2) approves of the expenditure or consumption of such 
        materials, supplies, or equipment.
    (c) Strategic and Critical Materials.--The Secretary of Defense may 
not loan to a country under this section any material if the material 
is a strategic and critical material and if, at the time the loan is to 
be made, the quantity of the material in the National Defense Stockpile 
(provided for under section 3 of the Strategic and Critical Materials 
Stock Piling Act (50 U.S.C. 98b)) is less than the quantity of such 
material to be stockpiled, as determined by the President under section 
3(a) of such Act.

SEC. 4356. SPECIAL LEASING AUTHORITY.

    The authority of section 4251 may be used to provide financing to 
Israel and Egypt for the procurement by leasing (including leasing with 
an option to purchase) of defense articles from United States 
commercial suppliers, other than major defense equipment (other than 
helicopters and other types of aircraft having possible civilian 
application), if the President determines that there are compelling 
foreign policy or national security reasons for the articles to be 
provided by commercial lease rather than by government-to-government 
sale under this subtitle.

        CHAPTER 4--RETRANSFERS OF UNITED STATES DEFENSE ARTICLES

SEC. 4361. AUTHORITY TO APPROVE RETRANSFERS.

    (a) In General.--Subject to subsection (b), the Secretary is 
authorized, consistent with the provisions of this chapter, to approve 
a retransfer of any defense article or defense service transferred to a 
foreign country pursuant to the authority of this Act to another 
country.
    (b) Additional Requirement.--The Secretary may not give consent to 
a retransfer of a defense article or defense service to a foreign 
country under subsection (a) if the United States is prohibited from 
transferring the defense article or defense service to the country, or 
would not license the export of such defense article or defense service 
to such country.

SEC. 4362. DEMILITARIZATION FOR RETRANSFER OF SIGNIFICANT DEFENSE 
              ARTICLES.

    The Secretary may not give consent to the retransfer of any 
significant defense articles on the United States Munitions List or 
successor list for controlling the export of United States munitions 
and related items, unless the foreign country requesting consent to 
retransfer--
            (1) agrees to demilitarize the defense articles prior to 
        transfer; or
            (2) commits in writing to the United States Government that 
        it will not transfer the defense articles if not demilitarized 
        to any other foreign country or person without first obtaining 
        the consent of the Secretary.

SEC. 4363. PROCEEDS OF SALE OF RETRANSFERRED DEFENSE ARTICLES.

    The Secretary may not provide any defense article to a foreign 
country or international organization on a grant basis unless the 
country or organization has agreed that in disposing or transferring 
the defense article--
            (1) the disposition or transfer will be made on a sales 
        basis; and
            (2) the net proceeds of the sale will be provided to the 
        United States Government.

SEC. 4364. CERTIFICATION.

    (a) In General.--The Secretary may not give consent to a retransfer 
of a defense article or defense service that would be, if it were a 
sale, subject to the requirements of section 4382 (regarding 
congressional certification of sensitive foreign military sales and 
agreements), unless the Secretary submits to the appropriate 
congressional committees a written certification with respect to such 
proposed retransfer containing--
            (1) the name of the country or organization proposing to 
        make such retransfer;
            (2) a description of such article or service proposed to be 
        retransferred, including its acquisition cost;
            (3) the name of the proposed recipient of such article or 
        service;
            (4) the reasons for such proposed retransfer; and
            (5) the date on which such retransfer is proposed to be 
        made.
    (b) Form.--Any certification submitted to the appropriate 
congressional committees pursuant to paragraph (1)--
            (1) shall be submitted in unclassified form, except that 
        information regarding the dollar value and number of defense 
        articles or defense services proposed to be retransferred may 
        be submitted in classified form if public disclosure thereof 
        would be clearly detrimental to the security of the United 
        States; and
            (2) shall be subject to the requirements of sections 4384.
    (c) Exception.--Paragraph (1) shall not apply to an export that has 
been exempted from the licensing requirements of this title pursuant to 
an agreement pursuant to section 4341.

          CHAPTER 5--ENFORCEMENT AND MONITORING OF ARMS SALES

SEC. 4371. GENERAL AUTHORITY.

    (a) In General.--Except as provided in subsection (b), in carrying 
out functions under this Act with respect to the export of defense 
articles and defense services, the President is authorized to exercise 
the same powers concerning violations and enforcement that are 
conferred upon departments, agencies and officials by subsections (c), 
(d), (e), and (g) of section 11 of the Export Administration Act of 
1979 and by subsections (a) and (c) of section 12 of such Act (as 
continued in effect under the International Emergency Economic Powers 
Act), subject to the same terms and conditions as are applicable to 
such powers under such Act.
    (b) Exception.--Section 11(c)(2)(B) of the Export Administration 
Act of 1979 (as continued in effect under the International Emergency 
Economic Powers Act) shall not apply, and instead, as prescribed in 
regulations issued under this section, the Secretary may assess civil 
penalties for violations of this Act and regulations prescribed 
thereunder and further may commence a civil action to recover such 
civil penalties, and except further that the names of the countries and 
the types and quantities of defense articles for which licenses are 
issued under this section shall not be withheld from public disclosure 
unless the President determines that the release of such information 
would be contrary to the national interest.
    (c) Rule of Construction.--Nothing in this section shall be 
construed as authorizing the withholding of information from Congress.

SEC. 4372. CRIMINAL AND CIVIL PENALTIES.

    (a) In General.--Any person who willfully violates any provision of 
this Act relating to the export of defense articles and defense 
services, or any rule or regulation issued thereunder, or who 
willfully, in a registration or license application or required report, 
makes any untrue statement of a material fact or omits to state a 
material fact required to be stated therein or necessary to make the 
statements therein not misleading, shall upon conviction be fined for 
each violation not more than $1,000,000, or imprisoned not more than 20 
years, or both.
    (b) Illicit Trafficking in the Western Hemisphere.--Any person who 
willfully exports to a country in the Western Hemisphere any small arm 
or light weapon without a license in violation of the requirements of 
this Act shall upon conviction be fined for each violation not less 
than $1,000,000 but not more than $3,000,000 and imprisoned for not 
more than 20 years, or both.

SEC. 4373. IDENTIFICATION OF PERSONS OF CONCERN.

    (a) In General.--The President shall develop appropriate mechanisms 
to identify, in connection with the export licensing process under this 
subtitle--
            (1) persons who are the subject of an indictment for, or 
        have been convicted of, a violation under--
                    (A) section 4372;
                    (B) section 11 of the Export Administration Act of 
                1979 (50 U.S.C. App. 2410) (as continued in effect 
                under the International Emergency Economic Powers Act);
                    (C) section 793, 794, or 798 of title 18, United 
                States Code (relating to espionage involving defense or 
                classified information) or section 2339A of such title 
                (relating to providing material support to terrorists);
                    (D) section 16 of the Trading with the Enemy Act 
                (50 U.S.C. App. 16);
                    (E) section 206 of the International Emergency 
                Economic Powers Act (relating to foreign assets 
                controls; 50 U.S.C. App. 1705);
                    (F) section 30A of the Securities Exchange Act of 
                1934 (15 U.S.C. 78dd1) or section 104 of the Foreign 
                Corrupt Practices Act (15 U.S.C. 78dd2);
                    (G) chapter 105 of title 18, United States Code 
                (relating to sabotage);
                    (H) section 4(b) of the Internal Security Act of 
                1950 (relating to communication of classified 
                information; 50 U.S.C. 783(b));
                    (I) section 57, 92, 101, 104, 222, 224, 225, or 226 
                of the Atomic Energy Act of 1954 (42 U.S.C. 2077, 2122, 
                2131, 2134, 2272, 2274, 2275, and 2276);
                    (J) section 601 of the National Security Act of 
                1947 (relating to intelligence identities protection; 
                50 U.S.C. 421);
                    (K) section 603(b) or (c) of the Comprehensive 
                Anti-Apartheid Act of 1986 (22 U.S.C. 5113(b) or (c)); 
                or
                    (L) section 3, 4, 5, and 6 of the Prevention of 
                Terrorist Access to Destructive Weapons Act of 2004, 
                relating to missile systems designed to destroy 
                aircraft (18 U.S.C. 2332g), prohibitions governing 
                atomic weapons (42 U.S.C. 2122), radiological dispersal 
                devices (18 U.S.C. 2332h), and variola virus (18 U.S.C. 
                175b);
            (2) persons who are the subject of an indictment or have 
        been convicted under section 371 of title 18, United States 
        Code, for conspiracy to violate any of the provisions of law 
        described in paragraph (1); and
            (3) persons who are ineligible--
                    (A) to contract with,
                    (B) to receive a license or other form of 
                authorization to export from, or
                    (C) to receive a license or other form of 
                authorization to import defense articles or defense 
                services from,
        any Federal agency.
    (b) Disapproval of Application.--If the President determines that--
            (1) an applicant for a license to export under this 
        subtitle is the subject of an indictment for a violation of any 
        of the provisions of law described in subsection (a),
            (2) there is reasonable cause to believe that an applicant 
        for a license to export under this subtitle has violated any of 
        the provisions of law described in subsection (a), or
            (3) an applicant for a license to export under this 
        subtitle is ineligible to contract with, or to receive a 
        license or other form of authorization to import defense 
        articles or defense services from, any Federal agency,
the President may disapprove the export license application. The 
President shall consider requests by the Secretary of the Treasury to 
disapprove any export license application based on these criteria.
    (c) Prohibition on Issuance of License To Export Items on the 
USML.--
            (1) In general.--A license to export an item on the United 
        States Munitions List may not be issued to a person--
                    (A) if the person, or any party to the export, has 
                been convicted of violating a provision of law 
                described in subsection (a); or
                    (B) if the person, or any party to the export, is 
                at the time of the license review ineligible to receive 
                export licenses (or other forms of authorization to 
                export) from any Federal agency.
            (2) Exception.--A license to export an item on the United 
        States Munitions List may be issued to a person described in 
        paragraph (1) if the President, after consultation with the 
        Secretary of the Treasury, and after a thorough review of the 
        circumstances surrounding the conviction or ineligibility to 
        export, determines that appropriate steps have been taken to 
        mitigate any law enforcement concerns.

SEC. 4374. STANDARDS TO IDENTIFY HIGH-RISK EXPORTS.

    The Secretary shall, in coordination with the heads of appropriate 
Federal agencies, develop standards for identifying high-risk defense 
articles for regular end-use verification.

SEC. 4375. REQUIREMENT OF EXPORTERS TO REPORT SHIPMENT.

    As prescribed in regulations issued under this chapter, a person to 
whom a license has been granted to export an item on the United States 
Munitions List shall, not later than 15 days after the item is 
exported, submit to the Department of State a report containing all 
shipment information, including a description of the item and the 
quantity, value, port of exit, and end-user and country of destination 
of the item.

SEC. 4376. END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE SERVICES.

    (a) Establishment of Monitoring Program.--
            (1) In general.--In order to improve accountability with 
        respect to defense articles and defense services sold, leased, 
        or exported under this Act and predecessor Acts, the President 
        shall establish a program which provides for the end-use 
        monitoring of the articles and services.
            (2) Requirements of program.--To the extent practicable, 
        the program shall be--
                    (A) established and carried out in accordance with 
                the standards that apply for identifying high-risk 
                exports for regular end-use verification developed 
                under section 4374 (commonly referred to as the ``Blue 
                Lantern'' program); and
                    (B) designed to provide reasonable assurance that--
                            (i) the recipient is complying with the 
                        requirements imposed by the United States 
                        Government with respect to use, transfers, and 
                        security of defense articles and defense 
                        services; and
                            (ii) the articles and services are being 
                        used for the purposes for which they are 
                        provided.
    (b) Conduct of Program.--In carrying out the program established 
under subsection (a), the President shall ensure that the program--
            (1) provides for the end-use verification of defense 
        articles and defense services that incorporate sensitive 
        technology, defense articles and defense services that are 
        particularly vulnerable to diversion or other misuse, or 
        defense articles or defense services whose diversion or other 
        misuse could have significant consequences; and
            (2) prevents the diversion (through reverse engineering or 
        other means) of technology incorporated in defense articles.
    (c) Report to Congress.--As part of the annual congressional budget 
justification submitted under section 9302, the President shall 
transmit to Congress a report describing the actions taken to implement 
this section, including a detailed accounting of the costs and number 
of personnel associated with the monitoring program.
    (d) Third Country Transfers.--For purposes of this section, defense 
articles and defense services sold, leased, or exported under this Act 
includes defense articles and defense services that are transferred to 
a third country or other third party and the numbers, range, and 
finding of end-use monitoring of United States transfers of small arms 
and light weapons.

SEC. 4377. FEES OF MILITARY SALES AGENTS AND OTHER PAYMENTS.

    (a) In General.--In accordance with such regulations as the 
Secretary may prescribe under subsection (b), the Secretary shall 
require adequate and timely reporting on political contributions, 
gifts, commissions and fees paid, or offered or agreed to be paid, by 
any person in connection with--
            (1) sales of defense articles or defense services, or of 
        design and construction services under section 4312; or
            (2) commercial sales of defense articles or defense 
        services licensed or approved under section 4301, to or for the 
        armed forces of a foreign country or international organization 
        in order to solicit, promote, or otherwise to secure the 
        conclusion of such sales.
    (b) Regulations.--The regulations referred to in subsection (a) 
shall specify the amounts and the kinds of payments, offers, and 
agreements to be reported, and the form and timing of reports, and 
shall require reports on the names of sales agents and other persons 
receiving such payments. The Secretary shall by regulation require such 
recordkeeping as the Secretary determines is necessary.
    (c) Prohibition, Limitation, Conditions.--The Secretary may, by 
regulation, prohibit, limit, or prescribe conditions with respect to 
such contributions, gifts, commissions, and fees as the President 
determines will be in furtherance of the purposes of this Act.
    (d) Requirement for Inclusion in Procurement Contract.--
            (1) In general.--No such contribution, gift, commission, or 
        fee may be included, in whole or in part, in the amount paid 
        under any procurement contract entered into under section 4312, 
        unless the amount thereof is reasonable, allocable to such 
        contract, and not made to a person who has solicited, promoted, 
        or otherwise secured such sale, or has held himself out as 
        being able to do so, through improper influence.
            (2) Definition.--For the purposes of this subsection, the 
        term ``improper influence'' means influence, direct or 
        indirect, which induces or attempts to induce consideration or 
        action by any employee or officer of a purchasing foreign 
        government or international organization with respect to such 
        purchase on any basis other than such consideration of merit as 
        are involved in comparable United States procurements.
    (e) Availability of Information and Records.--
            (1) In general.--All information reported to the Secretary 
        and all records maintained by any person pursuant to 
        regulations prescribed under this section shall be available, 
        upon request, to any standing committee of Congress or any 
        subcommittee thereof and to any Federal agency authorized by 
        law to have access to the books and records of the person 
        required to submit reports or to maintain records under this 
        section.
            (2) Terms and conditions.--Access by an Federal agency to 
        records maintained under this section shall be on the same 
        terms and conditions that govern access by the agency to the 
        books and records of the person concerned.

SEC. 4378. PROHIBITION ON INCENTIVE PAYMENTS.

    (a) Prohibition.--A United States person, or any employee, agent, 
or subcontractor thereof, may not, with respect to the sale or export 
of any defense article or defense service to a foreign country, make 
any incentive payments for the purpose of satisfying, in whole or in 
part, any offset agreement with the country.
    (b) Civil Penalties.--Any person who violates the provisions of 
subsection (a) shall be subject to the imposition of civil penalties as 
provided for in subsection (c).
    (c) Enforcement.--In providing for the enforcement of this section, 
the Secretary is authorized to exercise the same powers concerning 
violations and enforcement and imposition of civil penalties that are 
conferred upon Federal agencies and officials by subsections (c), (d), 
(e), and (f) of section 11 of the Export Administration Act of 1979 and 
section 12(a) of such Act (as continued in effect under the 
International Emergency Economic Powers Act), subject to the same terms 
and conditions as are applicable to such powers under such Act, except 
that section 11(c)(2)(B) of such Act shall not apply, and instead, as 
prescribed in regulations issued under this section, the Secretary may 
assess civil penalties for violations of this Act and regulations 
prescribed thereunder and further may commence a civil action to 
recover such civil penalties, and except further that notwithstanding 
section 11(c) of that Act, the civil penalty for each violation of this 
section may not exceed $500,000 or five times the amount of the 
prohibited incentive payment, whichever is greater.

             CHAPTER 6--CONGRESSIONAL REVIEW OF ARMS SALES

SEC. 4381. REPORTS ON COMMERCIAL AND GOVERNMENTAL MILITARY EXPORTS; 
              CONGRESSIONAL ACTION.

    (a) In General.--The Secretary shall transmit to the appropriate 
congressional committees not later than 60 days after the end of each 
calendar quarter an unclassified report (except that any material which 
was transmitted in classified form under subsection (b)(1) or (c)(1) 
may be contained in a classified addendum to such report, and any 
letter of offer referred to in paragraph (1) may be listed in such 
addendum unless such letter of offer has been the subject of an 
unclassified certification pursuant to subsection (b)(1), and any 
information provided under paragraph (11) may also be provided in a 
classified addendum) containing--
            (1) a listing of all letters of offer to sell any major 
        defense equipment for $1,000,000 or more under this Act to each 
        foreign country and international organization, by category, if 
        such letters of offer have not been accepted or canceled;
            (2) a listing of all such letters of offer that have been 
        accepted during the fiscal year in which such report is 
        submitted, together with the total value of all defense 
        articles and defense services sold to each foreign country and 
        international organization during such fiscal year;
            (3) the cumulative dollar amounts, by foreign country and 
        international organization, of sales credit agreements under 
        section 4251 made during the fiscal year in which such report 
        is submitted;
            (4) a numbered listing of all licenses and approvals for 
        the export to each foreign country and international 
        organization during such fiscal year of commercially sold major 
        defense equipment, by category, sold for $1,000,000 or more, 
        together with the total value of all defense articles and 
        defense services so licensed for each foreign country and 
        international organization, setting forth, with respect to the 
        listed major defense equipment--
                    (A) the items to be exported under the license;
                    (B) the quantity and contract price of each such 
                item to be provided; and
                    (C) the name and address of the ultimate user of 
                each such item;
            (5) projections of the dollar amounts, by foreign country 
        and international organization, of sales expected to be made 
        under sections 4311 and 4312, in the quarter of the fiscal year 
        immediately following the quarter for which such report is 
        submitted;
            (6) a projection with respect to all sales expected to be 
        made to each country and organization for the remainder of the 
        fiscal year in which such report is transmitted;
            (7) a description of each payment, contribution, gift, 
        commission, or fee reported to the Secretary under section 
        4377, including--
                    (A) the name of the person who made such payment, 
                contribution, gift, commission, or fee;
                    (B) the name of any sales agent or other person to 
                whom such payment, contribution, gift, commission, or 
                fee was paid;
                    (C) the date and amount of such payment, 
                contribution, gift, commission, or fee;
                    (D) a description of the sale in connection with 
                which such payment, contribution, gift, commission, or 
                fee was paid; and
                    (E) the identification of any business information 
                considered confidential by the person submitting it 
                which is included in the report;
            (8) a listing of each sale under section 4251 during the 
        quarter for which such report is made, specifying--
                    (A) the purchaser;
                    (B) the Federal agency responsible for implementing 
                the sale;
                    (C) an estimate of the dollar amount of the sale; 
                and
                    (D) a general description of the real property 
                facilities to be constructed pursuant to such sale;
            (9) a listing of each export of defense articles under 
        section 4311 during the quarter for which report is made, 
        specifying the recipient, the defense article, the dollar 
        amount of the export, and a description of the cooperative 
        agreement pursuant to which the export was made;
            (10) a listing of the consents to third-party transfers of 
        defense articles or defense services which were granted, during 
        the quarter for which such report is submitted, if the value 
        (in terms of original acquisition cost) of the defense articles 
        or defense services to be transferred is $1,000,000 or more;
            (11) a listing of all munitions items that were sold, 
        leased, or otherwise transferred by the Department of Defense 
        to any other Federal agency during the quarter for which such 
        report is submitted (including the name of the recipient agency 
        and a discussion of what the agency will do with those 
        munitions items) if--
                    (A) the value of the munitions items was $250,000 
                of more, and
                    (B) the value of all munitions items transferred to 
                the Federal agency during that quarter was $250,000 or 
                more,
        excluding munitions items transferred (i) for disposition or 
        use solely within the United States, or (ii) for use in 
        connection with intelligence activities subject to reporting 
        requirements under title V of the National Security Act of 1947 
        (50 U.S.C. 413 et seq.; relating to congressional oversight of 
        intelligence activities);
            (12) a report on all concluded government-to-government 
        agreements regarding foreign coproduction of defense articles 
        of United States origin and all other concluded agreements 
        involving coproduction or licensed production outside of the 
        United States of defense articles of United States origin 
        (including coproduction memoranda of understanding or 
        agreement) that have not been previously reported under this 
        subsection, which shall include--
                    (A) the identity of the foreign countries, 
                international organizations, or foreign firms involved;
                    (B) a description and the estimated value of the 
                articles authorized to be produced, and an estimate of 
                the quantity of the articles authorized to be produced;
                    (C) a description of any restrictions on third-
                party transfers of the foreign-manufactured articles; 
                and
                    (D) if any such agreement does not provide for 
                United States access to and verification of quantities 
                of defense articles produced outside the United States 
                and their disposition in the foreign country, a 
                description of alternative measures and controls 
                incorporated in the coproduction or licensing program 
                to ensure compliance with restrictions in the agreement 
                on production quantities and third-party transfers;
            (13) a report on all exports of significant military 
        equipment for which information has been provided pursuant to 
        section 4375; and
            (14) copies of security assistance surveys conducted by 
        United States Government personnel for the calendar quarter for 
        which the report is transmitted.
    (b) Additional Information.--For each letter of offer to sell under 
paragraphs (1) and (2) of subsection (a), the report shall specify--
            (1) the foreign country or international organization to 
        which the defense article or defense service is offered or was 
        sold, as the case may be;
            (2) the dollar amount of the offer to sell or the sale and 
        the number of defense articles offered or sold, as the case may 
        be;
            (3) a description of the defense article or defense service 
        offered or sold, as the case may be; and
            (4) the United States Armed Forces or Federal agency that 
        is making the offer to sell or the sale, as the case may be.

SEC. 4382. CONGRESSIONAL CERTIFICATION OF SENSITIVE FOREIGN MILITARY 
              SALES AND AGREEMENTS.

    (a) In General.--The President shall submit to the appropriate 
congressional committees a numbered certification with respect to any 
letter of offer to sell, or an application by a person for a license 
for the export of, pursuant to this or any other Act, the following to 
a foreign country or international organization:
            (1) Major defense equipment of a type that have not been 
        sold to the country or organization for $25,000,000 or more.
            (2) Major defense equipment of a type that have been sold 
        to the country or organization but are significantly different 
        in terms of capability from those previously sold, for 
        $25,000,000 or more.
            (3) Fixed- or rotary-wing aircraft, whether flown remotely 
        or by an onboard pilot, primarily used for military purposes; 
        navigation, sensors, sensitive components; and engines for same 
        and sensitive components of such engines.
            (4) Radars for military end-use.
            (5) Guided or ballistic missiles, regardless of mode of 
        launch.
            (6) Firearms, close assault weapons, and combat shotguns 
        over $1,000,000.
            (7) Night vision devices.
            (8) Naval vessels, both surface vessels (above 3,000 tons) 
        and submersibles.
            (9) Toxicological Agents and associated equipment, for 
        $25,000,000 or more.
            (10) Tanks (including significant components) and armored 
        vehicle chassis, regardless of armament or lack thereof.
            (11) Other defense articles and defense services for 
        $100,000,000 or more.
            (12) Military-related design and construction services for 
        $300,000,000 or more.
    (b) Certification.--The following requirements shall apply with 
respect to the submission of a numbered certification under subsection 
(a):
            (1) Before a United States commercial technical assistance 
        or manufacturing licensing agreement that involves the 
        manufacture outside the United States of any sensitive military 
        equipment is approved under section 4301, the Secretary shall 
        transmit to the appropriate congressional committees an 
        unclassified numbered certification with respect to the 
        agreement.
            (2) Each numbered certification shall specify--
                    (A) the foreign country or international 
                organization to which the defense article or defense 
                service is offered or was sold, as the case may be;
                    (B) the dollar amount of the offer to sell or the 
                sale and the number of defense articles offered or 
                sold, as the case may be;
                    (C) a description of the defense article or defense 
                service offered or sold, as the case may be; and
                    (D) the United States Armed Forces or Federal 
                agency that is making the offer to sell or the sale, as 
                the case may be.
            (3) For commercial technical assistance or manufacturing 
        licensing agreements, each numbered certification shall 
        specify--
                    (A) the purchaser;
                    (B) the Federal agency responsible for implementing 
                the sale;
                    (C) an estimate of the dollar amount of the sale; 
                and
                    (D) a general description of the real property 
                facilities to be constructed pursuant to such sale.
    (c) Additional Information.--Each numbered certification submitted 
under subsection (a) shall also contain information on the following:
            (1) A description, containing the information described in 
        section 4381(a)(7), of any contribution, gift, commission, or 
        fee paid or offered or agreed to be paid in order to solicit, 
        promote, or otherwise to secure the letter of offer relating to 
        the numbered certification.
            (2) An item, classified if necessary, identifying the 
        sensitivity of technology contained in the defense articles, 
        defense services, or design and construction services proposed 
        to be sold, and a detailed justification of the reasons 
        necessitating the sale of the articles, services, or design and 
        construction services in view of the sensitivity of the 
        technology.
            (3) In a case in which the defense articles or defense 
        services listed on the Missile Technology Control Regime Annex 
        are intended to support the design, development, or production 
        of a Category I space launch vehicle system, the certification 
        shall also include a description of the proposed export and 
        rationale for approving such export, including the consistency 
        of such export with United States missile nonproliferation 
        policy.
            (4) Each numbered certification shall contain an item 
        indicating whether any offset agreement is proposed to be 
        entered into in connection with such letter of offer to sell 
        (if known on the date of transmittal of such certification).
    (d) Form.--A numbered certification transmitted pursuant to 
subsection (a) shall be in unclassified form, except that the 
information specified in paragraphs (2) and (3) of section 4381(b) and 
the details of the description specified in subsections (b) and (c) may 
be classified if the public disclosure thereof would be clearly 
detrimental to the security of the United States, in which case the 
information shall be accompanied by a description of the damage to the 
national security that could be expected to result from public 
disclosure of the information.
    (e) Consultation.--The Secretary shall consult with the appropriate 
congressional committees prior to the notification of a letter of 
offer, an application to export, or the conclusion of an commercial 
technical assistance agreement or a manufacturing license agreement.
    (f) Committee Information Request.--The Secretary shall, upon the 
request of an appropriate congressional committee, transmit promptly to 
both such committees a statement setting forth, to the extent specified 
in such request--
            (1) a detailed description of the defense articles, defense 
        services, or design and construction services to be offered, 
        including a brief description of the capabilities of any 
        defense article to be offered;
            (2) an estimate of the number of officers and employees of 
        the United States Government and of United States civilian 
        contract personnel expected to be needed in such country to 
        carry out the proposed sale;
            (3) the name of each contractor expected to provide the 
        defense article, defense service, or design and construction 
        services proposed to be sold and a description of any offset 
        agreement with respect to such sale;
            (4) an evaluation, prepared by the Secretary in 
        consultation with the Secretary of Defense and the Director of 
        Central Intelligence, of the manner, if any, in which the 
        proposed sale would--
                    (A) contribute to an arms race;
                    (B) support international terrorism;
                    (C) increase the possibility of an outbreak or 
                escalation of conflict;
                    (D) prejudice the negotiation of any arms controls;
                    (E) adversely affect the arms control or 
                nonproliferation policy of the United States;
                    (F) support blackmarket or greymarket trade in 
                arms, either those transferred or obsolete arms to be 
                replaced by the arms sale; or
                    (G) require the transfer of United States arms 
                sensitive technology or manufacturing techniques as a 
                condition of the arms sale, and the impact of such 
                transfer on the United States manufacturing base, 
                including on jobs based in the United States;
            (5) the reasons why the foreign country or international 
        organization to which the sale is proposed to be made needs the 
        defense articles, defense services, or design and construction 
        services which are the subject of such sale and a description 
        of how such country or organization intends to use such defense 
        articles, defense services, or design and construction 
        services;
            (6) an analysis of the impact of the proposed sale on the 
        military stocks and the military preparedness of the United 
        States;
            (7) the reasons why the proposed sale is in the national 
        interest of the United States;
            (8) an analysis of the impact of the proposed sale on the 
        military capabilities of the foreign country or international 
        organization to which such sale would be made;
            (9) an analysis of how the proposed sale would affect the 
        relative military strengths of countries in the region to which 
        the defense articles, defense services, or design and 
        construction services which are the subject of such sale would 
        be delivered and whether other countries in the region have 
        comparable kinds and amounts of defense articles, defense 
        services, or design and construction services;
            (10) an estimate of the levels of trained personnel and 
        maintenance facilities of the foreign country or international 
        organization to which the sale would be made which are needed 
        and available to utilize effectively the defense articles, 
        defense services, or design and construction services proposed 
        to be sold;
            (11) an analysis of the extent to which comparable kinds 
        and amounts of defense articles, defense services, or design 
        and construction services are available from other countries;
            (12) an analysis of the impact of the proposed sale on 
        United States relations with the countries in the region to 
        which the defense articles, defense services, or design and 
        construction services which are the subject of such sale would 
        be delivered;
            (13) a detailed description of any agreement proposed to be 
        entered into by the United States for the purchase or 
        acquisition by the United States of defense articles, defense 
        services, design and construction services or defense 
        equipment, or other articles, services, or equipment of the 
        foreign country or international organization in connection 
        with, or as consideration for, such letter of offer, including 
        an analysis of the impact of such proposed agreement upon 
        United States business concerns which might otherwise have 
        provided such articles, services, or equipment to the United 
        States, an estimate of the costs to be incurred by the United 
        States in connection with such agreement compared with costs 
        which would otherwise have been incurred, an estimate of the 
        economic impact and unemployment which would result from 
        entering into such proposed agreement, and an analysis of 
        whether such costs and such domestic economic impact justify 
        entering into such proposed agreement;
            (14) the projected delivery dates of the defense articles, 
        defense services, or design and construction services to be 
        offered;
            (15) a detailed description of weapons and levels of 
        munitions that may be required as support for the proposed 
        sale;
            (16) an analysis of the relationship of the proposed sale 
        to projected procurements of the same item, and
            (17) an analysis, classified if necessary, of the security 
        to be provided by the proposed recipient of the arms sale on 
        the defense articles and defense services, both against 
        external and internal security threats, including espionage.

SEC. 4383. UPGRADE OR ENHANCEMENT.

    (a) In General.--If, before the delivery of any major defense 
article or major defense equipment, or the furnishing of any defense 
service or design and construction service, sold pursuant to a letter 
of offer or a contract pursuant to a license described in section 4382, 
the sensitivity of technology or the capability of the article, 
equipment, or service is enhanced or upgraded from the level of 
sensitivity or capability described in the numbered certification with 
respect to an offer to sell such article, equipment, or service, then, 
at least 45 days before the delivery of such article or equipment or 
the furnishing of such service, the President shall prepare and 
transmit to the chairman of the Committee on Foreign Affairs of the 
House of Representatives and the chairman of the Committee on Foreign 
Relations of the Senate a report--
            (1) describing the manner in which the technology or 
        capability has been enhanced or upgraded and describing the 
        significance of such enhancement or upgrade; and
            (2) setting forth a detailed justification for such 
        enhancement or upgrade.
    (b) Application.--The provisions of subsection (a) apply to an 
article or equipment delivered, or a service furnished, within 10 years 
after the transmittal to the Congress of a numbered certification with 
respect to the sale of such article, equipment, or service.
    (c) New Numbered Certification.--
            (1) In general.--If the enhancement or upgrade in the 
        sensitivity of technology or the capability of major defense 
        equipment, defense articles, defense services, or design and 
        construction services described in a numbered certification 
        submitted under this section costs $14,000,000 or more in the 
        case of any major defense equipment, $50,000,000 or more in the 
        case of defense articles or defense services, or $200,000,000 
        or more in the case of design or construction services, then 
        the Secretary shall submit to the chairman of the Committee on 
        Foreign Affairs of the House of Representatives and the 
        chairman of the Committee on Foreign Relations of the Senate a 
        new numbered certification which relates to such enhancement or 
        upgrade and which shall be considered for purposes of this 
        section as if it were a separate letter of offer to sell 
        defense equipment, articles, or services, subject to all of the 
        requirements, restrictions, and conditions set forth in this 
        section.
            (2) Rule of construction.--For purposes of this subsection, 
        references in this section to sales shall be deemed to be 
        references to enhancements or upgrades in the sensitivity of 
        technology or the capability of major defense equipment, 
        defense articles, or defense services, as the case may be.

SEC. 4384. CONGRESSIONAL REVIEW PERIOD AND DISAPPROVAL.

    (a) Review Period.--Any numbered certification submitted to the 
appropriate congressional committees for a letter of offer or a license 
to export under section 4382 may not be issued not earlier than--
            (1) in the case of a strategic United States ally, 15 
        legislative days after the date of submission of the 
        certification;
            (2) in the case of any other country, 30 legislative days 
        after the date of submission of the certification; and
            (3) in the case of a license for export of a commercial 
        communications satellite for launch from, and by nationals of, 
        the Russian Federation, Ukraine, or Kazakhstan, 15 legislative 
        days after the date of submission of the certification.
    (b) Disapproval.--No letter of offer, or license to export, may be 
issued for any proposed sale subject to the provisions of this section 
if a joint resolution of disapproval is enacted providing for any such 
sale within the respective time periods specified in subsection (a).
    (c) Procedures for Consideration of Joint Resolution.--
            (1) Senate.--Any such joint resolution shall be considered 
        in the Senate in accordance with the provisions of section 
        601(b) of the International Security Assistance and Arms Export 
        Control Act of 1976, except that for purposes of consideration 
        of any joint resolution with respect to a strategic United 
        States ally, it shall be in order in the Senate to move to 
        discharge a committee to which such joint resolution was 
        referred if such committee has not reported such joint 
        resolution at the end of 5 calendar days after its 
        introduction.
            (2) House of representatives.--For the purpose of 
        expediting the consideration and enactment of joint resolutions 
        under this subsection, a motion to proceed to the consideration 
        of any such joint resolution after it has been reported by the 
        appropriate committee shall be treated as highly privileged in 
        the House of Representatives.

SEC. 4385. NATIONAL SECURITY WAIVER OF CONGRESSIONAL REVIEW OF ARMS 
              SALES.

    (a) Authority.--If the President informs the appropriate 
congressional committees that an emergency exists that requires a sale 
of a defense article or defense service under section 4331 or a 
retransfer of a defense article or defense service under section 4361 
in the national security interests of the United States, the President 
may exempt the proposed sale from the requirements of this chapter.
    (b) Justification.--Before exercising such waiver, the President 
shall set forth in a statement to the appropriate congressional 
committees a detailed justification for the President's determination, 
including a description of the emergency circumstances that necessitate 
the immediate issuance of the letter of offer and a discussion of the 
national security interests involved.

SEC. 4386. PUBLICATION OF ARMS SALES NOTIFICATIONS.

    (a) Publication.--The Secretary shall publish in a timely manner in 
the Federal Register, upon transmittal to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate, the full unclassified text of each numbered 
certification submitted pursuant to section 4382.
    (b) Rule of Construction.--Information relating to offset 
agreements shall be treated as confidential information in accordance 
with section 12(c) of the Export Administration Act of 1979 (50 U.S.C. 
App. 2411(c)) (as continued in effect under the International Emergency 
Economic Powers Act).

SEC. 4387. CERTIFICATION REQUIREMENT RELATING TO ISRAEL'S QUALITATIVE 
              MILITARY EDGE.

    (a) In General.--Any certification relating to a proposed sale or 
export of defense articles or defense services under this chapter to 
any country in the Middle East other than Israel shall include an 
unclassified determination that the sale or export of the defense 
articles or defense services will not adversely affect Israel's 
qualitative military edge over military threats to Israel, but may also 
include a classified determination as well.
    (b) Qualitative Military Edge Defined.--In this section, the term 
``qualitative military edge'' means the ability to counter and defeat 
any credible conventional military threat from any individual state or 
possible coalition of states or from non-state actors, while sustaining 
minimal damages and casualties, through the use of superior military 
means, possessed in sufficient quantity, including weapons, command, 
control, communication, intelligence, surveillance, and reconnaissance 
capabilities that in their technical characteristics are superior in 
capability to those of such other individual or possible coalition of 
states or non-state actors.

               CHAPTER 7--LANDMINES AND CLUSTER MUNITIONS

SEC. 4391. LANDMINES.

    (a) In General.--Notwithstanding any other provision of law, 
demining equipment available to the Agency or the Department of State 
and used in support of the clearance of landmines and unexploded 
ordnance for humanitarian purposes may be disposed of on a grant basis 
in foreign countries.
    (b) Terms and Conditions.--The exercise of the authority under 
subsection (a) shall be subject to such terms and conditions as the 
President may prescribe.

SEC. 4392. CLUSTER MUNITIONS.

    No security assistance may be provided for cluster munitions, no 
defense export license for cluster munitions may be issued, and no 
cluster munitions or cluster munitions technology shall be sold or 
transferred, unless--
            (1) the submunitions of the cluster munitions, after 
        arming, do not result in more than 1 percent unexploded 
        ordnance across the range of intended operational environments; 
        and
            (2) the agreement applicable to the assistance, transfer, 
        or sale of such cluster munitions or cluster munitions 
        technology specifies that--
                    (A) the cluster munitions will only be used against 
                clearly defined military targets and will not be used 
                where civilians are known to be present or in areas 
                normally inhabited by civilians; and
                    (B) the recipient agrees to immediately recover any 
                unexploded submunitions, and to give assistance as 
                necessary to any civilian injuries, that follow the use 
                of such weapons in any area in which civilians are 
                present.

    Subtitle D--General Administrative and Miscellaneous Provisions

SEC. 4401. GENERAL PROVISIONS.

    (a) Procurement in the United States; Coproduction or Licensed 
Production Outside the United States.--
            (1) In general.--In carrying out this title, special 
        emphasis shall be placed on procurement in the United States, 
        but, subject to the provisions of subsection (b), consideration 
        shall also be given to coproduction or licensed production 
        outside the United States of defense articles of United States 
        origin when such production best serves the foreign policy, 
        national security, and economy of the United States.
            (2) Evaluation.--In evaluating any sale proposed to be made 
        pursuant to this title, there shall be taken into 
        consideration--
                    (A) the extent to which the proposed sale damages 
                or infringes upon licensing arrangements whereby United 
                States entities have granted licenses for the 
                manufacture of the defense articles selected by the 
                purchasing country to entities located in friendly 
                foreign countries, which licenses result in financial 
                returns to the United States;
                    (B) the portion of the defense articles so 
                manufactured which is of United States origin; and
                    (C) whether, and the extent to which, such sale 
                might contribute to an arms race, aid in the 
                development of weapons of mass destruction, support 
                international terrorism, increase the possibility of 
                outbreak or escalation of conflict, or prejudice the 
                development of bilateral or multilateral arms control 
                or nonproliferation agreements or other arrangements.
    (b) Prohibitions.--No credit sale shall be extended under section 
4251 in any case involving coproduction or licensed production outside 
the United States of any defense article of United States origin, 
unless the Secretary, in advance of any such transaction, advises the 
appropriate congressional committees and furnish the Speaker of the 
House of Representatives and the President of the Senate with full 
information regarding the proposed transaction, including a description 
of the particular defense article or articles which would be produced 
under license or coproduced outside the United States, the estimated 
value of such production or coproduction, and the probable impact of 
the proposed transaction on employment and production within the United 
States.
    (c) Availability of Funds.--Funds made available under this title 
may be used for procurement outside the United States only if the 
President determines that such procurement will not result in adverse 
effects upon the economy of the United States or the industrial 
mobilization base, with special reference to any areas of labor surplus 
or to the net position of the United States in its balance of payments 
with the rest of the world, which outweigh the economic or other 
advantages to the United States of less costly procurement outside the 
United States
    (d) Responsibilities of Secretary of Defense.--
            (1) In general.--With respect to sales under sections 4311, 
        4312, 4324, and 4351 the Secretary of Defense shall, under the 
        direction of the President, have primary responsibility for--
                    (A) the determination of military end-item 
                requirements;
                    (B) the procurement of military equipment in a 
                manner which permits its integration with service 
                programs;
                    (C) the supervision of the training of foreign 
                military personnel;
                    (D) the movement and delivery of military end-
                items; and
                    (E) within the Department of Defense, the 
                performance of any other functions with respect to 
                sales and guaranties.
            (2) Priorities.--The establishment of priorities in the 
        procurement, delivery, and allocation of military equipment 
        shall, under the direction of the President, be determined by 
        the Secretary of Defense.
    (e) Termination Provisions.--
            (1) Contracts.--Each contract for sale entered into under 
        sections 4311, 4312, 4324, and 4351, and each contract entered 
        into under section 4282, shall provide that such contract may 
        be canceled in whole or in part, or its execution suspended, by 
        the United States at any time under unusual or compelling 
        circumstances if the national interest of the United States so 
        requires.
            (2) Export licenses.--Each export license issued under 
        section 4331 shall provide that such license may be revoked, 
        suspended, or amended by the Secretary, without prior notice, 
        whenever the Secretary deems such action to be advisable. 
        Nothing in this paragraph may be construed as limiting the 
        regulatory authority of the President under this Act.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated from time to time such sums as may be 
        necessary--
                    (A) to refund moneys received from purchasers under 
                contracts of sale entered into under sections 4311, 
                4312, 4324, and 4351, or under contracts entered into 
                under section 4282, that are canceled or suspended 
                under this subsection to the extent such moneys have 
                previously been disbursed to private contractors and 
                United States Government agencies for work in progress; 
                and
                    (B) to pay such damages and costs that accrue from 
                the corresponding cancellation or suspension of the 
                existing procurement contracts or Federal agency work 
                orders involved.
    (f) Civilian Contract Personnel.--The President shall, to the 
maximum extent possible and consistent with the purposes of this title, 
use civilian contract personnel in any foreign country to perform 
defense services sold under this title.

SEC. 4402. ADMINISTRATIVE EXPENSES.

    (a) In General.--Funds made available under other provisions of law 
for the operations of Federal agencies carrying out functions under 
this title shall be available for the administrative expenses incurred 
by such agencies under this title.
    (b) Recovery of Expenses.--Charges for administrative services 
calculated under section 4314(a)(1) shall include recovery of 
administrative expenses and official reception and representation 
expenses incurred by any Federal agency, including any mission or group 
thereof, in carrying out functions under this title if--
            (1) such functions are primarily for the benefit of any 
        foreign country;
            (2) such expenses are not directly and fully charged to, 
        and reimbursed from amounts received for, sale of defense 
        services under section 4311; and
            (3) such expenses are neither salaries of the United States 
        Armed Forces nor represent unfunded estimated costs of civilian 
        retirement and other benefits.
    (c) Official Reception and Representation Expenses.--Not more than 
$86,500 of the funds derived from charges for administrative services 
pursuant to section 4314(a)(1) may be used each fiscal year for 
official reception and representation expenses.

SEC. 4403. DETAIL OF APPROPRIATE PERSONNEL.

    The President may detail, as necessary, to the Department of State 
appropriate personnel from any other Federal agency on a 
nonreimbursable basis, to assist in the initial screening of 
applications for export licenses under this subtitle in order to 
determine the need for further review of those applications for foreign 
policy, national security, and law enforcement concerns.

SEC. 4404. RULE OF CONSTRUCTION.

    Nothing in this title shall be construed as modifying in any way 
the provisions of the Atomic Energy Act of 1954 or section 7307 of 
title 10, United States Code.

SEC. 4405. PERFORMANCE GOALS FOR PROCESSING OF APPLICATIONS FOR 
              LICENSES TO EXPORT ITEMS ON UNITED STATES MUNITIONS LIST.

    (a) In General.--The Secretary shall establish and maintain the 
following goals:
            (1) The processing time for review of each application for 
        a license to export items on the United States Munitions List 
        (other than a Manufacturing License Agreement) shall be not 
        more than 60 days from the date of receipt of the application.
            (2) The processing time for review of each application for 
        a commodity jurisdiction determination shall be not more than 
        60 days from the date of receipt of the application.
            (3) The total number of applications described in paragraph 
        (1) that are unprocessed shall be not more than 7 percent of 
        the total number of such applications submitted in the 
        preceding calendar year.
    (b) Additional Review.--
            (1) In general.--If an application described in paragraph 
        (1) or (2) of subsection (a) is not processed within the time 
        period described in the respective paragraph of such 
        subsection, then the Secretary shall ensure that the 
        appropriate managing official shall review the status of the 
        application to determine if further action is required to 
        process the application.
            (2) Additional requirements.--If an application described 
        in paragraph (1) or (2) of subsection (a) is not processed 
        within 90 days from the date of receipt of the application, 
        then the appropriate managing official shall--
                    (A) review the status of the application to 
                determine if further action is required to process the 
                application; and
                    (B) submit to the appropriate congressional 
                committees a notification of the review conducted under 
                subparagraph (A), including a description of the 
                application, the reason for delay in processing the 
                application, and a proposal for further action to 
                process the application.
            (3) Annual review.--For each calendar year, the appropriate 
        managing official shall review not less than 2 percent of the 
        total number of applications described in paragraphs (1) and 
        (2) of subsection (a) to ensure that the processing of such 
        applications, including decisions to approve, deny, or return 
        without action, is consistent with both the foreign policy and 
        regulatory requirements of the United States.
    (c) Statements of Policy.--
            (1) United states allies.--Congress states that--
                    (A) to ensure that, to the maximum extent 
                practicable, the processing time for review of 
                applications to export items to United States allies in 
                direct support of combat operations or peacekeeping or 
                humanitarian operations with the United States Armed 
                Forces is not more than 7 days from the date of receipt 
                of the application; and
                    (B) the Secretary shall ensure that, to the maximum 
                extent practicable, the processing time for review of 
                applications described in subsection (a)(1) to export 
                items that are not subject to the requirements of 
                chapter 6 to a strategic United States ally, and, as 
                appropriate, other major United States allies for any 
                purpose other than the purpose described in paragraph 
                (1) is not more than 30 days from the date of receipt 
                of the application.
            (2) Priority for applications for export of u.s.-origin 
        equipment.--In meeting the goals established by this section, 
        the Secretary shall prioritize the processing of applications 
        for licenses and agreements necessary for the export of United 
        States-origin equipment over applications for Manufacturing 
        License Agreements.
    (d) Report.--Not later than 180 days after the date of the 
enactment of this Act, and not later than 1 year thereafter, the 
Secretary shall submit to the appropriate congressional committees a 
report that contains a detailed description of--
            (1)(A) the average processing time for and number of 
        applications described in subsection (a)(1) to--
                    (i) a strategic United States ally;
                    (ii) a major United States ally; and
                    (iii) any other country; and
            (B) to the extent practicable, the average processing time 
        for and number of applications described in subsection (b)(1) 
        by item category;
            (2) the average processing time for and number of 
        applications described in subsection (a)(2);
            (3) the average processing time for and number of 
        applications for agreements described in part 124 of title 22, 
        Code of Federal Regulations (relating to the International 
        Traffic in Arms Regulations), other than Manufacturing License 
        Agreements;
            (4) the average processing times for applications for 
        Manufacturing License Agreements;
            (5) any management decisions of the Directorate of Defense 
        Trade Controls of the Department of State that have been made 
        in response to data contained in paragraphs (1) through (3); 
        and
            (6) any advances in technology that will allow the time-
        frames described in subsection (a)(1) to be substantially 
        reduced.
    (e) Congressional Briefings.--If, at the end of any month beginning 
after the date of the enactment of this Act, the total number of 
applications described in subsection (a)(1) that are unprocessed is 
more than 7 percent of the total number of such applications submitted 
in the preceding calendar year, then the Secretary shall ensure that 
the Assistant Secretary for Political-Military Affairs shall brief the 
appropriate congressional committees on such matters and the corrective 
measures that will be taken to comply with the requirements of 
subsection (a).
    (f) Transparency of Commodity Jurisdiction Determinations.--
            (1) In general.--To the maximum extent practicable, 
        commodity jurisdiction determinations made as the appropriate 
        controls to be applied to commodities shall be made public.
            (2) Publication on department of state's internet 
        website.--The Secretary shall--
                    (A) publish a commodity jurisdiction determination 
                referred to in paragraph (1) on the Internet website of 
                the Department of State not later than 30 days after 
                the date of the determination, which includes--
                            (i) the name of the manufacturer of the 
                        item;
                            (ii) a brief general description of the 
                        item;
                            (iii) the model or part number of the item; 
                        and
                            (iv) the designation under which the item 
                        has been designated, except that--
                                    (I) the name of the person or 
                                business organization that sought the 
                                commodity jurisdiction determination 
                                shall not be published if the person or 
                                business organization is not the 
                                manufacturer of the item; and
                                    (II) the names of the customers, 
                                the price of the item, and any 
                                proprietary information relating to the 
                                item indicated by the person or 
                                business organization that sought the 
                                commodity jurisdiction determination 
                                shall not be published; and
                    (B) maintain on the Internet website of the 
                Department of State an archive, that is accessible to 
                the general public and other departments and agencies 
                of the United States, of the information published 
                under subparagraph (A).
    (g) Rule of Construction.--Nothing in this section shall be 
construed to prohibit the President from undertaking a thorough review 
of the national security and foreign policy implications of a proposed 
export of items on the United States Munitions List.

SEC. 4406. AVAILABILITY OF INFORMATION ON THE STATUS OF LICENSE 
              APPLICATIONS.

    (a) In General.--The Secretary shall make available to persons who 
have pending license applications under this chapter and the 
appropriate congressional committees the ability to access 
electronically current information on the status of each license 
application required to be submitted under this chapter.
    (b) Matters To Be Included.--The information referred to in 
subsection (a) shall be limited to the following:
            (1) The case number of the license application.
            (2) The date on which the license application is received 
        by the Department of State and becomes an ``open application''.
            (3) The date on which the Directorate of Defense Trade 
        Controls makes a determination with respect to the license 
        application or transmits it for interagency review, if 
        required.
            (4) The date on which the interagency review process for 
        the license application is completed, if such a review process 
        is required.
            (5) The date on which the Department of State begins 
        consultations with the appropriate congressional committees 
        with respect to the license application.
            (6) The date on which the license application is sent to 
        the appropriate congressional committees.

SEC. 4407. REQUIREMENT TO ENSURE ADEQUATE STAFF AND RESOURCES FOR THE 
              DIRECTORATE OF DEFENSE TRADE CONTROLS OF THE DEPARTMENT 
              OF STATE.

    (a) Requirement.--The Secretary shall ensure that there are the 
necessary staff and resources to carry out this subtitle.
    (b) Minimum Number of Licensing Officers.--The Secretary should 
ensure that there is at least 1 licensing officer for every 1,250 
applications for licenses and other authorizations to export items on 
the United States Munitions List or successor list.
    (c) Minimum Number of Staff for Commodity Jurisdiction 
Determinations.--The Secretary shall ensure that the Directorate of 
Defense Trade Controls has, to the extent practicable, not less than 
three individuals assigned to review applications for commodity 
jurisdiction determinations.

SEC. 4408. OVERSEAS MANAGEMENT OF ASSISTANCE AND SALES PROGRAMS.

    (a) In General.--In order to carry out the President's 
responsibilities for the management of international security 
assistance programs conducted under this title, the President may 
assign members of the United States Armed Forces, personnel of the 
Department of Defense, the Department of State, or any other Federal 
agency, to a foreign country to perform one or more of the following 
functions:
            (1) Equipment and services case management.
            (2) Training management.
            (3) Program monitoring.
            (4) Evaluation and planning of the host government's 
        military capabilities and requirements.
            (5) Administrative support.
            (6) Promoting rationalization, standardization, 
        interoperability, and other defense cooperation measures.
            (7) Liaison functions exclusive of advisory and training 
        assistance.
    (b) Advisory and Training Assistance.--Advisory and training 
assistance conducted by military personnel assigned under this section 
shall be kept to an absolute minimum. It is the sense of Congress that 
advisory and training assistance conducted in countries to which 
military personnel are assigned under this section should be provided 
primarily by other personnel who are not assigned under this section 
and who are detailed for limited periods to perform specific tasks.
    (c) Limitation on Number of United States Armed Forces Members.--
            (1) Limitation.--
                    (A) In general.--Except as provided in subparagraph 
                (C), the number of members of the United States Armed 
                Forces assigned to a foreign country under this section 
                in a fiscal year may not exceed 12 unless specifically 
                authorized by Congress.
                    (B) Waiver.--The President may waive the limitation 
                in subparagraph (A) with respect to the number of 
                members of the United States Armed Forces assigned to a 
                foreign country if the President determines and reports 
                to the appropriate congressional committees 30 days 
                prior to the introduction of the additional members of 
                the United States Armed Forces in the foreign country, 
                that United States national interests require that more 
                than 12 members of the United States Armed Forces be 
                assigned under this section to carry out international 
                security assistance programs in the foreign country.
                    (C) Exempted countries.--The limitation in 
                subparagraph (A) shall not apply with respect to 
                Pakistan, Tunisia, El Salvador, Honduras, Israel, 
                Colombia, Indonesia, the Republic of Korea, the 
                Philippines, Thailand, Egypt, Jordan, Morocco, Saudi 
                Arabia, Greece, Portugal, Spain, and Turkey.
            (2) Congressional budget justification.--The total number 
        of members of the United States Armed Forces assigned to a 
        foreign country under this section in a fiscal year may not 
        exceed the number justified to Congress for that country in the 
        congressional budget justification documents for that fiscal 
        year, unless the appropriate congressional committees are 
        notified 30 days in advance of the introduction of the 
        additional members of the United States Armed Forces.
    (d) Costs.--The entire costs (excluding salaries of members of the 
United States Armed Forces (other than the Coast Guard)) of overseas 
management of international security assistance programs under this 
section shall be charged to or reimbursed from funds made available to 
carry out this chapter, other than any such costs which are either paid 
directly for such defense services under section 4311 or reimbursed 
from charges for services collected from foreign governments pursuant 
to section 4311 and section 4402.
    (e) Supervision of Chief of Diplomatic Mission.--Members of the 
United States Armed Forces assigned to a foreign country under this 
section shall serve under the direction and supervision of the Chief of 
the United States Diplomatic Mission to that country.
    (f) Guidance Regarding Purchases.--The President shall continue to 
instruct United States diplomatic and military personnel in United 
States missions that such personnel should not encourage, promote, or 
influence the purchase by any foreign country of United States-made 
military equipment, unless such personnel are specifically instructed 
to do so by an appropriate official of the executive branch.

SEC. 4409. DESIGNATION OF MAJOR UNITED STATES ALLIES.

    (a) Notice to Congress.--The President shall notify Congress in 
writing at least 30 days before--
            (1) designating a country as a major United States ally for 
        purposes of this Act; or
            (2) terminating such a designation.
    (b) Initial Designations.--Egypt, Argentina, Pakistan, Bahrain, the 
Philippines, Jordan, Thailand, Kuwait, and Morocco shall be deemed to 
have been so designated by the President as of the date of the 
enactment of this Act, and the President is not required to notify 
Congress of such designation of those countries.

SEC. 4410. DEPLETED URANIUM AMMUNITION.

    (a) Prohibition.--Except as provided in subsection (b), none of the 
funds made available to carry out this Act or any other Act may be made 
available to facilitate in any way the sale of M833 or M900 antitank 
shells or any comparable antitank shells containing a depleted uranium 
penetrating component to any country other than a country that is a 
strategic United States ally.
    (b) Exception.--The prohibition in subsection (a) shall not apply 
with respect to the use of funds to facilitate the sale of antitank 
shells to a country if the President determines that to do so is in the 
national security interest of the United States.

SEC. 4411. DEFINITIONS.

    In this title:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs 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) Cash flow financing.--The term ``cash flow financing'' 
        means the dollar amount of the difference between the total 
        estimated price of a Letter of Offer and Acceptance or other 
        purchase agreement that has been approved for financing under 
        this title and the amount of the financing that has been 
        approved therefor.
            (3) Category i space launch vehicle system.--The term 
        ``Category I space launch vehicle system'' means a category I 
        system as defined in the MTCR Annex for the launching of 
        payloads into outer space, as well as the specially designed 
        production facilities for these systems.
            (4) Defense article.--
                    (A) In general.--The term ``defense article''--
                            (i) includes--
                                    (I) any weapon, weapons system, 
                                munition, aircraft, vessel, boat, or 
                                other implement of war and related 
                                technical data;
                                    (II) any property, installation, 
                                commodity, material, equipment, supply, 
                                or goods used for the purposes of 
                                making military sales;
                                    (III) any machinery, facility, 
                                tool, material, supply, or other item 
                                necessary for the manufacture, 
                                production, processing, repair, 
                                servicing, storage, construction, 
                                transportation, operation, or use of 
                                any article listed in this paragraph; 
                                and
                                    (IV) any significant component or 
                                part of any article listed in this 
                                paragraph that has been specifically 
                                designed or significantly modified for 
                                a military application; but
                            (ii) does not include--
                                    (I) merchant vessels; or
                                    (II) source material (except 
                                uranium depleted in the isotope 235 
                                which is incorporated in defense 
                                articles solely to take advantage of 
                                high density or pyrophoric 
                                characteristics unrelated to 
                                radioactivity), byproduct material, 
                                special nuclear material, production 
                                facilities, utilization facilities, or 
                                atomic weapons or articles involving 
                                Restricted Data, as defined by the 
                                Atomic Energy Act of 1954.
                    (B) Additional terms.--In subparagraph (A)(i)(IV)--
                            (i) the term ``significant component or 
                        part'' means a component or part that is 
                        essential to a military function; and
                            (ii) the term ``significantly modified'' 
                        means a modification that constitutes an 
                        alteration of 25 percent or greater of the 
                        component or part from a non-military version.
            (5) Defense service.--
                    (A) In general.--The term ``defense service''--
                            (i) includes any service, test, inspection, 
                        repair, training, publication, technical or 
                        other assistance, or defense information used 
                        for the purposes of making military sales; but
                            (ii) does not include design and 
                        construction services under section 4311.
                    (B) Additional term.--In subparagraph (A)(i), the 
                term ``defense information'' includes any document, 
                writing, sketch, photograph, plan, model, 
                specification, design, prototype, or other recorded or 
                oral information relating to any defense article or 
                defense service, but does not include Restricted Data 
                as defined by the Atomic Energy Act of 1954 and data 
                removed from the Restricted Data category under section 
                142d of that Act.
            (6) Design and construction services.--The term ``design 
        and construction services'' means, with respect to sales under 
        section 4251, the design and construction of real property 
        facilities, including necessary construction equipment and 
        materials, engineering services, construction contract 
        management services relating thereto, and technical advisory 
        assistance in the operation and maintenance of real property 
        facilities provided or performed by the Department of Defense 
        or by a contractor pursuant to a contract with such department 
        or agency.
            (7) End item.--The term ``end item'' means an assembled 
        article that is ready for its intended use and for which only 
        ammunition, fuel, or another energy source is required to place 
        the item in its operating state.
            (8) Excess defense article.--The term ``excess defense 
        article'' means defense articles (other than construction 
        equipment, including tractors, scrapers, loaders, graders, 
        bulldozers, dump trucks, generators, and compressors) owned by 
        the United States Government, and not procured in anticipation 
        of security assistance or sales requirements, or pursuant to a 
        security assistance or sales order, which is in excess of the 
        Approved Force Acquisition Objective and Approved Force 
        Retention Stock of all Department of Defense Components at the 
        time such articles are dropped from inventory by the supplying 
        agency for delivery to countries or international organizations 
        under this Act.
            (9) Incentive payments.--The term ``incentive payments'' 
        means direct monetary compensation made by a United States 
        supplier of defense articles or defense services or by any 
        employee, agent, or subcontractor thereof to any other United 
        States person to induce or persuade that United States person 
        to purchase or acquire goods or services produced, 
        manufactured, grown, or extracted, in whole or in part, in the 
        foreign country which is purchasing those defense articles or 
        defense services from the United States supplier.
            (10) Major defense equipment.--The term ``major defense 
        equipment'' means any item of significant military equipment on 
        the United States Munitions List having a nonrecurring research 
        and development cost of more than $50,000,000 or a total 
        production cost of more than $200,000,000.
            (11) Major united states ally.--The term ``major United 
        States ally'' means a country that is designated in accordance 
        with section 4409 as a major United States ally for purposes of 
        this Act.
            (12) NATO/SHAPE project.--The term ``NATO/SHAPE project'' 
        means a common-funded project supported by allocated credits 
        from North Atlantic Treaty Organization bodies or by host 
        nations with NATO Infrastructure funds.
            (13) Nuclear explosive device.--The term ``nuclear 
        explosive device'' has the meaning given that term in section 
        830(4) of the Nuclear Proliferation Prevention Act of 1994.
            (14) Offset agreement.--The term ``offset agreement'' means 
        an agreement, arrangement, or understanding between a United 
        States supplier of defense articles or defense services and a 
        foreign country under which the supplier agrees to purchase or 
        acquire, or to promote the purchase or acquisition by other 
        United States persons of, goods or services produced, 
        manufactured, grown, or extracted, in whole or in part, in that 
        foreign country in consideration for the purchase by the 
        foreign country of defense articles or defense services from 
        the supplier.
            (15) Security assistance survey.--The term ``security 
        assistance survey'' means any survey or study conducted in a 
        foreign country by United States Government personnel for the 
        purpose of assessing the needs of that country for security 
        assistance, and includes defense requirement surveys, site 
        surveys, general surveys or studies, and engineering assessment 
        surveys.
            (16) Significant military equipment.--The term 
        ``significant military equipment'' means articles--
                    (A) for which special export controls are warranted 
                because of the capacity of such articles for 
                substantial military utility or capability; and
                    (B) identified on the United States Munitions List.
            (17) Small arm or light weapon.--The term ``small arm or 
        light weapon'' means--
                    (A) an item listed in Category I(a) of the United 
                States Munitions List,
                    (B) an item listed in Category III (as it applies 
                to Category I(a)) of the United States Munitions List, 
                or
                    (C) a grenade listed in Category IV(a) of the 
                United States Munitions List,
        that requires a license for international export under this 
        title.
            (18) Strategic united states ally.--The term ``strategic 
        United States ally'' means any member country of the North 
        Atlantic Treaty Organization (NATO), Australia, Israel, Japan, 
        the Republic of Korea, or New Zealand.
            (19) Training.--The term ``training'' includes formal or 
        informal instruction of foreign students in the United States 
        or overseas by officers or employees of the United States, 
        contract technicians, or contractors (including instruction at 
        civilian institutions), or by correspondence courses, 
        technical, educational, or information publications and media 
        of all kinds, training aid, orientation, training exercise, and 
        military advice to foreign military units and forces.
            (20) United states.--The term ``United States'', when used 
        geographically, means the several States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the Commonwealth of 
        the Northern Mariana Islands, and any territory or possession 
        of the United States.
            (21) Value.--The term ``value'' means, in the case of an 
        excess defense article, except as otherwise provided in section 
        4311(a), not less than the greater of--
                    (A) the gross cost incurred by the United States 
                Government in repairing, rehabilitating, or modifying 
                such article, plus the scrap value; or
                    (B) the market value, if ascertainable.
            (22) Weapon system partnership agreement.--The term 
        ``weapon system partnership agreement'' means an agreement 
        between two or more member countries of the Maintenance and 
        Supply Agency of the North Atlantic Treaty Organization that--
                    (A) is entered into pursuant to the terms of the 
                Charter of the North Atlantic Treaty Organization; and
                    (B) is for the common logistic support of a 
                specific weapon system common to the participating 
                countries.
            (23) Weapons of mass destruction.--The term ``weapons of 
        mass destruction'' has the meaning given such term in section 
        1403(1) of the Defense Against Weapons of Mass Destruction Act 
        of 1996 (title XIV of Public Law 104-201; 110 Stat. 2717; 50 
        U.S.C. 2302(1)).

               TITLE V--COUNTERING TRANSNATIONAL THREATS

                Subtitle A--Nonproliferation Authorities

                  CHAPTER 1--NUCLEAR NONPROLIFERATION

SEC. 5111. AUTHORIZATION OF ASSISTANCE TO PROHIBIT THE PROLIFERATION OF 
              NUCLEAR, CHEMICAL, AND BIOLOGICAL WEAPONS.

    (a) Authorization of Assistance.--The President is authorized to 
provide, on such terms and conditions as the President may determine, 
foreign assistance to any country or organization in order to carry out 
the purposes described in subsection (b).
    (b) Purposes.--The purposes of assistance under this section are to 
prohibit the proliferation of nuclear, chemical, and biological weapons 
and the means to deliver such weapons, through support of activities 
designed--
            (1) to enhance the nonproliferation capabilities of a 
        country or organization by providing training and equipment to 
        detect, deter, monitor, interdict, and counter proliferation;
            (2) to strengthen the bilateral ties of the United States 
        with a country or organization by offering assistance in this 
        area of vital national security interest;
            (3) to accomplish the activities and objectives set forth 
        in sections 503 and 504 of the FREEDOM Support Act (22 U.S.C. 
        5853 and 5854), without regard to the limitation of those 
        sections to the independent states of the former Soviet Union; 
        and
            (4) to promote multilateral activities, including 
        cooperation with international organizations, relating to 
        nonproliferation.
    (c) Activities Supported.--Assistance under this section may 
include training services and the provision of funds, equipment, and 
other commodities related to the detection, deterrence, monitoring, 
interdiction, and prevention or countering of proliferation, the 
establishment of effective nonproliferation laws and regulations, and 
the apprehension of those individuals involved in acts of proliferation 
of such weapons.

SEC. 5112. EDUCATION AND TRAINING TO ENHANCE NONPROLIFERATION AND 
              EXPORT CONTROL CAPABILITIES.

    (a) In General.--The Secretary is authorized to provide education 
and training to appropriate military and civilian personnel of foreign 
countries for the purpose of enhancing the nonproliferation and export 
control capabilities of such personnel through their attendance in 
special courses of instruction conducted by the United States. Such 
education and training may be provided on such terms and conditions as 
the Secretary may determine and consistent with this subtitle but 
whenever feasible on a reimbursable basis.
    (b) Administration of Courses.--The Secretary shall have overall 
responsibility for the development and conduct of international 
nonproliferation education and training programs under this section, 
and may utilize other Federal agencies, as appropriate, to recommend 
personnel for the education and training programs and to administer 
specific courses of instruction.
    (c) Purposes.--Education and training activities conducted under 
this section shall be--
            (1) of a technical nature, emphasizing techniques for 
        detecting, deterring, monitoring, interdicting, and countering 
        proliferation;
            (2) designed to encourage effective and mutually beneficial 
        relations and increased understanding between the United States 
        and other countries; and
            (3) designed to improve the ability of other countries to 
        utilize their resources with maximum effectiveness, thereby 
        contributing to greater self-reliance by such countries.
    (d) Priority to Certain Countries.--In selecting personnel for 
education and training programs under this section, priority should be 
given to personnel from countries determined by the Secretary to be 
countries frequently transited by proliferation-related shipments of 
cargo.

SEC. 5113. OPPOSITION OF WITHDRAWAL FROM TREATY ON THE NON-
              PROLIFERATION OF NUCLEAR WEAPONS.

    (a) Statement of Policy.--It is the policy of the United States to 
oppose the withdrawal of any country that is a party to the Treaty on 
the Non-Proliferation of Nuclear Weapons (hereinafter in this section 
referred to as the ``Treaty'') and to use all political, economic, and 
diplomatic means at its disposal to deter, prevent, and sanction any 
such withdrawal from the Treaty.
    (b) Limitation on Assistance.--
            (1) In general.--Notwithstanding any other provision of 
        law, no foreign assistance (other than humanitarian assistance) 
        under any provision of law may be provided to a country that 
        has withdrawn from the Treaty.
            (2) Waiver.--The President may waive the requirements of 
        paragraph (1) on a case-by-case basis if the President 
        determines and notifies the appropriate congressional 
        committees that such waiver is in the vital national security 
        interest of the United States.
    (c) Return of All United States-Origin Materials and Equipment.--
The United States shall seek the return of any material, equipment or 
components transferred under an Agreement for Civil Nuclear Cooperation 
that is in force pursuant to the authority of section 123 of the Atomic 
Energy Act of 1954 on or after the date of the enactment of this Act, 
and any special fissionable material produced through the use of such 
material, equipment or components, previously provided to a country 
that withdraws from the Treaty.

SEC. 5114. MATTERS RELATING TO INTERNATIONAL ATOMIC ENERGY AGENCY.

    (a) Payment of United States Dues.--Not later than January 31, 
2014, and January 31 of each succeeding year, the United States shall 
pay its full assessed contribution to the regular operating budget of 
the International Atomic Energy Agency (IAEA).
    (b) Additional Protocol as a Criterion for United States 
Assistance.--
            (1) Statement of policy.--It is the policy of the United 
        States to ensure that each country that is a party to the 
        Treaty on the Non-Proliferation of Nuclear Weapons should bring 
        into force an Additional Protocol to its safeguards agreement 
        with the IAEA.
            (2) Criterion for assistance.--The United States shall, 
        when considering the provision of assistance under this Act, 
        take into consideration whether the proposed recipient has in 
        force an Additional Protocol to its safeguards agreement with 
        the IAEA.

SEC. 5115. ARMS CONTROL AND NONPROLIFERATION SCHOLARSHIP PROGRAM.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish a 
        scholarship program (to be known as the ``Arms Control and 
        Nonproliferation Scholarship Program'') to award scholarships 
        for the purpose of recruiting and preparing students for 
        civilian careers in the fields of nonproliferation, arms 
        control, and international security to meet the critical needs 
        of the Department of State.
            (2) Selection of recipients.--
                    (A) Merit and department needs.--Individuals shall 
                be selected to receive scholarships under this section 
                through a competitive process primarily on the basis of 
                academic merit and the arms control and 
                nonproliferation needs of the Department of State.
                    (B) Demonstrated commitment.--Individuals selected 
                under this section shall have a demonstrated interest 
                in public service and a commitment to the field of 
                study for which the scholarship is awarded.
            (3) Contractual agreements.--In order to carry out the 
        scholarship program, the Secretary shall enter into contractual 
        agreements with individuals selected under paragraph (2) 
        pursuant to which such individuals agree to serve as full-time 
        employees of the Department of State following achievement of 
        the specified degree, for a period to be determined by the 
        Secretary, not to exceed 6 years, in arms control and 
        nonproliferation positions needed by the Department of State 
        and for which the individuals are qualified, in exchange for 
        receiving a scholarship.
    (b) Eligibility.--Except as provided in subsection (f), in order to 
be eligible to participate in the scholarship program, an individual 
shall--
            (1) be enrolled or accepted for enrollment as a full-time 
        student at an institution of higher education and be pursuing 
        or intend to pursue an undergraduate or graduate education 
        degree in an academic field or discipline specified in the list 
        made available under subsection (d); and
            (2) be a United States citizen.
    (c) Application.--An individual seeking a scholarship under this 
section shall submit to the Secretary an application at such time, in 
such manner, and containing such information, agreements, or assurances 
as the Secretary may require.
    (d) Programs and Fields of Study.--The Secretary shall make 
publicly available a list of academic programs and fields of study for 
which scholarships under this section may be awarded.
    (e) Scholarships.--
            (1) In general.--The Secretary may award a scholarship 
        under this section for an academic year if the individual 
        applying for the scholarship has submitted to the Secretary, as 
        part of the application required under subsection (c), a 
        proposed academic program leading to a degree in a program or 
        field of study specified on the list made available under 
        subsection (d).
            (2) Limitation on years.--An individual may not receive a 
        scholarship under this section for more than 4 academic years, 
        unless the Secretary grants a waiver.
            (3) Student responsibilities.--A scholarship recipient 
        shall maintain satisfactory academic progress for purposes of 
        continued participation in the scholarship program.
            (4) Amount.--The dollar amount of a scholarship awarded 
        under this section for an academic year shall be determined 
        under regulations issued by the Secretary, but shall in no case 
        exceed the cost of tuition, fees, and other authorized expenses 
        as determined by the Secretary.
            (5) Use of scholarships.--A scholarship awarded under this 
        section may be expended for tuition, fees, and other authorized 
        expenses as established by the Secretary by regulation.
            (6) Payment to institution of higher education.--The 
        Secretary may enter into a contractual agreement with an 
        institution of higher education under which the amounts 
        provided for a scholarship under this section for tuition, 
        fees, and other authorized expenses are paid directly to the 
        institution with respect to which such scholarship is awarded.
    (f) Special Consideration for Current Employees.--Notwithstanding 
subsection (b), up to 5 percent of the scholarships awarded under this 
section may be set aside for individuals who are Federal employees on 
the date of the enactment of this Act to enhance the education of such 
employees in areas of critical arms control or nonproliferation needs 
of the Department of State, for undergraduate or graduate education 
through enrollment in a graduate degree program under the scholarship 
on a full-time or part-time basis.
    (g) Repayment.--
            (1) In general.--A scholarship recipient who fails to 
        maintain a high level of academic standing, as defined by the 
        Secretary who is dismissed for disciplinary reasons from the 
        educational institution such recipient is attending, or who 
        voluntarily terminates academic training before graduation from 
        the educational program for which the scholarship was awarded 
        shall be in breach of the contractual agreement under 
        subsection (a)(3) and, in lieu of any service obligation 
        arising under such agreement, shall be liable to the United 
        States for repayment within 1 year after the date of such 
        default of all scholarship funds paid to such recipient and to 
        the institution of higher education on the behalf of such 
        recipient under such agreement. The repayment period may be 
        extended by the Secretary if the Secretary determines such 
        extension to be necessary, as established by regulation.
            (2) Liability.--A scholarship recipient who, for any 
        reason, fails to begin or complete the service obligation under 
        the contractual agreement under subsection (a)(3) after 
        completion of academic training, or fails to comply with the 
        terms and conditions of deferment established by the Secretary 
        under paragraph (1), shall be in breach of such contractual 
        agreement and shall be liable to the United States for an 
        amount equal to--
                    (A) the total amount of the scholarship received by 
                such recipient under this section; and
                    (B) the total amount of interest that would have 
                been payable under a direct unsubsidized loan issued 
                through the Department of Education's Direct Loan 
                Program.
    (h) Regulations.--The Secretary shall prescribe regulations 
necessary to carry out this section.
    (i) Conversion.--The Secretary is authorized to convert the status 
of a scholarship recipient to a member of the Foreign Service, as 
defined in section 103 of the Foreign Service Act of 1980, following 
the successful completion of the period of service described in 
subsection (a)(3).

SEC. 5116. ARMS CONTROL AND NONPROLIFERATION ROTATION PROGRAM.

    (a) Establishment.--The Secretary, in consultation with the heads 
of other relevant Federal agencies, shall establish the Arms Control 
and Nonproliferation Rotation Program (in this section referred to as 
the ``Rotation Program'') for personnel of such agencies. The Rotation 
Program shall use applicable best practices, including those prescribed 
by the Chief Human Capital Officers Council. Personnel of a relevant 
Federal agency participating in the Rotation Program may be detailed to 
any other relevant Federal agency on a nonreimbursable basis.
    (b) Goals.--The Rotation Program shall--
            (1) be established in accordance with the human capital 
        strategic plan of the Department of State;
            (2) provide midlevel personnel of relevant Federal agencies 
        the opportunity to broaden their knowledge through exposure to 
        other relevant Federal agencies, including to other bureaus and 
        offices of the Department of State;
            (3) expand the knowledge base of the Department of State 
        and other relevant Federal agencies;
            (4) build professional relationships and contacts among 
        employees of relevant Federal agencies;
            (5) invigorate the Department of State's arms control and 
        nonproliferation workforce with professionally rewarding 
        opportunities; and
            (6) incorporate human capital strategic plans and 
        activities of the Department of State, and address critical 
        human capital deficiencies, professional development, 
        recruitment and retention efforts, and succession planning 
        within the Department of State.
    (c) Responsibilities.--The Secretary shall--
            (1) provide oversight of the establishment and 
        implementation of the Rotation Program;
            (2) establish a framework that supports the goals of the 
        Rotation Program and promotes cross disciplinary rotational 
        opportunities;
            (3) establish eligibility for personnel of other relevant 
        agencies to participate in the Rotation Program and select 
        participants from among the applicants;
            (4) establish incentives for personnel to participate in 
        the Rotation Program, including through promotions and 
        employment preferences;
            (5) ensure that the Rotation Program provides professional 
        education and training;
            (6) ensure that the Rotation Program develops qualified 
        employees and future leaders with broad based experience 
        throughout the Department of State; and
            (7) provide for greater interaction among employees of 
        relevant Federal agencies.
    (d) Allowances, Privileges, and Benefits.--All allowances, 
privileges, rights, seniority, and other benefits of personnel 
participating in the Rotation Program shall be preserved.
    (e) Reporting.--Not later than 1 year after the date of the 
establishment of the Rotation Program, the Secretary shall submit to 
the appropriate congressional committees and the Committee on Armed 
Services of the House of Representatives and the Committee on Armed 
Services of the Senate a report on the status of the Rotation Program, 
including a description of the Rotation Program, the number of 
individuals participating, and how the Rotation Program is used in 
succession planning and leadership development.
    (f) Definition.--For the purposes of this section, the term 
``relevant Federal agency'' means the Department of State and any other 
Federal agency that is involved in United States arms control and 
nonproliferation activities.

                  CHAPTER 2--MISSILE NONPROLIFERATION

SEC. 5121. LICENSING.

    (a) Establishment of List of Controlled Items.--The Secretary, in 
consultation with the Secretary of Defense and the heads of other 
appropriate Federal agencies, shall establish and maintain, as part of 
the United States Munitions List, a list of all items on the Missile 
Technology Control Regime (MTCR) Annex the export of which is not 
controlled under section 6(l) of the Export Administration Act of 1979 
(as continued in effect under the International Emergency Economic 
Powers Act).
    (b) Referral of License Applications.--
            (1) In general.--A determination of the Secretary to 
        approve a license for the export of an item on the list 
        established under subsection (a) may be made only after the 
        license application is referred to the Secretary of Defense.
            (2) Coordination.--Not later than 10 days after a license 
        is issued for the export of an item on the list established 
        under subsection (a), the Secretary shall provide to the 
        Secretary of Defense and the Secretary of Commerce the license 
        application and accompanying documents issued to the applicant, 
        to the extent that the relevant Secretary indicates the need to 
        receive such application and documents.
    (c) Information Sharing.--The Secretary shall establish a procedure 
for sharing information with appropriate officials of the intelligence 
community, as determined by the Director of National Intelligence, and 
with other appropriate Federal departments and agencies, that will 
ensure effective monitoring of transfers of MTCR equipment or 
technology and other missile technology.
    (d) Exports to Space Launch Vehicle Programs.--Not later than 15 
days after the issuance of a license (including any brokering license) 
for the export of items valued at less than $50,000,000 that are 
controlled under this Act pursuant to United States obligations under 
the MTCR and are goods or services that are intended to support the 
design, utilization, development, or production of a space launch 
vehicle system listed in Category I of the MTCR Annex, the Secretary 
shall transmit to the Congress a report describing the licensed export 
and rationale for approving such export, including the consistency of 
such export with United States missile nonproliferation policy. The 
requirement contained in the preceding sentence shall not apply to 
licenses for exports to countries that were members of the MTCR as of 
April 17, 1987.

SEC. 5122. DENIAL OF THE TRANSFER OF MISSILE EQUIPMENT OR TECHNOLOGY BY 
              UNITED STATES PERSONS.

    (a) Sanctions.--
            (1) In general.--If the President determines that a United 
        States person knowingly--
                    (A) exports, transfers, or otherwise engages in the 
                trade of any item on the MTCR Annex, in violation of 
                the provisions of section 4311 of this Act, section 5 
                or 6 of the Export Administration Act of 1979 (as 
                continued in effect under the International Emergency 
                Economic Powers Act), or any regulations or orders 
                issued under any such provisions of law,
                    (B) conspires to or attempts to engage in such 
                export, transfer, or trade, or
                    (C) facilitates such export, transfer, or trade by 
                any other person,
        then the President shall impose the applicable sanctions 
        described in paragraph (2).
            (2) Applicable sanctions.--The sanctions which apply to a 
        United States person under paragraph (1) are the following:
                    (A) If the item on the MTCR Annex involved in the 
                export, transfer, or trade is missile equipment or 
                technology within category II of the MTCR Annex, then 
                the President shall deny to such United States person 
                for a period of 2 years--
                            (i) United States Government contracts 
                        relating to missile equipment or technology; 
                        and
                            (ii) licenses for the transfer of missile 
                        equipment or technology controlled under this 
                        Act.
                    (B) If the item on the MTCR Annex involved in the 
                export, transfer, or trade is missile equipment or 
                technology within category I of the MTCR Annex, then 
                the President shall deny to such United States person 
                for a period of not less than 2 years--
                            (i) all United States Government contracts, 
                        and
                            (ii) all export licenses and agreements for 
                        items on the United States Munitions List.
    (b) Discretionary Sanctions.--In the case of any determination made 
pursuant to subsection (a), the President may pursue any penalty 
provided in section 4372.
    (c) Presumption.--In determining whether to apply sanctions under 
subsection (a) to a United States person involved in the export, 
transfer, or trade of an item on the MTCR Annex, it should be a 
rebuttable presumption that such item is designed for use in a missile 
listed in the MTCR Annex if the President determines that the final 
destination of the item is a country the government of which the 
Secretary has determined, for purposes of 6(j)(1)(A) of the Export 
Administration Act of 1979 (as continued in effect under the 
International Emergency Economic Powers Act), has repeatedly provided 
support for acts of international terrorism (as such term is defined in 
section 10401(h)).
    (d) Waiver.--The President may waive the imposition of sanctions 
under subsection (a) with respect to a product or service if the 
President certifies to Congress that--
            (1) the product or service is essential to the national 
        security of the United States; and
            (2) such person is a sole source supplier of the product or 
        service, the product or service is not available from any 
        alternative reliable supplier, and the need for the product or 
        service cannot be met in a timely manner by improved 
        manufacturing processes or technological developments.

SEC. 5123. TRANSFERS OF MISSILE EQUIPMENT OR TECHNOLOGY BY FOREIGN 
              PERSONS.

    (a) Sanctions.--
            (1) In general.--Subject to subsections (c) through (g), if 
        the President determines that a foreign person, after the date 
        of the enactment of this Act, knowingly--
                    (A) exports, transfers, or otherwise engages in the 
                trade of any MTCR equipment or technology that 
                contributes to the acquisition, design, development, or 
                production of missiles in a country that is not an MTCR 
                adherent and would be, if it were United States-origin 
                equipment or technology, subject to the jurisdiction of 
                the United States under this Act,
                    (B) conspires to or attempts to engage in such 
                export, transfer, or trade, or
                    (C) facilitates such export, transfer, or trade by 
                any other person,
        or if the President has made a determination with respect to a 
        foreign person under section 11B(b)(1) of the Export 
        Administration Act of 1979 (as continued in effect under the 
        International Emergency Economic Powers Act), then the 
        President shall impose on that foreign person the applicable 
        sanctions described in paragraph (2).
            (2) Applicable sanctions.--The sanctions which apply to a 
        foreign person under paragraph (1) are the following:
                    (A) If the item involved in the export, transfer, 
                or trade is within category II of the MTCR Annex, then 
                the President shall deny, for a period of 2 years--
                            (i) United States Government contracts 
                        relating to missile equipment or technology; 
                        and
                            (ii) licenses for the transfer to such 
                        foreign person of missile equipment or 
                        technology controlled under this Act.
                    (B) If the item involved in the export, transfer, 
                or trade is within category I of the MTCR Annex, then 
                the President shall deny, for a period of not less than 
                2 years--
                            (i) all United States Government contracts 
                        with such foreign person; and
                            (ii) licenses for the transfer to such 
                        foreign person of all items on the United 
                        States Munitions List.
                    (C) If, in addition to actions taken under 
                subparagraphs (A) and (B), the President determines 
                that the export, transfer, or trade has substantially 
                contributed to the design, development, or production 
                of missiles in a country that is not an MTCR adherent, 
                then the President shall prohibit, for a period of not 
                less than 2 years, the importation into the United 
                States of products produced by that foreign person.
    (b) Inapplicability With Respect to MTCR Adherents.--Subsection (a) 
does not apply with respect to--
            (1) any export, transfer, or trading activity that is 
        authorized by the laws of an MTCR adherent, if such 
        authorization is not obtained by misrepresentation or fraud; or
            (2) any export, transfer, or trade of an item to an end 
        user in a country that is an MTCR adherent.
    (c) Effect of Enforcement Actions by MTCR Adherents.--Sanctions set 
forth in subsection (a) may not be imposed under this section on a 
person with respect to acts described in such subsection or, if such 
sanctions are in effect against a person on account of such acts, such 
sanctions shall be terminated, if an MTCR adherent is taking judicial 
or other enforcement action against that person with respect to such 
acts, or that person has been found by the government of an MTCR 
adherent to be innocent of wrongdoing with respect to such acts, and if 
the President certifies to the appropriate congressional committees 
that--
            (1) for any judicial or other enforcement action taken by 
        the MTCR adherent, such action has--
                    (A) been comprehensive; and
                    (B) been performed to the satisfaction of the 
                United States; and
            (2) with respect to any finding of innocence of wrongdoing, 
        the United States is satisfied with the basis for such finding.
    (d) Advisory Opinions.--The Secretary, in consultation with the 
Secretary of Defense and the Secretary of Commerce, may, upon the 
request of any person, issue an advisory opinion to that person as to 
whether a proposed activity by that person would subject that person to 
sanctions under this section. Any person who relies in good faith on 
such an advisory opinion which states that the proposed activity would 
not subject a person to such sanctions, and any person who thereafter 
engages in such activity, may not be made subject to such sanctions on 
account of such activity.
    (e) Waiver and Report to Congress.--
            (1) In general.--In any case other than one in which an 
        advisory opinion has been issued under subsection (d) stating 
        that a proposed activity would not subject a person to 
        sanctions under this section, the President may waive the 
        application of subsection (a) to a foreign person if the 
        President determines that such waiver is essential to the 
        national security of the United States.
            (2) Notification.--In the event that the President decides 
        to apply the waiver described in paragraph (1), the President 
        shall so notify the Committee on Armed Services and the 
        Committee on Foreign Relations of the Senate and the Committee 
        on Armed Services and the Committee on Foreign Affairs of the 
        House of Representatives not less than 45 working days before 
        issuing the waiver. Such notification shall include a report 
        fully articulating the rationale and circumstances which led 
        the President to apply the waiver.
    (f) Presumption.--In determining whether to apply sanctions under 
subsection (a) to a foreign person involved in the export, transfer, or 
trade of an item on the MTCR Annex, it should be a rebuttable 
presumption that such item is designed for use in a missile listed in 
the MTCR Annex if the President determines that the final destination 
of the item is a country the government of which the Secretary has 
determined, for purposes of 6(j)(1)(A) of the Export Administration Act 
of 1979 (as continued in effect under the International Emergency 
Economic Powers Act), has repeatedly provided support for acts of 
international terrorism (as such term is defined in section 10401(h)).
    (g) Additional Waiver.--The President may waive the imposition of 
sanctions under subsection (a) on a person with respect to a product or 
service if the President certifies to the Congress that--
            (1) the product or service is essential to the national 
        security of the United States; and
            (2) such person is a sole source supplier of the product or 
        service, the product or service is not available from any 
        alternative reliable supplier, and the need for the product or 
        service cannot be met in a timely manner by improved 
        manufacturing processes or technological developments.
    (h) Exceptions.--The President shall not apply the sanction under 
this section prohibiting the importation of the products of a foreign 
person--
            (1) in the case of procurement of defense articles or 
        defense services--
                    (A) under existing contracts or subcontracts, 
                including the exercise of options for production 
                quantities to satisfy requirements essential to the 
                national security of the United States;
                    (B) if the President determines that the person to 
                which the sanctions would be applied is a sole source 
                supplier of the defense articles and defense services, 
                that the defense articles or defense services are 
                essential to the national security of the United 
                States, and that alternative sources are not readily or 
                reasonably available; or
                    (C) if the President determines that such articles 
                or services are essential to the national security of 
                the United States under defense coproduction agreements 
                or NATO Programs of Cooperation;
            (2) to products or services provided under contracts 
        entered into before the date on which the President publishes 
        his intention to impose the sanctions; or
            (3) to--
                    (A) spare parts,
                    (B) component parts, but not finished products, 
                essential to United States products or production,
                    (C) routine services and maintenance of products, 
                to the extent that alternative sources are not readily 
                or reasonably available; or
                    (D) information and technology essential to United 
                States products or production.

SEC. 5124. NOTIFICATION OF ADMITTANCE OF MTCR ADHERENTS.

    (a) Policy Report.--Following any action by the United States that 
results in a country becoming a MTCR adherent, the President shall 
transmit promptly to the Congress a report which describes the 
rationale for such action, together with an assessment of that 
country's nonproliferation policies, practices, and commitments. Such 
report shall also include the text of any agreements or understandings 
between the United States and such country regarding the terms and 
conditions of the country's adherence to the MTCR.
    (b) Intelligence Assessment Report.--At such times that a report is 
transmitted pursuant to subsection (a), the Director of National 
Intelligence shall promptly prepare and submit to Congress a separate 
report containing any credible information indicating that the country 
described in subsection (a) has engaged in any activity identified 
under subparagraph (A), (B), or (C) of section 5123(a)(1) within the 
previous two years.

SEC. 5125. AUTHORITY RELATING TO MTCR ADHERENTS.

    Notwithstanding section 5123(b), the President may take the actions 
under section 5123(a)(2) under the circumstances described in section 
5126(b)(2).

SEC. 5126. DEFINITIONS.

    (a) In General.--In this chapter--
            (1) the term ``missile'' means a category I system as 
        defined in the MTCR Annex, and any other unmanned delivery 
        system of similar capability, as well as the specially designed 
        production facilities for these systems;
            (2) the term ``Missile Technology Control Regime'' or 
        ``MTCR'' means the policy statement, between the United States, 
        the United Kingdom, the Federal Republic of Germany, France, 
        Italy, Canada, and Japan, announced on April 16, 1987, to 
        restrict sensitive missile-relevant transfers based on the MTCR 
        Annex, and any amendments thereto;
            (3) the term ``MTCR adherent'' means a country that 
        participates in the MTCR or that, pursuant to an international 
        understanding to which the United States is a party, controls 
        MTCR equipment or technology in accordance with the criteria 
        and standards set forth in the MTCR;
            (4) the term ``MTCR Annex'' means the Guidelines and 
        Equipment and Technology Annex of the MTCR, and any amendments 
        thereto;
            (5) the terms ``missile equipment or technology'' and 
        ``MTCR equipment or technology'' mean those items listed in 
        category I or category II of the MTCR Annex;
            (6) the term ``United States person'' has the meaning given 
        that term in section 16(2) of the Export Administration Act of 
        1979 (as continued in effect under the International Emergency 
        Economic Powers Act);
            (7) the term ``foreign person'' means any person other than 
        a United States person;
            (8) the term ``person''--
                    (A) means a natural person as well as a 
                corporation, business association, partnership, 
                society, trust, any other nongovernmental entity, 
                organization, or group, and any governmental entity 
                operating as a business enterprise, and any successor 
                of any such entity; and
                    (B) in the case of a country with a non-market 
                economy (excluding former members of the Warsaw Pact), 
                includes--
                            (i) all activities of that government 
                        relating to the development or production of 
                        any missile equipment or technology; and
                            (ii) all activities of that government 
                        affecting the development or production of 
                        electronics, space systems or equipment, and 
                        military aircraft; and
            (9) the term ``otherwise engaged in the trade of'' means, 
        with respect to a particular export or transfer, to be a 
        freight forwarder or designated exporting agent, or a consignee 
        or end user of the item to be exported or transferred.
    (b) International Understanding Defined.--For purposes of 
subsection (a)(3), as it relates to any international understanding 
concluded with the United States after January 1, 2000, the term 
``international understanding'' means--
            (1) any specific agreement by a country not to export, 
        transfer, or otherwise engage in the trade of any MTCR 
        equipment or technology that contributes to the acquisition, 
        design, development, or production of missiles in a country 
        that is not an MTCR adherent and would be, if it were United 
        States-origin equipment or technology, subject to the 
        jurisdiction of the United States under this Act; or
            (2) any specific understanding by a country that, 
        notwithstanding section 5123(b), the United States retains the 
        right to take the actions under section 5123(a)(2) in the case 
        of any export or transfer of any MTCR equipment or technology 
        that contributes to the acquisition, design, development, or 
        production of missiles in a country that is not an MTCR 
        adherent and would be, if it were United States-origin 
        equipment or technology, subject to the jurisdiction of the 
        United States under this Act.

          CHAPTER 3--CHEMICAL AND BIOLOGICAL NONPROLIFERATION

SEC. 5131. SANCTIONS AGAINST CERTAIN FOREIGN PERSONS.

    (a) Imposition of Sanctions.--
            (1) Determination by the president.--Except as provided in 
        subsection (b)(2), the President shall impose both of the 
        sanctions described in subsection (c) if the President 
        determines that a foreign person, on or after the date of the 
        enactment of this section, has knowingly and materially 
        contributed--
                    (A) through the export from the United States of 
                any goods or technology that are subject to the 
                jurisdiction of the United States,
                    (B) through the export from any other country of 
                any goods or technology that would be, if they were 
                United States goods or technology, subject to the 
                jurisdiction of the United States, or
                    (C) through any other transaction not subject to 
                sanctions pursuant to the Export Administration Act of 
                1979 (as continued in effect under the International 
                Emergency Economic Powers Act),
        to the efforts by any foreign country, project, or entity 
        described in paragraph (2) to use, develop, produce, stockpile, 
        or otherwise acquire chemical or biological weapons.
            (2) Countries, projects, or entities receiving 
        assistance.--Paragraph (1) applies in the case of--
                    (A) any foreign country that the President 
                determines has, at any time after January 1, 1980--
                            (i) used chemical or biological weapons in 
                        violation of international law;
                            (ii) used lethal chemical or biological 
                        weapons against its own nationals; or
                            (iii) made substantial preparations to 
                        engage in the activities described in clause 
                        (i) or (ii);
                    (B) any foreign country whose government is 
                determined to be a government that has repeatedly 
                provided support for acts of international terrorism 
                for purposes of section 6(j) of the Export 
                Administration Act of 1979 (as continued in effect 
                under the International Emergency Economic Powers Act) 
                or section 10401 of this Act; or
                    (C) any other foreign country, project, or entity 
                designated by the President for purposes of this 
                section.
            (3) Persons against whom sanctions are to be imposed.--
        Sanctions shall be imposed pursuant to paragraph (1) on--
                    (A) the foreign person with respect to which the 
                President makes the determination described in that 
                paragraph;
                    (B) any successor entity to that foreign person;
                    (C) any foreign person that is a parent or 
                subsidiary of that foreign person if that parent or 
                subsidiary knowingly assisted in the activities which 
                were the basis of that determination; and
                    (D) any foreign person that is an affiliate of that 
                foreign person if that affiliate knowingly assisted in 
                the activities which were the basis of that 
                determination and if that affiliate is controlled in 
                fact by that foreign person.
    (b) Consultations With and Actions by Foreign Government of 
Jurisdiction.--
            (1) Consultations.--If the President makes the 
        determinations described in subsection (a)(1) with respect to a 
        foreign person, the Congress urges the President to initiate 
        consultations immediately with the government with primary 
        jurisdiction over that foreign person with respect to the 
        imposition of sanctions pursuant to this section.
            (2) Actions by government of jurisdiction.--In order to 
        pursue such consultations with that government, the President 
        may delay imposition of sanctions pursuant to this section for 
        a period of up to 90 days. Following these consultations, the 
        President shall impose sanctions unless the President 
        determines and certifies to Congress that such government has 
        taken specific and effective actions, including appropriate 
        penalties, to terminate the involvement of the foreign person 
        in the activities described in subsection (a)(1). The President 
        may delay imposition of sanctions for an additional period of 
        up to 90 days if the President determines and certifies to 
        Congress that such government is in the process of taking the 
        actions described in the preceding sentence.
            (3) Report to congress.--The President shall report to 
        Congress, not later than 90 days after making a determination 
        under subsection (a)(1), on the status of consultations with 
        the appropriate government under this subsection, and the basis 
        for any determination under paragraph (2) of this subsection 
        that such government has taken specific corrective actions.
    (c) Sanctions.--
            (1) Description of sanctions.--The sanctions to be imposed 
        pursuant to subsection (a)(1) are, except as provided in 
        paragraph (2) of this subsection, the following:
                    (A) Procurement sanction.--The United States 
                Government shall not procure, or enter into any 
                contract for the procurement of, any goods or services 
                from any person described in subsection (a)(3).
                    (B) Import sanctions.--The importation into the 
                United States of products produced by any person 
                described in subsection (a)(3) shall be prohibited.
            (2) Exceptions.--The President shall not be required to 
        apply or maintain sanctions under this section--
                    (A) in the case of procurement of defense articles 
                or defense services--
                            (i) under existing contracts or 
                        subcontracts, including the exercise of options 
                        for production quantities to satisfy United 
                        States operational military requirements;
                            (ii) if the President determines that the 
                        person or other entity to which the sanctions 
                        would otherwise be applied is a sole source 
                        supplier of the defense articles or defense 
                        services, that the defense articles or defense 
                        services are essential, and that alternative 
                        sources are not readily or reasonably 
                        available; or
                            (iii) if the President determines that such 
                        articles or services are essential to the 
                        national security under defense coproduction 
                        agreements;
                    (B) to products or services provided under 
                contracts entered into before the date on which the 
                President publishes his intention to impose sanctions;
                    (C) to--
                            (i) spare parts,
                            (ii) component parts, but not finished 
                        products, essential to United States products 
                        or production, or
                            (iii) routine servicing and maintenance of 
                        products, to the extent that alternative 
                        sources are not readily or reasonably 
                        available;
                    (D) to information and technology essential to 
                United States products or production; or
                    (E) to medical or other humanitarian items.
    (d) Termination of Sanctions.--The sanctions imposed pursuant to 
this section shall apply for a period of at least 12 months following 
the imposition of sanctions and shall cease to apply thereafter only if 
the President determines and certifies to the Congress that reliable 
information indicates that the foreign person with respect to which the 
determination was made under subsection (a)(1) has ceased to aid or 
abet any foreign government, project, or entity in its efforts to 
acquire chemical or biological weapons capability as described in that 
subsection.
    (e) Waiver.--
            (1) Criterion for waiver.--The President may waive the 
        application of any sanction imposed on any person pursuant to 
        this section, after the end of the 12-month period beginning on 
        the date on which that sanction was imposed on that person, if 
        the President determines and certifies to the Congress that 
        such waiver is important to the national security interests of 
        the United States.
            (2) Notification of and report to congress.--If the 
        President decides to exercise the waiver authority provided in 
        paragraph (1), the President shall so notify the Congress not 
        less than 20 days before the waiver takes effect. Such 
        notification shall include a report fully articulating the 
        rationale and circumstances which led the President to exercise 
        the waiver authority.
    (f) Definition of Foreign Person.--For the purposes of this 
section, the term ``foreign person'' means--
            (1) an individual who is not a citizen of the United States 
        or an alien admitted for permanent residence to the United 
        States; or
            (2) a corporation, partnership, or other entity which is 
        created or organized under the laws of a foreign country or 
        which has its principal place of business outside the United 
        States.

               Subtitle B--Counter-Narcotics Authorities

SEC. 5201. FINDINGS.

    Congress finds the following:
            (1) International narcotics trafficking poses a major 
        transnational threat in today's world, and its suppression is 
        among the most important foreign policy objectives of the 
        United States.
            (2) International criminal activities, particularly 
        international narcotics trafficking, money laundering, and 
        corruption, endanger political and economic stability and 
        democratic development, and assistance for the prevention and 
        suppression of international criminal activities should be a 
        priority for the United States.
            (3) Effective international cooperation is necessary to 
        control the illicit cultivation, production, and smuggling of, 
        trafficking in, and abuse of narcotic and psychotropic drugs 
        and other controlled substances.
            (4) In order for countries to effectively combat narcotics 
        trafficking and other transnational crimes, they must have a 
        strong rule of law system, to include an honest police force, 
        independent courts, and effective prisons.
            (5) Given the magnitude of United States counter-narcotics 
        efforts, as well as its impact and significance on other 
        dimensions of United States bilateral relations, it is 
        essential that a process be put into place that allows the 
        periodic, comprehensive evaluation of these efforts and their 
        foreign policy implications.

SEC. 5202. STATEMENT OF POLICY.

    It shall be the policy of the United States to--
            (1) support international narcotics control programs that 
        have, as priority goals, the suppression of the illicit 
        manufacture of and trafficking in narcotic and psychotropic 
        drugs and other controlled substances, money laundering, and 
        the diversion of precursor chemicals, and the progressive 
        elimination of the illicit cultivation of the crops from which 
        narcotic and psychotropic drugs and other controlled substances 
        are derived;
            (2) encourage the international community to provide 
        assistance, where appropriate, to those producer and transit 
        countries that require assistance in discharging these primary 
        obligations;
            (3) use its voice and vote in multilateral development 
        banks to promote the development and implementation in the 
        major illicit drug producing countries of programs for the 
        reduction and eventual eradication of narcotic drugs and other 
        controlled substances, including appropriate assistance in 
        conjunction with effective programs of illicit crop 
        eradication;
            (4) ensure that countries adopt comprehensive domestic 
        measures against money laundering and cooperate with each other 
        in money laundering investigations, prosecutions, and related 
        forfeiture actions; and
            (5) endeavor to develop and promote global, regional, sub-
        regional, and bilateral cooperation among judicial, law 
        enforcement and financial regulatory authorities in order to 
        combat money-laundering, narcotics trafficking, and other 
        transnational crimes.

SEC. 5203. GOAL AND OBJECTIVES.

    (a) Goal.--The goal of foreign assistance under this subtitle is to 
help relevant countries build the capacity required to combat and 
reduce narcotics trafficking, money laundering, and other transnational 
crimes.
    (b) Objectives.--In furtherance of the goal described in subsection 
(a), foreign assistance under this subtitle shall be provided to 
achieve the following objectives:
            (1) Increase the professionalization, transparency, and 
        accountability of law enforcement, judicial and penal personnel 
        in the relevant country.
            (2) Improve the ability of law enforcement to prevent 
        crimes, pursue and apprehend criminals, and increase security 
        within their country.
            (3) Strengthen the capacity of the judicial system to hear 
        and prosecute cases.

SEC. 5204. GENERAL AUTHORITIES.

    (a) Authorities of the President.--The President is authorized to 
conclude agreements, including reciprocal maritime agreements, with 
United States State and local governments and with other countries to 
facilitate control of the production, processing, transportation, and 
distribution of narcotic and psychotropic drugs and other controlled 
substances.
    (b) Authorities of the Secretary.--Notwithstanding any other 
provision of law restricting assistance to foreign countries except 
sections 10101, 10102, and 10401, the Secretary is authorized to 
provide foreign assistance to any country or international 
organization, on such terms and conditions as the Secretary may 
determine, for the control of narcotic and psychotropic drugs and other 
controlled substances, or for related anticrime purposes.
    (c) Coordination of All United States Antinarcotics Assistance to 
Foreign Countries.--
            (1) Responsibility of secretary of state.--The Secretary 
        shall be responsible for coordinating and approving all foreign 
        assistance provided by the United States Government to support 
        international efforts to combat crime and illicit narcotics 
        production or trafficking.
            (2) Rule of construction.--Nothing in paragraph (1) shall 
        be construed to limit or impair the authority or responsibility 
        of any other Federal agency with respect to law enforcement, 
        domestic security operations, or intelligence activities as 
        defined in Executive Order No. 12333.
    (d) Use of Herbicides for Aerial Eradication.--
            (1) Monitoring.--The Secretary, with the assistance of the 
        heads of other appropriate Federal agencies, shall monitor any 
        use under this subtitle of a herbicide for aerial eradication 
        in order to determine the impact of such use on the environment 
        and on the health of individuals.
            (2) Report upon determination of harm to environment or 
        health.--If the Secretary determines that any such use is 
        harmful to the environment or the health of individuals, the 
        Secretary shall immediately report that determination to the 
        appropriate congressional committees, together with such 
        recommendations as the Secretary determines appropriate.

SEC. 5205. AUTHORIZATION OF BUREAU OF INTERNATIONAL NARCOTICS AND LAW 
              ENFORCEMENT.

    (a) Establishment.--There is established in the Department of State 
a Bureau of International Narcotics and Law Enforcement (in this 
section referred to as the ``Bureau'').
    (b) Head of Bureau.--The head of the Bureau shall be an Assistant 
Secretary of International Narcotics and Law Enforcement.
    (c) Responsibilities.--The Bureau shall be responsible for 
supervision (including policy oversight of resources), coordinating, 
and overseeing programs related to international counternarcotics and 
law enforcement activities, including--
            (1) strengthening criminal justice systems;
            (2) countering the flow of illegal narcotics, including 
        through building interdiction capabilities of partner countries 
        and strengthening law enforcement and judicial authorities; and
            (3) minimizing transnational crime

SEC. 5206. USE OF FUNDS.

    (a) Treatment of Funds.--Funds transferred to and consolidated with 
funds appropriated to carry out this subtitle may be made available on 
such terms and conditions as are applicable to funds appropriated to 
carry out this subtitle. Funds so transferred or consolidated shall be 
apportioned directly to the bureau within the Department of State 
responsible for administering this subtitle.
    (b) Contributions.--
            (1) In general.--To ensure local commitment to the 
        activities assisted under this subtitle, a country receiving 
        assistance under this subtitle should contribute an appropriate 
        share of the costs of any narcotics control program, project, 
        or activity for which such assistance is to be provided. A 
        country may contribute such costs on an in kind basis.
            (2) Acceptance.--The Secretary is authorized to accept 
        contributions from foreign governments to carry out the 
        purposes of this subtitle. Such contributions shall be 
        deposited as an offsetting collection to the applicable 
        appropriation account and may be used under the same terms and 
        conditions as funds appropriated to carry out this subtitle.
    (c) Administrative Assistance.--
            (1) In general.--Except as provided in paragraph (2), 
        personnel funded pursuant to this section are authorized to 
        provide administrative assistance to personnel assigned to the 
        Bureau of International Narcotics and Law Enforcement.
            (2) Limitation.--Paragraph (1) shall not apply to the 
        extent that it would result in a reduction in funds available 
        for counter-narcotics and anticrime assistance to foreign 
        countries.
    (d) Advance Notification of Transfer of Seized Assets.--The 
Secretary shall notify the appropriate congressional committees at 
least 10 days prior to any transfer by the United States Government to 
a foreign country for narcotics control purposes of any property or 
funds seized by or otherwise forfeited to the United States Government 
in connection with narcotics-related activity.
    (e) Excess Property.--For purposes of this subtitle, the Secretary 
may use the authority of section 11506, without regard to the 
restrictions of such section, to receive nonlethal excess property from 
any United States Government department or agency for the purpose of 
providing such property to a foreign government under the same terms 
and conditions as funds authorized to be appropriated for the purposes 
of this subtitle.

SEC. 5207. REQUIREMENTS RELATING TO AIRCRAFT AND OTHER EQUIPMENT.

    (a) Retention of Title to Aircraft.--
            (1) In general.--
                    (A) Lease or loan basis.--Except as provided in 
                paragraph (2), any aircraft made available to a foreign 
                country under this chapter, or made available to a 
                foreign country primarily for narcotics-related 
                purposes under any other provision of law, shall be 
                provided only on a lease or loan basis.
                    (B) Effective date.--Subparagraph (A) applies to 
                aircraft made available at any time after the enactment 
                of this Act.
            (2) Exceptions.--
                    (A) Contrary to national interest.--The Secretary 
                is authorized to transfer title of aircraft by sale or 
                grant if he or she--
                            (i) determines that the application of 
                        paragraph (1) with respect to particular 
                        aircraft would be contrary to the national 
                        interest of the United States; and
                            (ii) the Secretary notifies the appropriate 
                        congressional committees in accordance with the 
                        procedures applicable to reprogramming 
                        notifications under section 9401.
                    (B) Forfeiture.--Paragraph (1) shall not apply with 
                respect to aircraft made available to a foreign country 
                under any provision of law that authorizes property 
                that has been civilly or criminally forfeited to the 
                United States to be made available to foreign 
                countries.
            (3) Assistance for leasing of aircraft.--
                    (A) In general.--For purposes of satisfying the 
                requirement of paragraph (1), funds made available for 
                the Foreign Military Financing Program under title IV 
                may be used to finance the leasing of aircraft under 
                that title.
                    (B) Cost of lease.--Section 4351(a)(3) shall not 
                apply with respect to leases so financed, rather the 
                entire cost of any such lease (including any renewals) 
                shall be an initial, one time payment of the amount 
                which would be the sales price for the aircraft if they 
                were sold under section 4311(a)(2) or section 4312 (as 
                appropriate).
    (b) Permissible Uses of Aircraft and Other Equipment.--
            (1) In general.--The Secretary shall take all reasonable 
        steps to ensure that aircraft and other equipment made 
        available to foreign countries under this chapter are used only 
        in ways that are consistent with the purposes for which such 
        equipment was made available.
            (2) Exception.--Paragraph (1) shall not apply to aircraft 
        or other equipment if the Secretary makes a determination under 
        section 11508(b) that there is an emergency need which requires 
        the use of the aircraft or other equipment.
    (c) Reports.--In the reports submitted pursuant to section 5211, 
the Secretary shall discuss--
            (1) the actions taken by the United States Government to 
        prevent misuse of such equipment by that foreign country; and
            (2) any credible information indicating misuse by a foreign 
        country of aircraft or other equipment made available under 
        this chapter; and(3) the actions taken by the United States 
        Government to prevent future misuse of such equipment by that 
        foreign country.
    (d) Records of Aircraft Use.--
            (1) Requirement to maintain records.--The President shall 
        maintain detailed records on the use of any aircraft made 
        available to a foreign country under this chapter, including 
        aircraft made available before the enactment of this section.
            (2) Congressional access to records.--The President shall 
        make the records maintained pursuant to paragraph (1) available 
        upon request to the appropriate congressional committees.

SEC. 5208. RESTRICTIONS.

    (a) Participation in Foreign Police Actions.--Participation in 
foreign police actions under this subtitle shall be subject to the 
requirements of section 3303(d).
    (b) Procurement of Weapons and Ammunition.--
            (1) Prohibition.--Except as provided in paragraph (2), 
        funds made available to carry out this subtitle shall not be 
        made available for the procurement of weapons or ammunition.
            (2) Exceptions.--Paragraph (1) shall not apply with respect 
        to funds for the procurement of--
                    (A) weapons or ammunition provided only for the 
                defensive arming of aircraft used for narcotics-related 
                purposes; or
                    (B) firearms and related ammunition provided only 
                for defensive purposes to employees or contract 
                personnel of the Department of State engaged in 
                activities under this subtitle, if, at least 15 days 
                before obligating those funds, the President notifies 
                the appropriate congressional committees in accordance 
                with the procedures applicable to reprogramming 
                notifications under section 9401.
    (c) Limitations on Acquisition of Real Property and Construction of 
Facilities.--
            (1) Acquisition of real property.--
                    (A) Prohibition.--Funds made available to carry out 
                this subtitle may not be used to acquire (by purchase 
                or other means) any land or other real property for use 
                by foreign military, paramilitary, or law enforcement 
                forces.
                    (B) Exception for certain leases.--Subparagraph (A) 
                shall not apply to the acquisition of real property by 
                lease of a duration not to exceed 2 years.
                    (C) Exception for international training 
                academies.--Subparagraph (A) shall not apply to the 
                acquisition of land of real property for use as a 
                training facility for judicial, prosecutorial, law 
                enforcement, or regulatory officials.
            (2) Construction of facilities.--
                    (A) Limitation.--Funds made available to carry out 
                this subtitle may not be used for construction of 
                facilities for use by foreign military, paramilitary, 
                or law enforcement forces unless, at least 15 days 
                before obligating funds for such construction, the 
                President notifies the appropriate congressional 
                committees in accordance with procedures applicable to 
                reprogramming notifications under section 9401.
                    (B) Exception.--Paragraph (1) shall not apply to 
                the construction of facilities which would require the 
                obligation of less than $750,000 under this subtitle.

SEC. 5209. INTERNATIONAL COUNTER-NARCOTICS STRATEGY.

    (a) Strategy Required.--Not later than 1 year after the date of the 
enactment of this Act, and every 4 years thereafter, the Secretary 
shall submit to the appropriate congressional committees a 
comprehensive counter-narcotics strategy. The strategy shall include--
            (1) a list of the countries which the Secretary determines 
        to be--
                    (A) a major illicit drug-producing country;
                    (B) a major illicit drug-transit country;
                    (C) a major money-laundering country; or
                    (D) a major source of precursor chemicals;
            (2) defined objectives for the activities of the Department 
        of State relating to counter-narcotics, for each region and 
        country it plans to target;
            (3) a description of how such objectives relate to, are 
        informed by, and will be coordinated with those of relevant 
        countries, as well as with those of other bilateral and 
        multilateral donors;
            (4) a definition of the respective roles of each Federal 
        department and agency in carrying out the strategy, and the 
        mechanisms for coordination;
            (5) a description of the types of policies and programs 
        needed to achieve such objectives;
            (6) an analysis of the key opportunities and challenges for 
        achieving favorable results in the next 4-year period;
            (7) a list of indicators and other measurements of success 
        to be used in assessing impact, to include the indicators 
        listed in section 5210(a)(6);
            (8) the amounts devoted to similar purposes in the previous 
        4-year period, the results achieved and the lessons learned; 
        and
            (9) an estimate of the requirements for human and financial 
        resources and overseas infrastructure to carry out the strategy 
        over the next 4-year period.
    (b) Implementation.--None of the funds made available under this 
title may be obligated or expended for any programs, projects, or 
activities to implement a strategy required under subsection (a) until 
at least 15 days after the strategy is transmitted to the appropriate 
congressional committees pursuant to subsection (a).
    (c) Definitions.--In this section--
            (1) the term ``major illicit drug-producing country'' means 
        a country that illicitly produces during a fiscal year 5 metric 
        tons or more of opium or opium derivative, 500 metric tons or 
        more of coca, or 500 metric tons or more of marijuana;
            (2) the term ``major illicit drug-transit country'' means a 
        country--
                    (A) that is a significant direct source of illicit 
                narcotic or psychotropic drugs or other controlled 
                substances significantly affecting the United States;
                    (B) through which are transported such drugs or 
                substances; or
                    (C) through which significant sums of drug-related 
                profits or monies are laundered with the knowledge or 
                complicity of the government;
            (3) the term ``major money-laundering country'' means a 
        country whose financial institutions engage in currency 
        transactions involving significant amounts of proceeds from 
        international narcotics trafficking; and
            (4) the term ``major source of precursor chemicals'' means 
        a country that is among the top 5 producers or the top 5 
        exporters of a listed chemical under section 102(33) of the 
        Controlled Substances Act (21 U.S.C. 802(33)).

SEC. 5210. INTERNATIONAL NARCOTICS CONTROL ASSISTANCE REPORT.

    (a) Report.--Not later than 1 year after the date of the enactment 
of this Act, and annually thereafter, the President shall transmit to 
the appropriate congressional committees a report on international 
narcotics control assistance. Such report shall, for each country--
            (1) describe the types and amounts of international 
        narcotics control assistance provided or proposed to be 
        provided by each Federal agency for the preceding fiscal year, 
        the current fiscal year, and the next fiscal year;
            (2) include all transfers that were made by each Federal 
        agency during the preceding fiscal year for narcotics control 
        or anti-crime purposes of any property seized by or otherwise 
        forfeited to the United States Government in connection with 
        narcotics-related activity, including an estimate of the fair 
        market value and physical condition of each item of property 
        transferred;
            (3) discuss the extent to which the country is meeting the 
        goals and objectives of the United Nations Convention Against 
        Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 
        and the key areas in which improvements are needed;
            (4) explain how the strategy described under section 5209 
        is being implemented;
            (5) describe any progress made toward achieving the goal 
        and objectives in section 5203;
            (6) identify the indicators and metrics to be used in 
        assessing the impact of international narcotics control 
        assistance, including the impact of the use of herbicides for 
        aerial eradication on the environment, the health of 
        individuals, and internal displacement; and
            (7) list any contributions under section 5206(b) received 
        in the preceding fiscal year, the amount of such contributions, 
        and the purposes for which such contributions were used.
    (b) Definition.--In this section, the term ``international 
narcotics control assistance'' means foreign assistance provided by any 
Federal agency to combat or control the transit, production, or 
financing of illicit narcotics.

SEC. 5211. NARCOTICS STRATEGY EVALUATION.

    (a) In General.--The Comptroller General of the United States shall 
conduct an impact evaluation of programs carried out by the Bureau of 
International Narcotics and Law Enforcement, using rigorous 
quantitative data analysis. The evaluation shall measure progress made 
on the following indicators, as appropriate:
            (1) Supply Side Factors, such as--
                    (A) estimated illicit drug production;
                    (B) estimated illicit drug transshipment;
                    (C) estimated illicit drug production and 
                transshipment as a percentage of GDP;
                    (D) number of individuals and households estimated 
                to be involved in illicit drug production and 
                transshipment;
                    (E) number and average size of illicit drug-crop 
                cultivation plots;
                    (F) farm-gate price of illicit drug crop; and
                    (G) in-country price and purity of illicit drug.
            (2) Disruption of Networks, such as--
                    (A) drug seizures as a percentage of total 
                estimated drug production and transshipment; and
                    (B) arrests and convictions of major narcotics-
                related organized crime figures.
            (3) Economic well-being and governance, such as--
                    (A) presence of government institutions (such as 
                security forces, civilian ministries, local government, 
                justice system) in zones of greatest drug production;
                    (B) perceptions of police competence;
                    (C) number of individuals and households formerly 
                involved in drug production and transshipment who are 
                now benefitting from development and alternative income 
                programs;
                    (D) level of drug-related violence as a percentage 
                of overall violence; and
                    (E) poverty and unemployment rates in departments, 
                States or provinces with the greatest drug production 
                and transshipment.
    (b) Submission.--The results of the evaluation required under 
subsection (a) shall be submitted to the appropriate congressional 
committees not later than 4 years after the date of the enactment of 
this Act and every 4 years thereafter.

               Subtitle C--Counter-Terrorism Authorities

SEC. 5301. PURPOSES.

    Activities conducted under this subtitle shall be designed to--
            (1) build the capacity of foreign law enforcement and 
        security personnel to detect, deter and counter terrorism;
            (2) counter and ameliorate the conditions and circumstances 
        that foster terrorist and violent extremist ideologies, 
        activity and recruitment;
            (3) increase respect for human rights by sharing with 
        foreign civil authorities modern, humane, and effective 
        antiterrorism techniques; and
            (4) enhance bilateral and multilateral partnerships to 
        counter terrorism and violent extremism.

SEC. 5302. ASSISTANCE TO COUNTRIES AND MULTILATERAL ORGANIZATIONS FOR 
              COUNTER-TERRORISM ACTIVITIES.

    (a) Assistance to Countries.--
            (1) In general.--Notwithstanding any other provision of law 
        that restricts assistance to foreign countries (other than 
        sections 10101, 10102, 10401, and 10402), the Secretary, acting 
        through the Assistant Secretary for Counterterrorism or other 
        appropriate senior official, is authorized to provide, on such 
        terms and conditions as the Secretary may determine--
                    (A) assistance to foreign countries in order to 
                enhance the ability of their law enforcement and 
                security personnel to deter terrorists and terrorist 
                groups from engaging in international terrorist acts 
                such as bombing, kidnaping, assassination, hostage 
                taking, and hijacking; and
                    (B) in coordination with the Administrator, 
                assistance to foreign countries, including 
                nongovernmental organizations, to enhance their ability 
                to counter violent extremism and radicalization and to 
                counter the appeal of terrorist and other extremist 
                organizations.
            (2) Assistance.--Assistance under paragraph (1)(A) may 
        include the following:
                    (A) Consistent with section 3303, the provision of 
                equipment, supplies, and training to build the capacity 
                of foreign law enforcement or security forces to 
                conduct counter-terrorist operations and respect human 
                rights.
                    (B) Training services and the provision of 
                equipment and other commodities related to detection 
                and disposal of bombs (including improvised explosive 
                devices), management of hostage situations, physical 
                security, and other matters relating to the detection, 
                deterrence, and prevention of acts of terrorism, the 
                resolution of terrorist incidents, and the apprehension 
                of those involved in such acts.
                    (C) Support and cooperation with foreign banking, 
                regulatory, and other officials to counter the 
                financing of terrorist activities.
    (b) Assistance to Multilateral Organizations.--The Secretary is 
authorized to provide, on such terms and conditions as the Secretary 
may determine, support to multilateral organizations for international 
and regional counterterrorism cooperation programs, including the 
Regional Strategic Initiative. Such support may be provided in the form 
of grants, contracts, or voluntary contributions to such organizations.
    (c) Payment.--
            (1) In general.--If the Secretary determines it to be 
        consistent with and in furtherance of the purposes of this 
        subtitle, and on such terms and conditions consistent with this 
        Act as the Secretary may determine, any Federal agency is 
        authorized to provide services and commodities, without charge 
        to funds available to carry out this subtitle, to an eligible 
        foreign country, subject to payment in advance of the value 
        thereof (within the meaning of section 4411) in United States 
        dollars by the foreign country.
            (2) Crediting.--Collections under this subtitle shall be 
        credited to the currently applicable appropriation, account, or 
        fund of the agency providing such services and commodities and 
        shall be available for the purposes for which such 
        appropriation, account, or fund is authorized to be used.
            (3) Value.--The value in terms of original acquisition cost 
        of all equipment and commodities provided under this subtitle 
        in any fiscal year shall not exceed 30 percent of the funds 
        made available to carry out this subtitle for that fiscal year.
    (d) Consultation.--Consistent with section 1(c)(2)(C) of the State 
Department Basic Authorities Act of 1956 (as added by section 3105), 
the Assistant Secretary of State for Democracy, Human Rights and Labor 
shall be consulted in determinations of foreign countries that will be 
provided assistance under this subtitle and determinations of the 
nature of assistance to be provided to each such country.
    (e) Limitation.--Arms and ammunition may be provided under this 
subtitle only if such arms and ammunition are directly related to 
counterterrorism assistance.
    (f) Rule of Construction.--Nothing in this subtitle shall apply to 
information exchange activities conducted by Federal agencies under any 
other authority for such purposes

SEC. 5303. COUNTER-TERRORISM RESPONSIBILITIES OF THE DEPARTMENT OF 
              STATE.

    (a) In General.--Section 1 of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2651a) is amended--
            (1) in subsection (c)(1), by striking ``24'' and inserting 
        ``25''; and
            (2) in subsection (e) to read as follows:
    ``(e) Counterterrorism Responsibilities.--
            ``(1) In general.--The Secretary of State shall be 
        responsible for the overall supervision (including policy 
        oversight of resources) of counterterrorism activities and may 
        designate an Assistant Secretary or other senior official, who 
        may report directly to the Secretary as appropriate, to assist 
        in such activities.
            ``(2) Transfer authority.--The Secretary of State may 
        transfer any authority, duty, or function assigned to the 
        Coordinator for Counterterrorism or to the Office of the 
        Coordinator for Counterterrorism to the Assistant Secretary or 
        other senior official designated by the Secretary of State 
        under paragraph (1) or to the Bureau of Counterterrorism (as 
        the case may be).''.
    (b) Conforming Amendment.--Section 5315 of title 5, United States 
Code, is amended in the item relating to Assistant Secretaries of 
State, by striking ``(24)'' and inserting ``(25)''.

              TITLE VI--SUSTAINING THE GLOBAL ENVIRONMENT

SEC. 6001. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Sound natural resource management, healthy ecosystems, 
        and biological diversity are vital to alleviating poverty in 
        developing countries that depend on natural resources for 
        water, food, medicine, energy, household products, and tourism 
        and trade.
            (2) Proper management and protection of natural resources 
        can mitigate instability, conflict, and corruption in many 
        developing countries.
            (3) Poaching and the illegal trafficking of wildlife 
        represent significant threats to preserving biological 
        diversity and can lead to crime and corruption.
            (4) Establishing protected areas can preserve wildlife and 
        plant species from degradation and guard against the illegal 
        wildlife trade.
            (5) Strengthening the indigenous capacity of partner 
        countries to manage their natural resources improves the long-
        term sustainability of conservation programs and is essential 
        for economic growth in developing countries.
    (b) Statement of Policy.--It is the policy of the United States to 
work in cooperation with the international community, including 
nongovernmental organizations, to reduce biodiversity loss, adapt to 
and mitigate climate change, and integrate principles of environmental 
sustainability into policies and programs for international 
development.

                 Subtitle A--Debt-for-Nature Exchanges

SEC. 6101. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) Poverty and economic pressures on the populations of 
        developing countries have led to environmental degradation that 
        exacerbate existing challenges and imperil long-term, 
        sustainable development.
            (2) Debt reduction can reduce economic pressures on 
        developing countries and provide funds for environmental 
        conservation and development.
            (3) Identifying and developing economic benefits to local 
        communities from sustainable use of the environment is critical 
        to the protection of ecosystems and to overall development.
            (4) Tropical forests provide a wide range of benefits to 
        humankind by--
                    (A) harboring a major share of the Earth's 
                biological and terrestrial resources, which are the 
                basis for developing pharmaceutical products and 
                revitalizing agricultural crops;
                    (B) playing a critical role as carbon sinks in 
                reducing greenhouse gases in the atmosphere, thus 
                moderating potential global climate change; and
                    (C) regulating hydrological cycles on which far-
                flung agricultural and coastal resources depend.
            (5) Coral reefs and associated coastal marine ecosystems 
        provide a wide range of benefits to humankind by--
                    (A) harboring more species per unit area than any 
                other marine habitat, providing the basis for 
                developing pharmaceutical products and fostering a 
                growing marine tourism sector;
                    (B) providing a major source of food and jobs for 
                hundreds of millions of coastal residents; and
                    (C) serving as natural storm barriers, thus 
                protecting vulnerable shorelines and communities from 
                storm waves and erosion.
    (b) Statement of Policy.--It is the policy of the United States to 
work in cooperation with partner countries and nongovernmental 
organizations to protect and sustainably manage tropical forests, coral 
reefs, and other natural ecosystems, including through debt-for-nature 
exchanges.

SEC. 6102. DEFINITIONS.

    As used in this subtitle:
            (1) Administering body.--The term ``administering body'' 
        means the entity provided for in section 6107(c).
            (2) Partner country.--The term ``partner country'' means an 
        eligible country with respect to which the authority of 
        paragraph (1) or (2) of section 6105(a) or section 6106(a)(1) 
        is exercised.
            (3) Debt-for-nature agreement.--The term ``Debt-for-Nature 
        Agreement'' or ``Agreement'' means a Debt-for-Nature Agreement 
        provided for in section 6107.
            (4) Debt-for-nature facility.--The term ``Debt-for-Nature 
        Facility'' or ``Facility'' means the Debt-for-Nature Facility 
        established in the Department of the Treasury by section 6103.
            (5) Debt-for-nature fund.--The term ``Debt-for-Nature 
        Fund'' or ``Fund'' means a Debt-for-Nature Fund provided for in 
        section 6109.
            (6) Eligible country.--The term ``eligible country'' means 
        a country described in section 6104.

SEC. 6103. ESTABLISHMENT OF THE FACILITY.

    There is established in the Department of the Treasury an entity to 
be known as the ``Debt-for-Nature Facility'' for the purpose of 
providing for the administration of debt reduction in accordance with 
this subtitle.

SEC. 6104. ELIGIBILITY FOR BENEFITS.

    To be eligible for benefits from the Facility under this subtitle, 
a country shall be a developing country the government of which--
            (1) is democratically elected;
            (2) does not support acts of international terrorism;
            (3) does not engage in a consistent pattern of gross 
        violations of internationally recognized human rights;
            (4) has in effect, has received approval for, or, as 
        appropriate in exceptional circumstances, is making significant 
        progress toward--
                    (A) an International Monetary Fund standby 
                arrangement, extended International Monetary Fund 
                arrangement, or an arrangement under the structural 
                adjustment facility or enhanced structural adjustment 
                facility, or in exceptional circumstances, an 
                International Monetary Fund-monitored program or its 
                equivalent, unless the President determines that such 
                an arrangement or program (or its equivalent) could 
                reasonably be expected to have significant adverse 
                social or environmental effects; and
                    (B) as appropriate, structural or sectoral 
                adjustment loans from the International Bank for 
                Reconstruction and Development or the International 
                Development Association, unless the President 
                determines that the resulting adjustment requirements 
                could reasonably be expected to have significant 
                adverse social or environmental effects; and
            (5) if appropriate, has agreed with its commercial bank 
        lenders on a satisfactory financing program, including, as 
        appropriate, debt or debt service reduction.

SEC. 6105. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND DEBT 
              BUYBACKS.

    (a) Loans and Credits Eligible for Sale, Reduction, or 
Cancellation.--
            (1) Debt-for-nature swaps.--
                    (A) In general.--Notwithstanding any other 
                provision of law, the President may, in accordance with 
                this section, sell to any eligible purchaser described 
                in subparagraph (B) any concessional loans described in 
                section 6106 or any credits described in section 6106, 
                or on receipt of payment from an eligible purchaser 
                described in subparagraph (B), reduce or cancel such 
                loans (or credits) or portion thereof under an 
                Agreement, only for the purpose of facilitating a debt-
                for-nature swap to support eligible activities 
                described in section 6108.
                    (B) Eligible purchaser.--A loan or credit may be 
                sold, reduced, or canceled under subparagraph (A) only 
                to a purchaser who presents plans satisfactory to the 
                President for using the loan or credit for the purpose 
                of engaging in debt-for-nature swaps to support 
                eligible activities described in section 6108.
            (2) Debt buybacks.--Notwithstanding any other provision of 
        law, the President may, in accordance with this section, sell 
        to any eligible country any concessional loans described in 
        section 6106 or any credits described in section 6106, or on 
        receipt of payment from an eligible country, reduce or cancel 
        such loans (or credits) or portion thereof under an Agreement, 
        only for the purpose of facilitating a debt buyback by an 
        eligible country of its own qualified debt, only if the 
        eligible country uses an additional amount of the local 
        currency of the eligible country, equal to not less than the 
        lesser of 40 percent of the price paid for such debt by such 
        eligible country, or the difference between the price paid for 
        such debt and the face value of such debt, to support eligible 
        activities described in section 6108.
            (3) Limitation.--The authority provided by paragraphs (1) 
        and (2) shall be available only to the extent that 
        appropriations for the cost (as defined in section 502(5) of 
        the Federal Credit Reform Act of 1990) of the modification of 
        any debt pursuant to such paragraphs are made in advance.
            (4) Terms and conditions.--Notwithstanding any other 
        provision of law, the President shall, in accordance with this 
        section, establish the terms and conditions under which loans 
        and credits may be sold, reduced, or canceled pursuant to this 
        section.
            (5) Administration.--
                    (A) In general.--When the President determines a 
                purchaser to be an eligible purchaser pursuant to 
                paragraph (1)(B), the Administrator or the Secretary of 
                Agriculture, as the case may be, shall carry out the 
                sale, reduction, or cancellation of a loan pursuant to 
                such paragraph.
                    (B) Additional requirement.--The Administrator or 
                Secretary of Agriculture, as the case may be, shall 
                make an adjustment in its accounts to reflect the sale, 
                reduction, or cancellation.
    (b) Deposit of Proceeds.--The proceeds from the sale, reduction, or 
cancellation of any loan sold, reduced, or canceled pursuant to this 
section shall be deposited in the United States Government account or 
accounts established for the repayment of such loan.

SEC. 6106. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF 
              CONCESSIONAL LOANS OR CREDITS UNDER THIS ACT AND CERTAIN 
              OTHER PROVISIONS OF LAW.

    (a) Authority To Reduce Debt.--
            (1) Authority.--The President may reduce the amount owed to 
        the United States (or any Federal agency) that is outstanding 
        as of the date of the enactment of this Act as a result of 
        concessional loans or credits made to an eligible country by 
        the United States under this Act, the Foreign Assistance Act of 
        1961 (as such Act was in effect on the day before the date of 
        the enactment of this Act), title I of the Agricultural Trade 
        Development and Assistance Act of 1954 (7 U.S.C. 1701 et seq.), 
        or predecessor foreign economic assistance legislation.
            (2) Certain prohibitions inapplicable.--A reduction of debt 
        pursuant to this section shall not be considered foreign 
        assistance for purposes of any provision of law limiting 
        assistance to a country.
    (b) Implementation of Debt Reduction.--
            (1) In general.--Any debt reduction pursuant to subsection 
        (a) shall be accomplished at the direction of the Facility 
        under an Agreement by the exchange of a new obligation for 
        obligations of the type referred to in subsection (a) 
        outstanding as of the date specified in subsection (a)(1).
            (2) Exchange of obligations.--
                    (A) In general.--The Facility shall notify the 
                Administrator or the Secretary of Agriculture of an 
                agreement entered into under paragraph (1) with an 
                eligible country to exchange a new obligation for 
                outstanding obligations.
                    (B) Additional requirement.--At the direction of 
                the Facility, the old obligations that are the subject 
                of the Agreement shall be canceled and a new debt 
                obligation for the country shall be established 
                relating to the Agreement, and the Administrator or the 
                Secretary of Agriculture, as the case may be, shall 
                make an adjustment in the respective agency's accounts 
                to reflect the debt reduction.
    (c) Additional Terms and Conditions.--
            (1) Repayment of principal.--The principal amount of each 
        new obligation issued pursuant to subsection (b) shall be 
        repaid in United States dollars.
            (2) Deposit of payments.--Principal repayments of new 
        obligations shall be deposited in the United States Government 
        account established for principal repayments of the obligations 
        for which those obligations were exchanged.
    (d) Interest.--Principal repayments of new obligations shall be 
deposited in the United States Government account established for 
principal repayments of the obligations for which those obligations 
were exchanged.
            (1) Rate of interest.--Each new obligation issued by a 
        partner country pursuant to subsection (b) shall bear interest 
        at a concessional rate.
            (2) Currency of interest payment; deposits.--
                    (A) Local currency.--If the partner country has 
                entered into a Debt-for-Nature Agreement, interest 
                shall be paid in the local currency of the partner 
                country and deposited in the Debt-for-Nature Fund of 
                such country. Such interest shall be the property of 
                the partner country, until such time as it is disbursed 
                pursuant to section 6109(b)(3). Such local currencies 
                shall be used for the purposes specified in the 
                Agreement.
                    (B) United states dollars.--If the partner country 
                has not entered into a Debt-for-Nature Agreement, 
                interest shall be paid in United States dollars and 
                deposited in the United States Government account 
                established for interest payments of the obligations 
                for which the new obligations were exchanged.
            (3) Interest already paid.--If a partner country enters 
        into a Debt-for-Nature Agreement subsequent to the date on 
        which interest first became due on the newly issued obligation, 
        any interest already paid on such new obligation shall not be 
        redeposited into the Debt-for-Nature Fund established for that 
        country.

SEC. 6107. DEBT-FOR-NATURE AGREEMENT.

    (a) Authority.--The President is authorized to enter into a Debt-
for-Nature Agreement with any eligible country concerning the operation 
and use of the Debt-for-Nature Fund for the country.
    (b) Contents of Agreement.--An Agreement with an eligible country 
shall--
            (1) require--
                    (A) the establishment of a Fund for the country; or
                    (B) in the case of a country with respect to which 
                a fund has been established under part IV (relating to 
                Enterprise for the Americas Initiative) or part V 
                (relating to debt reduction for developing countries 
                with tropical forests) of the Foreign Assistance Act of 
                1961 (as such Act was in effect on the day before the 
                date of the enactment of this Act), the continued 
                utilization of such fund;
            (2) require the country to make prompt disbursements from 
        the Fund to the administering body described in subsection (c);
            (3) when appropriate, seek to maintain the value of the 
        local currency resources of the Fund in terms of United States 
        dollars;
            (4) contain reasonable provisions for the enforcement of 
        the terms of the Agreement; and
            (5) establish criteria and priorities guiding the 
        disbursement of grants consistent with the eligible activities 
        in section 6108.
    (c) Administering Body.--
            (1) In general.--Amounts disbursed from the Fund in each 
        partner country shall be administered by a body constituted 
        under the laws of that country.
            (2) Composition.--
                    (A) In general.--The administering body shall 
                consist of--
                            (i) one or more individuals appointed by 
                        the United States Government;
                            (ii) one or more individuals appointed by 
                        the government of the partner country; and
                            (iii) individuals who represent a broad 
                        range of--
                                    (I) environmental nongovernmental 
                                organizations of, or active in, the 
                                partner country;
                                    (II) local community development 
                                nongovernmental organizations of the 
                                partner country; and
                                    (III) scientific, academic, or 
                                institutions of the partner country.
                    (B) Additional requirement.--A majority of the 
                members of the administering body shall be individuals 
                described in subparagraph (A)(iii).
            (3) Responsibilities.--The administering body shall--
                    (A) receive proposals for grant assistance from 
                eligible grant recipients (as determined under 
                subsection (d)) and make grants to eligible grant 
                recipients in accordance with the priorities agreed 
                upon in the Agreement, consistent with section 6108;
                    (B) be responsible for the management of the 
                program and oversight of grant activities funded from 
                resources of the Fund;
                    (C) consult with local communities on the planning, 
                development, and implementation of plans, programs, and 
                activities associated with the disbursements of grants;
                    (D) be subject, on an annual basis, to an audit of 
                financial statements conducted in accordance with 
                generally accepted auditing standards by an independent 
                auditor;
                    (E) be required to grant to representatives of the 
                United States Government Accountability Office such 
                access to books and records associated with operations 
                of the Fund as the Comptroller General of the United 
                States may request; and
                    (F) present an annual plan on activities for the 
                upcoming year for review and an annual report on the 
                activities the administering body undertook during the 
                previous year to the Secretary of State, the Secretary 
                of the Treasury, the Administrator, the government of 
                the partner country, and, if appropriate, the 
                nongovernmental organization.
    (d) Grant Recipients.--
            (1) In general.--Grants made from the Fund shall be made 
        to--
                    (A) nongovernmental environmental, forestry, 
                conservation, and indigenous peoples organizations of, 
                or active in, the partner country;
                    (B) other appropriate local or regional entities 
                of, or active in, the partner country; or
                    (C) in exceptional circumstances, the government of 
                the partner country.
            (2) Priority.--In providing grants under paragraph (1), 
        priority shall be given to projects that are run by local 
        nongovernmental organizations and other private entities and 
        that involve local communities in their planning and execution.
    (e) Review of Larger Grants.--Any grant of more than $250,000 from 
a Fund shall be subject to approval by the Government of the United 
States and the government of the partner country.
    (f) Eligibility Criteria.--In the event that a country ceases to 
meet the eligibility requirements set forth in section 6104, then 
grants from the Fund for that country may only be made to 
nongovernmental organizations until such time as the country meets the 
eligibility requirements set forth in section 6104.
    (g) Use of Funds To Conduct Program Audits and Evaluation.--Of the 
amounts made available to carry out this subtitle for a fiscal year, up 
to one percent is authorized to be made available to carry out audits, 
evaluations, monitoring, and administration of programs under this 
subtitle, including personnel costs associated with such audits, 
evaluations, monitoring, and administration.
    (h) Congressional Notification.--The President shall notify the 
appropriate congressional committees of the President's intention to 
enter into an Agreement with an eligible country at least 15 days in 
advance of entering into such Agreement.

SEC. 6108. ELIGIBLE ACTIVITIES.

    (a) In General.--Grants made from the Fund shall be used for--
            (1) restoration, conservation, or sustainable use of 
        terrestrial and marine animal and plant species;
            (2) establishment, restoration, protection, and maintenance 
        of parks, protected areas, and reserves;
            (3) development and implementation of scientifically sound 
        systems of natural resource management, including land and 
        water and ecosystem management practices;
            (4) development and implementation of programs to address 
        the effects of climate change on environmental resources;
            (5) training programs to strengthen conservation 
        institutions and increase scientific, technical, and managerial 
        capabilities of local individuals and organizations involved in 
        conservation efforts; or
            (6) research and identification of medicinal uses of plant 
        life to treat human diseases, illnesses, and health related 
        concerns.
    (b) Prioritizing Activities.--In cooperation with the partner 
country and nongovernmental organizations, the President shall seek to 
identify those areas, which because of an imminent threat, are in 
particular need of immediate attention to prevent the loss of unique 
biological life or valuable ecosystem.

SEC. 6109. DEBT-FOR-NATURE FUND.

    (a) Establishment.--Each partner country that enters into a Debt-
for-Nature Agreement under section 6107 shall be required to establish 
a Debt-for-Nature Fund to receive payments of interest and principal on 
new obligations undertaken by the partner country under this subtitle.
    (b) Requirements Relating to Operation of Fund.--The following 
terms and conditions shall apply to the Fund:
            (1) Deposits.--Local currencies deposited in the Fund shall 
        not be considered foreign assistance for purposes of any 
        provision of law limiting assistance to a country.
            (2) Investment.--Deposits made in the Fund shall be 
        invested until disbursed. Any return on such investment may be 
        retained by the Fund, without deposit in the Treasury of the 
        United States and without further appropriation by Congress.
            (3) Disbursements.--Funds in the Fund shall be disbursed 
        pursuant to a Debt-for-Nature Agreement authorized under 
        section 6107.

SEC. 6110. RESPONSIBILITIES TO THE CONGRESS.

    (a) Consultations With the Congress.--The President shall consult 
with the appropriate congressional committees on a periodic basis to 
review the operation of the Facility under this subtitle and the 
eligibility of countries for benefits from the Facility under this 
subtitle.
    (b) Report to Congress.--Not later than December 31 of each year, 
the President shall prepare and transmit to Congress an annual report 
concerning the operations of the Debt-for-Nature Facility under this 
subtitle for the prior fiscal year. Such report shall include--
            (1) a description of the activities undertaken by such 
        Facility during the previous fiscal year;
            (2) a description of any Agreement entered into under this 
        subtitle;
            (3) a report on Debt-for-Nature Funds that have been 
        established under this subtitle and on the operations of such 
        Funds; and
            (4) a description of any grants that have been provided by 
        administering bodies pursuant to Debt-for-Nature Agreements 
        under this subtitle.

SEC. 6111. GENERAL SAVINGS CLAUSE.

    An agreement in effect on the day before the date of the enactment 
of this Act under part IV (relating to Enterprise for the Americas 
Initiative) or part V (relating to debt reduction for developing 
countries with tropical forests) of the Foreign Assistance Act of 1961 
(as such parts were in effect on the day before the date of the 
enactment of this Act) shall remain in effect subject to the terms and 
conditions under such agreement.

            Subtitle B--Commercial Debt-for-Nature Exchanges

SEC. 6201. COMMERCIAL DEBT-FOR-NATURE EXCHANGE DEFINED.

    For purposes of this subtitle, the term ``commercial debt-for-
nature exchange'' means the cancellation or redemption of the foreign 
debt of the government of a country in exchange for--
            (1) the government's making available local currencies 
        (including through the issuance of bonds) that are used only 
        for eligible projects involving the conservation or protection 
        of the environment in that country (as described in section 
        6203);
            (2) the government's financial resource or policy 
        commitment to take certain specified actions to ensure the 
        restoration, protection, or sustainable use of natural 
        resources within that country; or
            (3) a combination of assets and actions under both 
        paragraphs (1) and (2).

SEC. 6202. AUTHORIZATION FOR COMMERCIAL DEBT EXCHANGES.

    (a) In General.--The Administrator is authorized to provide grants, 
on such terms and conditions as the Administrator may determine, to 
nongovernmental organizations for the purchase on the open market of 
discounted commercial debt of a foreign government of an eligible 
country described in section 6204 which will be canceled or redeemed 
under agreed upon terms with that government as part of a commercial 
debt-for-nature exchange.
    (b) Interest.--Notwithstanding any other provision of law, a 
grantee (or any subgrantee) of the grants referred to in subsection (a) 
may retain, without deposit in the Treasury of the United States and 
without further appropriation by Congress, interest earned on the 
proceeds of any resulting commercial debt-for-nature exchange pending 
the disbursements of such proceeds and interest for approved program 
purposes, which may include the establishment of an endowment, the 
income of which is used for such purposes.

SEC. 6203. ELIGIBLE PROJECTS.

    (a) In General.--The Administrator shall seek to ensure that 
commercial debt-for-nature exchanges under this subtitle support one or 
more of the eligible activities listed in section 6108 by either the 
relevant government, a local private conservation group, or a 
combination thereof.
    (b) Identification of Certain Areas.--In cooperation with 
nongovernmental organizations and the relevant country, the 
Administrator shall seek to identify those areas, which because of an 
imminent threat, are in particular need of immediate attention to 
prevent the loss of unique biological life or valuable ecosystem.

SEC. 6204. ELIGIBLE COUNTRIES.

    In order for a foreign country to be eligible to participate in a 
commercial debt-for-nature exchange under this subtitle the foreign 
country shall be a developing country that--
            (1) meets the requirements of section 6104; and
            (2) the Administrator determines--
                    (A) is fully committed to the long-term viability 
                of the program or project that is to be undertaken 
                through the commercial debt-for-nature exchange;
                    (B) has prepared a long-term plan, or a private 
                conservation group has prepared a long-term plan for 
                the country, which adequately provides for the long-
                term viability of the program or project that is to be 
                undertaken through the commercial debt-for-nature 
                exchange or that such a plan will be prepared in a 
                timely manner; and
                    (C) has a government agency or a local 
                nongovernmental organization, or combination thereof, 
                with the capability, commitment, and record of 
                environmental concern to oversee the long-term 
                viability of the program or project that is to be 
                undertaken through the commercial debt-for-nature 
                exchange.

SEC. 6205. PROHIBITION.

    The United States Government is prohibited from accepting title or 
interest in any land in a foreign country as a condition on the 
commercial debt-for-nature exchange.

      TITLE VII--EXPANDING PROSPERITY THROUGH TRADE AND INVESTMENT

SEC. 7001. FINDINGS.

    Congress finds the following:
            (1) Fostering economic growth is essential to sustaining 
        the impact of United States development assistance.
            (2) United States development assistance must be 
        supplemented by developmentally beneficial private investment, 
        which can be stimulated by United States-sponsored programs.
            (3) Attracting and retaining private investment requires 
        improvements in the investment climate of developing countries, 
        which require United States technical assistance.
            (4) Increasing exports is necessary for sustained economic 
        growth in most developing countries, because domestic 
        consumption is usually inadequate to stimulate and sustain 
        increases in gross domestic product, employment, and personal 
        income.
            (5) For most developing countries, receipt of additional 
        loans would be counterproductive, exacerbating existing high 
        debt levels that consume scarce domestic financial resources.

SEC. 7002. AUTHORITY FOR COORDINATION.

    (a) Identification of Priority Countries.--In preparing the United 
States Strategy for Global Development under section 1017, the 
Interagency Policy Committee on Global Development shall identify a 
list of priority countries which would substantially benefit from 
United States programs to stimulate private investment flows and to 
provide technical assistance to attract and sustain such investment, 
taking into account each country's--
            (1) high-level political leadership and commitment to 
        development progress;
            (2) potential for rapid and sustained economic growth; and
            (3) importance to United States national interests and 
        development goals.
    (b) Joint Country Action Plan.--For each country identified as a 
priority country under subsection (a), the Interagency Policy Committee 
on Global Development shall--
            (1) undertake a rigorous joint analysis of constraints to 
        growth, in partnership with the priority country and in 
        consultation with the United States, international, and local 
        private sectors, the donor community, civil society 
        organizations, and relevant experts;
            (2) develop a joint country action plan that outlines 
        potential tools, reforms, technical assistance, and resources 
        that can be applied over the next five years to address the 
        highest-priority constraints to growth;
            (3) coordinate and integrate the joint country action plan 
        with Country Development Cooperation Strategies and related 
        policies and programs; and
            (4) establish high-level mutual accountability for 
        implementation, including through transparency and fact-based 
        monitoring and evaluation.
    (c) Direction of Resources.--The Interagency Policy Committee on 
Global Development may direct the resources of the Department of State, 
the United States Agency for International Development, the Overseas 
Private Investment Corporation, the Trade and Development Agency, and 
the Millennium Challenge Corporation to be made available to carry out 
the country plan.

          Subtitle A--Overseas Private Investment Corporation

SEC. 7101. CREATION AND PURPOSE.

    (a) Creation.--There is established the Overseas Private Investment 
Corporation (in this subtitle referred to as the ``Corporation''), 
which shall be an agency of the United States under the policy guidance 
of the Secretary of State and the Interagency Policy Committee on 
Global Development.
    (b) Purpose.--
            (1) In general.--The primary purpose of the Corporation 
        shall be to mobilize and facilitate the participation of United 
        States private capital in the economic and social development 
        of less developed countries, thereby complementing the foreign 
        policy and development assistance objectives of the United 
        States.
            (2) Responsibilities.--In carrying out its purpose, the 
        Corporation shall undertake--
                    (A) to conduct financing, insurance, and 
                reinsurance operations on a self-sustaining basis, 
                taking into account in its financing operations the 
                economic and financial soundness of projects;
                    (B) to use private credit and investment 
                institutions and the Corporation's guaranty authority 
                as the principal means of mobilizing capital investment 
                funds;
                    (C) to broaden private participation and revolve 
                its funds through selling its direct loans to private 
                investors whenever it can appropriately do so on 
                satisfactory terms;
                    (D) to conduct its insurance operations with due 
                regard to principles of risk management, including 
                efforts to share its insurance risks and reinsurance 
                risks;
                    (E) to support the expansion of private enterprise 
                and market-based economies;
                    (F) to conduct its activities in coordination with 
                the Interagency Policy Committee on Global Development, 
                so as to carry out the foreign policy and development 
                strategy of the United States; and
                    (G) to advise and assist agencies of the United 
                States and other organizations, both public and 
                private, national and international, with respect to 
                projects and programs relating to the development of 
                private enterprise in less developed countries.

SEC. 7102. PROHIBITIONS AND RESTRICTIONS.

    (a) Prohibitions.--The Corporation shall--
            (1) decline to issue any contract of insurance or 
        reinsurance, or any guaranty, or to enter into any agreement to 
        provide financing for a proposed investment, if the Corporation 
        determines that such investment is likely to cause a reduction 
        in the employment of United States persons;
            (2) decline to insure, reinsure, guarantee, or finance any 
        investment that would reduce exports of goods or services of 
        United States origin or otherwise negatively affect the balance 
        of trade of the United States;
            (3) decline to insure, reinsure, guarantee, or finance any 
        investment in connection with a project that the Corporation 
        determines will negatively affect the environment, or cause a 
        health or safety hazard; and
            (4) decline to insure, reinsure, guarantee, or finance any 
        investment in connection with a project that the Corporation 
        determines will negatively affect the human rights, employment, 
        living standard, social welfare, or culture of any persons in 
        the country where the project is to be located.
    (b) Worker Rights.--
            (1) Protection of worker rights.--The Corporation may 
        insure, reinsure, guarantee, or finance a project only if the 
        country in which the project is to be undertaken is taking 
        steps to adopt and implement laws that extend internationally 
        recognized worker rights, as defined in section 507(4) of the 
        Trade Act of 1974, to workers in that country (including any 
        designated zone in that country). The Corporation shall also 
        include the following language, in substantially the following 
        form, in all contracts that the Corporation enters into with 
        eligible investors to provide financial support under this 
        subtitle:
            ``The investor and all parties involved in the project 
        agree to protect the right of employees of the foreign 
        enterprise to exercise their right of association and their 
        right to organize and bargain collectively. The investor and 
        all parties involved in the project further agree to comply 
        with core labor standards of the International Labor 
        Organization and United Nations declarations on workers and 
        worker rights relating to a minimum age for employment of 
        children, acceptable conditions of work with respect to minimum 
        wages, hours of work, and occupational health and safety, and a 
        prohibition on the use of forced labor.''.
            (2) Use of annual reports on workers rights.--The 
        Corporation shall, in making its determinations under paragraph 
        (1), use the reports submitted to the Congress pursuant to 
        section 504 of the Trade Act of 1974.
            (3) Waiver.--Paragraph (1) shall not prohibit the 
        Corporation from providing any insurance, reinsurance, 
        guaranty, or financing with respect to a country if the 
        President determines that such activities by the Corporation 
        would be in the national economic or foreign policy interests 
        of the United States. Any such determination shall be reported 
        in writing to the Congress, together with the reasons for the 
        determination.
    (c) Environmental Impact.--
            (1) In general.--The Board of Directors of the Corporation 
        shall not consider or approve any action proposed to be taken 
        by the Corporation that is likely to have adverse environmental 
        impacts, unless for a period of at least 60 days before the 
        date of the vote--
                    (A) an environmental impact assessment, or initial 
                environmental audit, analyzing the environmental 
                impacts of the proposed action and of alternatives to 
                the proposed action has been completed by the project 
                applicant and made available to the Board of Directors; 
                and
                    (B) such assessment or audit has been made 
                available to the public of the United States, locally 
                affected groups in the host country, and host country 
                nongovernmental organizations.
            (2) Compliance with extractive industries transparency 
        initiative.--The Board of Directors shall ensure that the 
        projects for which the Corporation provides insurance, 
        reinsurance, a guaranty, or financing are in compliance with 
        the Extractive Industries Transparency Initiative, or any 
        successor international standard.

SEC. 7103. CAPITAL OF THE CORPORATION.

    The capital stock of the Corporation issued before the date of the 
enactment of this Act and held by the Secretary of the Treasury as of 
such date of enactment shall continue to be the capital stock of the 
Corporation on and after such date of enactment.

SEC. 7104. ORGANIZATION AND MANAGEMENT.

    (a) Structure of the Corporation.--The Corporation shall have a 
Board of Directors, a President, an Executive Vice President, and such 
other officers and staff as the Board of Directors may determine.
    (b) Board of Directors.--
            (1) In general.--All powers of the Corporation shall vest 
        in and be exercised by or under the authority of its Board of 
        Directors (hereinafter in this subtitle referred to as the 
        ``Board''), which shall consist of 15 Directors, including the 
        Chairman, with 8 Directors constituting a quorum for the 
        transaction of business.
            (2) Membership.--
                    (A) Presidential appointees.--Eight Directors shall 
                be appointed by the President of the United States, by 
                and with the advice and consent of the Senate, and may 
                not be officers or employees of the United States 
                Government. Two of the 8 Directors appointed under the 
                preceding sentence shall be experienced in 
                international development, 2 shall be experienced in 
                international labor and human rights, 2 shall be 
                experienced in environmental protection, and 2 shall be 
                experienced in insurance and international finance. 
                Each such Director shall be appointed for a term of not 
                more than 3 years. The terms of not more than 3 such 
                Directors may expire in any one year. Such Directors 
                shall serve until their successors are appointed and 
                qualified, and may be reappointed.
                    (B) Officers of the government.--The remaining 
                Directors shall be principal officers of the United 
                States Government, including the President of the 
                Corporation, the Administrator of the Agency for 
                International Development, and one such officer of the 
                Department of State, the Department of the Treasury, 
                the Environmental Protection Agency, the Department of 
                Labor, and the Department of Commerce, who are 
                designated by and serve at the pleasure of the 
                President of the United States.
            (3) Chair and vice chair.--There shall be a Chair and a 
        Vice Chair of the Board, both of whom shall be designated by 
        the President of the United States from among the Directors of 
        the Board designated under paragraph (2)(B).
            (4) Compensation.--All Directors who are not officers of 
        the Corporation or officers of the United States Government 
        shall be compensated at a rate equivalent to that of level IV 
        of the Executive Schedule under section 5315 of title 5, United 
        States Code, when actually engaged in the business of the 
        Corporation, and may be paid per diem in lieu of subsistence at 
        the applicable rate prescribed in the standardized Government 
        travel regulations, while away from their homes or usual places 
        of business.
    (c) President of the Corporation.--The President of the Corporation 
shall be appointed by the President of the United States, by and with 
the advice and consent of the Senate, and shall serve at the pleasure 
of the President. The President of the Corporation shall be its Chief 
Executive Officer and shall be responsible for the operations and 
management of the Corporation, subject to bylaws and policies 
established by the Board.
    (d) Officers and Staff.--
            (1) In general.--The Executive Vice President of the 
        Corporation shall be appointed by the President of the United 
        States, by and with the advice and consent of the Senate, and 
        shall serve at the pleasure of the President. Other officers, 
        attorneys, employees, and agents shall be selected and 
        appointed by the Corporation, and shall be vested with such 
        powers and duties as the Corporation may determine.
            (2) Applicability of civil service laws.--Of the persons 
        employed by the Corporation under paragraph (1), not more than 
        20 may be appointed, compensated, or removed without regard to 
        the civil service laws and regulations, except that under such 
        regulations as the President of the United States may 
        prescribe, officers and employees of the United States 
        Government who are appointed to any of such positions may be 
        entitled, upon removal from such position, except for cause, to 
        reinstatement to the position occupied at the time of 
        appointment or to a position of comparable grade and salary. 
        Such positions shall be in addition to those otherwise 
        authorized by law, including those authorized by section 5108 
        of title 5, United States Code.
    (e) Inspector General.--The Board shall appoint and maintain an 
Inspector General in the Corporation, in accordance with the Inspector 
General Act of 1978 (5 U.S.C. App.).

SEC. 7105. INVESTMENT INSURANCE AND OTHER PROGRAMS.

    (a) Investment Insurance.--
            (1) In general.--The Corporation may issue insurance, upon 
        such terms and conditions as the Corporation may determine, to 
        eligible investors, assuring protection in whole or in part 
        against any or all of the following risks with respect to 
        projects which the Corporation has approved:
                    (A) Inability to convert into United States dollars 
                other currencies, or credits in such currencies, 
                received as earnings or profits from the approved 
                project, as repayment or return of the investment 
                therein, in whole or in part, or as compensation for 
                the sale or disposition of all or any part thereof.
                    (B) Loss of investment, in whole or in part, in the 
                approved project due to expropriation or confiscation 
                by action of a foreign government or any political 
                subdivision thereof.
                    (C) Loss due to war, revolution, insurrection, or 
                civil strife.
                    (D) Loss due to business interruption caused by any 
                of the risks set forth in subparagraphs (A), (B), and 
                (C).
            (2) Shared liabilities.--Recognizing that major private 
        investments in less developed friendly countries or areas are 
        often made by enterprises in which there is multinational 
        participation, including significant United States private 
        participation, the Corporation may make arrangements with 
        foreign governments (including agencies, instrumentalities, or 
        political subdivisions thereof) or with multilateral 
        organizations and institutions for sharing liabilities assumed 
        under investment insurance for such investments and may in 
        connection therewith issue insurance to investors that do not 
        otherwise qualify as eligible investors, except that--
                    (A) liabilities assumed by the Corporation under 
                the authority of this paragraph shall be consistent 
                with the purposes of this subtitle; and
                    (B) the maximum share of liabilities so assumed may 
                not exceed the proportionate participation by eligible 
                investors in the project.
            (3) Limitation on single investors.--Not more than 10 
        percent of the maximum contingent liability of investment 
        insurance that the Corporation is permitted to have outstanding 
        under section 7106(a)(1) may be issued to a single investor.
            (4) Reports to congress on certain risks.--Before issuing 
        insurance for the first time for loss due to business 
        interruption, and in each subsequent instance in which a 
        significant expansion is proposed in the type of risk to be 
        insured under the definition of ``civil strife'' or ``business 
        interruption'', the Corporation shall, at least 60 days before 
        such insurance is issued, submit to the Committee on Foreign 
        Relations of the Senate and the Committee on Foreign Affairs of 
        the House of Representatives a report with respect to such 
        insurance, including a thorough analysis of the risks to be 
        covered, anticipated losses, and proposed rates and reserves 
        and, in the case of insurance for loss due to business 
        interruption, an explanation of the underwriting basis upon 
        which the insurance is to be offered. Any such report with 
        respect to insurance for loss due to business interruption 
        shall be considered in accordance with the procedures 
        applicable to reprogramming notifications pursuant to section 
        9401 of this Act.
    (b) Investment Guaranties.--The Corporation may issue to eligible 
investors guaranties of loans and other investments made by such 
investors assuring against loss due to such risks and upon such terms 
and conditions as the Corporation may determine, subject to the 
following:
            (1) Such guaranties on other than loan investments may not 
        exceed 75 percent of such investment.
            (2) Except for loan investments for credit unions made by 
        eligible credit unions or credit union associations, the 
        aggregate amount of investment (exclusive of interest and 
        earnings) so guaranteed with respect to any project may not 
        exceed, at the time of issuance of any such guaranty, 75 
        percent of the total investment committed to any such project 
        as determined by the Corporation, such determination to be 
        conclusive for purposes of the Corporation's authority to issue 
        any such guaranty.
            (3) Not more than 15 percent of the maximum contingent 
        liability of investment guaranties that the Corporation is 
        permitted to have outstanding under section 7106(a)(1) may be 
        issued to a single investor.
    (c) Direct Loans.--
            (1) Authority.--The Corporation may make loans in United 
        States dollars repayable in dollars or loans in foreign 
        currencies (including, without regard to section 1306 of title 
        31, United States Code, such foreign currencies that the 
        Secretary of the Treasury may determine to be excess to the 
        normal requirements of the United States and the Director of 
        the Office of Management and Budget may allocate) to firms 
        privately owned or of mixed private and public ownership, upon 
        such terms and conditions as the Corporation may determine.
            (2) Portion of loan for technologies and projects in the 
        united states.--The Corporation may designate up to 25 percent 
        of any loan under this subsection for use in the development or 
        adaptation in the United States of new technologies or new 
        products or services that are to be used in the project for 
        which the loan is made and are likely to contribute to the 
        economic or social development of less developed countries.
            (3) Restriction on extraction of oil, gas, and minerals.--
        No loan may be made under this subsection to finance any 
        operation for the extraction of oil or gas. The aggregate 
        amount of loans under this subsection to finance operations for 
        the mining or other extraction of any deposit of ore or other 
        nonfuel minerals may not in any fiscal year exceed $4,000,000.
    (d) Investment Encouragement.--The Corporation may initiate and 
support through financial participation, incentive grant, or otherwise, 
and on such terms and conditions as the Corporation may determine, the 
identification, assessment, surveying, and promotion of private 
investment opportunities, using wherever feasible and effective the 
facilities of private investors, except that--
            (1) the Corporation may not finance any survey to ascertain 
        the existence, location, extent, or quality of, or to determine 
        the feasibility of undertaking operations for the extraction 
        of, oil or gas; and
            (2) expenditures financed by the Corporation during any 
        fiscal year on surveys to ascertain the existence, location, 
        extent, or quality of, or to determine the feasibility of 
        undertaking operations for the extraction of, nonfuel minerals 
        may not exceed $200,000.
    (e) Special Activities.--The Corporation may administer and manage 
special projects and programs, including programs of financial and 
advisory support that provide private technical, professional, or 
managerial assistance in the development of human resources, skills, 
technology, capital savings, and intermediate financial and investment 
institutions and cooperatives and including the initiation of 
incentives, grants, and studies for renewable energy and other small 
business activities. The funds for such projects and programs may, with 
the Corporation's concurrence, be transferred to it for such purposes 
under the authority of section 11505(a) or from other sources, public 
or private. Administrative funds may not be made available for 
incentives, grants, and studies for renewable energy and other small 
business activities.
    (f) Other Insurance Functions.--
            (1) Reinsurance, etc.--The Corporation may make and carry 
        out contracts of insurance or reinsurance, or agreements to 
        associate or share risks, with insurance companies, financial 
        institutions, any other persons, or groups thereof, and 
        employing such companies, institutions, persons, or groups 
        where appropriate, as its agent, or acting as their agent, in 
        the issuance and servicing of insurance, the adjustment of 
        claims, the exercise of subrogation rights, the ceding and 
        accepting of reinsurance, and in any other matter incident to 
        an insurance business, except that such agreements and 
        contracts shall be consistent with the purposes of the 
        Corporation set forth in section 7101 and shall be on equitable 
        terms.
            (2) Risk sharing.--The Corporation may enter into pooling 
        or other risk-sharing agreements with multinational insurance 
        or financing agencies or groups of such agencies.
            (3) Holding ownership interests.--The Corporation may hold 
        an ownership interest in any association or other entity 
        established for the purposes of sharing risks under investment 
        insurance.
            (4) Reinsurance of certain liabilities.--The Corporation 
        may issue, upon such terms and conditions as it may determine, 
        reinsurance of liabilities assumed by other insurers or groups 
        thereof with respect to risks referred to in subsection (a)(1).
            (5) Limit on reinsurance.--The amount of reinsurance of 
        liabilities under this subtitle that the Corporation may issue 
        may not in the aggregate exceed at any one time an amount equal 
        to the amount authorized for the maximum contingent liability 
        outstanding at any one time under section 7106(a)(1). All 
        reinsurance issued by the Corporation under this subsection 
        shall require that the reinsured party retain for that party's 
        own account specified portions of liability, whether first loss 
        or otherwise.
    (g) Local Currency Guaranties for Eligible Investors.--The 
Corporation may issue to eligible investors, or to local financial 
institutions, guaranties, denominated in currencies other than United 
States dollars, of loans and other investments made to projects 
sponsored by or significantly involving eligible investors, assuring 
against loss due to such risks and upon such terms and conditions as 
the Corporation may determine, for projects that the Corporation 
determines to have significant developmental effects or as the 
Corporation determines to be necessary or appropriate to carry out the 
purposes of this subtitle.
    (h) Public Hearings.--
            (1) Annual public hearings.--The Board shall hold at least 
        one public hearing each year in order to afford an opportunity 
        for any person to present views as to whether the Corporation 
        is carrying out its activities in accordance with section 7101 
        and this section or whether any investment in a particular 
        country should have been or should be extended insurance, 
        reinsurance, guaranties, or financing under this subtitle.
            (2) Hearings in connection with board meetings.--In 
        conjunction with each meeting of its Board, the Corporation 
        shall hold a public hearing in order to afford an opportunity 
        for any person to present views regarding the activities of the 
        Corporation. Such views shall be made part of the record.

SEC. 7106. ISSUING AUTHORITY; DIRECT LOAN AUTHORITY; DISCHARGE OF 
              LIABILITIES.

    (a) Issuing Authority.--
            (1) Maximum contingent liability.--The maximum contingent 
        liability outstanding at any one time pursuant to insurance 
        issued under section 7105(a), and the amount of financing 
        issued under subsections (b) and (c) of section 7105, may not 
        exceed in the aggregate $50,000,000,000.
            (2) Payment of subsidy and administrative costs.--Subject 
        to spending authority provided in appropriations Acts pursuant 
        to section 504(b) of the Federal Credit Reform Act of 1990, the 
        Corporation may transfer such sums as are necessary from its 
        noncredit activities to pay for the subsidy and administrative 
        costs of the investment guaranties and direct loan programs 
        under subsections (b) and (c) of section 7105.
    (b) Noncredit Account Revolving Fund.--There is established in the 
Treasury of the United States a noncredit account revolving fund, which 
shall be available for discharge of liabilities, as provided in 
subsection (c), until such time as all such liabilities have been 
discharged or have expired or until all of the fund has been expended 
in accordance with the provisions of this section. Such fund shall be 
funded by--
            (1) the funds remaining, on the day before the date of the 
        enactment of this Act, in the noncredit account revolving fund 
        established under section 235(c) of the Foreign Assistance Act 
        of 1961;
            (2) such sums as are appropriated pursuant to subsection 
        (d) for such purpose; and
            (3) additional amounts as may be transferred to such fund 
        pursuant to section 7107.
    (c) Order of Payments To Discharge Liabilities.--Any payment made 
to discharge liabilities under investment insurance or reinsurance 
issued under section 7105 or under similar predecessor guaranty 
authority, shall be paid first out of the noncredit account revolving 
fund, as long as such fund remains available, and thereafter out of 
funds made available pursuant to subsection (d) of this section. Any 
payments made to discharge liabilities under guaranties issued under 
subsection (b) or (c) of section 7105 shall be paid in accordance with 
the Federal Credit Reform Act of 1990.
    (d) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Corporation, to remain available until expended, such 
        amounts as may be necessary from time to time to replenish or 
        increase the noncredit account revolving fund, to discharge the 
        liabilities under insurance, reinsurance, or guaranties issued 
        by the Corporation or issued under predecessor guaranty 
        authority, or to discharge obligations of the Corporation 
        purchased by the Secretary of the Treasury pursuant to this 
        subsection.
            (2) Limitation on appropriations.--No appropriations may be 
        made to augment the noncredit account revolving fund until the 
        amount of funds in the noncredit account revolving fund is less 
        than $25,000,000. Any appropriations to augment the noncredit 
        account revolving fund shall then only be made either pursuant 
        to specific authorization enacted after the date of the 
        enactment of this Act, or to satisfy the full faith and credit 
        provision of section 7108(c).
            (3) Issuance of treasury instruments.--In order to 
        discharge liabilities under investment insurance or 
        reinsurance, the Corporation may issue from time to time for 
        purchase by the Secretary of the Treasury its notes, 
        debentures, bonds, or other obligations, except that the 
        aggregate amount of such obligations outstanding at any one 
        time may not exceed $100,000,000. Any such obligation shall be 
        repaid to the Treasury within one year after the date of issue 
        of such obligation. Any such obligation shall bear interest at 
        a rate determined by the Secretary of the Treasury, taking into 
        consideration the current average market yield on outstanding 
        marketable obligations of the United States of comparable 
        maturities during the month preceding the issuance of the 
        obligation. The Secretary of the Treasury shall purchase any 
        obligation of the Corporation issued under this subsection, and 
        for such purchase the Secretary may use as a public debt 
        transaction the proceeds of the sale of any securities issued 
        under chapter 31 of title 31, United States Code (or the Second 
        Liberty Bond Act), after the date of the enactment of the 
        Overseas Private Investment Corporation Amendments Act of 1974. 
        The purpose for which securities may be issued under such 
        chapter shall include any such purchase.

SEC. 7107. INCOME AND REVENUES.

    In order to carry out the purposes of the Corporation, all revenues 
and income transferred to or earned by the Corporation, from whatever 
source derived, shall be held by the Corporation and shall be available 
to carry out its purposes, including without limitation--
            (1) payment of all expenses of the Corporation, including 
        investment promotion expenses;
            (2) transfers and additions to the insurance or guaranty 
        reserves, noncredit account revolving fund, and such other 
        funds or reserves as the Corporation may establish, at such 
        time and in such amounts as the Board may determine; and
            (3) payment of dividends, on capital stock, which shall 
        consist of and be paid from net earnings of the Corporation 
        after payments, transfers, and additions under paragraphs (1) 
        and (2).

SEC. 7108. GENERAL PROVISIONS RELATING TO INSURANCE, GUARANTY, AND 
              FINANCING PROGRAM.

    (a) Agreement With Host Country.--Insurance, guaranties, and 
reinsurance issued under this subtitle shall cover investment made in 
connection with projects in any less developed country with the 
government to which the President of the United States has agreed to 
institute a program for insurance, guaranties, or reinsurance.
    (b) Protection of Interests of Corporation.--The Corporation shall 
determine that suitable arrangements exist for protecting the interest 
of the Corporation in connection with any insurance, guaranty, or 
reinsurance issued under this subtitle, including arrangements 
concerning ownership, use, and disposition of the currency, credits, 
assets, or investments on account of which payment under such 
insurance, guaranty, or reinsurance is to be made, and right, title, 
claim, or cause of action existing in connection therewith.
    (c) Full Faith and Credit of the United States.--All insurance, 
reinsurance, and guaranties issued under this subtitle or predecessor 
guaranty authority shall constitute obligations, in accordance with the 
terms of such insurance, reinsurance, or guaranties, of the United 
States of America and the full faith and credit of the United States of 
America is hereby pledged for the full payment and performance of such 
obligations.
    (d) Fees.--
            (1) In general.--Fees may be charged for providing 
        insurance, reinsurance, guaranties, financing, and other 
        services under this subtitle in amounts to be determined by the 
        Corporation. In the event fees charged for insurance, 
        reinsurance, guaranties, financing, or other services are 
        reduced, fees to be paid under existing contracts for the same 
        type of insurance, reinsurance, guaranties, financing, or 
        services and for similar guaranties issued under predecessor 
        guaranty authority may be reduced.
            (2) Credit transaction costs.--Project-specific transaction 
        costs incurred by the Corporation relating to loan obligations 
        or loan guaranty commitments covered by the provisions of the 
        Federal Credit Reform Act of 1990, including the costs of 
        project-related travel and expenses for legal representation 
        provided by persons outside the Corporation and other similar 
        expenses that are charged to the borrower, shall be paid out of 
        the appropriate finance account established pursuant to section 
        505(b) of that Act.
            (3) Noncredit transaction costs.--Fees paid for the 
        project-specific transaction costs and other direct costs 
        associated with services provided to specific investors or 
        potential investors pursuant to section 7105 (other than those 
        covered in paragraph (2)), including financing, insurance, 
        reinsurance, missions, seminars, conferences, and other 
        preinvestment services, shall be available for obligation for 
        the purposes for which they were collected, notwithstanding any 
        other provision of law.
    (e) Limitation on Term of Assistance.--No insurance, guaranty, or 
reinsurance of any equity investment may extend beyond 20 years from 
the date of issuance.
    (f) Limitation on Compensation.--
            (1) In general.--Compensation for any insurance, 
        reinsurance, or guaranty issued under this subtitle may not 
        exceed the dollar value, as of the date of the investment, of 
        the investment made in the project with the approval of the 
        Corporation, plus interest, earnings, or profits actually 
        accrued on such investment to the extent provided by such 
        insurance, reinsurance, or guaranties, except that the 
        Corporation may provide that--
                    (A) appropriate adjustments in the insured dollar 
                value be made to reflect the replacement cost of 
                project assets;
                    (B) compensation for a claim of loss under 
                insurance of an equity investment may be computed on 
                the basis of the net book value attributable to such 
                equity investment on the date of loss; and
                    (C) compensation for loss due to business 
                interruption may be computed on a basis to be 
                determined by the Corporation that reflects amounts 
                lost.
            (2) Limitation on risk of loss.--Notwithstanding paragraph 
        (1), the Corporation shall limit the amount of direct insurance 
        and reinsurance issued by it under section 7105 so that risk of 
        loss as to at least 10 percent of the total investment of the 
        insured and its affiliates in the project is borne by the 
        insured and such affiliates, except that limitation shall not 
        apply to direct insurance or reinsurance of loans by banks or 
        other financial institutions to unrelated parties.
    (g) No Payment When Fraud Involved.--No payment may be made under 
any guaranty, insurance, or reinsurance issued under this subtitle for 
any loss arising out of fraud or misrepresentation for which the party 
seeking payment is responsible.
    (h) Limitation on Investment in Foreign Institutions.--Insurance, 
guaranties, or reinsurance issued under this subtitle of a loan or 
equity investment of an eligible investor in a foreign bank, finance 
company, or other credit institution shall extend only to such loan or 
equity investment and not to any individual loan or equity investment 
made by such foreign bank, finance company, or other credit 
institution.
    (i) Settlement of Claims.--Claims arising as a result of insurance, 
reinsurance, or guaranty operations under this subtitle or under 
predecessor guaranty authority may be settled, and disputes arising as 
a result thereof may be arbitrated with the consent of the parties, on 
such terms and conditions as the Corporation may determine. Payment 
made pursuant to any such settlement, or as a result of an arbitration 
award, shall be final and conclusive, notwithstanding any other 
provision of law.
    (j) Presumption of Compliance of Contracts.--Each guaranty contract 
executed by such officer or officers as may be designated by the Board 
shall be conclusively presumed to be issued in compliance with the 
requirements of this subtitle.
    (k) Consideration of Effect on Balance of Payments.--In making a 
determination to issue insurance, guaranties, or reinsurance under this 
subtitle, the Corporation shall consider the possible adverse effect of 
the dollar investment under such insurance, guaranty, or reinsurance 
upon the balance of payments of the United States.
    (l) Violation of Foreign Corrupt Practices Act.--
            (1) In general.--No payment may be made under any insurance 
        or reinsurance that is issued under this subtitle for any loss 
        occurring with respect to a project, if the preponderant cause 
        of such loss was an act by the investor seeking payment under 
        this subtitle, by a person possessing majority ownership and 
        control of the investor at the time of the act, or by any agent 
        of such investor or controlling person, and a court of the 
        United States has entered a final judgment that such act 
        constituted a violation under the Foreign Corrupt Practices Act 
        of 1977 or section 30A of the Securities Exchange Act of 1934.
            (2) Regulations to bar eligibility.--The Corporation shall 
        adopt regulations setting forth appropriate conditions under 
        which any person convicted under the Foreign Corrupt Practices 
        Act of 1977 or section 30A of the Securities Exchange Act of 
        1934 for an offense related to a project insured or otherwise 
        supported by the Corporation shall be suspended, for a period 
        of not more than 5 years, from eligibility to receive any 
        insurance, reinsurance, guaranty, loan, or other financial 
        support authorized by this subtitle.
    (m) Notification of Host Country of Health, Safety, and 
Environmental Standards.--
            (1) Notification.--
                    (A) In general.--Before finally providing 
                insurance, reinsurance, guaranties, or financing under 
                this subtitle for any environmentally sensitive 
                investment in connection with a project in a country, 
                the Corporation shall notify appropriate government 
                officials of that country of--
                            (i) all guidelines and other standards 
                        adopted by the International Bank for 
                        Reconstruction and Development and any other 
                        international organization relating to the 
                        public health or safety or the environment that 
                        are applicable to the project; and
                            (ii) to the maximum extent practicable, any 
                        restriction under any law of the United States 
                        relating to public health or safety or the 
                        environment that would apply to the project if 
                        the project were undertaken in the United 
                        States.
                    (B) Contents of notification.--The notification 
                under the subparagraph (A) shall include a summary of 
                the guidelines, standards, and restrictions referred to 
                in clauses (i) and (ii) of subparagraph (A).
            (2) Consideration of comments.--Before finally providing 
        insurance, reinsurance, guaranties, or financing for any 
        investment subject to paragraph (1), the Corporation shall take 
        into account any comments it receives on the project involved 
        that the Corporation considers relevant to such project.
    (n) Penalties for Fraud.--Whoever knowingly makes any false 
statement or report, or willfully overvalues any land, property, or 
security, for the purpose of influencing in any way the action of the 
Corporation with respect to any insurance, reinsurance, guaranty, loan, 
equity investment, or other activity of the Corporation under section 
7105, or any change or extension of any such insurance, reinsurance, 
guaranty, loan, equity investment, or activity, by renewal, deferment 
of action, or otherwise, or the acceptance, release, or substitution of 
security therefor, shall be fined not more than $1,000,000 or 
imprisoned not more than 30 years, or both.
    (o) Use of Local Currencies.--Direct loans or investments made in 
order to preserve the value of funds received in inconvertible foreign 
currency by the Corporation as a result of activities conducted 
pursuant to section 7105(a) shall not be considered in determining 
whether the Corporation has made or has outstanding loans or 
investments to the extent of any limitation on obligations and equity 
investment imposed by or pursuant to this subtitle. The provisions of 
section 504(b) of the Federal Credit Reform Act of 1990 shall not apply 
to direct loan obligations made with funds described in this 
subsection.

SEC. 7109. GENERAL PROVISIONS AND POWERS.

    (a) Principal Office and Residence.--The Corporation shall have its 
principal office in the District of Columbia and shall be deemed, for 
purposes of venue in civil actions, to be resident thereof.
    (b) Applicability of Title 31 Provisions.--
            (1) In general.--The Corporation shall be subject to the 
        applicable provisions of chapter 91 of title 31, United States 
        Code, except as otherwise provided in this subtitle.
            (2) Audits.--An independent certified public accountant 
        shall perform a financial and compliance audit of the financial 
        statements of the Corporation annually, in accordance with 
        generally accepted Government auditing standards for a 
        financial and compliance audit, as issued by the Comptroller 
        General. The independent certified public accountant shall 
        report the results of such audit to the Board. The financial 
        statements of the Corporation shall be presented in accordance 
        with generally accepted accounting principles. These financial 
        statements and the report of the accountant shall be included 
        in a report that contains, to the extent applicable, the 
        information identified in section 9106 of title 31, United 
        States Code, and that the Corporation shall submit to the 
        Congress not later than 3 months after the end of the last 
        fiscal year covered by the audit. The Comptroller General may 
        review the audit conducted by the accountant and the report to 
        the Congress in the manner and at such times as the Comptroller 
        General considers necessary.
            (3) Audit by gao.--The Comptroller General shall, if the 
        Comptroller General considers it necessary or upon the request 
        of the Congress, audit the financial statements of the 
        Corporation in the manner provided in paragraph (2). The 
        Corporation shall reimburse the Government Accountability 
        Office for the full cost of any audit conducted under this 
        paragraph.
            (4) Availability of opic records.--All books, accounts, 
        financial records, reports, files, workpapers, and property 
        belonging to or in use by the Corporation and the accountant 
        who conducts the audit under paragraph (2), that are necessary 
        for purposes of this subsection, shall be made available to the 
        representatives of the Government Accountability Office.
    (c) General Authorities.--To carry out the purposes of this 
subtitle, the Corporation may--
            (1) adopt and use a corporate seal, which shall be 
        judicially noticed;
            (2) sue and be sued in its corporate name;
            (3) adopt, amend, and repeal bylaws governing the conduct 
        of its business and the performance of the powers and duties 
        granted to or imposed upon it by law;
            (4) acquire, hold, or dispose of, upon such terms and 
        conditions as the Corporation may determine, any property, 
        real, personal, or mixed, tangible or intangible, or any 
        interest therein;
            (5) invest funds derived from fees and other revenues in 
        obligations of the United States and use the proceeds 
        therefrom, including earnings and profits, as it considers 
        appropriate;
            (6) indemnify directors, officers, employees, and agents of 
        the Corporation for liabilities and expenses incurred in 
        connection with their Corporation activities;
            (7) require bonds of officers, employees, and agents and 
        pay the premiums therefor;
            (8) notwithstanding any other provision of law, represent 
        itself or contract for representation in all legal and arbitral 
        proceedings;
            (9) enter into limited-term contracts with nationals of the 
        United States for personal services to carry out activities in 
        the United States and abroad under subsections (d) and (e) of 
        section 7105;
            (10) purchase, discount, rediscount, sell, and negotiate, 
        with or without its endorsement or guaranty, and guarantee 
        notes, participation certificates, and other evidence of 
        indebtedness (except that the Corporation may not issue its own 
        securities, except participation certificates for the purpose 
        of carrying out section 7101(b)(2)(C) or participation 
        certificates as evidence of indebtedness held by the 
        Corporation in connection with settlement of claims under 
        section 7108(i));
            (11) make and carry out such contracts and agreements as 
        are necessary and advisable in the conduct of its business;
            (12) exercise the priority of the United States Government 
        in collecting debts from bankrupt, insolvent, or decedents' 
        estates;
            (13) determine the character of and the necessity for its 
        obligations and expenditures, and the manner in which they 
        shall be incurred, allowed, and paid, subject to provisions of 
        law specifically applicable to Government corporations;
            (14) collect or compromise any obligations assigned to or 
        held by the Corporation, including any legal or equitable 
        rights accruing to the Corporation; and
            (15) take such actions as may be necessary or appropriate 
        to carry out its powers.
    (d) Development Impact Profiles.--In order to carry out the purpose 
set forth in section 7101, the Corporation shall prepare and maintain 
for each investment project it insures, finances, or reinsures, a 
development impact profile consisting of data appropriate to measure 
the projected and actual effects of such project on development. 
Criteria for evaluating projects shall be developed in consultation 
with the United States Agency for International Development.
    (e) Human Rights.--The Corporation shall take into account in the 
conduct of its programs in a country, in consultation with the 
Secretary of State, all available information about observance of and 
respect for human rights and fundamental freedoms in such country and 
the effect the operation of such programs will have on human rights and 
fundamental freedoms in such country.
    (f) Taxation.--The Corporation, including its franchise, capital, 
reserves, surplus, advances, intangible property, and income, shall be 
exempt from all taxation at any time imposed by the United States, by 
any territory, dependency, or possession of the United States, or by 
any State, the District of Columbia, or any county, municipality, or 
local taxing authority.
    (g) Publication of Policy Guidelines.--The Corporation shall 
publish, and make available to applicants for insurance, reinsurance, 
guaranties, financing, or other assistance made available by the 
Corporation under this subtitle, the policy guidelines of the 
Corporation relating to its programs.

SEC. 7110. REPORTS TO THE CONGRESS.

    (a) Annual Report.--Not later than 3 months after the end of each 
fiscal year, the Corporation shall submit to the Congress a complete 
and detailed report of its operations during such fiscal year. Such 
report shall include--
            (1) an assessment, based upon the development impact 
        profiles required by section 7109(d), of the economic and 
        social development impact and benefits of the projects with 
        respect to which such profiles are prepared, and of the extent 
        to which the operations of the Corporation complement or are 
        compatible with the development assistance programs of the 
        United States and other donors; and
            (2) a description of any project for which the 
        Corporation--
                    (A) refused to provide any insurance, reinsurance, 
                guaranty, financing, or other financial support, on 
                account of information received under section 7109(e); 
                or
                    (B) notwithstanding such violations, provided such 
                insurance, reinsurance, guaranty, financing, or 
                financial support, on the basis of a determination that 
                the national security interest so requires.
    (b) Projections on U.S. Employment.--
            (1) In annual reports.--Each annual report required by 
        subsection (a) shall contain projections of the effects on 
        employment in the United States of all projects for which, 
        during the preceding fiscal year, the Corporation initially 
        issued any insurance, reinsurance, or guaranty or made any 
        direct loan. Each such report shall include projections of--
                    (A) the amount of United States exports to be 
                generated by those projects, both during the startup 
                phase and over a period of years;
                    (B) the final destination of the products to be 
                produced as a result of those projects; and
                    (C) the impact such production will have on the 
                production of similar products in the United States 
                with regard to both domestic sales and exports.
            (2) Analysis of each project required.--The projections 
        required by this subsection shall be based on an analysis of 
        each of the projects described in paragraph (1).
            (3) Information to be included.--
                    (A) In general.--In reporting the projections on 
                employment required by this subsection, the Corporation 
                shall specify, with respect to each project--
                            (i) any loss of jobs in the United States 
                        caused by the project, whether or not the 
                        project itself creates other jobs;
                            (ii) any jobs created by the project; and
                            (iii) the country in which the project is 
                        located, and the economic sector involved in 
                        the project.
                    (B) Protection of proprietary information.--No 
                proprietary information may be disclosed under 
                subparagraph (A).
    (c) Records To Be Maintained by Corporation.--The Corporation shall 
maintain as part of its records a copy of the analysis done of each 
project in preparing the reports required by subsection (b).
    (d) Protection of Confidential Information.--Subsection (b) does 
not require the inclusion in any report submitted pursuant to that 
subsection of any information that would not be required to be made 
available to the public pursuant to section 552 of title 5, United 
States Code (relating to freedom of information).

SEC. 7111. DEFINITIONS.

    In this subtitle:
            (1) Eligible investor.--The term ``eligible investor'' 
        means--
                    (A) a United States citizen; and
                    (B) a corporation, partnership, or other 
                association, including a nonprofit association, that is 
                created under the laws of the United States, any State 
                or territory thereof, or the District of Columbia.
            (2) Expropriation.--The term ``expropriation'' includes any 
        abrogation, repudiation, or impairment by a foreign government, 
        a political subdivision of a foreign government, or a 
        corporation owned or controlled by a foreign government, of its 
        own contract with an investor with respect to a project, if 
        such abrogation, repudiation, or impairment is not caused by 
        the investor's own fault or misconduct, and materially 
        adversely affects the continued operation of the project.
            (3) Investment.--The term ``investment'' includes any 
        contribution or commitment of funds, commodities, services, 
        patents, processes, or techniques, in the form of--
                    (A) a loan or loans to an approved project;
                    (B) the purchase of a share of ownership in any 
                such project;
                    (C) participation in royalties, earnings, or 
                profits of any such project; and
                    (D) the furnishing of commodities or services 
                pursuant to a lease or other contract.
            (4) Local financial institution.--The term ``local 
        financial institution''--
                    (A) means any bank or financial institution that is 
                organized under the laws of any country or area in 
                which the Corporation operates; but
                    (B) does not include a branch, however organized, 
                of a bank or other financial institution that is 
                organized under the laws of a country in which the 
                Corporation does not operate.
            (5) Noncredit account revolving fund.--The term ``noncredit 
        account revolving fund'' means the noncredit account revolving 
        fund established under section 7106(b).
            (6) Noncredit activities.--The term ``noncredit 
        activities'' means all activities of the Corporation other than 
        its loan guaranty program under section 7105(b) and its direct 
        loan program under section 7105(c).
            (7) Predecessor guaranty authority.--The term ``predecessor 
        guaranty authority'' means prior guaranty authorities (other 
        than housing guaranty authorities) repealed by the Foreign 
        Assistance Act of 1969, section 202(b) and 413(b) of the Mutual 
        Security Act of 1954, section 111(b)(3) of the Economic 
        Cooperation Act of 1948 (exclusive of authority relating to 
        informational media guaranties), and authorities of the 
        Corporation under title IV of chapter 2 of part I of the 
        Foreign Assistance Act of 1961.
            (8) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or national; and
                    (B) any other entity that qualifies as an eligible 
                investor.

         Subtitle B--United States Trade and Development Agency

SEC. 7201. UNITED STATES TRADE AND DEVELOPMENT AGENCY.

    (a) Purpose.--The United States Trade and Development Agency (in 
this subtitle referred to as the ``Agency'') shall be an agency of the 
United States under the policy guidance of the Secretary of State and 
the Interagency Policy Committee on Global Development. The primary 
purpose of the Agency is to facilitate United States private sector 
participation in development projects in developing countries, 
consistent with Country Development Cooperation Strategies prepared 
under section 1018. The Agency may also utilize its authorities and 
programs in other countries in furtherance of United States foreign 
policy and economic interests.
    (b) Authority To Provide Assistance.--
            (1) Authority.--The Director of the Agency may, under the 
        direction of the Secretary of State and the Interagency Policy 
        Committee on Global Development, carry out this subtitle by 
        providing funds for technical assistance, feasibility studies, 
        architectural and engineering design, and other activities 
        related to the goals of the United States to attract and retain 
        private sector investment in countries that are receiving 
        United States development assistance under this Act and to 
        promote exports of United States-origin goods and services.
            (2) Use of funds.--Funds under this section may be used to 
        provide support for feasibility studies for the planning, 
        development, and management of, and procurement for, bilateral 
        and multilateral development projects, including training 
        activities undertaken in connection with a project, for the 
        purpose of promoting the use of United States-origin goods and 
        services in such projects. Funds under this section may also be 
        used for architectural and engineering design, including--
                    (A) concept design, which establishes the basic 
                technical and operational criteria for a project, such 
                as architectural drawings for a proposed facility, 
                evaluation of site constraints, procurement 
                requirements, and equipment specifications;
                    (B) detail design, which sets forth specific 
                dimensions and criteria for structural, mechanical, 
                electrical, and architectural operations, and 
                identifies other resources required for project 
                operations; and
                    (C) technical assistance to facilitate the 
                attraction and retention of private sector investment 
                to sustain economic development.
            (3) Information dissemination.--
                    (A) By the agency.--The Agency shall disseminate 
                information about its project activities to the private 
                sector.
                    (B) Cooperation of other agencies.--Other Federal 
                agencies shall cooperate with the Agency in order for 
                the Agency to provide more effectively informational 
                services to persons in the private sector concerning 
                trade development and export promotion related to 
                development projects.
            (4) Contributions to costs.--The Agency shall, to the 
        maximum extent practicable, require corporations and other 
        entities to--
                    (A) share the costs of technical assistance, 
                feasibility studies, and other project planning 
                services funded under this section; and
                    (B) reimburse the Agency for those funds provided 
                under this section, if the corporation or entity 
                concerned succeeds in implementing the project.
    (c) Director and Personnel.--
            (1) Director.--There shall be at the head of the Agency a 
        Director who shall be appointed by the President, by and with 
        the advice and consent of the Senate.
            (2) Officers and employees.--
                    (A) In general.--The Director may appoint such 
                officers and employees of the Agency as the Director 
                considers appropriate.
                    (B) Functions.--The officers and employees 
                appointed under this paragraph shall have such 
                functions as the Director may determine.
                    (C) Inapplicability of civil service laws.--Of the 
                officers and employees appointed under this paragraph, 
                2 may be appointed without regard to the provisions of 
                title 5, United States Code, governing appointments in 
                the competitive service, and may be compensated without 
                regard to the provisions of chapter 51 or subchapter 
                III of chapter 53 of such title.
                    (D) Reinstatement of certain employees.--Under such 
                regulations as the President may prescribe, any 
                individual appointed under subparagraph (C) may be 
                entitled, upon removal (except for cause) from the 
                position to which the appointment was made, to 
                reinstatement to the position occupied by that 
                individual at the time of appointment or to a position 
                of comparable grade and pay.
    (d) Annual Report.--The President shall, not later than December 31 
of each year, submit to the appropriate congressional committees a 
report on the activities of the Agency during the preceding fiscal 
year.
    (e) Audits.--
            (1) In general.--The Agency shall be subject to the 
        provisions of chapter 35 of title 31, United States Code, 
        except as otherwise provided in this section.
            (2) Independent audit.--An independent certified public 
        accountant shall perform a financial and compliance audit of 
        the financial statements of the Agency each year, in accordance 
        with generally accepted Government auditing standards for a 
        financial and compliance audit, taking into consideration any 
        standards recommended by the Comptroller General. The 
        independent certified public accountant shall report the 
        results of such audit to the Director of the Agency. The 
        financial statements of the Agency shall be presented in 
        accordance with generally accepted accounting principles. These 
        financial statements and the report of the accountant shall be 
        included in a report that contains, to the extent applicable, 
        the information identified in section 3512 of title 31, United 
        States Code, and that the Agency shall submit to the Congress 
        not later than 6\1/2\ months after the end of the last fiscal 
        year covered by the audit. The Comptroller General may review 
        the audit conducted by the accountant and the report to the 
        Congress in the manner and at such times as the Comptroller 
        General considers necessary.
            (3) Audit by comptroller general.--The Comptroller General 
        shall, if the Comptroller General considers it necessary or 
        upon the request of the Congress, audit the financial 
        statements of the Agency in the manner provided in paragraph 
        (2).
            (4) Availability of information.--All books, accounts, 
        financial records, reports, files, workpapers, and property 
        belonging to or in use by the Agency and the accountant who 
        conducts the audit under paragraph (2), that are necessary for 
        purposes of this subsection, shall be made available to the 
        representatives of the Government Accountability Office 
        designated by the Comptroller General.
    (f) Funding for Technical Assistance Grants by Multilateral 
Development Banks.--
            (1) In general.--The Agency, in carrying out its program, 
        may provide, as appropriate, funds to multilateral development 
        banks for technical assistance grants.
            (2) Definitions.--As used in paragraph (1)--
                    (A) the term ``technical assistance grants'' means 
                funding by multilateral development banks of services 
                from the United States in connection with projects and 
                programs supported by such banks, including 
                engineering, design, and consulting services; and
                    (B) the term ``multilateral development bank'' has 
                the meaning given that term in section 1701(c) of the 
                International Financial Institutions Act (22 U.S.C. 
                262r(c)).

                      Subtitle C--Enterprise Funds

SEC. 7301. FINDINGS.

    Congress makes the following findings:
            (1) Enterprise funds are an effective mechanism to foster 
        economic growth in support of United States foreign policy and 
        development goals, by stimulating private capital flows and 
        expanding financing for free market-based private enterprise.
            (2) Enterprise funds provide incentives for improvements in 
        legal systems, commercial and tax codes, and accounting 
        practices, as essential foundations for sustained economic 
        growth.

SEC. 7302. PURPOSES.

    The purposes of this subtitle are--
            (1) to promote the private sector of partner countries 
        while considering the development impact of investments and 
        profitability of those investments, particularly in small- and 
        medium-sized enterprises;
            (2) to promote policies and practices conducive to 
        strengthening the private sector through loans, microloans, 
        equity investments, insurance, guaranties, grants, feasibility 
        studies, technical assistance, training for businesses 
        receiving investment capital, and other measures;
            (3) to promote good corporate governance and transparency, 
        foster competition, catalyze productivity improvements in 
        existing businesses, and strengthen local capital markets;
            (4) to promote stability and security through job creation 
        in the private sector and by fostering upward economic 
        mobility; and
            (5) to promote fiscal sustainability through expanded 
        private sector adherence to tax codes and, where appropriate, 
        foster improvements in the tax code and regulatory environment 
        in order to support economic development.

SEC. 7303. AUTHORITY TO DESIGNATE ENTERPRISE FUNDS.

    (a) Authority.--
            (1) In general.--The Administrator is authorized to 
        designate private, nonprofit organizations to operate pursuant 
        to this subtitle as enterprise funds, as eligible to receive 
        funds and support pursuant to this subtitle after determining 
        that such organizations have been established for the purposes 
        specified in section 7302.
            (2) Consultation.--The Administrator shall consult with the 
        appropriate congressional committees before designating an 
        organization under paragraph (1).
    (b) Board of Directors.--
            (1) Number and appointment.--Each enterprise fund shall be 
        governed by a board of directors. Subject to paragraph (3), the 
        board of directors shall be composed of 9 members appointed by 
        the Administrator as follows:
                    (A) Five individuals who are private citizens of 
                the United States.
                    (B) Three individuals who are private citizens of 
                the country in which the enterprise fund will operate, 
                to be appointed by the Administrator in consultation 
                with the government of such country.
                    (C) One individual who is an officer or employee of 
                the United States Agency for International Development.
            (2) Qualifications.--Each member of the board of directors 
        appointed under paragraph (1) shall be selected from among 
        individuals who have demonstrated expertise in one or more of 
        the following areas: business development, commerce, 
        international markets, capital investment, banking, and 
        finance.
            (3) Nonvoting members.--The Administrator may appoint not 
        more than 2 additional members of the board of directors, who 
        may not vote on matters before the board of directors. If 
        appointed, such additional members shall be representatives of 
        nongovernmental organizations that have demonstrated expertise 
        in the development needs of the country served by the 
        enterprise fund.
    (c) Use of Amounts.--
            (1) In general.--The Administrator may use funds 
        appropriated by Congress to carry out the purposes specified in 
        section 7302, including payment of the administrative expenses 
        of the enterprise fund.
            (2) Grants.--The Administrator may use funds appropriated 
        by Congress to make grants to enterprise funds designated under 
        subsection (a), except that such appropriated funds may be used 
        only for the purposes set forth in section 7302.
            (3) Compliance requirements.--
                    (A) In general.--The Administrator not award a 
                grant to an enterprise fund under paragraph (2) unless 
                the Administrator and enterprise fund enter into a 
                grant agreement under which the enterprise fund agrees 
                to comply with the requirements under this section.
                    (B) Termination date.--Such grant agreement shall 
                state that the enterprise fund shall liquidate its 
                assets and dissolve not later than a date determined by 
                the Administrator, unless the Administrator determines, 
                after consultation with the appropriate congressional 
                committees, that the enterprise fund should be 
                extended.
                    (C) Disposition of assets.--At the time the 
                enterprise fund is dissolved, the assets of the 
                enterprise fund shall be transferred to the General 
                Fund of the United States Treasury.
    (d) Notification to Congress.--
            (1) In general.--Not less than 15 days before designating 
        an organization to operate as an enterprise fund under 
        subsection (a), the Administrator shall provide the information 
        described in paragraph (2) to the appropriate congressional 
        committees.
            (2) Information.--The information described in this 
        paragraph is--
                    (A) the identity of the organization to be 
                designated to operate as the enterprise fund under 
                subsection (a);
                    (B) the names and qualifications of the individuals 
                who will comprise the board of directors of the 
                enterprise fund; and
                    (C) a copy of the grant agreement between the 
                Administrator and the enterprise fund.
    (e) Public Disclosure.--Not later than 1 year after the entry into 
force of the grant agreement between the Administrator and an 
enterprise fund under this section, and annually thereafter, the 
enterprise fund shall prepare and make available to the public on an 
Internet website administered by the enterprise fund a report on the 
enterprise fund's activities during the previous year, including--
            (1) a description of each investment supported by the 
        enterprise fund, including each type of assistance provided in 
        accordance with section 7303(c);
            (2) the amounts invested by the enterprise fund in each 
        company or project;
            (3) the amounts of additional private investments made in 
        each company or project;
            (4) the amounts of any profits or losses realized by the 
        enterprise fund in connection with each such company or 
        project;
            (5) the nature and amounts of administrative expenses 
        incurred by the enterprise fund; and
            (6) the annual independent audit of the enterprise fund, as 
        required under this subtitle.

SEC. 7304. GAO REPORTS.

    Not later than 3 years after the establishment of an enterprise 
fund under this subtitle, and every 3 years thereafter until the 
enterprise fund is dissolved, the Comptroller General of the United 
States shall submit to the appropriate congressional committees a 
report assessing the activities of the enterprise fund in achieving the 
purposes of enterprise funds under this subtitle, identifying obstacles 
to achieving such purposes, and recommending such operational 
improvements in the enterprise fund that the Comptroller General 
determines are necessary.

SEC. 7305. OPERATION PROVISIONS.

    (a) Private Character of Enterprise Funds.--Nothing in this 
subtitle shall be construed to make an enterprise fund an agency or 
establishment of the United States Government, or to make the officers, 
employees, or members of the board of directors of an enterprise fund 
officers or employees of the United States for purposes of title 5, 
United States Code.
    (b) Matters To Be Considered by Enterprise Funds.--In carrying out 
this subtitle, each enterprise fund shall take into account such 
considerations as internationally recognized worker rights and other 
internationally recognized human rights, environmental factors, United 
States economic and employment effects, and the likelihood of 
commercial viability of the activity receiving assistance from the 
enterprise fund.
    (c) Retention of Interest.--An enterprise fund may hold funds 
granted to it pursuant to this subtitle in interest-bearing accounts, 
prior to the disbursement of such funds for purposes specified in 
section 7302, and may retain for such program purposes any interest 
earned on such deposits without returning such interest to the Treasury 
of the United States and without further appropriation by the Congress.
    (d) Use of United States Private Venture Capital.--In order to 
maximize the effectiveness of the activities of the enterprise funds, 
each enterprise fund may conduct public offerings or private placements 
for the purpose of soliciting and accepting United States venture 
capital which may be used, separately or together with funds made 
available pursuant to this subtitle, for any lawful investment purpose 
that the board of directors of the enterprise fund may determine in 
carrying out this subtitle. Financial returns on enterprise fund 
investments that include a component of private venture capital may be 
distributed, at such times and in such amounts as the board of 
directors of the enterprise fund may determine, to the investors of 
such capital.
    (e) Nonapplicability of Other Laws.--Executive branch agencies may 
conduct programs and activities and provide services in support of the 
activities of the enterprise funds notwithstanding any other provision 
of law.
    (f) Limitation on Payments to Enterprise Fund Personnel.--
            (1) Benefits barred.--No part of the funds of an enterprise 
        fund shall inure to the benefit of any board member, officer, 
        or employee of that enterprise fund, except as salary or 
        reasonable compensation for services, subject to paragraph (2).
            (2) Ceratin compensation barred.--An enterprise fund may 
        not pay compensation for services to--
                    (A) any board member of the enterprise fund, except 
                for services as a board member; or
                    (B) any firm, association, or entity in which a 
                board member of the enterprise fund serves as partner, 
                director, officer, or employee.
            (3) Exception for prior services.--Nothing in paragraph (2) 
        shall preclude payment for services performed before the date 
        of the enactment of this subsection, nor for arrangements 
        approved by the grantor and notified in writing to the 
        Committees on Appropriations of the House of Representatives 
        and the Senate.
    (g) Independent Private Audits.--The accounts of each enterprise 
fund shall be audited annually in accordance with generally accepted 
auditing standards by independent certified public accountants or 
independent licensed public accountants certified or licensed by a 
regulatory authority of a State or other political subdivision of the 
United States. The report of each such independent audit shall be 
included in the annual report required by this section.
    (h) GAO Audits.--The financial transactions undertaken pursuant to 
this subtitle by each enterprise fund may be audited by the Government 
Accountability Office in accordance with such principles and procedures 
and under such rules and regulations as may be prescribed by the 
Comptroller General of the United States, so long as the enterprise 
fund is in receipt of United States Government grants.
    (i) Recordkeeping Requirements.--The enterprise funds shall 
ensure--
            (1) that each recipient of assistance provided through the 
        enterprise funds under this subtitle keeps--
                    (A) separate accounts with respect to such 
                assistance;
                    (B) such records as may be reasonably necessary to 
                disclose fully the amount and the disposition by such 
                recipient of the proceeds of such assistance, the total 
                cost of the project or undertaking in connection with 
                which such assistance is given or used, and the amount 
                and nature of that portion of the cost of the project 
                or undertaking supplied by other sources; and
                    (C) such other records as will facilitate an 
                effective audit; and
            (2) that the enterprise funds, or any of their duly 
        authorized representatives, have access for the purpose of 
        audit and examination to any books, documents, papers, and 
        records of the recipient that are pertinent to assistance 
        provided through the enterprise funds under this section.
    (j) Annual Reports.--Each enterprise fund shall publish an annual 
report, which shall include a comprehensive and detailed description of 
the enterprise fund's operations, activities, financial condition, and 
accomplishments under this subtitle for the preceding fiscal year. This 
report shall be published not later than January 31 each year, 
beginning in the calendar year after the calendar year in which the 
enterprise fund is designated under this subtitle.
    (k) Reinvestment.--Returns on investments of an enterprise fund and 
other payments to the fund may be reinvested in projects carried out by 
the fund without further appropriation by Congress.

SEC. 7306. BEST PRACTICES AND PROCEDURES.

    To the maximum extent practicable, the board of directors of each 
enterprise fund established under this subtitle should adopt the best 
practices and procedures used by enterprise funds, including those for 
which funding was made available pursuant to section 201 of the Support 
for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5421).

SEC. 7307. EXPERIENCE OF OTHER ENTERPRISE FUNDS.

    In implementing this subtitle, the Administrator shall ensure that 
the articles of incorporation of each enterprise fund (including 
provisions specifying the responsibilities of the board of directors of 
the enterprise fund), the terms of United States Government grant 
agreements with the enterprise fund, and United States Government 
oversight of the enterprise fund are, to the maximum extent 
practicable, consistent with the Articles of Incorporation of, the 
terms of grant agreements with, and the oversight of the Enterprise 
Funds established pursuant to section 201 of the Support for East 
European Democracy (SEED) Act of 1989 (22 U.S.C. 5421) and comparable 
provisions of law.

 TITLE IX--STRATEGIC PLANNING, MONITORING AND EVALUATION, AND REPORTING

                     Subtitle A--Strategic Planning

SEC. 9101. QUADRENNIAL DIPLOMACY, DEVELOPMENT, AND SECURITY REVIEW.

    (a) Review of Diplomacy, Development, and Security.--
            (1) In general.--Not later than December 15, 2014, and 
        every 4 years thereafter, the Secretary and the Administrator 
        shall complete a comprehensive examination (to be known as a 
        ``Quadrennial Diplomacy, Development, and Security Review'') of 
        United States diplomacy, development, and national security 
        efforts.
            (2) Key elements of review.--The review described in 
        paragraph (1) shall include information on the following:
                    (A) The nature of the global challenges and 
                opportunities facing the United States and the changes 
                in such challenges and opportunities over the previous 
                four-year period.
                    (B) Key objectives and missions for United States 
                foreign policy and foreign assistance, including a 
                clear statement of United States objectives for 
                development assistance and for security assistance.
                    (C) The roles and responsibilities of Federal 
                agencies in carrying out United States diplomacy, 
                promoting global development, and protecting national 
                security, and the mechanisms for cooperation between 
                such agencies, including any reforms needed in such 
                agencies and mechanisms to adapt to changing 
                circumstances.
                    (D) The roles of international organizations and 
                multilateral institutions in advancing United States 
                diplomatic, development, and security objectives, 
                including the mechanisms for coordinating and 
                harmonizing development policies and programs with 
                partner countries and among donors.
                    (E) The requirements for overseas infrastructure 
                necessary to carry out United States diplomatic, 
                development, and security objectives, including major 
                changes in diplomatic presence and new investments in 
                technology and facilities.
                    (F) A plan, budget, and timetable for implementing 
                the recommendations of the review, including any 
                legislative requests and executive orders to be issued.
            (3) Interagency coordination and consultation.--In 
        conducting each Quadrennial Diplomacy, Development, and 
        Security Review, the Secretary and the Administrator shall take 
        into account the views of the Secretary of Defense, the 
        Secretary of the Treasury, the Attorney General, and the heads 
        of all other Federal agencies carrying out international 
        policies and programs under this Act.
    (b) Consultative Process.--In conducting the review required under 
subsection (a), the Secretary and the Administrator shall consult 
with--
            (1) the appropriate congressional committees;
            (2) a variety of civil society groups, including private 
        businesses, nongovernmental organizations involved in 
        diplomacy, development, and security, and experts at academic 
        institutions or institutions involved in the study of foreign 
        policy, international development, or national security; and
            (3) appropriate international organizations and partner 
        countries.
    (c) Report.--
            (1) Additional elements.--The Secretary and the 
        Administrator shall transmit to the appropriate congressional 
        committees a report upon completion of each Quadrennial 
        Diplomacy, Development, and Security Review. The report shall 
        include, in addition to all the elements identified in 
        subsection (a)(2)--
                    (A) the assumptions used to inform the review, 
                including those regarding--
                            (i) key global challenges and opportunities 
                        facing the United States over the next 10-year 
                        period;
                            (ii) the capacity of United States 
                        diplomatic, development, and security personnel 
                        to respond to such challenges and 
                        opportunities;
                            (iii) the cooperation and capacity of 
                        partner countries and international 
                        institutions in addressing such challenges and 
                        opportunities;
                            (iv) the levels of engagement in operations 
                        other than war and smaller-scale contingencies 
                        and withdrawal from such operations and 
                        contingencies;
                            (v) the intensity, duration, and military 
                        and political end-states of conflicts and 
                        smaller-scale contingencies that arise in the 
                        diplomatic, development, and security context;
                            (vi) the anticipated roles and missions of 
                        the reserve components available to civilian 
                        agencies, including capabilities and resources 
                        necessary to assure that such reserve 
                        components can capably discharge such roles and 
                        missions; and
                            (vii) the extent to which diplomatic, 
                        development, and security personnel need to be 
                        shifted to different regions to successfully 
                        carry out the full range of missions called for 
                        in the review;
                    (B) a description of the process by which the 
                review was conducted, including participation of 
                personnel of the Department of State and the United 
                States Agency for International Development, 
                coordination and consultation with other Federal 
                agencies, and consultations as required under 
                subsection (b); and
                    (C) lessons learned during the review process and 
                recommendations for improvements in future years.
            (2) Public availability.--The report required under this 
        subsection shall be made publicly available on the Internet 
        upon transmission to the appropriate congressional committees.

SEC. 9102. COMPREHENSIVE WORKFORCE AND HUMAN RESOURCES STRATEGY.

    (a) Plan Required.--The Administrator shall, not later than 1 year 
after the date of the enactment of this Act and every 5 years 
thereafter, develop a comprehensive workforce and human resources 
strategy, or review and modify as necessary the existing strategy, to 
strengthen the capacity of the Agency to carry out its mandate under 
section 11201.
    (b) Contents.--The strategy required under subsection (a) shall 
include--
            (1) an assessment of the implications of current 
        development strategies and foreign policy priorities for 
        technical and policy expertise;
            (2) the number, types, and level of specialists and 
        generalists projected to be needed in each functional and 
        geographic area, including support, management, and 
        administrative functions;
            (3) the number, types, and level of specialists and 
        generalists currently employed by the Agency, by bureau and 
        office and by employment category;
            (4) an analysis of the workloads and competencies of 
        existing staff, by bureau and office and by employment 
        category;
            (5) the impact on paragraphs (3) and (4) of projected 
        retirement and attrition rates over the next 5 years;
            (6) the steps needed to recruit, retain, and develop the 
        necessary professional expertise, including through education 
        and training, details, fellowships, scholarships and exchanges;
            (7) an assessment of the suitability of overseas 
        facilities, including security, space, health and safety, 
        physical integrity, access and location considerations;
            (8) a prioritized plan for capital improvements;
            (9) projected human resource challenges, including 
        bureaucratic and legislative constraints, and recommended 
        options for meeting such challenges; and
            (10) the assumptions regarding program and policy 
        priorities and budget levels on which the strategy is based.
    (c) Employment Category.--For the purposes of this section, the 
term ``employment category'' means the statutory authority under which 
an individual is employed, and includes civil service, Foreign Service, 
excepted service, personal services contractors, detailees, and locally 
employed staff.
    (d) Transmission to Congress.--The plan required under subsection 
(a) shall be transmitted to the appropriate congressional committees 
not later than 180 days after the date of the enactment of this Act, 
and every 5 years thereafter. Such plan may be updated at any time, and 
such update shall be transmitted accordingly.
    (e) Mid-Level Hiring Authority.--If the Administrator certifies 
that such hiring is necessary to meet the workforce requirements of the 
Agency as set forth in the plan required under subsection (a), the 
Administrator is authorized, notwithstanding section 307 of the Foreign 
Service Act of 1980, to hire up to 30 mid-career professionals, which 
may include individuals currently employed as personal services 
contractors, in each of the 3 fiscal years following the date of the 
enactment of this Act.

                 Subtitle B--Monitoring and Evaluation

SEC. 9201. MONITORING AND EVALUATION OF FOREIGN ASSISTANCE.

    (a) In General.--The President shall develop and implement a 
rigorous system to evaluate the effectiveness and efficiency of foreign 
assistance.
    (b) Components of System.--In order to avoid duplication, ensure 
comprehensive coverage, promote high and uniform standards, and 
facilitate comparability of results and the development of a strong 
body of evidence, the system required under subsection (a) shall 
include--
            (1) a method of coordinating evaluation activities among 
        all Federal agencies carrying out foreign assistance; and
            (2) a process for consulting with relevant stakeholders and 
        subject matter experts, as appropriate, on the planning, 
        design, and implementation of evaluation activities and 
        dissemination of evaluation findings.
    (c) Required Actions.--In carrying out subsection (a), the 
President shall ensure that the head of each Federal agency takes the 
following actions with regard to foreign assistance carried out by that 
agency:
            (1) Establish measurable and meaningful performance 
        objectives, including disaggregation by sex and age where 
        appropriate.
            (2) Establish criteria for the selection of programs, 
        projects, and activities to be subject to various evaluation 
        methodologies, with a particular emphasis on impact evaluation.
            (3) Establish or designate an organizational unit with 
        adequate staff and resources to oversee and provide technical 
        support for evaluation activities.
            (4) Develop a plan for improving the capacity of the agency 
        to conduct rigorous, relevant, and objective program monitoring 
        and evaluation, including by--
                    (A) providing relevant education and training 
                opportunities;
                    (B) encouraging the adoption of improved 
                methodologies for data collection and analysis; and
                    (C) ensuring that best practices are shared within 
                and between agencies.
            (5) Establish guidelines for enhancing, in cooperation with 
        other donors, the capacity of partner countries to monitor the 
        use of and evaluate the impact of donor assistance.
            (6) Establish a process for applying the findings and 
        results of monitoring and evaluation activities, including 
        impact evaluation research, into future program planning, 
        budgeting, design, and implementation.
            (7) Establish a policy for the publication of program 
        evaluations.
            (8) Develop, in consultation with relevant stakeholders an 
        annual evaluation plan that describes how the agency will meet 
        the requirements of this section.
            (9) Identify the source or mechanism of funding to conduct 
        monitoring and evaluation of foreign assistance carried out by 
        such agency.
    (d) Submission of Evaluation Plans.--The President shall ensure 
that the evaluation plans required by subsection (c)(8) are submitted 
to the appropriate congressional committees each year along with the 
annual budget presentation, and are published on a government Internet 
website.
    (e) Local Performance.--To the extent feasible and appropriate, 
evaluation activities carried out pursuant to the requirements of this 
section shall be carried out by, or with the participation of, 
organizations in the partner country.
    (f) Definitions.--In this section:
            (1) Evaluation.--The term ``evaluation'' means the 
        systematic and objective determination and assessment of the 
        design, implementation, and results of an on-going or completed 
        program, project, or activity, including an explanation of the 
        reasons or causes for the observed results.
            (2) Impact.--The term ``impact'' means a long-term effect 
        of a program, project, or activity, whether positive or 
        negative, direct or indirect, intended or unintended.
            (3) Impact evaluation research.--The term ``impact 
        evaluation research'' means the application of research methods 
        and statistical analysis to measure the extent to which an 
        impact can be attributed to a foreign assistance program, 
        project, or activity rather than to other factors.

SEC. 9202. MONITORING AND EVALUATION OF HUMANITARIAN ASSISTANCE.

    (a) Division of Responsibilities.--The Department of State shall be 
responsible for monitoring and evaluating humanitarian assistance 
carried out by the Department of State, and USAID shall be responsible 
for monitoring and evaluating humanitarian assistance carried out by 
USAID.
    (b) Congressional Notification.--The Secretary or the 
Administrator, as appropriate, shall notify the appropriate 
congressional committees if assistance made available under this 
subtitle is not sufficient to meet international humanitarian 
standards. Such notification shall include a description of the 
standards not being met, the resources that would be required to meet 
such standards, and the reasons why such resources are not available.
    (c) Role of the Office of Food for Peace.--The Office of Food for 
Peace (FFP) of the Agency shall be responsible for tracking and 
monitoring the nutritional outcomes of emergency food assistance 
provided under this Act and title II of the Agricultural Trade 
Development and Assistance Act of 1954 (Public Law 83-480).
    (d) Monitoring and Evaluation Required.--The authorities of 
sections 1904 and 1905 shall not be used to vitiate the requirement of 
section 9201 for monitoring and evaluation of foreign assistance.

                   Subtitle C--Reporting Requirements

SEC. 9301. TRANSPARENCY AND ACCOUNTABILITY IN BUDGETING.

    (a) In General.--The Secretary, the Administrator, and the Chief 
Executive Officer of the Millennium Challenge Corporation shall 
maintain an online database of information, easily accessible to the 
public, which contains the information described in subsection (b) for 
each project and activity within their respective areas of 
responsibility, including for any project or activity for which funds 
are transferred to another Federal agency for obligation.
    (b) Database Requirements.--
            (1) Content.--Each project and activity shall be identified 
        separately in such database, and for each project and activity 
        the database shall include, at a minimum--
                    (A) a brief description of the nature of the 
                project or activity;
                    (B) the geographic location or locations in which 
                the project or activity is being carried out;
                    (C) the specific objectives and timetable of the 
                project or activity;
                    (D) the indicators, which shall be quantitative 
                wherever possible and relevant, used to define the 
                successful achievement of the goals of the project or 
                activity;
                    (E) the number and demographic characteristics of 
                the intended beneficiaries of the project or activity;
                    (F) each sector, theme, goal and objective toward 
                which the project or activity will be counted;
                    (G) names and descriptions of the implementing 
                partners of the project or activity;
                    (H) the amount of United States foreign assistance 
                funds obligated for each such project or activity and 
                the source of those funds;
                    (I) expenditures of funds for the project or 
                activity on a quarterly basis;
                    (J) the contributions toward the project or 
                activity provided by the partner country;
                    (K) any conditions placed on the use of United 
                States Government funds obligated for the project or 
                activity, and whether those conditions have been met;
                    (L) the evaluation and monitoring plan for each 
                such project or activity;
                    (M) semiannual updates on results achieved to date 
                for each such project or activity; and
                    (N) if a project or activity has been extended, 
                suspended, terminated, or significantly modified, the 
                reasons for such action.
            (2) Administrative costs.--In addition to the information 
        relating to specific projects and activities as required under 
        paragraph (1), the database shall contain, for each overseas 
        mission, information on all overhead and administrative costs, 
        including--
                    (A) for the previous fiscal year, numbers of staff 
                in each employment category, housing and facilities 
                operation and maintenance expenses, salaries and 
                benefits, travel and transportation expenses, and other 
                support costs; and
                    (B) for the coming fiscal year, planned capital 
                investments and projected staff increases or 
                reductions.
            (3) Timing.--
                    (A) Existing projects and activities.--For each 
                project and activity in effect on the date of the 
                enactment of this Act, the database shall be operative 
                within 6 months of such date of enactment.
                    (B) New projects and activities.--For each project 
                and activity that has not received United States 
                Government funding as of the date of the enactment of 
                this Act, the department or agency (as the case may be) 
                shall enter into the database the information required 
                by paragraph (1) within 90 days from the date of the 
                initial obligation of funds for the project or 
                activity.
            (4) Modifications.--In the event of any changes or 
        modifications in any of the elements of the database for a 
        project or activity, the database shall be updated as soon as 
        possible but in no event later than 30 days from the date on 
        which such changes or modifications have been approved and, 
        where applicable, agreed to by the partner country.
            (5) Reports in lieu of inclusion.--If the Secretary, the 
        Administrator, or the Chief Executive Officer of the Millennium 
        Challenge Corporation, as the case may be, makes a 
        determination that the inclusion of a required item of 
        information in the database could reasonably be expected to 
        jeopardize the health or safety of a private partner or program 
        beneficiary or would be detrimental to the national interests 
        of the United States, such item of information may be submitted 
        to the appropriate congressional committees in a non-public 
        written report in lieu of including it in the database, along 
        the reasons for not including it in the database.
            (6) Structure.--The database required under this section 
        shall be structured so that--
                    (A) data may be uploaded from overseas missions; 
                and
                    (B) users may search the data by word and sort the 
                data by field.
    (c) Harmonization of Data.--The information contained in the 
database required under subsection (b) shall include all information 
provided to the Development Assistance Committee of the Organization 
for Economic Cooperation and Development and the International Aid 
Transparency Initiative, and should, to the maximum extent possible, be 
harmonized with the types, categories and formats of information 
requested by such organization and such initiative.
    (d) Definition.--In this section, the terms ``project'' and 
``activity'' mean a discrete assistance activity for which funds are 
made available, including activities encompassed within a strategy, 
compact, agreement, account or program of assistance.

SEC. 9302. CONGRESSIONAL BUDGET JUSTIFICATION.

    (a) Requirement for Submission.--The President shall prepare, and 
submit to the Congress not later than February 1 of each year, a report 
justifying the resources requested for all foreign assistance programs.
    (b) Materials To Be Included.--The report submitted pursuant to 
subsection (a) shall include--
            (1) a description of each planned country, regional, or 
        centrally funded program for the coming fiscal year, and the 
        rationale for each such program;
            (2) the dollar amount of each program--
                    (A) as proposed for the coming fiscal year;
                    (B) as estimated for the current fiscal year; and
                    (C) as allocated for the previous fiscal year; and
            (3) wherever possible, a description of the results 
        achieved for each such program in the previous 1 to 5 fiscal 
        years.

SEC. 9303. REPORT ON ALLOCATION OF ASSISTANCE UNDER THIS ACT.

    (a) Report on Allocations of Assistance.--Not later than 30 days 
after the date of the enactment of any law appropriating funds to carry 
out any provision of this Act, the President shall notify Congress of--
            (1) each foreign country, international organization, 
        regional program, and centrally funded program for which the 
        United States Government intends to provide any portion of the 
        funds under such law; and
            (2) the amount of funds under such law, by category of 
        assistance, that the United States Government intends to 
        provide to each such country, organization, and program.
    (b) Exception.--Subsection (a) does not apply with respect to any 
law making continuing appropriations.
    (c) Use of Special Authority.--The authority of section 10603 may 
not be used to waive the provisions of this section.

SEC. 9304. SECURITY ASSISTANCE DATABASE.

    (a) Database Required.--The Secretary shall maintain an online 
database which contains the information described in subsection (b). 
Such database may be combined with the database required under section 
9301.
    (b) Content.--The database required under subsection (a) shall 
include--
            (1) the type, dollar value, and quantity of defense 
        articles (including excess defense articles), defense services, 
        and international military education and training furnished by 
        the United States to each foreign country and international 
        organization;
            (2) the provision of law under which such article, service, 
        and education or training was furnished;
            (3) the dollar value, quantity, and end user of 
        semiautomatic assault weapons, or spare parts for such weapons, 
        the manufacture, transfer, or possession of which is unlawful 
        under section 922 of title 18, United States Code, receiving a 
        license for export; and
            (4) for military education and training provided to foreign 
        military personnel, the type of training, the number of foreign 
        military personnel trained, their units of operation, and the 
        location of the training.
    (c) Military Education and Training.--
            (1) Recordkeeping.--With respect to military education and 
        training provided under subsection (b)(4), the Secretary of 
        Defense shall develop and maintain records, which shall not be 
        subject to the requirements for public availability in 
        subsection (e), for each foreign military and defense 
        participant in military education and training activities 
        conducted under this or any other Act. Such database shall be 
        made available to the Secretary of State and shall include the 
        type of instruction received, the dates and location of such 
        instruction, whether such instruction was completed 
        successfully, and, to the extent practicable, the person's 
        subsequent military or defense ministry career and current 
        position and location.
            (2) Report on violations.--Not later than March 1 of each 
        year, the Secretary of State shall submit to the appropriate 
        congressional committees a report describing any involvement of 
        a foreign military or defense participant in military education 
        and training activities under this or any other Act in a 
        violation of internationally recognized human rights subsequent 
        to such participation. Such report shall be in unclassified 
        form, but may include a classified annex.
            (3) Addition to database.--The Secretary of Defense shall 
        ensure that the database required under subsection (a) is 
        updated to include the information reported to Congress 
        pursuant to paragraph (2)
    (d) Timing.--The Secretary shall ensure that the database required 
under this section is operative not later than 180 days after the date 
of the enactment of this Act, and shall prescribe such procedures as 
are necessary to ensure that the required information is entered into 
the database in a timely manner and continuously updated.
    (e) Public Availability.--The database required under this section 
shall be made publicly available on the Internet and shall be 
structured so that users may search the data by word and sort the data 
by field.
    (f) Form.--The database described in subsection (a) shall be in 
unclassified form and shall exclude any activity that is reportable 
under title V of the National Security Act of 1947.

SEC. 9305. CLASSIFICATION OF REPORTS.

    (a) In General.--Unless otherwise specifically provided by law, all 
information contained in any report required to be provided to Congress 
under this Act shall be in unclassified form and shall be made 
available to the public.
    (b) Exception.--If the President determines that publication of a 
specific item of information in any such report would be detrimental to 
the security of the United States, such item of information may be 
provided to Congress in a supplemental report in classified form along 
with an explanation of why publication of such specific item would be 
detrimental to the security of the United States.

           Subtitle D--Congressional Notification Procedures

SEC. 9401. NOTIFICATION OF PROGRAM CHANGES.

    (a) Notification of Program Changes.--Unless the appropriate 
congressional committees are notified at least 15 days in advance, 
funds appropriated for a fiscal year to carry out this Act may not be 
obligated for any assistance or contributions under this Act--
            (1) for a Country Development Cooperation Strategy, or any 
        significant revision thereof, which has not been transmitted to 
        the appropriate congressional committees in accordance with 
        section 1018;
            (2) for a country, international organization, regional 
        program, or centrally funded program for which assistance was 
        not included in a Country Development Cooperation Strategy, or 
        was not justified in congressional budget justification 
        documents for that fiscal year;
            (3) more than 10 percent in excess of the amount allocated 
        pursuant to section 9303 for that country, international 
        organization, regional program, or centrally funded program for 
        that fiscal year;
            (4) for a strategy or objective not justified to Congress 
        for that country, international organization, regional program, 
        or centrally funded program;
            (5) for a nonproject assistance activity; or
            (6) in the case of assistance administered through the 
        Department of Defense under this Act, for the provision of 
        major defense equipment (other than conventional ammunition) or 
        aircraft, ships, missiles, or combat vehicles not previously 
        justified to Congress, or more than ten percent in excess of 
        the quantities justified to Congress.
    (b) Appropriations Subject to Requirements.--Subsection (a) applies 
with respect to all funds appropriated for assistance and contributions 
under this Act other than--
            (1) subtitles A and B of title VII (relating to the 
        Overseas Private Investment Corporation and the Trade and 
        Development Agency, respectively);
            (2) section 1131 (relating to the development credit 
        authority);
            (3) section 2025 (relating to transition initiatives);
            (4) section 2022 (relating to complex crisis, 
        stabilization, and prevention fund); and
            (5) humanitarian assistance.
    (c) Waiver.--The requirements of subsection (a) may be waived if 
the President--
            (1) determines that doing so is necessitated by emergency 
        circumstances;
            (2) notifies the appropriate congressional committees as 
        early as practicable, but in no event later than three days 
        after taking the action to which such notification requirement 
        was applicable; and
            (3) includes in such notification an explanation of the 
        circumstances necessitating the use of the authority of this 
        subsection.

SEC. 9402. CONGRESSIONAL NOTIFICATION PARITY.

    The President shall ensure that the Committee on Foreign Affairs of 
the House of Representatives and the Committee on Foreign Relations of 
the Senate are notified to the same degree and with the same conditions 
as the Committees on Appropriations are notified by the executive 
branch regarding any matter relating to foreign assistance. The 
requirements of this section are in addition to, and not in lieu of, 
other congressional notification requirements.

SEC. 9403. PRESIDENTIAL FINDINGS AND DETERMINATIONS.

    (a) Written Determinations.--In any case in which the President is 
required to make a report to the Congress, or to any committee or 
officer of either House of Congress, concerning any finding or 
determination under any provision of this Act or related appropriations 
Act, such finding or determination shall be reduced to writing and 
signed by the President.
    (b) Effective Date.--No action shall be taken pursuant to any such 
finding or determination prior to the date on which that finding or 
determination has been reduced to writing and signed by the President.
    (c) Publication.--Each such finding or determination shall be 
published on the Internet and in the Federal Register as soon as 
practicable after it has been reduced to writing and signed by the 
President. In any case in which the President concludes that such 
publication would be harmful to the national security of the United 
States, only a statement that a determination or finding has been made 
by the President, including the name and section of the Act under which 
it was made, shall be published.

          TITLE X--POLICY RESTRICTIONS AND SPECIAL AUTHORITIES

                    Subtitle A--Policy Restrictions

SEC. 10001. DEFINITIONS.

    In this title:
            (1) Foreign terrorist organization.--The term ``foreign 
        terrorist organization'' means an organization designated as a 
        foreign terrorist organization by the Secretary of State in 
        accordance with section 219(a) of the Immigration and 
        Nationality Act (8 U.S.C. 1189(a)).
            (2) Government.--
                    (A) In general.--The term ``government'', when used 
                with respect to a foreign country--
                            (i) means the national government of the 
                        foreign country; and
                            (ii) includes--
                                    (I) the government of any political 
                                subdivision of the foreign country; and
                                    (II) any agency or instrumentality 
                                of the national government or 
                                government of any political subdivision 
                                of the foreign country.
                    (B) Agency or instrumentality defined.--For 
                purposes of subparagraph (A), the term ``agency or 
                instrumentality of the national government or 
                government of any political subdivision of the 
                country'' means an agency or instrumentality of a 
                foreign state as defined in section 1603(b) of title 
                28, United States Code, with each reference in such 
                section to ``a foreign state'' deemed to be a reference 
                to ``the foreign country''.
            (3) Provide.--The term ``provide'' includes--
                    (A) the obligation and expenditure of funds; and
                    (B) the sale, lease, grant, transfer, stockpiling 
                and delivery of foreign assistance.
            (4) State sponsor of drug trafficking.--The term ``state 
        sponsor of drug trafficking'' means a foreign government that 
        is the subject of a determination under section 10302(a) which 
        has not been waived or rescinded.
            (5) State sponsor of terrorism.--The term ``state sponsor 
        of terrorism'' means a foreign government that is the subject 
        of a determination under section 10401(a) which has not been 
        waived or rescinded.
            (6) International terrorism.--The term ``international 
        terrorism'' has the meaning given the term in section 2331 of 
        title 18, United States Code.

                        CHAPTER 1--HUMAN RIGHTS

SEC. 10101. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT ENGAGE IN 
              VIOLATIONS OF HUMAN RIGHTS.

    (a) In General.--No foreign assistance may be provided, and no 
licenses may be issued under the Export Administration Act of 1979 (as 
continued in effect under the International Emergency Economic Powers 
Act) for the export of crime control and detection instruments and 
equipment, to a foreign government which the Secretary determines 
engages in a consistent pattern of gross violations of internationally 
recognized human rights, including--
            (1) mass atrocities;
            (2) torture or cruel, inhuman, or degrading treatment or 
        punishment;
            (3) prolonged detention without charges and trial;
            (4) causing the disappearance of persons by the abduction 
        and clandestine detention of those persons; or
            (5) other flagrant denial of the right to life, liberty, 
        and the security of person.
    (b) Expiration of Determinations.--A determination of the Secretary 
under subsection (a) shall remain in effect until rescinded.
    (c) Rescission of Determinations.--A determination of the Secretary 
under subsection (a) with respect to a foreign government may not be 
rescinded unless the President submits to the appropriate congressional 
committees a report certifying that the government has substantially 
improved its human rights record and no longer engages in any of the 
actions described in subsection (a).
    (d) Publication.--A determination made under subsection (a) or a 
report submitted under subsection (c) shall be published in the Federal 
Register and made available on the Internet website of the Department 
of State.
    (e) List.--The Secretary shall include in the annual report 
required by section 9302 (relating to congressional budget 
justification) a list of foreign governments for which determinations 
under subsection (a) are currently in effect and the date on which each 
such determination became effective.
    (f) Considerations.--In determining whether or not a foreign 
government meets the criteria described in subsection (a), the 
Secretary shall consider--
            (1) the extent of cooperation of the government in 
        permitting an unimpeded investigation of alleged violations of 
        internationally recognized human rights by appropriate 
        international organizations, including the International 
        Committee of the Red Cross, or groups or persons acting under 
        the authority of such organizations;
            (2) specific actions which have been taken by the President 
        or Congress because of the human rights practices or policies 
        of the government; and
            (3) whether the government has engaged in or tolerated 
        particularly severe violations of religious freedom (as such 
        term is defined in section 3 of the International Religious 
        Freedom Act of 1998).
    (g) Waiver.--Assistance prohibited by subsection (a) may be 
provided, and licenses may be issued, to a foreign government described 
in that subsection if, at least 15 days before providing such 
assistance, the President submits to the relevant congressional 
committees--
            (1) a certification that--
                    (A) extraordinary circumstances exist warranting 
                the provision of such assistance or the issuance of 
                such license; and
                    (B) the interests of providing such assistance or 
                issuing such license outweigh the interests of 
                protecting internationally recognized human rights; and
            (2) a report describing--
                    (A) the types and amounts of assistance to be 
                provided or licenses to be issued pursuant to the 
                waiver;
                    (B) the justification for such waiver; and
                    (C) the time period for which such waiver will be 
                effective.
    (h) Definitions.--In this section--
            (1) the term ``genocide'' means an offense as described in 
        section 1091 of title 18, United States Code; and
            (2) the term ``relevant congressional committees'' means--
                    (A) the appropriate congressional committees; and
                    (B) in the case of licenses to be issued under the 
                Export Administration Act of 1979 (as continued in 
                effect under the International Emergency Economic 
                Powers Act) for the export of crime control and 
                detection instruments and equipment, the Committee on 
                Banking, Housing, and Urban Affairs of the Senate.

SEC. 10102. PROHIBITION ON ASSISTANCE TO CERTAIN HUMAN RIGHTS 
              VIOLATORS.

    (a) In General.--No foreign assistance may be provided to--
            (1) any unit of the security forces of a foreign 
        government,
            (2) any agency or instrumentality of a foreign government, 
        or
            (3) a private partner,
if the Secretary has credible information that such unit, agency or 
instrumentality, or private partner, as the case may be, has committed 
a gross violation of internationally recognized human rights.
    (b) Exception.--The prohibition in subsection (a) shall not apply 
if the Secretary determines and reports to the appropriate 
congressional committees that effective steps and corrective measures 
are being taken to bring the responsible members of such unit, agency 
or instrumentality, or private partner, as the case may be, to justice.
    (c) Duty To Inform.--
            (1) In general.--In the event that funds are withheld from 
        any unit pursuant to this section, the Secretary shall promptly 
        inform the foreign government of the basis for such action and 
        shall, to the maximum extent practicable, assist the government 
        in taking effective measures to bring the responsible members 
        of such unit to justice.
            (2) Publication.--The Secretary shall make publicly 
        available on the Internet website of the Department of State 
        the identity of each unit for which there is credible 
        information that such unit has committed a gross violation of 
        internationally recognized human rights.
            (3) Exception.--The requirements of paragraphs (1) and (2) 
        shall not apply if the Secretary determines such application 
        would compromise United States sources and methods or would 
        jeopardize the health, safety, or human rights of a witness or 
        informant.
    (d) Credible Information.--The Secretary shall establish, and 
periodically update, procedures to--
            (1) maintain a current list of each foreign country with 
        respect to which the United States provides training, 
        equipment, or other types of assistance to any unit of the 
        security forces of the government of such country;
            (2) facilitate receipt by the Department of State and 
        United States embassies of information from individuals and 
        organizations outside the United States Government about gross 
        violations of internationally recognized human rights by any 
        entity described in paragraph (1), (2), or (3) of subsection 
        (a);
            (3) routinely request and obtain such information from the 
        Department of Defense, the Central Intelligence Agency, and 
        other United States Government sources departments and 
        agencies;
            (4) synchronize information obtained from all sources;
            (5) ensure that such information is evaluated and 
        preserved;
            (6) ensure that when vetting an individual for eligibility 
        to receive United States training the individual's unit is also 
        vetted; and
            (7) seek to identify the unit involved when credible 
        information of a gross violation of internationally recognized 
        human rights exists but the identity of the unit is lacking.
    (e) Investigations.--
            (1) In general.--The Secretary is authorized to use funds 
        made available under title III or title IV for purposes of 
        gathering, receiving, preserving, investigating, and evaluating 
        evidence of gross violations of internationally recognized 
        human rights by any entity described in paragraph (1), (2), or 
        (3) of subsection (a).
            (2) Supplement not supplant.--Funds made available under 
        paragraph (1) are in addition to amounts otherwise made 
        available for the purposes described in paragraph (1).
    (f) Definitions.--In this section--
            (1) the term ``agency or instrumentality of a foreign 
        government'' means an agency or instrumentality of a foreign 
        state as defined in section 1603(b) of title 28, United States 
        Code; and
            (2) the term ``unit'' means the smallest unit operating in 
        the field.

SEC. 10103. PROHIBITION ON ASSISTANCE TO GOVERNMENTS FOLLOWING COUPS 
              D'ETAT.

    (a) In General.--No foreign assistance may be provided to a foreign 
government whose duly elected leader the Secretary determines has been 
deposed by violence or threat of violence.
    (b) Exceptions.--The prohibition in subsection (a) shall not apply 
with respect to a foreign government if the Secretary determines and 
reports to the appropriate congressional committees that--
            (1) the purpose and effect of the deposition was to restore 
        democratic governance; or
            (2) subsequent to the deposition, a democratically elected 
        government has taken office.
    (c) Publication.--A determination made under subsection (a) shall 
be published in the Federal Register and made available on the Internet 
website of the Department of State.
    (d) Waiver.--Assistance prohibited by subsection (a) may be 
provided to a foreign government described in that subsection if, at 
least 15 days before providing assistance, the Secretary submits to the 
appropriate congressional committees--
            (1) a certification that providing assistance is important 
        to the national security interest of the United States; and
            (2) a report describing--
                    (A) the types and amounts of assistance to be 
                provided pursuant to the waiver;
                    (B) the justification for the waiver; and
                    (C) the time period for which the waiver will be 
                effective.

SEC. 10104. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT PROHIBIT OR 
              IMPEDE DELIVERY OF HUMANITARIAN ASSISTANCE.

    (a) In General.--No foreign assistance may be provided to a foreign 
government which the Secretary determines prohibits or impedes the 
delivery of humanitarian assistance.
    (b) Publication.--A determination made under subsection (a) shall 
be published in the Federal Register and made available on the Internet 
website of the Department of State.
    (c) Waiver.--Assistance prohibited by subsection (a) may be 
provided to a foreign government described in that subsection if, at 
least 15 days before providing assistance, the Secretary certifies and 
reports to the appropriate congressional committees that to do so is in 
the national security interest of the United States.

SEC. 10105. PROHIBITION ON USE OF FUNDS TO SUPPORT OR JUSTIFY TORTURE.

    (a) In General.--No funds made available to carry out this Act may 
be made available to support or justify the use of torture or cruel, 
inhuman, or degrading treatment or punishment by any official or 
contract employee of the United States Government.
    (b) Reporting of Abuses.--The Secretary shall submit to the 
appropriate congressional committees a report of any credible 
information that an official or contract employee of the United States 
Government has engaged in a violation of subsection (a).

SEC. 10106. PROHIBITION ON ASSISTANCE TO GOVERNMENTS ENGAGED IN 
              INTIMIDATION AND HARASSMENT AGAINST INDIVIDUALS IN THE 
              UNITED STATES.

    (a) In General.--No foreign assistance may be provided to a foreign 
government which the Secretary determines is engaged in a consistent 
pattern of acts of intimidation or harassment directed against 
individuals in the United States.
    (b) Publication.--A determination made under subsection (a) shall 
be published in the Federal Register and made available on the Internet 
website of the Department of State.
    (c) Determinations.--The Secretary shall report a determination 
under section (a) to the appropriate congressional committees.

                      CHAPTER 2--NON-PROLIFERATION

SEC. 10201. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT TRANSFER 
              NUCLEAR ENRICHMENT EQUIPMENT, MATERIALS, OR TECHNOLOGY.

    (a) In General.--No foreign assistance may be provided to a foreign 
government which the Secretary determines has delivered or received 
nuclear enrichment equipment, materials, or technology to or from any 
other country on or after August 4, 1977.
    (b) Exception.--The prohibition in subsection (a) shall not apply 
with respect to a foreign government if--
            (1) the receiving country had not been designated as a 
        state sponsor of terrorism before delivery of such equipment, 
        materials, or technology;
            (2) the supplying and receiving countries have reached 
        agreement to place all such equipment, materials, or 
        technology, upon delivery, under multilateral auspices and 
        management when available;
            (3) the transfers of all such equipment, materials, or 
        technology occur in compliance with the Guidelines of the 
        Nuclear Suppliers Group; and
            (4) the receiving country has entered into an agreement 
        with the International Atomic Energy Agency (IAEA) to place all 
        such equipment, materials, technology, and all nuclear fuel and 
        facilities in the country under the safeguards system of the 
        IAEA, and is complying with such agreement.
    (c) Expiration of Determinations.--A determination of the Secretary 
under subsection (a) shall remain in effect until rescinded.
    (d) Rescission of Determinations.--A determination of the Secretary 
under subsection (a) with respect to a foreign government may not be 
rescinded unless the President submits to the appropriate congressional 
committees a report certifying that--
            (1) there has been a fundamental change in the leadership 
        and policies of the government; or
            (2) the government has entered into an agreement with the 
        IAEA to place all such equipment, materials, technology, and 
        all nuclear fuel and facilities in such country under the 
        safeguards system of the IAEA, and is complying with such 
        agreement.
    (e) Publication.--A determination made under subsection (a) or a 
report submitted under subsection (d) shall be published in the Federal 
Register and made available on the Internet website of the Department 
of State.
    (f) List.--The Secretary shall include in the annual report 
required by section 9302 (relating to congressional budget 
justification) a list of governments for which determinations under 
subsection (a) are currently in effect.
    (g) Waiver.--Assistance prohibited by subsection (a) may be 
provided to a foreign government described in that subsection if, at 
least 15 days before providing such assistance, the President certifies 
and reports to the appropriate congressional committees that--
            (1) the termination of such assistance would have a serious 
        adverse effect on vital United States interests; and
            (2) the President has received reliable assurances that the 
        government--
                    (A) if a government of a non-nuclear weapon state--
                            (i) will not acquire or develop nuclear 
                        weapons or assist other countries in doing so; 
                        and
                            (ii) will ensure that all past and future 
                        transfers of such equipment, materials, or 
                        technology shall be placed under an appropriate 
                        safeguards system by the IAEA; and
                    (B) has taken or will take effective measures to 
                ensure any future transfers of such equipment, 
                materials, or technology are made in accordance with 
                the Guidelines of the Nuclear Suppliers Group.
    (h) Resolution of Disapproval.--
            (1) In general.--A rescission under subsection (d) or 
        waiver under subsection (g) of a determination under subsection 
        (a) shall cease to be effective if Congress enacts a joint 
        resolution disapproving the proposed rescission or waiver.
            (2) Joint resolution described.--For the purposes of 
        paragraph (1), the term ``joint resolution'' means only a joint 
        resolution introduced not later than 30 days after the date of 
        receipt of a report under subsection (d) or (g), as the case 
        may be, the matter after the resolving clause of which is as 
        follows: ``That the proposed _____ submitted to Congress on 
        _____ under section 10201 of the Global Partnerships Act of 
        2012 is hereby prohibited.'', with the first blank space being 
        filled with ``rescission'' or ``waiver'', as appropriate, and 
        the second blank space being filled with the appropriate date.
            (3) Congressional procedures.--A joint resolution described 
        in paragraph (2) and introduced within the appropriate 30-day 
        period shall be considered in the Senate and the House of 
        Representatives in accordance with paragraphs (3) through (7) 
        of section 8066(c) of the Department of Defense Appropriations 
        Act, 1985 (as contained in Public Law 98-473), except that 
        references in such paragraphs to the Committees on 
        Appropriations of the House of Representatives and the Senate 
        shall be deemed to be references to the Committee on Foreign 
        Affairs of the House of Representatives and the Committee on 
        Foreign Relations of the Senate, respectively.

SEC. 10202. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT TRANSFER 
              NUCLEAR REPROCESSING EQUIPMENT, MATERIALS, OR TECHNOLOGY 
              OR NUCLEAR EXPLOSIVE DEVICES.

    (a) Prohibition.--
            (1) In general.--No foreign assistance may be provided, and 
        no loans or credit by a United States bank or financial 
        institution extended, no goods subject to licensing by the 
        United States for national security or foreign policy reasons 
        exported, and no support by the United States given for any 
        loan or financial or technical assistance by an international 
        financial institution, to a government which the President 
        determines--
                    (A) transfers to a non-nuclear-weapon state a 
                nuclear explosive device, or any design information or 
                component which is determined by the President to be 
                important to, and known by the transferring government 
                to be intended by the recipient state for use in, the 
                development or manufacture of any nuclear explosive 
                device;
                    (B) is a non-nuclear-weapon state and--
                            (i) receives a nuclear explosive device;
                            (ii) detonates a nuclear explosive device;
                            (iii) seeks and receives any design 
                        information or component which is determined by 
                        the President to be important to, and intended 
                        by the recipient state for use in, the 
                        development or manufacture of any nuclear 
                        explosive device; or
                            (iv) on or after August 8, 1985, exports 
                        illegally (or attempts to export illegally) 
                        from the United States any material, equipment, 
                        or technology which would contribute 
                        significantly to the ability of such country to 
                        manufacture a nuclear explosive device, if the 
                        President determines that the material, 
                        equipment, or technology was to be used by such 
                        country in the manufacture of a nuclear 
                        explosive device, or
                    (C) delivers nuclear reprocessing equipment, 
                materials, or technology to any other country or 
                receives such equipment, materials, or technology from 
                any other country, on or after August 4, 1977.
            (2) Rule of construction.--For purposes of paragraph 
        (1)(B)(4), an export (or attempted export) by a person who is 
        an agent of, or is otherwise acting on behalf of or in the 
        interests of, a country shall be considered to be an export (or 
        attempted export) by that country.
    (b) Exception.--The prohibitions under subsection (a) shall not 
apply--
            (1) to any transaction subject to the reporting 
        requirements of title V of the National Security Act of 1947 
        (relating to congressional oversight of intelligence 
        activities);
            (2) to medicines, medical equipment, and humanitarian 
        assistance; or
            (3) to any credit, credit guarantee, or financial 
        assistance provided by the Department of Agriculture to support 
        the purchase of food or other agricultural commodity.
    (c) Waiver.--
            (1) In general.--Assistance prohibited by subsection (a) 
        may be provided to a government described in that subsection if 
        the President determines and certifies to the appropriate 
        congressional committees that the termination of such 
        assistance would be seriously prejudicial to the achievement of 
        United States nonproliferation objectives or otherwise 
        jeopardize the common defense and security.
            (2) Special authority.--Assistance prohibited by subsection 
        (a)(1)(B)(ii) may be provided to a foreign government described 
        in that subsection if the President determines and certifies to 
        the appropriate congressional committees that the government 
        has taken a significant compensatory nonproliferation action, 
        such as the declaration of an unlimited moratorium on further 
        nuclear detonations, the signature and entry-into-force of a 
        legally binding international instrument prohibiting the 
        production of additional fissile nuclear material, or similar 
        action.
            (3) Effective date.--A certification under paragraph (1) or 
        (2) shall not take effect until 30 days of continuous session 
        of Congress have elapsed after its submission. For purposes of 
        this paragraph, continuity of session of Congress is broken 
        only by an adjournment of Congress sine die and the days on 
        which either House is not in session because of an adjournment 
        of more than 3 days to a day certain are excluded in the 
        computation of any period of time in which Congress is in 
        continuous session.
            (4) Non-delegation or transfer.--The President may not 
        delegate or transfer the President's power, authority, or 
        discretion to make or modify determinations under this 
        subsection.
    (d) Resolution of Disapproval.--
            (1) In general.--A waiver under subsection (c) of a 
        determination under subsection (a) shall cease to be effective 
        if Congress enacts a joint resolution disapproving the proposed 
        waiver.
            (2) Joint resolution described.--For the purposes of 
        paragraph (1), the term ``joint resolution'' means only a joint 
        resolution introduced not later than 30 days of continuous 
        session of Congress (as described in subsection (c)(3)) after 
        receipt of a certification under subsection (c), the matter 
        after the resolving clause of which is as follows: ``That the 
        proposed waiver under section 10202(c) of the Global 
        Partnerships Act of 2012 is hereby prohibited.''.
            (3) Congressional procedures.--A joint resolution described 
        in paragraph (2) and introduced within the appropriate period 
        shall be considered in the Senate and the House of 
        Representatives in accordance with paragraphs (3) through (7) 
        of section 8066(c) of the Department of Defense Appropriations 
        Act, 1985 (as contained in Public Law 98-473), except that 
        references in such paragraphs to the Committees on 
        Appropriations of the House of Representatives and the Senate 
        shall be deemed to be references to the Committee on Foreign 
        Affairs of the House of Representatives and the Committee on 
        Foreign Relations of the Senate, respectively.
    (e) Definitions.--In this section--
            (1) the term ``non-nuclear-weapon state'' has the meaning 
        given the term in section 830(5) of the Nuclear Proliferation 
        Prevention Act of 1994 (22 U.S.C. 6305(5)); and
            (2) the term ``nuclear explosive device'' has the meaning 
        given that term in section 830(4) of the Nuclear Proliferation 
        Prevention Act of 1994 (22 U.S.C. 6305(4)).

SEC. 10203. SECURITY ASSISTANCE TO PAKISTAN.

    (a) In General.--Security assistance may be provided to Pakistan 
after the Secretary makes a certification in accordance with subsection 
(b).
    (b) Certification.--Not less than 15 days before providing security 
assistance for Pakistan in a fiscal year, the Secretary shall transmit 
a certification to the appropriate congressional committees that--
            (1) the Government of Pakistan is continuing to safeguard 
        its nuclear weapons-related facilities, material, and 
        technology from theft and terrorist attack; and
            (2) the Government of Pakistan during the preceding fiscal 
        year has demonstrated a sustained commitment to and is making 
        significant efforts towards combating terrorist groups, taking 
        into account the extent to which the Government of Pakistan has 
        made progress on matters such as--
                    (A) ceasing support, including by any elements 
                within the Pakistan military or its intelligence 
                agency, to extremist and terrorist groups, particularly 
                to any group that has conducted attacks against United 
                States or coalition forces in Afghanistan, or against 
                the territory or people of neighboring countries;
                    (B) preventing al Qaeda, the Taliban and associated 
                terrorist groups, such as Lashkar-e-Taiba, the Haqqani 
                Network and Jaish-e-Mohammed, from operating in the 
                territory of Pakistan, including by stopping cross-
                border attacks into neighboring countries, closing 
                terrorist camps in the Federally Administered Tribal 
                Areas, dismantling terrorist bases of operations in 
                other parts of the country, including Quetta and 
                Muridke, and taking action when provided with 
                intelligence about high-level terrorist targets; and
                    (C) strengthening counterterrorism and anti-money 
                laundering laws.
    (c) Waiver.--
            (1) In general.--The Secretary may waive the requirement 
        contained in subsection (a) for a fiscal year if the Secretary 
        determines that is important to the national security interests 
        of the United States to do so.
            (2) Prior notice of waiver.--The authority of paragraph (1) 
        may not be exercised until 7 days after the Secretary provides 
        to the appropriate congressional committees a written notice of 
        the intent to issue a waiver and the reasons therefor. The 
        notice may be submitted in classified or unclassified form, as 
        necessary.
    (d) Effective Date.--The provisions of this section shall take 
effect on the date on which section 203 of the Enhanced Partnership 
with Pakistan Act of 2009 (Public Law 111-73) ceases to be effective.

                          CHAPTER 3--NARCOTICS

SEC. 10301. PROHIBITION ON ASSISTANCE TO DRUG TRAFFICKERS.

    (a) In General.--The Secretary shall take all reasonable steps to 
ensure that foreign assistance is not provided to or through any 
individual or entity that the Secretary knows or has reason to 
believe--
            (1) has been convicted of a violation of, or a conspiracy 
        to violate, any law or regulation of the United States or a 
        foreign country relating to narcotic or psychotropic drugs or 
        other controlled substances; or
            (2) is or has been an illicit trafficker in any such 
        controlled substance or is or has been a knowing assistor, 
        abettor, conspirator, or colluder with others in the illicit 
        trafficking in any such substance.
    (b) Regulations.--The Secretary shall issue regulations to carry 
out this section.
    (c) Congressional Notification.--Regulations issued pursuant to 
subsection (b) shall be submitted to the appropriate congressional 
committees before they take effect.
    (d) United States Defined.--In this section, the term ``United 
States'' includes each State of the several States, the District of 
Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, the 
Commonwealth of the Northern Mariana Islands, the Virgin Islands of the 
United States, and any other territory or possession of the United 
States.

SEC. 10302. PROHIBITION ON ASSISTANCE TO STATE SPONSORS OF DRUG 
              TRAFFICKING.

    (a) In General.--No foreign assistance may be provided to a foreign 
government which the Secretary determines has expressly consented to, 
or with knowledge, allowed, tolerated, or disregarded the recurring use 
of any part of the land, waters, or airspace of the country for the 
transit, production, or financing of illicit narcotics.
    (b) Expiration of Determinations.--A determination of the Secretary 
under subsection (a) shall remain in effect until rescinded.
    (c) Rescission of Determinations.--A determination of the Secretary 
under subsection (a) with respect to a government may not be rescinded 
unless the President submits to the appropriate congressional 
committees a report certifying that such government no longer expressly 
consents to, or with knowledge, allows, tolerates, or disregards the 
recurring use of any part of the land, waters, or airspace of the 
country for the transit, production, or financing of illicit narcotics.
    (d) Publication.--A determination made under subsection (a) and a 
report submitted under subsection (c) shall be published in the Federal 
Register and made available on the Internet website of the Department 
of State.
    (e) List.--The Secretary shall include in the annual report 
required by section 9302 (relating to congressional budget 
justification) a list of governments for which determinations under 
subsection (a) are currently in effect and the date on which each 
determination became effective.
    (f) Waiver.--Assistance prohibited by subsection (a) may be 
provided to a government described in that subsection if, at least 15 
days before providing assistance, the President submits to the 
appropriate congressional committees--
            (1) a certification that national security interests or 
        humanitarian reasons justify such a waiver; and
            (2) a report describing--
                    (A) the type and amount of assistance to be 
                provided pursuant to the waiver;
                    (B) the justification for such waiver; and
                    (C) the time period for which such waiver will be 
                effective.

SEC. 10303. PROHIBITION ON REIMBURSEMENTS FOR DRUG CROP ERADICATIONS.

    No foreign assistance may be made available to reimburse persons in 
foreign countries for the eradication of their illicit drug crops.

                          CHAPTER 4--TERRORISM

                    Subchapter A--General Provisions

SEC. 10401. PROHIBITION ON ASSISTANCE TO STATE SPONSORS OF TERRORISM.

    (a) In General.--No foreign assistance may be provided to a foreign 
government which the Secretary determines--
            (1) has repeatedly provided support for acts of 
        international terrorism; or
            (2) is controlled by an organization designated as a 
        terrorist organization under section 219 of the Immigration and 
        Nationality Act.
    (b) Expiration of Determinations.--A determination of the Secretary 
under subsection (a) shall remain in effect until rescinded.
    (c) Rescission of Determinations.--A determination of the Secretary 
under subsection (a) with respect to a government may not be rescinded 
unless the President submits to the appropriate congressional 
committees--
            (1) before the proposed rescission would take effect, a 
        report certifying that--
                    (A) there has been a fundamental change in the 
                leadership and policies of the government;
                    (B) the government is not supporting acts of 
                international terrorism; and
                    (C) the government has provided assurances that it 
                will not support acts of international terrorism in the 
                future; or
            (2) at least 45 days before the proposed rescission would 
        take effect, a report justifying the rescission and certifying 
        that--
                    (A) the government has not provided any support for 
                international terrorism during the preceding 6-month 
                period; and
                    (B) the government has provided assurances that it 
                will not support acts of international terrorism in the 
                future.
    (d) Publication.--A determination made under subsection (a) or a 
report submitted under subsection (c) shall be published in the Federal 
Register and made available on the Internet website of the Department 
of State.
    (e) List.--The Secretary shall include in the annual report 
required by section 9302 (relating to congressional budget 
justification) a list of governments for which determinations under 
subsection (a) are currently in effect.
    (f) Waiver.--Assistance prohibited by subsection (a) may be 
provided to a foreign government described in that subsection if, at 
least 15 days before providing assistance, the President submits to the 
appropriate congressional committees--
            (1) a certification that national security interests or 
        humanitarian reasons justify a such a waiver; and
            (2) a report describing--
                    (A) the type and amount of assistance to be 
                provided pursuant to the waiver;
                    (B) the justification for such waiver; and
                    (C) the time period for which such waiver will be 
                effective.
    (g) Resolution of Disapproval.--
            (1) In general.--A rescission under subsection (c)(2) or a 
        waiver under subsection (f) of a determination under subsection 
        (a) shall cease to be effective if Congress enacts a joint 
        resolution disapproving the proposed rescission or waiver.
            (2) Joint resolution described.--For the purposes of 
        paragraph (1), the term ``joint resolution'' means only a joint 
        resolution introduced not later than 45 days after the date of 
        receipt of a report under subsection (c)(2) or not later than 
        15 days after receipt of a certification under subsection (f), 
        as the case may be, the matter after the resolving clause of 
        which is as follows: ``That the proposed _____ submitted to 
        Congress on _____ under section 10401 of the Global 
        Partnerships Act of 2012 is hereby prohibited.'', with the 
        first blank space being filled with ``rescission'' or 
        ``waiver'', as appropriate, and the second blank space being 
        filled with the appropriate date.
            (3) Congressional procedures.--A joint resolution described 
        in paragraph (2) and introduced within the appropriate period 
        shall be considered in the Senate and the House of 
        Representatives in accordance with paragraphs (3) through (7) 
        of section 8066(c) of the Department of Defense Appropriations 
        Act, 1985 (as contained in Public Law 98-473), except that 
        references in such paragraphs to the Committees on 
        Appropriations of the House of Representatives and the Senate 
        shall be deemed to be references to the Committee on Foreign 
        Affairs of the House of Representatives and the Committee on 
        Foreign Relations of the Senate, respectively.
    (h) Definition.--In this section, the term ``support for acts of 
international terrorism'' includes--
            (1) expressly consenting to, or with knowledge, allowing, 
        tolerating, or disregarding the recurring use of any part of 
        the land, waters, or airspace of the country by a terrorist or 
        terrorist organization--
                    (A) to carry out terrorist activities, including 
                training, financing, and recruitment; or
                    (B) as a transit point;
            (2) granting sanctuary from prosecution to any individual 
        or group which has committed an act of international terrorism; 
        or
            (3) willfully aiding or abetting--
                    (A) the international proliferation of nuclear 
                explosive devices to individuals or groups;
                    (B) the acquisition by individuals or groups of 
                unsafeguarded special nuclear material; and
                    (C) the efforts of an individual or group to use, 
                develop, produce, stockpile, or otherwise acquire 
                chemical, biological, or radiological weapons.

SEC. 10402. PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS SUPPORTING 
              STATE SPONSORS OF TERRORISM.

    (a) In General.--No foreign assistance may be provided to a foreign 
government which the Secretary determines provides assistance (other 
than humanitarian assistance) to, or transfers lethal military 
equipment to, a state sponsor of terrorism.
    (b) Applicability.--The prohibition in subsection (a) shall apply 
only to assistance provided or transfers made after the date on which a 
government was designated as a state sponsor of terrorism.
    (c) Expiration of Determinations.--A determination of the Secretary 
under subsection (a) shall remain in effect until rescinded.
    (d) Rescission of Determinations.--A determination of the Secretary 
under subsection (a) with respect to a government may not be rescinded 
unless the President submits to the appropriate congressional 
committees a report certifying that--
            (1) the government has not provided assistance or 
        transferred lethal military equipment to a state sponsor of 
        terrorism during the preceding 12-month period;
            (2) there has been a fundamental change in the leadership 
        and policies of the government; and
            (3) the government has provided assurances that it will not 
        provide assistance or transfer lethal military equipment to a 
        state sponsor of terrorism in the future.
    (e) Publication.--A determination made under subsection (a) and a 
report submitted under subsection (d) shall be published in the Federal 
Register and made available on the Internet website of the Department 
of State.
    (f) List.--The Secretary shall include in the annual report 
required by section 9302 (relating to congressional budget 
justification) a list of governments for which determinations under 
subsection (a) are currently in effect.
    (g) Waiver.--Assistance prohibited by subsection (a) may be 
provided to a government described in that subsection if, at least 15 
days before providing assistance, the President submits to the 
appropriate congressional committees--
            (1) a certification that providing foreign assistance to 
        the government is important to the national interests of the 
        United States; and
            (2) a report describing--
                    (A) the type and amount of assistance to be 
                provided pursuant to the waiver;
                    (B) the justification for such waiver; and
                    (C) the time period for which such waiver will be 
                effective.

SEC. 10403. PROHIBITION ON TRANSACTIONS WITH STATE SPONSORS OF 
              TERRORISM.

    (a) Prohibited Transactions by the United States Government.--The 
following transactions by the United States Government are prohibited:
            (1) Exporting or otherwise providing (by sale, lease or 
        loan, grant, or other means), directly or indirectly, any 
        munitions item to a country described in subsection (d) under 
        the authority of this Act or any other law (except as provided 
        in subsection (g)). In implementing this paragraph, the 
        President--
                    (A) shall suspend delivery to such country of any 
                such item pursuant to any such transaction which has 
                not been completed at the time the Secretary makes the 
                determination described in section 10401(a) with 
                respect to the government of the country; and
                    (B) shall terminate any lease or loan to such 
                country of any such item which is in effect at the time 
                the Secretary makes that determination.
            (2) Providing credits, guarantees, or other financial 
        assistance under the authority of this Act or any other law 
        (except as provided in subsection (g)), with respect to the 
        acquisition of any munitions item by a country described in 
        subsection (d). In implementing this paragraph, the President 
        shall suspend expenditures pursuant to any such assistance 
        obligated before the Secretary makes the determination 
        described in section 10401(a) with respect to the government of 
        the country. The President may authorize expenditures otherwise 
        required to be suspended pursuant to the preceding sentence if 
        the President has determined, and reported to Congress, that 
        suspension of those expenditures causes undue financial 
        hardship to a supplier, shipper, or similar person and allowing 
        the expenditure will not result in any munitions item being 
        made available for use by such country.
            (3) Consenting under this Act, or under any other law 
        (except as provided in subsection (g)), to any transfer of any 
        munitions item to a country described in subsection (d). In 
        implementing this paragraph, the President shall withdraw any 
        such consent, which is in effect at the time the Secretary 
        makes the determination described in section 10401(a) with 
        respect to the government of the country, except that this 
        sentence does not apply with respect to any item that has 
        already been transferred to such country.
            (4) Providing any license or other approval under this Act 
        for any export or other transfer (including by means of a 
        technical assistance agreement, manufacturing licensing 
        agreement, or coproduction agreement) of any munitions item to 
        a country described in subsection (d). In implementing this 
        paragraph, the President shall suspend any such license or 
        other approval which is in effect at the time the Secretary 
        makes the determination described in section 10401(a) with 
        respect to the government of the country, except that this 
        sentence does not apply with respect to any item that has 
        already been exported or otherwise transferred to such country.
            (5) Otherwise facilitating the acquisition of any munitions 
        item by a state sponsor of terrorism. This paragraph applies 
        with respect to activities undertaken--
                    (A) by any department, agency, or other 
                instrumentality of the United States Government;
                    (B) by any officer or employee of the United States 
                Government (including members of the United States 
                Armed Forces); or
                    (C) by any other person at the request or on behalf 
                of the United States Government.
        The President may waive the requirements of the second sentence 
        of paragraph (1), the second sentence of paragraph (3), and the 
        second sentence of paragraph (4) to the extent that the 
        President determines, after consultation with Congress, that 
        unusual and compelling circumstances require that the President 
        not take the actions specified in that sentence.
    (b) Prohibited Transactions by United States Persons.--
            (1) In general.--A United States person may not take any of 
        the following actions:
                    (A) Exporting any munitions item to any country 
                described in subsection (d).
                    (B) Selling, leasing, loaning, granting, or 
                otherwise providing any munitions item to any country 
                described in subsection (d).
                    (C) Selling, leasing, loaning, granting, or 
                otherwise providing any munitions item to any recipient 
                which is not the government of or a person in a country 
                described in subsection (d) if the United States person 
                has reason to know that the munitions item will be made 
                available to any country described in subsection (d).
                    (D) Taking any other action which would facilitate 
                the acquisition, directly or indirectly, of any 
                munitions item by a state sponsor of terrorism, or any 
                person acting on behalf of that government, if the 
                United States person has reason to know that action 
                will facilitate the acquisition of that item by such a 
                government or person.
            (2) Liability for actions of foreign subsidiaries, etc.--A 
        United States person violates this subsection if a corporation 
        or other person that is controlled in fact by that United 
        States person (as determined under regulations, which the 
        President shall issue), takes an action described in paragraph 
        (1) outside the United States.
            (3) Applicability to actions outside the united states.--
        Paragraph (1) applies with respect to actions described in that 
        paragraph which are taken either within or outside the United 
        States by a United States person described in subsection 
        (k)(2)(A) or (B). To the extent provided in regulations issued 
        under subsection (k)(2)(D), paragraph (1) applies with respect 
        to actions described in that paragraph which are taken outside 
        the United States by a person designated as a United States 
        person in those regulations.
    (c) Transfers to Governments and Persons Covered.--This section 
applies with respect to--
            (1) the acquisition of munitions items by a state sponsor 
        of terrorism; and
            (2) the acquisition of munitions items by any individual, 
        group, or other person within a country described in subsection 
        (d), except to the extent that subparagraph (D) of subsection 
        (b)(1) provides otherwise.
    (d) Countries Covered by Prohibition.--The prohibitions contained 
in this section apply with respect to any country that is the subject 
of a determination under section 10401(a), which has not been waived or 
rescinded.
    (e) Publication of Determinations.--Each determination of the 
Secretary under subsection (d) shall be published in the Federal 
Register and made available on the Internet website of the Department 
of State.
    (f) Waiver.--
            (1) In general.--The President may waive the prohibitions 
        contained in this section with respect to a specific 
        transaction if--
                    (A) the President determines that the transaction 
                is essential to the national security interests of the 
                United States; and
                    (B) not less than 15 days prior to the proposed 
                transaction, the President--
                            (i) consults with the Committee on Foreign 
                        Affairs of the House of Representatives and the 
                        Committee on Foreign Relations of the Senate; 
                        and
                            (ii) submits to the appropriate 
                        congressional committees a report containing--
                                    (I) the name of any country 
                                involved in the proposed transaction, 
                                the identity of any recipient of the 
                                items to be provided pursuant to the 
                                proposed transaction, and the 
                                anticipated use of those items;
                                    (II) a description of the munitions 
                                items involved in the proposed 
                                transaction (including their market 
                                value) and the actual sale price at 
                                each step in the transaction (or if the 
                                items are transferred by other than 
                                sale, the manner in which they will be 
                                provided);
                                    (III) the reasons why the proposed 
                                transaction is essential to the 
                                national security interests of the 
                                United States and the justification for 
                                such proposed transaction;
                                    (IV) the date on which the proposed 
                                transaction is expected to occur; and
                                    (V) the name of each United States 
                                Government department, agency, or other 
                                entity involved in the proposed 
                                transaction, every foreign government 
                                involved in the proposed transaction, 
                                and every private party with 
                                significant participation in the 
                                proposed transaction.
            (2) Form.--To the extent possible, the information 
        specified in paragraph (1)(B)(ii) shall be provided in 
        unclassified form, with any classified information provided in 
        an addendum to the report.
    (g) Exemption for Transactions Subject to National Security Act 
Reporting Requirements.--The prohibitions contained in this section do 
not apply with respect to any transaction subject to reporting 
requirements under title V of the National Security Act of 1947 (50 
U.S.C. 413 et seq.; relating to congressional oversight of intelligence 
activities).
    (h) Relation to Other Laws.--
            (1) In general.--With regard to munitions items controlled 
        pursuant to this Act, the provisions of this section shall 
        apply notwithstanding any other provisions of law, other than 
        section 10603.
            (2) Waiver authority.--If the authority of section 10603(a) 
        is used to permit a transaction under this Act which is 
        otherwise prohibited by this section, the written policy 
        justification required by that section shall include the 
        information specified in subsection (f)(2)(B) of this section.
    (i) Criminal Penalty.--Any person who willfully violates this 
section shall be fined for each violation not more than $1,000,000, 
imprisoned not more than 10 years, or both.
    (j) Civil Penalties; Enforcement.--In the enforcement of this 
section, the President is authorized to exercise the same powers 
concerning violations and enforcement which are conferred upon 
departments, agencies, and officials by sections 11(c), 11(e), 11(g), 
and 12(a) of the Export Administration Act of 1979 (as continued in 
effect under the International Emergency Economic Powers Act) (subject 
to the same terms and conditions as are applicable to such powers under 
that Act), except that section 11(c)(2)(B) of such Act shall not apply, 
and instead, as prescribed in regulations issued under this section, 
the Secretary of State may assess civil penalties for violations of 
this Act and regulations prescribed thereunder and further may commence 
a civil action to recover such civil penalties, and except further 
that, notwithstanding section 11(c) of that Act, the civil penalty for 
each violation of this section may not exceed $500,000.
    (k) Definitions.--As used in this section--
            (1) the term ``munitions item'' means any item enumerated 
        on the United States Munitions list (without regard to whether 
        the item is imported into or exported from the United States);
            (2) the term ``United States person'' means--
                    (A) any citizen or permanent resident alien of the 
                United States;
                    (B) any sole proprietorship, partnership, company, 
                association, or corporation having its principal place 
                of business within the United States or organized under 
                the laws of the United States, any State, the District 
                of Columbia, the Commonwealth of Puerto Rico, the 
                Commonwealth of the Northern Mariana Islands, or any 
                territory or possession of the United States;
                    (C) any other person with respect to that person's 
                actions while in the United States; and
                    (D) to the extent provided in regulations issued by 
                the Secretary, any person that is not described in 
                subparagraph (A), (B), or (C) but--
                            (i) is a foreign subsidiary or affiliate of 
                        a United States person described in 
                        subparagraph (B) and is controlled in fact by 
                        that United States person (as determined in 
                        accordance with those regulations), or
                            (ii) is otherwise subject to the 
                        jurisdiction of the United States,
                with respect to that person's actions while outside the 
                United States;
            (3) the term ``nuclear explosive device'' has the meaning 
        given that term in section 830(4) of the Nuclear Proliferation 
        Prevention Act of 1994 (22 U.S.C. 6305(4)); and
            (4) the term ``unsafeguarded special nuclear material'' has 
        the meaning given that term in section 830(8) of the Nuclear 
        Proliferation Prevention Act of 1994 (22 U.S.C. 6305 (8)).

SEC. 10404. TRANSACTIONS WITH COUNTRIES NOT FULLY COOPERATING WITH 
              UNITED STATES COUNTERTERRORISM EFFORTS.

    (a) Prohibited Transactions.--No defense article or defense service 
may be sold or licensed for export under this Act in a fiscal year to a 
foreign country whose government the Secretary determines and certifies 
to Congress, by May 15 of the calendar year in which that fiscal year 
begins, is not cooperating fully with United States counterterrorism 
efforts.
    (b) Waiver.--The President may waive the prohibition in subsection 
(a) with respect to a specific transaction if the President determines 
and reports to the appropriate congressional committees that the 
transaction is important to the national interests of the United 
States.

SEC. 10405. WITHHOLDING OF UNITED STATES PROPORTIONATE SHARE FOR 
              CERTAIN PROGRAMS OF INTERNATIONAL ORGANIZATIONS.

    (a) In General.--No contributions by the United States shall be 
made to any international organization for the United States 
proportionate share for programs in countries determined to be state 
sponsors of terrorism in accordance with section 10401(a).
    (b) Proportionate Share.--The Secretary shall--
            (1) review, at least annually, the budgets and accounts of 
        all international organizations receiving funds under this Act; 
        and
            (2) report to the appropriate congressional committees the 
        amounts of funds expended by each such organization for the 
        purposes described in subsection (a) and the amount contributed 
        by the United States to each such organization.
    (c) Exceptions.--The limitation in subsection (a) shall not apply 
to contributions to the International Atomic Energy Agency or the 
United Nations Children's Fund (UNICEF).

                  Subchapter B--Middle East Provisions

SEC. 10411. CONDITIONAL CONTRIBUTIONS TO CERTAIN INTERNATIONAL 
              ORGANIZATIONS.

    (a) In General.--No contributions by the United States shall be 
made to the United Nations Relief and Works Agency for Palestine 
Refugees in the Near East.
    (b) Exception.--The limitation in subsection (a) shall not apply if 
the Secretary determines and reports to the appropriate congressional 
committees that the United Nations Relief and Works Agency is taking 
all possible measures to assure that no part of the United States 
contribution shall be used to provide assistance to any refugee who is 
receiving military training as a member of any terrorist group or 
guerrilla-type organization or who has engaged in any act of terrorism.

SEC. 10412. LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY.

    (a) Limitation.--Assistance may be provided under this Act to the 
Hamas-controlled Palestinian Authority only during a period for which a 
certification described in subsection (b) is in effect.
    (b) Certification.--A certification described in subsection (a) is 
a certification transmitted by the President to Congress that contains 
a determination of the President that--
            (1) no ministry, agency, or instrumentality of the 
        Palestinian Authority is effectively controlled by Hamas, 
        unless the Hamas-controlled Palestinian Authority has--
                    (A) publicly acknowledged the Jewish state of 
                Israel's right to exist; and
                    (B) committed itself and is adhering to all 
                previous agreements and understandings with the United 
                States Government, with the Government of Israel, and 
                with the international community, including agreements 
                and understandings pursuant to the Performance-Based 
                Roadmap to a Permanent Two-State Solution to the 
                Israeli-Palestinian Conflict (commonly referred to as 
                the ``Roadmap''); and
            (2) the Hamas-controlled Palestinian Authority has made 
        demonstrable progress toward--
                    (A) completing the process of purging from its 
                security services individuals with ties to terrorism;
                    (B) dismantling all terrorist infrastructure within 
                its jurisdiction, confiscating unauthorized weapons, 
                arresting and bringing terrorists to justice, 
                destroying unauthorized arms factories, thwarting and 
                preempting terrorist attacks, and fully cooperating 
                with Israel's security services;
                    (C) halting all anti-American and anti-Israel 
                incitement in Palestinian Authority-controlled 
                electronic and print media and in schools, mosques, and 
                other institutions it controls, and replacing 
                educational materials, including textbooks, with 
                materials that promote peace, tolerance, and 
                coexistence with Israel;
                    (D) ensuring democracy, the rule of law, and an 
                independent judiciary, and adopting other reforms such 
                as ensuring transparent and accountable governance; and
                    (E) ensuring the financial transparency and 
                accountability of all government ministries and 
                operations.
    (c) Recertifications.--Not later than 90 days after the date on 
which the President transmits to Congress an initial certification 
under subsection (b), and every six months thereafter--
            (1) the President shall transmit to Congress a 
        recertification that the conditions described in subsection (b) 
        are continuing to be met; or
            (2) if the President is unable to make such a 
        recertification, the President shall transmit to Congress a 
        report that contains the reasons therefor.
    (d) Congressional Notification.--Assistance made available under 
this Act to the Palestinian Authority may not be provided until 15 days 
after the date on which the President has provided notice thereof to 
the appropriate congressional committees in accordance with the 
procedures applicable to reprogramming notifications under section 
9401.
    (e) National Security Waiver.--
            (1) In general.--Subject to paragraph (2), the President 
        may waive subsection (a) with respect to--
                    (A) the administrative and personal security costs 
                of the Office of the President of the Palestinian 
                Authority;
                    (B) the activities of the President of the 
                Palestinian Authority to fulfill his or her duties as 
                President, including to maintain control of the 
                management and security of border crossings, to foster 
                the Middle East peace process, and to promote democracy 
                and the rule of law; and
                    (C) assistance for the judiciary branch of the 
                Palestinian Authority and other entities.
            (2) Certification.--The President may only exercise the 
        waiver authority under paragraph (1) after--
                    (A) consulting with, and submitting a written 
                policy justification to, the appropriate congressional 
                committees; and
                    (B) certifying to the appropriate congressional 
                committees that--
                            (i) it is in the national security interest 
                        of the United States to provide assistance 
                        otherwise prohibited under subsection (a); and
                            (ii) the individual or entity for which 
                        assistance is proposed to be provided is not a 
                        member of, or effectively controlled by (as the 
                        case may be), Hamas or any other foreign 
                        terrorist organization.
            (3) Report.--Not later than 10 days after exercising the 
        waiver authority under paragraph (1), the President shall 
        submit to the appropriate congressional committees a report 
        describing how the funds provided pursuant to such waiver will 
        be spent and detailing the accounting procedures that are in 
        place to ensure proper oversight and accountability.
            (4) Treatment of certification as notification of program 
        change.--For purposes of this subsection, the certification 
        required under paragraph (2)(B) shall be deemed to be a 
        notification under section 9401 and shall be considered in 
        accordance with the procedures applicable to notifications 
        submitted pursuant to that section.
    (f) Definition.--In this section, the term ``Palestinian 
Authority'' means the interim Palestinian administrative organization 
that governs part of the West Bank and all of the Gaza Strip (or any 
successor Palestinian governing entity), including the Palestinian 
Legislative Council.

SEC. 10413. LIMITATION ON ASSISTANCE FOR THE WEST BANK AND GAZA.

    (a) Limitation.--Assistance may be provided under this Act to 
nongovernmental organizations for the West Bank and Gaza only during a 
period for which a certification described in section 10412(b) is in 
effect with respect to the Palestinian Authority.
    (b) Exceptions.--Subsection (a) shall not apply with respect to the 
following:
            (1) Assistance to meet basic human needs.--Assistance to 
        meet food, water, medicine, health, or sanitation needs, or 
        other assistance to meet basic human needs.
            (2) Assistance to promote democracy.--Assistance to promote 
        democracy, human rights, freedom of the press, non-violence, 
        reconciliation, and peaceful coexistence, provided that such 
        assistance does not directly benefit Hamas or any other foreign 
        terrorist organization.
            (3) Assistance for individual members of the palestinian 
        legislative council.--Assistance, other than funding of 
        salaries or salary supplements, to individual members of the 
        Palestinian Legislative Council who the President determines 
        are not members of Hamas or any other foreign terrorist 
        organization, for the purposes of facilitating the attendance 
        of such members in programs for the development of institutions 
        of democratic governance, including enhancing the transparent 
        and accountable operations of such institutions, and providing 
        support for the Middle East peace process.
            (4) Other types of assistance.--Any other type of 
        assistance if the President--
                    (A) determines that the provision of such 
                assistance is in the national security interest of the 
                United States; and
                    (B) not less than 30 days prior to the obligation 
                of amounts for the provision of such assistance--
                            (i) consults with the appropriate 
                        congressional committees regarding the specific 
                        programs, projects, and activities to be 
                        carried out using such assistance; and
                            (ii) submits to the appropriate 
                        congressional committees a written memorandum 
                        that contains the determination of the 
                        President under subparagraph (A).
    (c) Marking Requirement.--Assistance provided under this Act to 
nongovernmental organizations for the West Bank and Gaza shall be 
marked as assistance from the American people or the United States 
Government unless the Secretary of State or, as appropriate, the 
Administrator of the United States Agency for International 
Development, determines that such marking will endanger the lives or 
safety of persons delivering such assistance or would have an adverse 
effect on the implementation of that assistance.
    (d) Congressional Notification.--Assistance made available under 
this Act to nongovernmental organizations for the West Bank and Gaza 
may not be provided until 15 days after the date on which the President 
has provided notice thereof to the appropriate congressional committees 
in accordance with the procedures applicable to reprogramming 
notifications under section 9401.

SEC. 10414. PALESTINIAN STATEHOOD.

    (a) Limitation.--None of the funds made available under this Act 
may be provided to support a Palestinian state unless the Secretary 
determines and certifies to the appropriate congressional committees 
that--
            (1) the governing entity of a new Palestinian state--
                    (A) has demonstrated a firm commitment to peaceful 
                co-existence with the State of Israel; and
                    (B) is taking appropriate measures to counter 
                terrorism and terrorist financing in the West Bank and 
                Gaza, including the dismantling of terrorist 
                infrastructures, and is cooperating with appropriate 
                Israeli and other appropriate security organizations; 
                and
            (2) the Palestinian Authority (or the governing entity of a 
        new Palestinian state) is working with other countries in the 
        region to vigorously pursue efforts to establish a just, 
        lasting, and comprehensive peace in the Middle East that will 
        enable Israel and an independent Palestinian state to exist 
        within the context of full and normal relationships, which 
        should include--
                    (A) termination of all claims or states of 
                belligerency;
                    (B) respect for and acknowledgment of the 
                sovereignty, territorial integrity, and political 
                independence of every state in the area through 
                measures including the establishment of demilitarized 
                zones;
                    (C) their right to live in peace within secure and 
                recognized boundaries free from threats or acts of 
                force;
                    (D) freedom of navigation through international 
                waterways in the area; and
                    (E) a framework for achieving a just settlement of 
                the refugee problem.
    (b) Sense of Congress.--It is the sense of Congress that the 
governing entity should enact a constitution assuring the rule of law, 
an independent judiciary, and respect for human rights for its 
citizens, and should enact other laws and regulations assuring 
transparent and accountable governance.
    (c) Waiver.--The President may waive the limitation on assistance 
in subsection (a) if the President determines and reports to Congress 
that it is important to the national security interests of the United 
States to do so.
    (d) Exemption.--The limitation in subsection (a) shall not apply to 
assistance intended to help reform the Palestinian Authority and 
affiliated institutions, or the governing entity, in order to help meet 
the requirements of subsection (a), consistent with the provisions of 
section 10418.

SEC. 10415. RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY.

    (a) In General.--None of the funds made available under this Act 
may be provided to create in any part of Jerusalem a new office of any 
department or agency of the United States Government for the purpose of 
conducting official United States Government business with the 
Palestinian Authority over Gaza and Jericho or any successor 
Palestinian governing entity provided for in the Israel-PLO Declaration 
of Principles.
    (b) Exception.--The restriction in subsection (a) shall not apply 
to the acquisition of additional space for the existing Consulate 
General in Jerusalem.
    (c) Meeting Location.--Meetings between officers and employees of 
the United States and officials of the Palestinian Authority, or any 
successor Palestinian governing entity provided for in the Israel-PLO 
Declaration of Principles, for the purpose of conducting official 
United States Government business with such authority should continue 
to take place in locations other than Jerusalem.
    (d) Incidental Discussions.--Consistent with past practices, 
officers and employees of the United States Government may continue to 
meet in Jerusalem on other subjects with Palestinians (including those 
who now occupy positions in the Palestinian Authority), have social 
contacts, and have incidental discussions.

SEC. 10416. PROHIBITION ON ASSISTANCE TO THE PALESTINIAN BROADCASTING 
              CORPORATION.

    None of the funds made available under this Act may be made 
available to provide equipment, technical support, consulting services, 
or any other form of assistance to the Palestinian Broadcasting 
Corporation.

SEC. 10417. ASSISTANCE FOR THE WEST BANK AND GAZA.

    (a) Oversight.--The Secretary shall ensure that procedures have 
been established to assure the Comptroller General of the United States 
has access to appropriate United States financial information in order 
to review the uses of United States assistance for the West Bank and 
Gaza.
    (b) Vetting.--
            (1) In general.--The Secretary shall take all appropriate 
        steps to ensure that assistance for the West Bank and Gaza is 
        not provided to or through any individual, private or 
        government entity, or educational institution that the 
        Secretary knows or has reason to believe advocates, plans, 
        sponsors, engages in, or has engaged in, terrorist activity 
        nor, with respect to private entities or educational 
        institutions, those that have as a principal officer of the 
        entity's governing board or governing board of trustees any 
        individual that has been determined to be involved in, or 
        advocating terrorist activity or determined to be a member of a 
        designated foreign terrorist organization.
            (2) Procedures.--The Secretary shall, as appropriate, 
        establish procedures specifying the steps to be taken in 
        carrying out this subsection and shall terminate assistance to 
        any individual, entity, or educational institution which the 
        Secretary has determined to be involved in or advocating 
        terrorist activity.
    (c) Prohibition.--None of the funds made available under this Act 
for assistance to the West Bank and Gaza may be made available for the 
purpose of recognizing or otherwise honoring individuals who commit, or 
have committed acts of terrorism.
    (d) Benchmarks.--Before providing assistance to the West Bank and 
Gaza for a fiscal year, the Secretary shall report to the appropriate 
congressional committees on the benchmarks that have been established 
for security assistance for the West Bank and Gaza and the extent of 
Palestinian compliance with such benchmarks.
    (e) Audits.--
            (1) In general.--The Administrator shall ensure that 
        Federal or non-Federal audits of all contractors and grantees, 
        and significant subcontractors and sub-grantees, under the West 
        Bank and Gaza Program, are conducted at least on an annual 
        basis to ensure, among other things, compliance with this 
        section.
            (2) Audits, inspections, and other activities.--Of amounts 
        made available in a fiscal year for the Office of Inspector 
        General of the United States Agency for International 
        Development, up to $500,000 may be used for audits, 
        inspections, and other activities in furtherance of the 
        requirements of this subsection, in addition to funds otherwise 
        available for such purposes.

SEC. 10418. LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY.

    (a) Limitation.--None of the funds made available under section 
4103 may be provided to the Palestinian Authority.
    (b) Waiver.--The prohibition in subsection (a) shall not apply if 
the President certifies in writing to the Speaker of the House of 
Representatives, the President pro tempore of the Senate, and the 
appropriate congressional committees that waiving such prohibition is 
important to the national security interests of the United States.
    (c) Period of Waiver.--Any waiver issued pursuant to subsection (b) 
shall be effective for no more than a period of 6 months.
    (d) Report.--Whenever the waiver authority pursuant to subsection 
(b) is exercised, the President shall submit to the appropriate 
congressional committees a report detailing--
            (1) the justification for the waiver;
            (2) the purposes for which the funds will be spent;
            (3) the accounting procedures in place to ensure that the 
        funds are properly disbursed; and
            (4) the steps the Palestinian Authority has taken to arrest 
        terrorists, confiscate weapons, and dismantle the terrorist 
        infrastructure.
    (e) Certification.--If the waiver authority pursuant to subsection 
(b) is exercised, the Secretary shall certify and report to the 
appropriate congressional committees, before providing assistance to 
the Palestinian Authority, that--
            (1) the Palestinian Authority has established a single 
        treasury account for all Palestinian Authority financing;
            (2) all financing mechanisms flow through such account;
            (3) no parallel financing mechanisms exist outside of such 
        account; and
            (4) there is a single comprehensive civil service roster 
        and payroll.
    (f) Prohibition on Assistance to Hamas and the Palestine Liberation 
Organization.--
            (1) In general.--None of the funds made available under 
        this Act may be provided for--
                    (A) salaries of personnel of the Palestinian 
                Authority located in Gaza;
                    (B) assistance to Hamas or any entity effectively 
                controlled by Hamas; or
                    (C) any power-sharing government of which Hamas is 
                a member, or that results from an agreement with Hamas 
                and over which Hamas exercises undue influence.
            (2) Exception.--Notwithstanding paragraph (1), assistance 
        may be provided to a power-sharing government only if the 
        President certifies and reports to the appropriate 
        congressional committees that such government, including all of 
        its ministers or such equivalent, has publicly accepted and is 
        complying with the principles contained in subparagraphs (A) 
        and (B) of section 10412(b)(1).
            (3) National security waiver.--The President may exercise 
        the authority in section 10412(e) with respect to this 
        subsection.
            (4) Report.--Whenever the certification pursuant to 
        paragraph (2) is exercised, the Secretary shall submit to the 
        appropriate congressional committees a report not later than 
        120 days after the date of the certification and every quarter 
        thereafter on--
                    (A) whether such government, including all of its 
                ministers or such equivalent are continuing to comply 
                with the principles contained in subparagraph (A) and 
                (B) of section 10412(b)(1);
                    (B) the amount, purposes and delivery mechanisms 
                for any assistance provided pursuant to the 
                certification; and
                    (C) a full accounting of any direct support of such 
                government.
            (5) Limitation on assistance to the plo.--None of the funds 
        made available under this Act may be used to provide assistance 
        for the Palestine Liberation Organization.

SEC. 10419. LIMITATION RELATING TO PALESTINIAN STATUS IN THE UNITED 
              NATIONS.

    (a) Limitation.--None of the funds made available under section 
4103 may be used to provide assistance for the Palestinian Authority if 
the Palestinians obtain, after the date of the enactment of this Act, 
the same standing as member states, enhanced observer status, or full 
membership as a state in the United Nations or any specialized agency 
thereof outside an agreement negotiated between Israel and the 
Palestinians.
    (b) Waiver by Secretary.--The Secretary may waive the limitation in 
subsection (a) if the Secretary certifies to the appropriate 
congressional committees that to do so is in the national security 
interest of the United States and submits to the appropriate 
congressional committees a report detailing how the waiver and the 
continuation of assistance would assist in furthering Middle East 
peace.
    (c) Waivers by President.--
            (1) In general.--The President may waive the provisions of 
        section 1003 of the Anti-Terrorism Act of 1987 (22 U.S.C. 5202) 
        if the President determines and certifies in writing to the 
        Speaker of the House of Representatives, the President pro 
        tempore of the Senate, and the appropriate congressional 
        committees that the Palestinians have not, after the date of 
        the enactment of this Act, obtained in the United Nations or 
        any specialized agency thereof the same standing as member 
        states, enhanced observer status, or full membership as a state 
        in the United Nations or any specialized agency thereof outside 
        an agreement negotiated between Israel and the Palestinians.
            (2) Additional waiver.--Not less than 90 days after the 
        President is unable to make the certification pursuant to 
        paragraph (1), the President may waive section 1003 of the 
        Anti-Terrorism Act of 1987 if the President determines and 
        certifies in writing to the Speaker of the House of 
        Representatives, the President pro tempore of the Senate, and 
        the appropriate congressional committees that the Palestinians 
        have entered into direct and meaningful negotiations with 
        Israel relating to Palestinian statehood.
            (3) Expiration of other waivers.--Any waiver of the 
        provisions of section 1003 of the Anti-Terrorism Act of 1987 
        under paragraph (1) or under previous provisions of law must 
        expire before a waiver under paragraph (2) may be exercised.
            (4) Effective date.--Any waiver of the provisions of 
        section 1003 of the Anti-Terrorism Act of 1987 pursuant to 
        paragraph (1) or (2) shall be effective for not more than a 
        period of 6 months.

                     CHAPTER 5--TRADE AND COMMERCE

SEC. 10501. PROHIBITION ON ASSISTANCE FOR EXPORTING UNITED STATES JOBS.

    (a) Incentives and Inducements.--No foreign assistance may be made 
available to provide any financial incentive to a business enterprise 
located in the United States for the purpose of inducing such 
enterprise to relocate outside the United States, if such incentive or 
inducement is likely to reduce the number of employees of such business 
enterprise in the United States because United States production is 
being replaced by such enterprise outside the United States.
    (b) Workers' Rights.--No foreign assistance may be made available 
for any program, project, or activity that contributes to the violation 
of internationally recognized worker rights (as such term is defined in 
section 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4))) of workers 
in a partner country, including any designated zone or area in the 
country.
    (c) Micro and Small-Scale Enterprise.--The application of 
subparagraph (D) or (E) of section 507(4) of the Trade Act of 1974 (19 
U.S.C. 2467(4)) with respect to a partner country should be 
commensurate with the level of development of the country and the 
relevant economic sector of the country, and shall not preclude 
assistance for the informal sector of the country, micro and small-
scale enterprise in the country, and smallholder agriculture in the 
country.

SEC. 10502. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT EXPROPRIATE 
              UNITED STATES PROPERTY.

    (a) In General.--No foreign assistance may be provided to a foreign 
government which the Secretary determines has--
            (1) on or after January 1, 1962--
                    (A) nationalized or expropriated or seized 
                ownership or control of property owned by any United 
                States citizen or by any corporation, partnership, or 
                association not less than 50 percent beneficially owned 
                by United States citizens;
                    (B) taken steps to repudiate or nullify existing 
                contracts or agreements with any United States citizen 
                or any corporation, partnership, or association not 
                less than 50 percent beneficially owned by United 
                States citizens; or
                    (C) imposed or enforced discriminatory taxes or 
                other exactions, or restrictive maintenance or 
                operational conditions, or has taken other actions, 
                which have the effect of nationalizing, expropriating, 
                or otherwise seizing ownership or control of property 
                so owned; and
            (2) failed within a reasonable time to take appropriate 
        steps, which may include arbitration, to--
                    (A) discharge its obligations under international 
                law toward such citizen or entity, including speedy 
                compensation for such property in convertible foreign 
                exchange, equivalent to the full value thereof, as 
                required by international law; or
                    (B) provide relief from such taxes, exactions, or 
                conditions, as the case may be.
    (b) ``Reasonable Time'' Defined.--For the purposes of subsection 
(a)(2), the term ``reasonable time'' means--
            (1) not more than six months after an action described in 
        subsection (a)(1); or
            (2) in the event of a referral to the Foreign Claims 
        Settlement Commission of the United States, not more than 
        twenty days after the report of the Commission is received.
    (c) Expiration of Determinations.--A determination of the Secretary 
under subsection (a) shall remain in effect until rescinded.
    (d) Rescission of Determinations.--A determination of the Secretary 
under subsection (a) with respect to a foreign government shall not be 
rescinded unless the President submits to the appropriate congressional 
committees a report certifying that the government has taken 
appropriate steps to--
            (1) discharge its obligations under international law 
        toward such citizen or entity; or
            (2) provide relief from the taxes, exactions, or 
        conditions, as the case may be.
    (e) Publication.--A determination made under subsection (a) or a 
report submitted under subsection (d) shall be published in the Federal 
Register and made available on the Internet website of the Department 
of State.
    (f) List.--The Secretary shall include in the annual report 
required by section 9302 (relating to congressional budget 
justification) a list of foreign governments for which determinations 
under subsection (a) are currently in effect.
    (g) Waiver.--Assistance prohibited by subsection (a) may be 
provided to a foreign government described in that subsection if, at 
least 15 days before providing assistance, the President submits to the 
appropriate congressional committees--
            (1) a certification that such a waiver is important to the 
        national interests of the United States; and
            (2) a report describing--
                    (A) the type and amount of assistance to be 
                provided pursuant to the waiver;
                    (B) the justification for such waiver; and
                    (C) the time period for which such waiver will be 
                effective.
    (h) Foreign Claims Settlement Commission.--
            (1) In general.--Upon request of the President (within 70 
        days after an action referred to in subsection (a)(1)), the 
        Foreign Claims Settlement Commission of the United States 
        (established pursuant to Reorganization Plan No. 1 of 1954, 68 
        Stat. 1279) is hereby authorized to evaluate expropriated 
        property, determining the full value of any property 
        nationalized, expropriated, or seized, or subject to 
        discriminatory or other actions as aforesaid, for purposes of 
        this section and to render an advisory report to the President 
        within 90 days after such request.
            (2) Form of report.--Unless authorized by the President, 
        the Commission shall not publish its advisory report except to 
        the citizen or entity owning such property.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated such amounts, to remain available until 
        expended, as may be necessary from time to time to enable the 
        Commission to carry out expeditiously its functions under this 
        subsection.
    (i) Federal Act of State Doctrine.--
            (1) In general.--Notwithstanding any other provision of 
        law, no court in the United States shall decline on the ground 
        of the Federal act of state doctrine to make a determination on 
        the merits giving effect to the principles of international law 
        in a case in which claim of title or other right to property is 
        asserted by any party, including a foreign state (or a party 
        claiming through such state), based upon (or traced through) a 
        confiscation or other taking after January 1, 1959, by an act 
        of that state in violation of the principles of international 
        law, including the principles of compensation and the other 
        standards set out in this section.
            (2) Exceptions.--This subsection shall not be applicable--
                    (A) in any case in which an act of a foreign state 
                is not contrary to international law or with respect to 
                a claim of title or other right to property acquired 
                pursuant to an irrevocable letter of credit of not more 
                than 180 days duration issued in good faith prior to 
                the time of the confiscation or other taking; or
                    (B) in any case with respect to which the President 
                determines that application of the act of state 
                doctrine is required in that particular case by the 
                foreign policy interests of the United States and a 
                suggestion to this effect is filed on the President's 
                behalf in that case with the court.

SEC. 10503. PROHIBITION ON ASSISTANCE FOR COMPENSATION RELATING TO 
              EXPROPRIATED OR NATIONALIZED PROPERTY.

    (a) Prohibition.--No foreign assistance may be provided to 
compensate owners for expropriated or nationalized property and, upon 
finding by the President that such assistance has been used by a 
government for such purpose, no further assistance under this Act may 
be provided to the government until appropriate reimbursement is made 
to the United States.
    (b) Exception.--The prohibition in subsection (a) shall not apply 
to monetary assistance made available for use by a foreign government 
to compensate nationals of that country in accordance with a land 
reform program if the President determines that monetary assistance for 
such land reform program will further the national interests of the 
United States.

SEC. 10504. PROHIBITION ON ASSISTANCE TO GOVERNMENTS THAT REFUSE 
              EXTRADITION REQUESTS.

    (a) In General.--No assistance under this Act (other than 
assistance under title V) may be provided to the central government of 
a country which has notified the Department of State of its refusal to 
extradite to the United States any individual indicted for a criminal 
offense for which the maximum penalty is life imprisonment without the 
possibility of parole or for killing a law enforcement officer, as 
specified in a United States extradition request.
    (b) Applicability.--The prohibition in subsection (a) shall only 
apply to the central government of a country--
            (1) with which the United States maintains diplomatic 
        relations; and
            (2) which is violating the terms and conditions of its 
        extradition treaty with the United States.
    (c) Waiver.--The Secretary may waive the prohibition in subsection 
(a) on a case-by-case basis if the Secretary certifies and reports to 
the appropriate congressional committees pursuant to section 9401 that 
such waiver is important to the national interests of the United 
States.

SEC. 10505. PROHIBITION ON TAXATION OF FOREIGN ASSISTANCE.

    (a) In General.--No foreign assistance may be provided to a foreign 
government under a bilateral agreement entered into after the date of 
the enactment of this Act governing the terms and conditions under 
which such assistance is to be provided unless such agreement includes 
a provision stating that United States foreign assistance shall be 
exempt from taxation or reimbursed by the foreign government.
    (b) Reimbursement of Foreign Taxes.--In each fiscal year, the 
Secretary shall reduce the amount of foreign assistance made available 
under this Act to a government by an amount equivalent to the total 
taxes assessed on United States foreign assistance, either directly or 
through grantees, contractors and subcontractors, by such government in 
the previous fiscal year, until such taxes have been reimbursed to the 
United States.
    (c) Transparency.--The Secretary shall include in each report on 
allocations of assistance under section 9303 the amount of unreimbursed 
taxes assessed by each government to which the United States Government 
intends to provide funds.
    (d) Definition.--In this section, the terms ``taxes'' and 
``taxation'' refer to value-added taxes and customs duties imposed on 
commodities financed with United States foreign assistance, and do not 
include foreign taxes of a de minimis nature.

SEC. 10506. REIMBURSEMENT OF PARKING FINES AND REAL PROPERTY TAXES OWED 
              BY GOVERNMENTS.

    (a) In General.--In each fiscal year, the Secretary shall reduce 
the amounts made available to a foreign government under this Act by an 
amount equivalent to 110 percent of the total amount of the unpaid 
parking fines and unpaid property taxes owed by such government, until 
such parking fines and property taxes are fully paid.
    (b) Additional Amounts.--Amounts reduced under subsection (a) shall 
be in addition to amounts withheld under any other provision of law.
    (c) Waiver.--The Secretary may waive the requirements of subsection 
(a) with respect to a government if the Secretary determines that it is 
in the national interests of the United States to do so.
    (d) Reports.--The Secretary shall--
            (1) include in the annual report required by section 9302 a 
        list of governments for which waivers under subsection (c) have 
        been issued; and
            (2) include in each report on allocations of assistance 
        under section 9303 the amount of unpaid parking fines and 
        unpaid property taxes owed by each foreign government to which 
        the United States Government intends to provide assistance.
    (e) Definitions.--In this section--
            (1) the term ``unpaid parking fines'' means fully 
        adjudicated parking fines, including penalties--
                    (A) which are incurred after April 1, 1997;
                    (B) which are owed to the District of Columbia or 
                New York, New York;
                    (C) for which the person to whom the vehicle is 
                registered--
                            (i) has not responded to the parking 
                        violation summons; or
                            (ii) has not followed the appropriate 
                        adjudication procedure to challenge the 
                        summons; and
                    (D) for which the period of time for payment of or 
                challenge to the summons has lapsed; and
            (2) the term ``unpaid property taxes'' means the amount of 
        unpaid taxes and interest determined to be owed by a foreign 
        country on real property in the District of Columbia or New 
        York, New York, in a court order or judgment entered against 
        such country by a court of the United States or any State or 
        subdivision thereof.

SEC. 10507. LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT.

    No assistance made available under this Act may be made available 
for new loans to the government of any country which is in default, 
during a period in excess of six calendar months, in payment to the 
United States of principal or interest on any loan made to such country 
under this Act, unless--
            (1) such country meets its obligations under the existing 
        loan; or
            (2) the Secretary determines that new loans to such 
        government are in the national interest and notifies the 
        appropriate congressional committees of such determination.

SEC. 10508. PROHIBITION ON PROMOTION OF TOBACCO.

    No foreign assistance may be made available to promote the sale or 
export of tobacco or tobacco products, or to seek the reduction or 
removal by any foreign country of restrictions on the marketing of 
tobacco or tobacco products, except to ensure that restrictions are 
applied equally to all tobacco or tobacco products of the same type.

SEC. 10509. PROHIBITION ON ASSISTANCE FOR OFFICIAL GIFTS.

    No assistance made available under this Act may be used to pay for 
a gift to an official of a foreign government.

                     Subtitle B--Policy Authorities

SEC. 10601. CONTINGENCIES.

    (a) In General.--Notwithstanding any other provision of law, the 
President is authorized to use funds made available to carry out any 
provision of this Act in order to provide, for any unanticipated 
contingencies, assistance authorized by title I, II or III in 
accordance with the provisions applicable to the furnishing of such 
assistance.
    (b) Limitation.--The authority of subsection (a) may not be used to 
authorize the use of more than $50,000,000 during any fiscal year.
    (c) Report Required.--The President shall report in advance to the 
extent practicable to the appropriate congressional committees each 
time the President intends to exercise the authority of subsection (a).

SEC. 10602. TRANSFER BETWEEN ACCOUNTS.

    (a) In General.--Whenever the President determines it to be 
necessary for the purposes of this Act, not to exceed 10 percent of the 
funds made available for any provision of this Act may be transferred 
to, and consolidated with, the funds made available for any other 
provision of this Act, and may be used for any of the purposes for 
which such funds may be used, except that the total in the provision 
for the benefit of which the transfer is made shall not be increased by 
more than 20 percent of the amount of funds made available for such 
provision.
    (b) Exception.--The authority of subsection (a) shall not be used 
to transfer funds made available for the purposes of titles I, II, or 
III and consolidate them with funds made available for the purposes of 
titles IV or V of this Act.
    (c) Report Required.--The President shall report in advance to the 
extent practicable to the appropriate congressional committees each 
time the President intends to exercise the authority of subsection (a).

SEC. 10603. SPECIAL WAIVER AUTHORITY.

    (a) Authority.--The President may authorize the taking of any 
action (or the refraining from the taking of any action) under this Act 
or any other Act relating to foreign assistance, notwithstanding any 
provision of law, if the President determines--
            (1) in cases relating to the transfer of defense articles 
        or defense services, that to do so is essential to the national 
        interests of the United States; and
            (2) in any other cases, that to do so is important to the 
        national interests of the United States.
    (b) Consultation With Congress.--Before exercising the authority of 
subsection (a), the President shall consult with, and shall provide a 
written policy justification to, the appropriate congressional 
committees.
    (c) Notification to Congress.--A determination under subsection (a) 
shall not be effective until the President submits written notification 
of that determination to the appropriate congressional committees.
    (d) Annual Ceilings.--
            (1) In general.--The authority of this section may not be 
        used in any fiscal year to authorize--
                    (A) more than $1,000,000,000 in sales or leases to 
                be made under subtitle C of title IV;
                    (B) the use of more than $500,000,000 of funds made 
                available for use under any other provision of this 
                Act; and
                    (C) the use of more than $100,000,000 of foreign 
                currencies accruing under this Act or any other law.
            (2) Arms sales.--If the authority of this section is used 
        both to authorize a sale or lease under subtitle C of title IV 
        and to authorize funds to be used under this Act with respect 
        to the financing of that sale or lease, then the use of the 
        funds shall be counted against the limitation in paragraph 
        (1)(B) and the portion, if any, of the sale or lease which is 
        not so financed shall be counted against the limitation in 
        paragraph (1)(A).
            (3) Leases.--For purposes of paragraph (1)(A), the 
        replacement cost, less any depreciation in the value, of the 
        defense articles authorized to be leased shall be counted 
        against the limitation in that paragraph.
            (4) Country limits.--The following limitations shall apply 
        with respect to any one country in any fiscal year:
                    (A) Not more than $100,000,000 of the $500,000,000 
                limitation provided in paragraph (1)(B) may be 
                allocated to the country unless the country is a victim 
                of active aggression.
                    (B) Not more than $750,000,000 of the aggregate 
                limitation of $1,500,000,000 provided in paragraphs 
                (1)(A) and (1)(B) may be allocated to the country.

        TITLE XI--ORGANIZATION, MANAGEMENT, AND HUMAN RESOURCES

SEC. 11001. DEFINITIONS.

    In this title:
            (1) Commodity.--The term ``commodity'' includes any 
        material, article, supply, goods, or equipment used for the 
        purposes of providing non-military assistance.
            (2) Commodity restrictions.--The term ``commodity 
        restrictions'' means statutory and regulatory requirements that 
        apply to the procurement or transportation of commodities 
        financed under this Act, including--
                    (A) sections 11501 and 11503;
                    (B) section 901(b)(1) of the Merchant Marine Act of 
                1936;
                    (C) section 5 of the International Air 
                Transportation Fair Competitive Practice Act of 1974;
                    (D) section 644 of the Small Business Act;
                    (E) section 2711 of the Competition in Contracting 
                Act of 1984; and
                    (F) the Federal Property and Administrative 
                Services Act of 1949.
            (3) Country of assignment.--The term ``country of 
        assignment'' means the foreign country in which an individual 
        serves an accredited representative of the United States 
        Government.
            (4) Defense article and related terms.--The terms ``defense 
        article'', ``defense service'', ``defense information'', 
        ``excess defense article'', ``major defense equipment'', and 
        ``significant military equipment'' have the meanings given such 
        terms in section 4411.
            (5) Federal employee.--The term ``Federal employee'' or 
        ``employee'' has the meaning given the term ``employee'' in 
        section 2105(a) of title 5, United States Code.
            (6) Federal officer.--The term ``Federal officer'' or 
        ``officer'' has the meaning given the term ``officer'' in 
        section 2104 of title 5, United States Code.
            (7) Federal personnel.--The term ``Federal personnel'' or 
        ``personnel'' includes Federal employees, Federal officers, 
        personal services contractors, locally employed staff, foreign 
        national employees of the Foreign Service (as defined in 
        section 103(6) of the Foreign Service Act of 1980), and any 
        other individual employed by a Federal department or agency, as 
        defined under regulations prescribed by the President.
            (8) Foreign service officer.--The term ``Foreign Service 
        Officer'' means a member of the Foreign Service as defined in 
        section 103 of the Foreign Service Act of 1980.
            (9) Function.--The term ``function'' includes any duty, 
        obligation, power, authority, responsibility, right, privilege, 
        discretion, or activity.
            (10) Gender analysis, equality, and integration.--The terms 
        ``gender analysis'', ``gender equality'', and ``gender 
        integration'' have the meanings given such terms in section 
        1708.
            (11) Local entity.--
                    (A) In general.--The term ``local entity'' means an 
                individual, corporation, nonprofit organization, or 
                another body of persons that--
                            (i) is located in a partner country;
                            (ii) is organized under the laws of the 
                        partner country;
                            (iii) has as its principal place of 
                        business or operations the partner country; and
                            (iv) is owned or controlled by citizens of 
                        the partner country.
                    (B) Owned or controlled.--In subparagraph (iv), the 
                term ``owned or controlled'' means--
                            (i) in the case of a corporation, the 
                        holding of at least 50 percent (by vote or 
                        value) of the capital structure of the 
                        corporation; or
                            (ii) in the case of any other kind of legal 
                        entity, the holding of interests representing 
                        at least 50 percent of the capital structure of 
                        the entity.
            (12) Service.--The term ``service'' includes any service, 
        repair, training, technical assistance, advice, or information 
        used for purposes of this Act.

                        Subtitle A--Organization

           CHAPTER 1--EXERCISE AND COORDINATION OF FUNCTIONS

SEC. 11101. DELEGATIONS; REGULATIONS.

    (a) Delegations by the President.--The President may exercise any 
functions conferred upon the President by this Act through such Federal 
agency or Federal officer as the President shall direct.
    (b) Issue Regulations and Delegations by Agency Heads.--The head of 
any such agency or any such officer exercising functions under this 
Act--
            (1) may from time to time promulgate such rules and 
        regulations as may be necessary to carry out such functions; 
        and
            (2) may delegate authority, including the delegation to any 
        other agency, upon obtaining the concurrence of the head of 
        that agency, to perform any such functions, including, if the 
        delegating official shall so specify, the authority 
        successively to redelegate any such functions.

SEC. 11102. ROLE OF THE SECRETARY OF STATE.

    (a) In General.--Under the direction of the President, the 
Secretary shall be responsible for the continuous supervision, overall 
coordination, and general direction of United States foreign 
assistance, and for ensuring that the foreign policy of the United 
States is best served thereby.
    (b) Military Assistance.--The responsibility conferred upon the 
Secretary in subsection (a) includes--
            (1) all forms of military assistance; and
            (2) determinations of whether to offer or deliver any form 
        of military assistance and the scope, types, amounts, and 
        conditions of such assistance.

SEC. 11103. ROLE OF THE CHIEF OF MISSION.

    (a) In General.--The Chief of Mission shall be responsible for the 
continuous supervision, overall coordination, and general direction of 
all activities, resources, and programs of the United States Government 
as they are carried out in the country of assignment.
    (b) Exceptions.--The responsibility conferred upon the Chief of 
Mission in subsection (a) shall not include authority over--
            (1) Federal personnel under the command of a United States 
        area military commander; or
            (2) Federal personnel specifically exempted by law or 
        designated by the President.

SEC. 11104. ROLE OF THE SECRETARY OF DEFENSE.

    (a) Primary Responsibilities.--With respect to security assistance, 
the Secretary of Defense shall have primary responsibility for--
            (1) the determination of military end-item requirements;
            (2) the procurement of military equipment in a manner that 
        permits its integration with service programs;
            (3) the monitoring of military end-item use by the partner 
        countries;
            (4) the supervision of the training of foreign military and 
        related civilian personnel;
            (5) the movement and delivery of military end-items;
            (6) the designation of defense articles as excess to United 
        States requirements; and
            (7) the performance of any other related functions within 
        the Department of Defense.
    (b) Regarding Military Equipment.--The establishment of priorities 
in the procurement, delivery, and allocation of military equipment 
shall be determined by the Secretary of Defense.

SEC. 11105. OFFICE FOR GLOBAL WOMEN'S ISSUES.

    (a) Establishment.--There is established an Office for Global 
Women's Issues (in this section referred to as the ``Office'') in the 
Office of the Secretary of State in the Department of State. The Office 
shall be headed by the Ambassador-at-Large (in this section referred to 
as the ``Ambassador''), who shall report directly to the Secretary of 
State.
    (b) Purpose.--The Office shall coordinate efforts of the United 
States Government regarding gender integration and women's empowerment 
in United States foreign policy.
    (c) Duties.--
            (1) In general.--The Ambassador shall--
                    (A) coordinate and advise on activities, policies, 
                programs, and funding relating to gender integration 
                and women's empowerment internationally for all bureaus 
                and offices of the Department of State and in the 
                international programs of other Federal agencies;
                    (B) design, support, and as appropriate, implement, 
                limited projects regarding women's empowerment 
                internationally;
                    (C) actively promote and advance the full 
                integration of gender analysis into the programs, 
                structures, processes, and capacities of all bureaus 
                and offices of the Department of State and in the 
                international programs of other Federal agencies; and
                    (D) direct, as appropriate, United States 
                Government resources to respond to needs for gender 
                integration and women's empowerment in United States 
                Government foreign policies and international programs.
            (2) Diplomatic representation.--Subject to the direction of 
        the President and the Secretary of State, the Ambassador is 
        authorized to represent the United States in matters relevant 
        to the status of women internationally.
    (d) Reporting.--The heads of all bureaus and independent offices of 
the Department of State, the United States Agency for International 
Development, and the Millennium Challenge Corporation shall, as 
appropriate, evaluate and monitor all women's empowerment programs 
administered by such bureaus and offices and annually submit to the 
Ambassador a report on such programs and on policies and practices to 
integrate gender.

SEC. 11106. BUREAU FOR ENERGY RESOURCES.

    (a) In General.--Section 931(a) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17371(a)) is amended--
            (1) in the subsection heading, by striking ``Coordinator 
        for'' and inserting ``Coordination of''; and
            (2) in paragraph (2)--
                    (A) in the paragraph heading, by striking 
                ``coordinator for'' and inserting ``coordination of''; 
                and
                    (B) by striking ``There is established within the 
                Office of the Secretary of State a Coordinator for 
                International Energy Affairs,'' and inserting in lieu 
                thereof the following: ``There is established within 
                the Department of State a Bureau for Energy Resources, 
                to be headed by an Assistant Secretary,''.
    (b) Transfer Authority.--The Secretary of State may transfer any 
authority, duty, or function assigned to the Coordinator for 
International Energy Affairs or to the Office of International Energy 
Affairs to the Assistant Secretary for Energy Resources or to the 
Bureau for Energy Resources (as the case may be).
    (c) Conforming Amendments.--(1) Section 1(c)(1) of the State 
Department Basic Authorities Act of 1956 (22 U.S.C. 2651a), as amended 
by this Act, is further amended by striking ``25'' and inserting 
``26''.
    (2) Section 5315 of title 5, United States Code, as amended by this 
Act, is further amended in the item relating to Assistant Secretaries 
of State, by striking ``(25)'' and inserting ``(26)''.

SEC. 11107. BUREAU OF OCEANS, ENVIRONMENT AND SCIENCE.

    (a) Department of State Appropriations Authorization Act of 1973.--
Section 9 of the Department of State Appropriations Authorization Act 
of 1973 (22 U.S.C. 2655a) is amended--
            (1) in the section heading, by striking ``oceans and 
        international environmental and scientific affairs'' and 
        inserting ``oceans, environment and science'' ; and
            (2) by striking ``Oceans and International Environmental 
        and Scientific Affairs'' each place it appears and inserting 
        ``Oceans, Environment and Science''.
    (b) Clean Air Act.--Section 617(a) of the Clean Air Act (42 U.S.C. 
7671p(a)) is amended by striking ``Oceans and International 
Environmental and Scientific Affairs'' and inserting ``Oceans, 
Environment and Science''.

     CHAPTER 2--UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

SEC. 11201. UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT.

    (a) Establishment.--The United States Agency for International 
Development shall be an agency of the United States whose programs 
shall be under the continuous supervision, overall coordination, and 
general direction of the Secretary of State.
    (b) Mandate.--The mandate of the United States Agency for 
International Development shall be to reduce global poverty and 
alleviate human suffering.
    (c) Statutory Officers.--
            (1) Administrator.--The United States Agency for 
        International Development shall be headed by an Administrator, 
        who shall be appointed by the President, by and with the advice 
        and consent of the Senate.
            (2) Deputy administrators.--The President may appoint, by 
        and with the advice and consent of the Senate, up to 2 Deputy 
        Administrators of the United States Agency for International 
        Development, who shall be compensated at the rate provided for 
        at level III of the Executive Schedule under section 5314 of 
        title 5, United States Code.
            (3) Assistant administrators.--The President may appoint, 
        by and with the advice and consent of the Senate, up to 13 
        Assistant Administrators of the United States Agency for 
        International Development, who shall be compensated at the rate 
        provided for at level IV of the Executive Schedule under 
        section 5315 of title 5, United States Code. Among these shall 
        be--
                    (A) an Assistant Administrator for Policy, 
                Planning, and Learning;
                    (B) an Assistant Administrator for Food Security;
                    (C) an Assistant Administrator for Democratic and 
                Civic Development; and
                    (D) an Assistant Administrator for Economic Growth, 
                Environment, and Energy.
            (4) Nominations of assistant administrators.--Whenever the 
        President submits to the Senate a nomination of an individual 
        for appointment to a position in the United States Agency for 
        International Development pursuant to paragraph (3), the 
        President shall designate the regional or functional bureau or 
        bureaus of the Agency with respect to which the individual 
        shall have responsibility.
    (d) Conforming Amendments.--Title 5, United States Code, is amended 
as follows:
            (1) In section 5315, in the item relating to Assistant 
        Administrators, Agency for International Development--
                    (A) by inserting ``United States'' before 
                ``Agency''; and
                    (B) by striking ``(6)'' and inserting ``(13)''.
            (2) In section 7103(a)(2)(B)(iv), by inserting ``United 
        States'' before ``Agency for International Development''.

SEC. 11202. ROLE OF THE ADMINISTRATOR.

    (a) In General.--The Administrator shall have the responsibility 
for carrying out the mandate of the United States Agency for 
International Development and for coordinating all United States 
development-related activities.
    (b) Chief Development Advisor.--The Administrator shall be the 
chief development advisor to the Secretary of State.
    (c) National Security Council Participation.--The President should 
invite the Administrator to participate in all appropriate meetings of 
the National Security Council.
    (d) United Nations Development Agencies.--The Administrator should 
be responsible for the coordination and direction of United States 
policy regarding, and contributions to, all development-related 
agencies of the United Nations, in consultation with the Assistant 
Secretary of State for International Organization Affairs.
    (e) Multilateral Development Banks.--The President should appoint 
the Administrator to be the Alternate United States Governor of the 
Asian Development Bank, the African Development Bank, and the Inter-
American Development Bank.

SEC. 11203. OVERSEAS MISSIONS.

    (a) Authority To Maintain Overseas Missions.--
            (1) In general.--The Administrator may maintain special 
        missions or staffs outside the United States in such countries 
        and for such periods of time as may be necessary to carry out 
        the purposes of this Act.
            (2) Other locations.--To the degree permitted by security 
        and financial considerations, the Secretary should give 
        favorable consideration to requests by the Administrator that 
        the Secretary exercise authority under section 606(a)(2)(B) of 
        the Secure Embassy Construction and Counterterrorism Act of 
        1999 (22 U.S.C. 4865(a)(2)(B)) to waive certain requirements of 
        that Act in order to permit the United States Agency for 
        International Development to maintain such missions or staffs 
        at locations separate from the United States embassy.
    (b) Appointment.--The Administrator may appoint a head, who shall 
be known as the Mission Director, of each office or staff maintained 
under subsection (a).
    (c) Compensation and Allowances.--Each Mission Director may receive 
such compensation and allowances as are authorized by the Foreign 
Service Act of 1980, not to exceed those authorized for a chief of 
mission (as defined in section 102(a)(3) of that Act), as the 
Administrator deems appropriate.
    (d) Role of Mission Director.--The Mission Director's 
responsibilities shall include--
            (1) serving as the primary development and humanitarian 
        advisor to the Chief of Mission;
            (2) coordinating preparation of the Country Development 
        Cooperation Strategy; and
            (3) supervising and directing United States development 
        cooperation with, and United States humanitarian operations in, 
        such country.
    (e) Relationship to Foreign Assistance Coordinator.--The 
responsibilities assigned to the Mission Director under subsection (d) 
shall not preclude the Secretary of State from appointing an individual 
to oversee and coordinate the full range of economic and security 
assistance programs in a country.

SEC. 11204. CHAIRMAN OF OECD DEVELOPMENT ASSISTANCE COMMITTEE.

    (a) Appointment.--The President may--
            (1) appoint any United States citizen who is not a Federal 
        employee, or
            (2) assign any United States citizen who is a Federal 
        employee,
to serve as Chairman of the Development Assistance Committee (DAC) or 
any successor committee thereto of the Organization for Economic 
Cooperation and Development, upon election thereto by members of said 
Committee.
    (b) Compensation and Allowances.--
            (1) In general.--An individual appointed or assigned under 
        subsection (a) may receive such compensation and allowances as 
        are authorized by the Foreign Service Act of 1980, not to 
        exceed those authorized for a chief of mission (as defined in 
        section 102(a)(3) of that Act), as the President deems 
        appropriate.
            (2) Additional provisions.--Such individual (if appointed 
        under subsection (a)(1)) shall be deemed to be a Federal 
        employee for purposes of chapters 81, 83, 84, 87, and 89 of 
        title 5, United States Code. Such individual may also, in the 
        President's discretion, receive any other benefits and 
        perquisites then available under this Act to a Chief of Mission 
        under section 11103.

SEC. 11205. RESPONSIBILITIES OF THE INSPECTOR GENERAL OF THE UNITED 
              STATES AGENCY FOR INTERNATIONAL DEVELOPMENT.

    Section 8A of the Inspector General Act of 1978 (5 U.S.C. App. 3) 
is amended--
            (1) by redesignating subsections (b) through (f) as 
        subsections (c) through (g), respectively; and
            (2) inserting after subsection (a) the following:
    ``(b) In addition to the other duties and responsibilities 
specified in this Act, the Inspector General of the United States 
Agency for International Development shall supervise, direct, and 
control all audit and investigative activities relating to programs and 
operations within the African Development Foundation, the Inter-
American Foundation, the Millennium Challenge Corporation, the Office 
of the U.S. Global AIDS Coordinator of the Department of State, and the 
United States Trade and Development Agency.''.

           Subtitle B--Management and Program Administration

      CHAPTER 1--OPERATING EXPENSES AND ADMINISTRATIVE AUTHORITIES

SEC. 11301. OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR 
              INTERNATIONAL DEVELOPMENT.

    (a) Operating Expenses.--The Administrator is authorized to use up 
to 10 percent of the total amount of funds managed by the United States 
Agency for International Development in a fiscal year for operating 
expenses of the United States Agency for International Development.
    (b) Capital Investment Fund.--In addition to funds made available 
under subsection (a), the Administrator is authorized to use up to 1 
percent of the total amount of funds managed by the United States 
Agency for International Development in a fiscal year for overseas 
construction and related costs, and for the procurement and enhancement 
of information technology and related capital investments. Amounts made 
available under this subsection are authorized to remain available 
until expended.
    (c) Management of Funds.--The annual congressional budget 
justification prepared pursuant to section 9302 of this Act shall 
contain an estimate of the total funds managed by the United States 
Agency for International Development, disaggregated by account, and a 
detailed operating expenses budget.
    (d) Status of Obligations.--The Administrator shall keep the 
appropriate congressional committees currently informed of the status 
of obligations of amounts made available under this section.
    (e) Definitions.--In this section:
            (1) Operating expenses.--The term ``operating expenses'' 
        means a use of funds that is authorized under section 11302.
            (2) Funds managed by agency.--The term ``funds managed by 
        the United States Agency for International Development'' means 
        all funds over which the Administrator has obligation 
        authority, including--
                    (A) appropriations to carry out this Act;
                    (B) allocations or transfers from any other Federal 
                agency, or from other appropriations, for functions 
                directly related to the purposes of this Act; and
                    (C) proceeds from the disposal of property acquired 
                under the authority of section 11302 (or predecessor 
                provisions of law).

SEC. 11302. AUTHORIZED USES OF FUNDS.

    (a) Authorized Uses.--For purposes of section 11301(a), the 
following costs shall be considered operating expenses of the United 
States Agency for International Development and shall be included 
within the percentage limitation contained in such section:
            (1) All compensation, training and benefits for Agency 
        personnel, including personal services contractors, during the 
        time such personnel have Washington D.C. or other places in the 
        United States as their official duty station.
            (2) Travel and transportation of Agency personnel described 
        in paragraph (1) and their dependents and possessions.
            (3) Acquisition, rent, operation and maintenance in the 
        United States of motor vehicles, aircraft, and vessels.
            (4) Acquisition, rent, operation and maintenance in the 
        United States of land and facilities.
            (5) Furniture and equipment located in the United States, 
        including operation and maintenance.
            (6) Utilities, insurance, communications, printing and 
        reproduction, and miscellaneous services and charges in the 
        United States.
            (7) Subscriptions, supplies and materials for use in the 
        United States.
            (8) Attendance at meetings and conferences of Agency 
        personnel described in paragraph (1).
            (9) Commissions, councils, boards and similar groups 
        authorized by law primarily located in the United States.
            (10) Security equipment and services in the United States.
            (11) Institutional, administrative service, and any other 
        contract, including profit and overhead, for work to be 
        performed primarily in the United States.
            (12) Representation and entertainment expenses in the 
        United States.
    (b) Compliance With Federal Law.--All new facilities constructed 
under the authorities of this section, whether inside or outside the 
United States, shall comply with all relevant Federal codes and 
standards requiring access for persons with disabilities.

SEC. 11303. OPERATING EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL.

    (a) In General.--The President is authorized to pay for the 
necessary operating expenses of the Office of the Inspector General of 
the United States Agency for International Development to the extent 
and in the amounts authorized and appropriated for such purposes in any 
fiscal year.
    (b) Additional Amounts.--There are authorized to be appropriated to 
the President such amounts as may be necessary for increases in 
compensation, retirement, and other personnel benefits authorized by 
law, and for other nondiscretionary costs of the Office.

SEC. 11304. ADMINISTRATIVE AUTHORITIES OF THE DEPARTMENT OF DEFENSE.

    (a) In General.--Funds allocated to the Department of Defense for 
the purpose of providing assistance under this Act shall be available 
for the following:
            (1) Administrative, extraordinary (not to exceed $300,000 
        in any fiscal year), and operating expenses incurred in 
        furnishing assistance under this Act administered through the 
        Department of Defense, including the purchase of passenger 
        motor vehicles for replacement only for use outside of the 
        United States.
            (2) Reimbursement of actual expenses of military officers 
        detailed or assigned as tour directors in connection with 
        orientation visits of foreign military and related civilian 
        personnel, in accordance with the provisions of section 5702 of 
        title 5, United States Code, applicable to Federal employees.
            (3) Maintenance, repair, alteration, and furnishing of 
        United States-owned facilities in the District of Columbia or 
        elsewhere for the training of foreign military and related 
        civilian personnel without regard to the provisions of section 
        6303 of title 41, United States Code, or other provision of law 
        requiring a specific authorization or specific appropriation 
        for such public contracts.
    (b) Military Officer.--The term ``military officer'' means a 
commissioned, warrant, or non-commissioned officer of the United States 
Armed Forces.

SEC. 11305. WORKING CAPITAL FUND.

    (a) Establishment.--The Administrator is authorized to establish a 
Working Capital Fund (in this section referred to as the ``Fund'').
    (b) Purpose.--Amounts deposited during any fiscal year in the Fund 
shall be available without fiscal year limitation and used, in addition 
to other funds available for such purposes, for administrative costs 
resulting from Agency implementation and procurement reform efforts, 
the administration of this Fund, and administrative contingencies 
designated by the Administrator.
    (c) Deposits Into the Fund.--There may be deposited in any fiscal 
year in the Fund up to 1 percent of the total value of obligations 
entered into by the Agency from appropriations available to the Agency 
and any appropriation made available for the purpose of providing 
capital. Receipts from the disposal of, or payments for the loss or 
damage to, property held in the Fund, rebates, reimbursements, refunds 
and other credits applicable to the operation of the Fund may be 
deposited into the Fund.
    (d) Refunds.--At the close of each fiscal year the Administrator 
shall transfer out of the Fund and into the Emergency Humanitarian 
Response Fund established under section 1905 of this Act amounts in 
excess of $100,000,000 and any other amounts that the Administrator 
determines to be in excess of the needs of the Fund.

SEC. 11306. SUSPENSION AND DEBARMENT.

    (a) Eligibility To Receive Funds.--The President shall issue and 
enforce regulations determining the eligibility of any person to 
receive funds made available under this Act.
    (b) Suspension.--The regulations described in subsection (a) shall 
provide for the suspension of eligibility of a person for a temporary 
period pending the completion of an investigation and any resulting 
judicial or debarment proceedings, upon cause for belief that such 
person or an affiliate thereof probably has undertaken conduct which 
constitutes a cause for debarment.
    (c) Debarment.--A person may be debarred from further receipt of 
funds made available under this Act, and from participating in any 
contract or agreement regarding the use of funds made available under 
this Act, for--
            (1) conviction of or civil judgment for--
                    (A) commission of fraud or a criminal offense in 
                connection with obtaining, attempting to obtain, or 
                performing a public or private agreement or 
                transaction;
                    (B) violation of Federal or State antitrust 
                statutes, including those proscribing price fixing 
                between competitors, allocation of customers between 
                competitors, and bid rigging;
                    (C) commission of embezzlement, theft, forgery, 
                bribery, falsification or destruction of records, 
                making false statements, tax evasion, receiving stolen 
                property, making false claims or obstruction of 
                justice; or
                    (D) commission of any other offense indicating a 
                lack of business integrity or business honesty;
            (2) violation of the terms of a public agreement or 
        transaction so serious as to affect the integrity of a program 
        under this Act, such as--
                    (A) a willful failure to perform in accordance with 
                the terms of one or more public agreements or 
                transactions;
                    (B) a history of failure to perform or of 
                unsatisfactory performance of one or more public 
                agreements or transactions; or
                    (C) a willful violation of a statutory or 
                regulatory provision or requirement applicable to a 
                public agreement or transaction; or
            (3) any of the following causes:
                    (A) knowingly doing business with an ineligible 
                person;
                    (B) failure to pay a single substantial debt, or a 
                number of outstanding debts, owed to any Federal agency 
                or instrumentality; or
                    (C) any other cause of a serious or compelling 
                nature.
    (d) Reinstatement.--Reinstatement of eligibility in each particular 
case shall be subject to such conditions as the President shall direct.

SEC. 11307. FALSE CLAIMS AND INELIGIBLE COMMODITIES.

    (a) In General.--Any person who makes or causes to be made or 
presents or causes to be presented to any bank or other financial 
institution or to any officer, agent, or employee of any agency of the 
United States Government a claim for payment from funds made available 
under this Act for the purposes of furnishing assistance and who knows 
the claim to be false, fraudulent, or fictitious or to cover a 
commodity or commodity-related service determined by the President to 
be ineligible for payment from funds made available under this Act, or 
who uses to support such claim any certification, statement, or entry 
on any contract, bill of lading, Government or commercial invoice, or 
Government form, which such person knows, or in the exercise of prudent 
business management should know, to contain false, fraudulent, or 
fictitious information, or who uses or engages in any other fraudulent 
trick, scheme, or device for the purpose of securing or obtaining, or 
aiding to secure or obtain, for any person any benefit or payment from 
funds so made available under this Act in connection with the 
negotiation, procurement, award, or performance of a contract financed 
with funds so made available under this Act, and any person who enters 
into an agreement, combination or conspiracy to do so--
            (1) shall pay to the United States an amount equal to 25 
        per centum of any amount thereby sought to be wrongfully 
        secured or obtained but not actually received;
            (2) shall forfeit and refund any payment, compensation, 
        loan, commission, or advance received as a result thereof; and
            (3) shall, in addition, pay to the United States for each 
        such act--
                    (A) the sum of $2,000 and double the amount of any 
                damage which the United States may have sustained by 
                reason thereof; or
                    (B) an amount equal to 50 per centum of any such 
                payment, compensation, loan, commission, or advance so 
                received, whichever is the greater, together with the 
                costs of suit.
    (b) Judicial Proceeding and Withholding of Funds.--
            (1) In general.--In order to secure recovery under this 
        section, the President may, as the President deems 
        appropriate--
                    (A) institute suit in the United States district 
                court for any judicial district in which the person 
                alleged to have performed or participated in an act 
                described by this section may reside or may be found; 
                and
                    (B) upon posting by registered mail to such person 
                a notice of claim describing the basis therefor and 
                identifying the funds to be withheld, withhold from 
                funds owed by any agency of the United States 
                Government to such person an amount equal to the 
                refund, damages, liquidated damages, and exemplary 
                damages claimed by the United States under this 
                section.
            (2) Effect of withholding.--Any such withholding of funds 
        from any person shall constitute a final determination of the 
        rights and liabilities of such person under this section with 
        respect to the amount so withheld, unless within one year of 
        receiving the notice of claim such person brings suit for 
        recovery, which is hereby authorized, against the United States 
        in any United States district court.
    (c) Person Defined.--For purposes of this section, the term 
``person'' includes any individual, corporation, partnership, 
association, or other legal entity.

SEC. 11308. TERMINATION EXPENSES.

    (a) Termination Expenses.--
            (1) In general.--Funds made available under this Act, the 
        former authority of the Foreign Assistance Act of 1961, the 
        former authority of section 23 of the Arms Export Control Act, 
        or other predecessor provisions of law shall remain available 
        for obligation for a period not to exceed 8 months from the 
        date of any termination of assistance under such Acts for the 
        necessary expenses of winding up programs related to such 
        termination and may remain available until expended.
            (2) Treatment of obligated funds.--Funds obligated under 
        the authority of such Acts prior to the effective date of the 
        termination of assistance may remain available for expenditure 
        for the necessary expenses of winding up programs related to 
        such termination notwithstanding any provision of law 
        restricting the expenditure of funds.
            (3) Completion of training or studies.--In order to ensure 
        the effectiveness of such assistance, such expenses for orderly 
        termination of programs may include the obligation and 
        expenditure of funds to complete the training or studies 
        outside their countries of origin of students whose course of 
        study or training program began before assistance was 
        terminated.
    (b) Liability to Contractors.--For the purpose of making an 
equitable settlement of termination claims under extraordinary 
contractual relief standards, the President is authorized to adopt as a 
contract or other obligation of the United States Government, and 
assume (in whole or in part) any liabilities arising thereunder, any 
contract with a United States or third-country contractor that had been 
funded with assistance under the Acts referred to in subsection (a) 
prior to the termination of assistance.
    (c) Reobligation of Amounts Terminated.--Amounts obligated for 
assistance and subsequently terminated by the President, or by any 
provision of law, shall continue to remain available and may be 
reobligated to meet any necessary expenses arising from the termination 
of such assistance.
    (d) Guaranty Programs.--No provision of this Act or any other Act 
requiring the termination of assistance under this Act or any other Act 
shall be construed to require the termination of guarantee commitments 
that were entered into prior to the effective date of the termination 
of assistance.
    (e) Relation to Other Provisions.--Unless specifically made 
inapplicable by another provision of law, the provisions of this 
section shall be applicable to the termination of assistance pursuant 
to any provision of law.

SEC. 11309. PROHIBITION ON CERTAIN FIRST-CLASS TRAVEL.

    None of the funds made available under this Act may be used for 
first-class travel by Federal personnel of agencies funded by this Act 
in contravention of sections 301-10.122 through 301-10.124 of title 41, 
Code of Federal Regulations.

         CHAPTER 2--ASSISTANCE AUTHORITIES AND PROGRAM EXPENSES

SEC. 11401. GENERAL ASSISTANCE AUTHORITIES.

    (a) Terms of Assistance.--Except as otherwise specifically 
prohibited in this Act, assistance under this Act may be furnished on a 
grant, loan, or guaranty basis, or on such terms, including cash, 
credit, or other terms of repayment (including repayment in foreign 
currencies or by transfer to the United States Government of articles), 
as may be determined to be best suited to the achievement of the 
purposes of this Act.
    (b) Terms and Conditions.--The President, the Secretary, and the 
Administrator, as the case may be, may furnish assistance under this 
Act on such terms and conditions (consistent with other provisions of 
law) as he or she deems appropriate, and, consistent with the 
provisions of this Act, may charge such fees for guarantees and loans 
under this Act as he or she deems appropriate. Credit assistance shall 
be consistent with the provisions of the Federal Credit Reform Act of 
1990. In the case of contributions or other assistance provided for an 
international organization or arrangement under this or any other Act, 
such organization or arrangement may utilize its own procurement, 
administrative, accounting, and audit rules and procedures.
    (c) Implementation.--In furtherance of the purposes and subject to 
the limitations of this Act, the President, the Secretary, and the 
Administrator, in providing assistance under this Act, may make loans 
(in conformity with the provisions of the Federal Credit Reform Act of 
1990), advances, and grants to, make and perform agreements and 
contracts with, or enter into other transactions with, any person, 
corporation, or other body of persons, any government or government 
agency, and any international organization or arrangement.
    (d) Gifts.--The President, the Secretary, and the Administrator may 
accept and use in furtherance of the purposes of this Act, money, 
funds, property, and services of any kind made available by gift, 
devise, bequest, grant, or otherwise for such purpose.
    (e) Insurance.--
            (1) Foreign participants.--Any Federal agency is authorized 
        to pay the cost of health and accident insurance for foreign 
        participants in any program of furnishing assistance 
        administered by such agency while such participants are absent 
        from their homes for the purpose of participation in such 
        program.
            (2) Foreign personnel.--Any Federal agency is authorized to 
        pay the cost of health and accident insurance for foreign 
        personnel of that agency while such personnel are absent from 
        their places of employment abroad for purposes of training or 
        other official duties.
    (f) Admission to United States.--Alien participants in any program 
of furnishing assistance under this Act may be admitted to the United 
States if otherwise qualified as nonimmigrants under section 101(a)(15) 
of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)), for such 
time and under such conditions as may be prescribed by regulations 
promulgated by the Secretary of State and the Attorney General.
    (g) Assistance Authorities.--In furnishing and administering 
assistance under this Act, the President, the Secretary, and the 
Administrator--
            (1) may issue letters of credit and letters of commitment;
            (2) may collect, compromise, reschedule or otherwise settle 
        any obligations assigned to, or held by, and any legal or 
        equitable rights accruing to, the United States and may (as he 
        or she deems appropriate) refer any such obligations or rights 
        to the Attorney General for suit or collection;
            (3) may--
                    (A) acquire and dispose of (upon such terms and 
                conditions as he or she deems appropriate) any 
                property, including any instrument evidencing 
                indebtedness or ownership; and
                    (B) guarantee payment against any such instrument;
            (4) may establish the character of, and decide the 
        necessity for, obligations and expenditures of funds used in 
        furnishing and administering such assistance and the manner in 
        which such obligations and expenditures shall be incurred, 
        allowed, and paid, subject to provisions of law specifically 
        applicable to corporations of the United States Government; and
            (5) shall cause to be maintained an integral set of 
        accounts which shall be audited by the Government 
        Accountability Office in accordance with principles and 
        procedures applicable to commercial corporate transactions as 
        provided by chapter 91 of title 31, United States Code.
    (h) Guarantees.--Guarantees issued to carry out the purposes of 
this Act shall be subject to the following:
            (1) Full faith and credit.--The full faith and credit of 
        the United States may be pledged for the full payment and 
        performance of guarantees issued under this Act or predecessor 
        Acts.
            (2) Charges.--The President may charge appropriate fees or 
        interest in connection with the activities carried out under 
        such authority.
            (3) Relationship to other provisions of law.--Guarantees 
        may be provided under this Act without regard to commodity 
        restrictions.
            (4) Denomination of liability.--The losses guaranteed may 
        be in dollars or in other currencies. In the case of losses 
        guaranteed in currencies other than dollars, the guarantees 
        issued shall be subject to an overall payment limitation 
        expressed in dollars.
    (i) Loan Guarantees to Israel Program.--Notwithstanding section 
12201(1), section 226 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2186; relating to Loan Guarantees to Israel Program), shall not be 
repealed and shall remain in effect as on the day before the date of 
the enactment of this Act.
    (j) Subsidy Cost of Guarantees and Loans.--The President, the 
Secretary, and the Administrator, as the case may be, may use funds 
made available under this Act to pay the cost (as defined in section 
13201 of the Budget Enforcement Act of 1990) of direct loans and loan 
guarantees made or entered into (and associated administrative costs) 
in furtherance of the purposes of this Act. Funds appropriated to pay 
the cost (as defined in section 13201 of the Budget Enforcement Act of 
1990) of direct loans and loan guarantees made or entered into to carry 
out the provisions of this Act shall be provided in conformity with 
section 504(b)(1) of the Federal Credit Reform Act of 1990.
    (k) Claims Relating to Guarantees.--Claims arising as a result of 
any guarantee program authorized by this Act may be settled, and 
disputes arising as the result thereof may be arbitrated with the 
consent of the parties, on such terms and conditions as the President 
may direct. Payment made pursuant to any such settlement, or as a 
result of an arbitration award, shall be final and conclusive 
notwithstanding any other provision of law.
    (l) Financial Transactions With Foreign Governments in Default of 
Obligations to the United States.--Section 955 of title 18, United 
States Code, shall not apply to any person--
            (1) who acts for or participates in any operation or 
        transaction arising under this Act; or
            (2) who acquires any obligation issued in connection with 
        any operation or transaction arising under this Act.
    (m) Educational Institutions.--Any cost-type contract or agreement 
(including grants) entered into with an institution of higher education 
for the purpose of carrying out programs authorized by this Act may 
provide for the payment of the reimbursable indirect costs of that 
institution on the basis of predetermined fixed-percentage rates 
applied to the total or an element thereof, of the reimbursable direct 
costs incurred.
    (n) Per Diem.--Funds made available under this Act may be used for 
payment of per diem in lieu of subsistence to foreign participants 
engaged in any program under this Act while such participants are away 
from their homes in countries other than the United States, at rates 
not in excess of those prescribed by the standardized Government travel 
regulations, notwithstanding any other provision of law.
    (o) Multiyear Commitments.--Except as otherwise provided in this 
Act, a contract or agreement which entails commitments for the 
expenditure of funds under this Act may, subject to any future action 
of the Congress, extend at any time for not more than 5 years.
    (p) Program and Management Oversight.--The Administrator may use 
funds made available under title I to provide program and management 
oversight for activities that are funded under that title and that are 
conducted in countries in which the Agency does not have a field 
mission or office.

SEC. 11402. AUTHORITY TO CONDUCT REIMBURSABLE PROGRAMS.

    (a) General Authority.--Whenever the President considers it 
consistent with and within the limitations of this Act, any Federal 
agency is authorized to furnish services and articles on an advance-of-
funds or reimbursement basis to partner countries, international 
organizations and arrangements, and nongovernmental organizations.
    (b) Personal Service Contracts.--
            (1) In general.--When any Federal agency provides services 
        on an advance-of-funds or reimbursable basis under this 
        section, such agency may contract with individuals for personal 
        service abroad or in the United States--
                    (A) to perform such services; or
                    (B) to replace, in a manner otherwise permitted by 
                law, Federal employees who are assigned by the agency 
                to provide such services.
            (2) Rule of construction.--Such individuals shall not be 
        regarded as Federal employees for the purpose of any law 
        administered by the Office of Personnel Management.
    (c) Use of Payments.--Advances and reimbursements received under 
this section shall be credited to the currently applicable 
appropriation, account, or fund of the agency concerned and shall be 
available for the purposes for which such appropriation, account, or 
fund is authorized to be used.

SEC. 11403. RETENTION OF INTEREST.

    (a) General Authority.--The Administrator may, for the purpose of 
carrying out the provisions of title I, enter into agreements with 
international organizations and with local entities that provide for 
the retention by such organizations and entities, without deposit in 
the Treasury of the United States and without further appropriation by 
Congress, of interest earned on the advance of funds.
    (b) Use of Interest.--Any interest earned on the advance of funds 
made available under subsection (a) shall be used only for the purposes 
for which the agreement is made.
    (c) Audits.--The Administrator shall audit, on a regular and 
recurring basis, interest earned on advance funds to ensure that the 
requirements of subsection (a) are strictly observed.
    (d) Limitation.--The authorities of this section may be used only 
for agreements with a value of $5,000,000 or less.
    (e) Transparency.--The Administrator shall make publicly available 
on the Internet website of the Agency information about each agreement 
made under the authority of this section, including the name of the 
organization or entity and the amount and the purpose of the agreement.

SEC. 11404. MARKING AND BRANDING OF ECONOMIC AND HUMANITARIAN 
              ASSISTANCE.

    (a) Requirement.--Economic assistance and humanitarian assistance 
implemented with funds made available to any agency to carry out the 
purposes of this or any other Act, and to any contractor or grantee 
thereof, shall be identified as being ``From the American People'' and 
only as follows:
            (1) The site or article, as appropriate, shall not include 
        any reference to a particular Federal agency or division 
        thereof.
            (2) The identification of the assistance shall include only 
        a representation of the American flag, and shall not include 
        any logo of a particular Federal agency or division thereof.
    (b) Relationship to Other Provisions of Law and Regulations.--The 
provisions of this section shall be applicable notwithstanding any 
other provision of this or any other Act, and notwithstanding any 
Federal regulation, agency guidance, or procedure to the contrary.
    (c) Applicability.--The provisions of this section shall be 
applicable to all--
            (1) articles; and
            (2) program, project and activity sites.
    (d) Ongoing Programs.--To the extent it is feasible and cost 
effective to do so, the marking and branding of articles and sites 
financed pursuant to ongoing agreements, including grants, contracts, 
and cooperative agreements, shall be conformed to meet the requirements 
of this section.
    (e) Exceptions.--The requirements of subsection (a) shall not 
apply--
            (1) if the Chief of Mission or the relevant Assistant 
        Secretary of State determines that the marking of a particular 
        program, project, or activity would--
                    (A) jeopardize the health, safety or human rights 
                of a private partner or intended beneficiary; or
                    (B) be detrimental to the achievement of overall 
                United States foreign policy objectives in such 
                country;
            (2) if the Secretary determines that the marking of 
        economic assistance or humanitarian assistance in such country 
        would be detrimental to the achievement of overall United 
        States foreign policy objectives in such country; or
            (3) to office space occupied by the implementing partner, 
        or to housing, personal vehicles or other personal property of 
        employees thereof.
    (f) Exemption From Determination.--A determination under subsection 
(e)(2) shall not preclude the Secretary from requiring that specific 
articles or sites financed by the United States Government in such 
country be subject to the requirements of subsection (a).
    (g) Co-Branding.--The requirements of subsection (a) shall not 
prohibit the identification of economic assistance or humanitarian 
assistance provided through a private partner with such partner's own 
organizational brand or logo, subject to any standards or regulations 
that the President may establish.

SEC. 11405. REDUCTIONS IN DESIGNATED FUNDS.

    (a) Designated Funds Defined.--For the purposes of this section, 
the term ``designated funds'' means amounts within an account that are 
authorized or appropriated to be available only for a particular 
country, organization, or purpose during a specified fiscal period.
    (b) Proportional Reductions.--If the amount appropriated for a 
fiscal period to carry out any provision of this Act (including 
rescissions and reductions required by law) is less than the amount 
authorized to be appropriated to carry out such provision, then the 
President is authorized to make a proportionate reduction in designated 
funds, notwithstanding the provision of law making such designation.
    (c) Reprogrammings.--Notwithstanding a provision of law providing 
for designated funds, the President may reprogram such designated funds 
to other programs within the same account under the same terms and 
conditions as originally provided, if--
            (1) compliance with such provision of law is made 
        impossible by operation of law; or
            (2) the President determines that a significant change in 
        circumstances relating to the particular country, organization, 
        or purpose makes it unlikely that the designated funds can be 
        obligated during the original period of availability.
    (d) Congressional Notification.--A reprogramming pursuant to 
subsection (c) shall be subject to the regular notification procedures 
under section 9401.

SEC. 11406. REQUIREMENT FOR AUTHORIZATION OF APPROPRIATIONS.

    (a) Requirement for Authorization.--Funds appropriated to carry out 
this Act shall not be available for obligation or expenditure--
            (1) unless the appropriation thereof has been specifically 
        authorized by law; or
            (2) in excess of the amount authorized by law.
    (b) Subsequent Authorizations.--To the extent that legislation 
enacted after the making of an appropriation for foreign assistance 
authorizes the obligation or expenditure thereof, the limitation 
contained in subsection (a) shall not apply.
    (c) Relation to Other Provisions.--The provisions of this section 
shall not be superseded except by a provision of law that specifically 
repeals or modifies the provisions of this section.

SEC. 11407. UNEXPENDED BALANCES.

    Unexpended balances of funds made available pursuant to the Foreign 
Assistance Act of 1961 (as in effect on the day before the date of the 
enactment of this Act) are authorized to remain available for the 
general purposes for which appropriated and may be consolidated with 
appropriations made available for the same general purposes under the 
authority of this Act.

SEC. 11408. AUTHORITY FOR EXTENDED PERIOD OF AVAILABILITY OF 
              APPROPRIATIONS.

    Unless otherwise specified, amounts appropriated to carry out this 
Act are authorized to remain available until expended.

SEC. 11409. SUPPORT FOR REGIONAL, INTERNATIONAL AND NONGOVERNMENTAL 
              ORGANIZATIONS.

    In carrying out the goals and objectives of this Act, the 
Administrator is authorized to support programs, projects, and 
activities of, and to provide technical assistance to, regional, 
international, and nongovernmental organizations.

SEC. 11410. PROTECTION OF PATENTS AND TECHNICAL INFORMATION.

    (a) Inventions and Discoveries.--Whenever, in connection with the 
furnishing of assistance under this Act--
            (1) an invention or discovery covered by a patent issued by 
        the United States Government is practiced within the United 
        States without the authorization of the owner, or
            (2) information, which is (A) protected by law, and (B) 
        held by the United States Government subject to restrictions 
        imposed by the owner, is disclosed by the United States 
        Government or any of its officers, employees, or agents in 
        violation of such restrictions,
the exclusive remedy of the owner, except as provided in subsection 
(b), is to sue the United States Government for reasonable and entire 
compensation for such practice or disclosure in the district court of 
the United States for the district in which such owner is a resident, 
or in the United States Court of Federal Claims within six years after 
the cause of action arises. Any period during which the United States 
Government is in possession of a written claim under subsection (b) 
before mailing a notice of denial of that claim does not count in 
computing the six years. In any such suit, the United States Government 
may plead any defense that may be pleaded by a private person in such 
an action. The last paragraph of section 1498(a) of title 28 of the 
United States Code shall apply to inventions and information covered by 
this section.
    (b) Remedy.--Before suit against the United States Government has 
been instituted, the head of the agency of the United States Government 
concerned may settle and pay any claim arising under the circumstances 
described in subsection (a). No claim may be paid under this subsection 
unless the amount tendered is accepted by the claimant in full 
satisfaction.
    (c) Pharmaceutical Products.--No assistance under this Act may be 
made available for the acquisition of any drug product or 
pharmaceutical product manufactured outside the United States, if the 
manufacture of such drug product or pharmaceutical product in the 
United States would involve the use of, or be covered by, an unexpired 
patent of the United States which has not previously been held invalid 
by an unappealed or unappealable judgment or decree of a court of 
competent jurisdiction, unless--
            (1) such manufacture is expressly authorized by the owner 
        of such patent; or
            (2) the President determines, on a case-by-case basis, that 
        the application of this subsection would significantly reduce 
        the ability of the United States to save lives and alleviate 
        human suffering in a developing country.

SEC. 11411. PRIVATE AND VOLUNTARY ORGANIZATIONS AND COOPERATIVES.

    Prohibitions on assistance to countries contained in this or any 
other Act shall not be construed to prohibit assistance by the Agency 
in support of programs of private and voluntary organizations and 
cooperatives already being supported prior to the date such prohibition 
becomes applicable, if the President determines, and reports to the 
appropriate congressional committees within 15 days of making such 
determination, that continuation of support for such programs is in the 
national interest of the United States, along with the reasons for such 
continuation.

 CHAPTER 3--PROCUREMENT, DISPOSITION, TRANSPORTATION AND VALUATION OF 
                                ARTICLES

SEC. 11501. PROCUREMENT STANDARDS AND PROCEDURES.

    (a) Limitations on Procurement Outside the United States.--Funds 
made available for assistance under this Act may be used by the 
President for procurement--
            (1) only in the United States, the recipient country, or 
        developing countries; or
            (2) in any other country but only if--
                    (A) the provision of such assistance requires 
                articles or services of a type that are not produced in 
                and available for purchase in any country specified in 
                paragraph (1); or
                    (B) the President determines that procurement in 
                such other country is necessary--
                            (i) to meet unforeseen circumstances, such 
                        as emergency situations, where it is important 
                        to permit procurement in a country not 
                        specified in paragraph (1); or
                            (ii) to promote efficiency in the use of 
                        United States foreign assistance resources, 
                        including to avoid impairment of foreign 
                        assistance objectives.
    (b) Bulk Commodities.--No funds made available under this Act shall 
be used for the purchase in bulk of any commodities at prices higher 
than the market price prevailing in the United States at the time of 
purchase, adjusted for differences in the cost of transportation to 
destination, quality, and terms of payment, except to meet unforeseen 
circumstances, such as emergency situations.
    (c) Surplus Commodities.--None of the funds made available under 
this Act shall be used to establish or expand production of any 
commodity or extraction of any mineral for export by a foreign country 
if--
            (1) the commodity or mineral is likely to be in surplus on 
        world markets at the time the resulting productive or 
        extractive capacity is expected to become operative; and
            (2) the assistance will cause substantial injury to United 
        States producers of the same, similar, or competing commodity 
        or mineral.
    (d) Exceptions.--The prohibition contained in subsection (c) shall 
not apply--
            (1) if the President determines that--
                    (A) the benefits to industry and employment in the 
                United States are likely to outweigh the injury to 
                United States producers of the same, similar, or 
                competing commodity or mineral; or
                    (B) the foreign country is a low-income country for 
                which production of the commodity or extraction of the 
                mineral would contribute substantially to the reduction 
                of poverty;
            (2) to activities in a low-income country that does not 
        export on a consistent basis the commodity or mineral with 
        respect to which assistance is provided; or
            (3) to activities in a country which the President 
        determines is recovering from widespread conflict, a 
        humanitarian crisis, or a complex emergency.
    (e) Notification.--The President shall notify the appropriate 
congressional committees of a determination under this section, in 
accordance with the procedures set forth in section 9401.
    (f) Low-Income Country Defined.--In this section, the term ``low-
income country'' means a country that is eligible for assistance from 
the International Development Association but is not eligible for 
assistance from the International Bank for Reconstruction and 
Development.

SEC. 11502. LOCAL PROCUREMENT.

    (a) Limited Competition.--The Administrator is authorized, using 
funds made available under title I, to award contracts and other 
instruments in which competition is limited to local entities.
    (b) Amount of Awards.--The authority provided in subsection (a) may 
not be used to make awards in excess of $5,000,000.
    (c) Procurements.--The requirements of section 11501 and similar 
provisions of law relating to the procurement of goods and services 
shall not apply to procurements made under agreements entered into 
under the authority of this section.

SEC. 11503. UNITED STATES COMPETITIVENESS.

    In order to ensure maximum competition for contracts receiving 
funding under this Act, the President shall establish procedures to 
ensure that--
            (1) all solicitations under this Act for contracts over 
        $5,000,000, regardless of the location where the contract is to 
        be performed, are made publicly available on a single, 
        centralized Internet website;
            (2) in countries with nonconvertible or highly unstable 
        currencies--
                    (A) solicitations may be bid in United States 
                dollars; and
                    (B) contracts awarded to United States firms may be 
                paid in United States dollars;
            (3) United States diplomatic and consular posts assist 
        United States firms in obtaining local licenses and permits; 
        and
            (4) United States firms are not disadvantaged during the 
        solicitation and bid evaluation process.

SEC. 11504. SMALL BUSINESS.

    (a) In General.--Insofar as practicable and to the maximum extent 
consistent with the accomplishment of the purposes of this Act, the 
President shall assist United States small business to participate 
equitably in the provision of commodities, articles, and services 
(including defense articles and defense services) financed with funds 
made available under this Act--
            (1) by causing to be made available to suppliers in the 
        United States, and particularly to small independent 
        enterprises, information, as far in advance as possible, with 
        respect to purchases proposed to be financed with such funds;
            (2) by causing to be made available to prospective 
        purchasers in partner countries information as to such 
        commodities, articles, and services produced by small 
        independent enterprises in the United States; and
            (3) by providing for additional services to give small 
        business better opportunities to participate in the provision 
        of such commodities, articles, and services financed with such 
        funds.
    (b) Office of Small and Disadvantaged Business Utilization.--There 
shall be an Office of Small and Disadvantaged Business Utilization 
within the Agency, and similar offices within such other agencies as 
the President may direct, to assist in carrying out the provisions of 
subsection (a).
    (c) Department of Defense Purchases.--The Secretary of Defense 
shall ensure that there is made available to suppliers in the United 
States, and particularly to small independent enterprises, information 
with respect to purchases made by the Department of Defense pursuant to 
title IV, such information to be furnished as far in advance as 
possible.

SEC. 11505. ALLOCATION OR TRANSFER OF FUNDS AND REIMBURSEMENT AMONG 
              AGENCIES.

    (a) Allocations or Transfers to Agencies.--The President, or with 
respect to funds appropriated to any Federal agency, the head of such 
agency, as the case may be, may allocate or transfer to any Federal 
agency any funds available for providing assistance under this Act, 
including any advance to the United States Government by any country or 
international organization for the procurement of articles or services. 
Such funds shall be available for obligation and expenditure for the 
purposes for which authorized, in accordance with the authority 
pursuant to which they were made available or the authority governing 
the activities of the agency to which such funds are allocated or 
transferred.
    (b) Procurement From Other Agencies.--
            (1) Authority.--Any officer of the United States Government 
        carrying out functions under this Act may utilize any facility 
        of, and may procure any article or service from, any Federal 
        agency as the President shall direct, or with the consent of 
        the head of such agency.
            (2) Separate account.--Funds allocated pursuant to this 
        subsection to any such agency may be established in separate 
        appropriation accounts on the books of the Treasury of the 
        United States.
    (c) Reimbursement to Agencies.--
            (1) In general.--In the case of any facility utilized by, 
        or any article or service procured from, any Federal agency to 
        carry out any provision of this Act (except as otherwise 
        specifically provided in this Act), reimbursement or payment 
        shall be made to such agency from funds available to carry out 
        that provision.
            (2) Amount of reimbursement.--Such reimbursement or payment 
        shall be at--
                    (A) replacement cost;
                    (B) if required by law, actual cost;
                    (C) in the case of defense articles procured from 
                the Department of Defense, value as defined in section 
                4412, or, if required by law, actual costs;
                    (D) in the case of services procured from the 
                Department of Defense, the amount of the additional 
                costs incurred by the Department of Defense in 
                providing such services, or, if required by law, actual 
                costs; or
                    (E) at any other cost agreed to by the owning or 
                disposing agency.
            (3) Crediting of reimbursement.--The amount of any such 
        reimbursement or payment shall either be credited to current 
        applicable appropriations, funds, or accounts of such agency, 
        to be available for the same purposes and for the same time 
        period as the appropriation, fund or account to which 
        transferred, or any such credited funds shall remain available 
        for such purposes until expended.
    (d) Reimbursement to the Department of Defense.--Reimbursement or 
payment to the Department of Defense under subsection (c) shall exclude 
salaries of members of the United States Armed Forces (other than the 
Coast Guard) and unfunded estimated costs of civilian retirement and 
other benefits, unless otherwise required by law.
    (e) Establishment of Accounts.--
            (1) Authority to establish; uses.--In furnishing assistance 
        under this Act, accounts may be established on the books of any 
        Federal agency or, on terms and conditions approved by the 
        Secretary of the Treasury, in banking institutions in the 
        United States--
                    (A) against which letters of commitment may be 
                issued which shall constitute recordable obligations of 
                the United States Government, and moneys due or to 
                become due under such letters of commitment shall be 
                assignable under the last sentence of section 3727(b) 
                and section 3727(c) of title 31, United States Code, 
                and paragraphs (5) and (6) of section 6305(b) of title 
                41, United States Code; and
                    (B) from which disbursements may be made to, or 
                withdrawals may be made by, recipient countries or 
                agencies, organizations, or persons upon presentation 
                of contracts, invoices, or other appropriate 
                documentation.
            (2) Accounting for expenditures.--Expenditure of funds that 
        have been made available through accounts established under 
        paragraph (1) shall be accounted for on standard documentation 
        required for expenditure of funds of the United States 
        Government.
    (f) Responsibility of Agencies.--
            (1) In general.--The agency to which funds are transferred 
        or allocated pursuant to the authority of subsection (a), or 
        any comparable provision of law, shall be the agency 
        responsible for the management and use of such funds.
            (2) Audit.--Any agreement for the transfer or allocation of 
        such funds shall expressly provide that the Office of the 
        Inspector General for the agency receiving the transfer or 
        allocation shall perform periodic program and financial audits 
        of the use of those funds. Funds transferred or allocated 
        pursuant to subsection (a) may be used for the cost of such 
        audits.

SEC. 11506. RETENTION AND USE OF CERTAIN ITEMS AND FUNDS.

    (a) Retention and Use of Certain Articles.--
            (1) Authority to retain, transfer, and use.--Any articles 
        procured to carry out this Act shall be retained by, or (upon 
        reimbursement) transferred to and for the use of, such Federal 
        agency as the President deems appropriate in lieu of being 
        disposed of to a foreign country or international organization, 
        whenever in the judgment of the President the best interests of 
        the United States will be served thereby.
            (2) Laws governing disposal of government property.--Any 
        articles so retained may be disposed of without regard to 
        provisions of law relating to the disposal of property owned by 
        the United States Government, when necessary to prevent 
        spoilage or wastage of such articles or to conserve their 
        usefulness.
            (3) Proceeds credited to appropriations.--Funds realized 
        from any disposal or transfer of any articles shall revert to 
        the respective appropriation, fund, or account used to procure 
        such articles or to the appropriation, fund, or account 
        currently available for the same general purpose, and shall 
        remain available until expended.
    (b) Articles Received as Payment.--Whenever articles are 
transferred to the United States Government as repayment of assistance 
under this Act or the Foreign Assistance Act of 1961 (as in effect on 
the day before the date of the enactment of this Act), such articles 
may be used in furtherance of the purposes and within the limitations 
of this Act.
    (c) Failed Transactions.--Funds realized as a result of any failure 
of a transaction financed under this Act to conform to the requirements 
of this Act, to applicable rules and regulations of the United States 
Government, or to the terms of any agreement or contract entered into 
under this Act, shall revert to the respective appropriation, fund, or 
account used to finance such transaction or to the appropriation, fund, 
or account currently available for the same general purpose.
    (d) Disposal of Defense Articles.--Funds realized by the United 
States Government from the sale, transfer, or disposal of defense 
articles furnished under chapter 2 of part II of the Foreign Assistance 
Act of 1961 (as in effect on the day before the date of the enactment 
of this Act), and no longer needed for the purposes for which 
furnished, shall be credited to the respective appropriation, fund, or 
account currently available for the same general purpose.

SEC. 11507. FOREIGN AND DOMESTIC EXCESS PROPERTY.

    (a) Policy Regarding Use of Excess and Other Available Property.--
In furnishing assistance under this Act--
            (1) excess personal property, or
            (2) if a substantial savings would occur, other property 
        already owned by a Federal agency,
may be utilized wherever practicable in lieu of or supplementary to the 
procurement of new items for United States-assisted projects and 
programs.
    (b) Authority To Use Certain Property for Assistance Purposes.--The 
President is authorized to use funds made available under this Act to 
acquire--
            (1) property classified as domestic or foreign excess 
        pursuant to the Federal Property and Administrative Services 
        Act of 1949 (40 U.S.C. 471 and following),
            (2) any property available from a Federal agency, or
            (3) other property,
for use of such property as assistance in furtherance of the purposes 
of this Act. Property acquired pursuant to this section may be 
furnished pursuant to any provision of this Act for which funds are 
authorized for the furnishing of assistance, and shall be subject to 
the same conditions and restrictions that apply to funds so authorized.
    (c) Separate Account.--
            (1) In general.--The President is authorized for purposes 
        described in subsection (b) to maintain in a separate account 
        funds made available under this Act, free from fiscal year 
        limitations (notwithstanding section 1535(d) of title 31, 
        United States Code) to pay costs (including personnel costs) of 
        acquisition and storage (including in advance of known 
        requirements), renovation and rehabilitation, packing, crating, 
        handling, transportation, and related costs of handling and 
        providing such property as assistance.
            (2) Repayment.--The separate account established pursuant 
        to this section may be repaid from funds made available 
        pursuant to any provision of this Act for which funds are 
        authorized for the furnishing of assistance for all costs 
        incurred.
    (d) Conditions on Use of Excess Property.--
            (1) Limitation.--Government-owned excess property may not 
        be made available for use under this Act unless approval is 
        given and a determination is made in accordance with paragraph 
        (2)--
                    (A) before the shipment of such property for use in 
                a specified country; or
                    (B) if the property is already in such country, 
                before the transfer of the property.
            (2) Determination.--A shipment or transfer subject to 
        paragraph (1) may take place only after the President approves 
        the shipment or transfer and makes a written determination--
                    (A) that there is a need for such property in the 
                quantity requested and that such property is suitable 
                for the purpose requested;
                    (B) that the designated end-user has agreed to use 
                and maintain such property effectively, and has the 
                ability to do so; and
                    (C) that the residual value, serviceability, and 
                appearance of such property would not reflect 
                unfavorably on the image of the United States and would 
                justify the costs of packing, crating, handling, 
                transportation, and other accessorial costs, and that 
                the residual value at least equals the total of these 
                costs.
    (e) Nonapplicability to Department of Defense.--This section shall 
not apply--
            (1) with respect to excess defense articles; and
            (2) with respect to funds made available for assistance 
        under this Act that is administered through the Department of 
        Defense.

SEC. 11508. OCEAN FREIGHT DIFFERENTIAL.

    (a) Shipping Differential.--For purposes of facilitating 
implementation of section 901(b) of the Merchant Marine Act, 1936 (46 
U.S.C. app. 1241(b)), funds made available for the purposes of this Act 
may be used to pay for all or any portion of the differential between 
United States and foreign-flag vessel charter or freight rates.
    (b) Determinations.--The amount of the differential between United 
States and foreign-flag vessel charter or freight rates shall be 
determined by the Secretary of Transportation, or in the case of food 
assistance, by the Secretary of Transportation in consultation with the 
Secretary of Agriculture and the Administrator.
    (c) Use of Foreign Currencies.--Payments under this section shall 
be made in United States-owned foreign currencies wherever feasible.
    (d) Certain Laws Not Applicable.--The ocean transportation between 
foreign countries of commodities purchased with foreign currencies made 
available or derived from funds made available under this Act or the 
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1691 and following), or any predecessor Acts, and transfers of fresh 
fruit and fresh fruit products under this Act, shall not be governed by 
section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. app. 
1241(b)), or any other law relating to the ocean transportation of 
commodities on United States flag vessels.

SEC. 11509. USE OF AIRCRAFT FOR ADDITIONAL PURPOSES.

    (a) Transfer Authority.--
            (1) In general.--Aircraft procured for narcotics control 
        purposes with funds made available under this Act, the Foreign 
        Assistance Act of 1961 (as in effect on the day before the date 
        of the enactment of this Act), or any Act making appropriations 
        for the Department of State, foreign operations, and related 
        programs, may be used for any other program, country or region, 
        including for the transportation of Civilian Response Corps 
        personnel and equipment during a deployment.
            (2) Rule of construction.--The authority of paragraph (1) 
        may be exercised notwithstanding section 5207 or any other 
        provision of law precluding the use of aircraft described in 
        paragraph (1).
    (b) Determination Required.--The authority provided in subsection 
(a) may be exercised only if the Secretary determines that--
            (1) the such aircraft is no longer required to meet 
        programmatic purposes in the originally designated program, 
        country, or region, or
            (2) there is an emergency need for such aircraft in another 
        program, country or region.
    (c) Notification.--The appropriate congressional committees shall 
be notified--
            (1) of a determination under subsection (b); and
            (2) prior to a transfer under subsection (a).
    (d) Aircraft Coordination and Use.--
            (1) In general.--Aircraft purchased or leased by the 
        Department of State or the United States Agency for 
        International Development under this Act, the Foreign 
        Assistance Act of 1961 (as in effect on the day before the date 
        of the enactment of this Act), or any Act making appropriations 
        for the Department of State, foreign operations, and related 
        programs shall be--
                    (A) coordinated by the relevant Chief of Mission;
                    (B) made available for the transportation of 
                personnel supporting the programs and activities of the 
                Department of State or the United States Agency for 
                International Development, as the case may be; and
                    (C) made available for official travel for other 
                agencies for other purposes on a reimbursable basis, or 
                without reimbursement when traveling on a space-
                available basis.
            (2) Rule of construction.--The authority of paragraph (1) 
        may be exercised notwithstanding section 5207 or any other 
        provision of law precluding the use of aircraft described in 
        paragraph (1).

SEC. 11510. STREAMLINING AND REVIEW OF PROCUREMENT PROCESS.

    (a) Streamlining Procedures.--To streamline the process for making 
awards, the Administrator should--
            (1) create simplified solicitations, structured scopes of 
        work, standardized proposals and assistance templates, and 
        joint funding models under which multiple offices and agencies 
        can fund integrated programs;
            (2) consider pre-qualification short-lists to reduce award 
        time;
            (3) improve training for contracting and procurement 
        personnel;
            (4) increase transparency on anticipated activities;
            (5) improve consultation with the public and with private 
        partners; and
            (6) establish an office to advocate on behalf of small 
        nongovernmental organizations.
    (b) Acquisitions and Assistance.--To ensure the appropriate balance 
and use of acquisitions and assistance instruments, the Administrator 
shall--
            (1) issue a policy and guidelines regarding the use and 
        application of each type of instrument, including the 
        responsibility of personnel of the Agency with respect to the 
        administration of each type of instrument;
            (2) make such guidelines public;
            (3) ensure that Agency personnel receive adequate training 
        on the use and application of each type of instrument; and
            (4) review and update, as necessary, such policy and 
        guidelines in light of recommendations received by the 
        committee established under subsection (c).
    (c) Operational Issues Review Committee.--The Administrator should 
convene an Advisory Committee, pursuant to the Federal Advisory 
Committee Act, to--
            (1) assist in updating Agency procedures and regulations to 
        improve speed, transparency, and relevance;
            (2) review the procedures, policy and guidelines developed 
        under subsections (a) and (b); and
            (3) provide advice and guidance on other operational 
        issues, as appropriate.
    (d) Harmonization of Procurement Rules.--The Administrator shall 
convene a working group, incorporating representatives of all Federal 
agencies carrying out activities under title I, to harmonize rules, 
regulations, policies and practices regarding procurement.
    (e) Rulemaking Procedures.--The Administrator shall apply the same 
rulemaking procedures to policies regarding assistance instruments as 
are applied to policies regarding acquisition instruments, and shall 
ensure that all such procedures are carried out in compliance with 
section 533 of title 5, United States Code.

SEC. 11511. OVERSEAS PROCUREMENT FLEXIBILITY.

    Section 3 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2670) is amended by--
            (1) in subsection (l), by striking ``and'' at the end;
            (2) in subsection (m), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subsection:
    ``(n) make and carry out contracts for procurement outside the 
United States of goods or services needed for the operation of United 
States diplomatic and consular posts and related facilities outside the 
United States, provided that--
            ``(1) laws of the United States relating to the 
        negotiation, making, contents or performance of government 
        contracts for goods or services, and advance payments and 
        indemnification in relation to such contracts shall apply with 
        respect to such contracts except to the extent that the 
        Secretary determines (other than for purposes of chapter 21 of 
        title 41, United States Code) that the Secretary could not 
        reasonably meet the need of a post or facility for such goods 
        and services by use of authority available to the Secretary 
        under a law under this subsection;
            ``(2) the Secretary shall--
                    ``(A) issue guidance addressing use of this 
                authority; and
                    ``(B) require written approval to waive specific 
                laws or procurement regulations under this authority by 
                the Procurement Executive (without further delegation); 
                and
            ``(3) no individual contract action entered into under this 
        authority shall exceed $2,000,000 unless approved in writing by 
        the Chief Acquisition Officer of the Department (without 
        further delegation).''.

SEC. 11512. LOCAL GUARD CONTRACTS ABROAD.

    Section 136(c)(3) of the Foreign Relations Authorization Act, 
Fiscal Years 1990 and 1991 (22 U.S.C. 4864(c)(3)) is amended to read as 
follows:
            ``(3) in evaluating proposals for such contracts, award 
        contracts to technically acceptable firms offering the lowest 
        evaluated price, except that--
                    ``(A) the Secretary may grant authorization to 
                award contracts on the basis of best value as 
                determined by a cost-technical tradeoff analysis; and
                    ``(B) proposals received from United States persons 
                and qualified United States joint venture persons (as 
                defined in subsection (d) of this section) shall be 
                evaluated by reducing the bid price by 10 percent.''.

SEC. 11513. AUTHORITY TO PAY TRANSPORTATION COSTS.

    (a) In General.--In order to further the efficient use of United 
States voluntary contributions for alleviating human suffering, the 
Administrator is authorized to use funds made available for the 
purposes of title I to pay transportation charges on shipments of 
humanitarian goods by United States private and voluntary 
organizations.
    (b) Reimbursements.--Reimbursement under this section may be 
provided for transportation charges on shipments from United States 
ports, or in the case of excess or surplus property supplied by the 
United States from foreign ports, to ports of entry abroad or to points 
of entry abroad in cases--
            (1) of landlocked countries;
            (2) where ports cannot be used effectively because of 
        natural or other disturbances;
            (3) where carriers to a specified country are unavailable; 
        or
            (4) where a substantial savings in costs or time can be 
        effected by the utilization of points of entry other than 
        ports.
    (c) Defraying Transportation Costs.--Where practicable, the 
President shall make arrangements with the receiving country for free 
entry of such shipments and for the making available by the country of 
local currencies for the purpose of defraying the transportation costs 
of such shipments from the port or point of entry of the receiving 
country to the designated shipping point of the consignee.

                  CHAPTER 4--USE OF FOREIGN CURRENCIES

SEC. 11601. SEPARATE ACCOUNTS FOR LOCAL CURRENCIES.

    (a) In General.--The Administrator shall require that any local 
currencies generated as a result of agreements with a foreign 
government regarding the use of economic assistance or development 
assistance are deposited in a separate account established by that 
government.
    (b) Agreements.--A separate account under subsection (a) shall be 
established pursuant to an agreement between the United States Agency 
for International Development and the foreign government which sets 
forth--
            (1) the amount of the local currencies to be generated;
            (2) the terms and conditions under which the currencies so 
        deposited may be utilized, consistent with this section; and
            (3) the responsibilities of the Agency and the foreign 
        government to monitor and account for deposits into and 
        disbursements from the separate account.
    (c) Uses of Local Currencies.--Local currencies deposited in a 
separate account pursuant to subsection (a), or an equivalent amount of 
local currencies, shall be used only--
            (1) to further the goals and objectives of title I; or
            (2) for the administrative requirements of the United 
        States Government.
    (d) Termination of Assistance Programs.--Upon termination of 
economic assistance to a country, any unencumbered balances of funds 
which remain in a separate account established pursuant to subsection 
(a) shall be disposed of for such purposes as may be agreed to by the 
government of that country and the United States Government.
    (e) Reporting Requirement.--The Administrator shall include in the 
annual congressional budget justification documents submitted pursuant 
to section 9302 a report on the amounts and uses of local currency (and 
United States dollar equivalent) in each applicable country.

SEC. 11602. USE OF CERTAIN FOREIGN CURRENCIES.

    (a) Authority To Use Foreign Currencies for Assistance Programs.--
Except as otherwise provided in this Act or other provisions of law, 
foreign currencies described in subsection (b) that are owned by the 
United States Government are authorized to be appropriated for use in 
providing assistance under this Act.
    (b) Foreign Currencies That May Be Used for Assistance.--The 
foreign currencies that may be used under subsection (a) are any 
foreign currencies received as a result of the furnishing of assistance 
under this Act (or any predecessor Acts authorizing non-military 
assistance), other than assistance administered through the Department 
of Defense, that are in excess of--
            (1) the amounts reserved under authority of section 105(d) 
        of the Mutual Educational and Cultural Exchange Act of 1961 or 
        any other Act relating to educational and cultural exchanges; 
        and
            (2) the amounts required for payment by the agencies of the 
        United States Government of their obligations outside the 
        United States, as such requirements may be established from 
        time to time by the President.
    (c) Payment of Obligations of Government Agencies.--Foreign 
currencies described in subsection (b) that are in excess of the 
amounts described in paragraph (1) of that subsection may be sold by 
the Secretary of the Treasury to agencies of the United States 
Government for payment of their obligations outside the United States.
    (d) Use of Foreign Currencies Not Owned by the United States 
Government.--With the concurrence of the relevant inspector general, 
the use of foreign currencies that accrue or are otherwise available as 
a result of assistance provided under this Act (including predecessor 
Acts) that are not owned by the United States Government, shall be the 
responsibility of the government owning such currencies to audit.

SEC. 11603. ACCOUNTING AND VALUATION OF FOREIGN CURRENCIES.

    (a) Responsibility of Secretary of the Treasury.--Under the 
direction of the President, the Secretary of the Treasury shall have 
responsibility for valuation and central accounting with respect to 
foreign credits (including currencies) owed to or owned by the United 
States. In order to carry out such responsibility, the Secretary shall 
issue regulations binding upon all agencies of the United States 
Government.
    (b) Sole Authority.--The Secretary of the Treasury shall have sole 
authority to establish for all foreign currencies or credits the 
exchange rates at which such currencies are to be reported by all 
agencies of the Government.

                      Subtitle C--Human Resources

                   CHAPTER 1--PERSONNEL AND BENEFITS

SEC. 11701. EMPLOYMENT OF PERSONNEL.

    (a) Authority.--Any Federal agency or Federal officer carrying out 
functions under this Act is authorized to employ such Federal personnel 
as the President deems necessary to carry out the provisions and 
purposes of this Act.
    (b) Assistance Functions in the United States.--
            (1) Appointments and removal without regard to certain 
        civil service laws.--Not more than 110 employees of the United 
        States Agency for International Development in the United 
        States may be appointed or removed without regard to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service, and may be compensated 
        without regard to the provisions of chapter 51 or subchapter 
        III of chapter 53 of such title, subject to paragraph (2) of 
        this subsection.
            (2) Compensation.--Of the employees appointed under 
        paragraph (1), 51 may be compensated at rates higher than those 
        payable for GS-15 of the General Schedule under section 5332 of 
        title 5, United States Code, but not in excess of the highest 
        rate payable under section 5376 of such title.
            (3) Reinstatement rights.--Under such regulations as the 
        President may prescribe, any individual employed under 
        paragraph (1) may be entitled, upon removal (except for cause) 
        from the position to which the appointment was made, to 
        reinstatement to the position occupied by that individual at 
        the time of appointment or to a position of comparable grade 
        and pay.
    (c) Department of Defense Functions in the United States.--Of the 
personnel employed in the United States by the Department of Defense to 
carry out this Act not to exceed 8 may be compensated at rates higher 
than those payable for GS-15 of the General Schedule under section 5332 
of title 5, United States Code, but not in excess of the highest rate 
payable under section 5376 of such title. Such positions shall be in 
addition to those authorized by law to be filled by Presidential 
appointment, and in addition to the number authorized by section 5108 
of title 5, United States Code.
    (d) Performance of Functions Outside the United States.--
            (1) Authority to employ or assign.--For the purpose of 
        performing functions under this Act outside the United States, 
        the President may--
                    (A) employ or assign individuals; or
                    (B) authorize the employment or assignment of 
                Federal employees that are not authorized to utilize 
                the Foreign Service personnel system.
            (2) Compensation.--Individuals employed or assigned under 
        paragraph (1) shall receive compensation at any of the rates 
        provided for under section 402 or section 403 of the Foreign 
        Service Act of 1980, or under chapter 53 of title 5, United 
        States Code, or at any other rate authorized by law, together 
        with allowances and benefits under the Foreign Service Act of 
        1980.
            (3) Reemployment rights.--Individuals so employed or 
        assigned shall be entitled to the same benefits as are provided 
        by section 310 of the Foreign Service Act of 1980 for 
        individuals appointed to the Foreign Service, except to the 
        extent that the President may specify otherwise in cases in 
        which the period of employment or assignment exceeds 30 months.

SEC. 11702. EXPERTS AND CONSULTANTS.

    (a) Authority To Employ.--Experts and consultants or organizations 
thereof may, in accordance with section 3109 of title 5, United States 
Code, be employed for the performance of functions under this Act.
    (b) Rates of Compensation.--Individuals employed under the 
authority of subsection (a) may be compensated at rates not in excess 
of the daily equivalent of the highest rate payable under section 5332 
of title 5, United States Code, and while away from their homes or 
regular places of business, they may be paid actual travel expenses and 
per diem in lieu of subsistence at rates not in excess of those 
prescribed by the standardized Government travel regulations.
    (c) Mandatory Retirement Age Not Applicable.--The service of an 
individual as an expert or consultant under subsection (a) shall not be 
considered to be employment or holding of office or position for 
purposes of applying the provisions of section 3323(a) of title 5, 
United States Code, to the individual.
    (d) Employment of Certain Persons Without Compensation.--Persons of 
outstanding experience and ability may be employed without compensation 
by any Federal agency for the performance of functions under this Act 
in accordance with the provisions of section 710(b) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2160(b)), and regulations issued 
thereunder.

SEC. 11703. PROHIBITION OF DISCRIMINATION AGAINST FEDERAL PERSONNEL.

    (a) Assignment of Personnel.--
            (1) In general.--The President shall not take into account, 
        in assigning Federal personnel to carry out the provisions of 
        this Act, the individual's race, sex, religion, national 
        origin, sexual orientation, or gender identity. Such 
        assignments shall be made solely on the basis of ability and 
        relevant experience.
            (2) Prohibition on consideration of exclusionary policies 
        or practices.--No agency performing functions under this Act 
        shall, in employing or assigning Federal personnel to 
        participate in the performance of any such function, whether in 
        the United States or abroad, take into account the exclusionary 
        policies or practices of any foreign government where such 
        policies or practices are based upon race, sex, religion, 
        national origin, sexual orientation or gender identity.
            (3) Contracts.--Each contract entered into by any such 
        agency for the performance of any function under this Act shall 
        contain a provision to the effect that no person, partnership, 
        corporation, or other entity performing functions pursuant to 
        such contract, shall, in employing or assigning personnel to 
        participate in the performance of any such function, whether in 
        the United States or abroad, take into account the exclusionary 
        policies or practices of any foreign government where such 
        policies or practices are based upon race, sex, religion, 
        national origin, sexual orientation, or gender identity.
    (b) Exclusion by Foreign Countries.--Except as provided in 
subsection (c), no assistance may be provided under this Act to any 
government or organization that excludes, as a matter of law, 
regulation, policy or practice, any United States person (as defined in 
section 7701(a)(30) of the Internal Revenue Code of 1986) from 
participating in the furnishing of assistance under this Act on the 
basis of sex, race, religion, national origin, sexual orientation or 
gender identity.
    (c) Exception.--The President may provide assistance 
notwithstanding the prohibition in subsection (b) if the President--
            (1) determines that, notwithstanding such exclusion,--
                    (A) extraordinary circumstances exist which 
                necessitate the provision of such assistance; and
                    (B) it is in the national interest of the United 
                States to provide such assistance; and
            (2) transmits to the appropriate congressional committees, 
        prior to providing such assistance, a report detailing--
                    (A) the facts and circumstances of such exclusion;
                    (B) the response thereto on the part of the United 
                States Government or any agency or personnel thereof;
                    (C) the result of such response, if any;
                    (D) the extraordinary circumstances which 
                necessitate the provision of such assistance; and
                    (E) the nature and amount of the assistance to be 
                provided notwithstanding such exclusion.

SEC. 11704. FOREIGN SERVICE LIMITED APPOINTMENTS.

    (a) Authority To Hire and Employ.--The Administrator is authorized 
to hire and employ up to 200 individuals in the United States and 
overseas on a limited appointment basis pursuant to the authority of 
sections 308 and 309 of the Foreign Service Act of 1980.
    (b) Conditions.--The authority of subsection (a) may only be used 
to the extent that an equivalent number of positions that are filled by 
personal services contractors or other nondirect hire personnel of the 
United States Agency for International Development are eliminated.
    (c) Priority Sectors.--In exercising the authority of this section, 
primary emphasis shall be placed on enabling the United States Agency 
for International Development to meet personnel needs in technical 
skill areas currently encumbered by personal services contractors or 
other non-direct hire personnel.
    (d) Extensions.--Individuals hired and employed by the United 
States Agency for International Development pursuant to the authority 
of section 309 of the Foreign Service Act of 1980 may be extended for a 
period of up to 4 years notwithstanding the limitation set forth in 
such section.

SEC. 11705. TECHNICAL ADVISORS.

    The Administrator is authorized to use funds made available to 
carry out title I to reimburse Federal agencies, agencies of State 
governments, institutions of higher education, and private and 
voluntary organizations for the full cost of individuals (including for 
the personal services of such individuals) detailed or assigned to, or 
contracted by, as the case may be, the United States Agency for 
International Development for the purpose of carrying out this Act.

SEC. 11706. PERSONAL SERVICES CONTRACTORS FOR USAID.

    (a) Employment Outside the United States.--The Administrator is 
authorized to employ personal services contractors outside the United 
States to carry out the purposes of this Act.
    (b) Employment in the United States.--The Administrator is 
authorized to employ up to 40 personal services contractors in the 
United States, notwithstanding any other provision of law, for the 
purpose of providing direct, interim support for new or expanded 
overseas programs and activities managed by the United States Agency 
for International Development until permanent direct hire personnel are 
hired and trained.
    (c) Considered as Operating Expenses.--The salaries and expenses of 
individuals hired under the authority of subsection (b) shall be 
considered as operating expenses of the United States Agency for 
International Development and subject to the limitations of section 
11301, except that the Administrator may use funds made available to 
carry out title II of the Agricultural Trade Development and Assistance 
Act of 1954 for personal services contractors assigned to the Office of 
Food for Peace.
    (d) Not Regarded as Federal Employees.--Individuals hired under the 
authority of this section shall not be regarded as Federal employees 
for the purpose of any law administered by the Office of Personnel 
Management.

SEC. 11707. PERSONAL SERVICES CONTRACTORS FOR THE DEPARTMENT OF STATE.

    (a) In General.--In addition to other authorities that may be 
available, the Secretary of State may establish a pilot program (in 
this section referred to as the ``program'') for the purpose of hiring 
United States citizens or aliens as personal services contractors, for 
service in the United States, or for service both in the United States 
and abroad, to respond to new or emerging needs or to augment current 
services.
    (b) Conditions.--The Secretary is authorized to use the authority 
of subsection (a), subject to the following conditions:
            (1) The Secretary determines that existing personnel 
        resources are insufficient.
            (2) The contract length, including options, may not exceed 
        2 years, unless the Secretary makes a finding that exceptional 
        circumstances justify an extension of up to one additional 
        year.
            (3) Not more than a total of 200 United States citizens or 
        aliens are employed at any one time as personal services 
        contractors under this section.
            (4) This authority may only be used to obtain specialized 
        skills or experience or to respond to urgent needs.
    (c) Status of Personal Service Contractors.--
            (1) In general.--An individual hired as a personal service 
        contractor pursuant to this section shall not, by virtue of 
        such hiring, be considered to be an employee of the United 
        States Government for purposes of any law administered by the 
        Office of Personnel Management.
            (2) Applicable laws.--An individual hired as a personal 
        service contractor pursuant to this section shall be covered, 
        in the same manner as a similarly situated employee, by--
                    (A) the Ethics in Government Act of 1978;
                    (B) chapter 21 of title 41, United States Code; and
                    (C) chapter 73 of title 5, sections 201, 203, 205, 
                207, 208, and 209 of title 18, and section 1346 and 
                chapter 171 of title 28, United States Code.
            (3) Exception.--This subsection shall not affect the 
        determination as to whether an individual hired as a personal 
        service contractor pursuant to this section is an employee of 
        the United States Government for purposes of any Federal law 
        not specified in paragraphs (1) and (2).
    (d) Termination of Authority.--The authority to award personal 
services contracts under the program authorized by this section shall 
terminate on September 30, 2014. A contract entered into prior to the 
termination date under this subsection may remain in effect until 
expiration.

SEC. 11708. HIRING AUTHORITY OF INSPECTOR GENERAL OF THE UNITED STATES 
              AGENCY FOR INTERNATIONAL DEVELOPMENT.

    (a) In General.--Subject to the requirements and limitations of 
this section, the Inspector General of the United States Agency for 
International Development is authorized to employ personal services 
contractors outside the United States.
    (b) Number.--The number of contractors hired under the authority of 
subsection (a) may not exceed 5 percent of the total authorized 
workforce of the Office of the Inspector General.
    (c) Contract Length.--A contractor hired under the authority of 
subsection (a) shall have a contract period of not longer than 2 years, 
unless the Inspector General determines, on a case-by-case basis, that 
exceptional circumstances justify the extension of a contract for up to 
1 additional year.
    (d) Certification.--The authority provided in subsection (a) may be 
exercised only if the Inspector General determines that it is 
impractical to recruit a sufficient number of direct-hire employees to 
perform necessary overseas work, and reports such determination to the 
appropriate congressional committees, along with the reasons such 
recruitment is impractical.
    (e) Status of Employment.--Individuals employed under the authority 
of this section shall not be considered Federal employees for purposes 
of the Foreign Service Act of 1980 or any law administered by the 
Office of Personnel Management.

SEC. 11709. PUBLIC AVAILABILITY OF CONSULTING CONTRACTS.

    Any contract for consulting services issued with funds made 
available under this Act shall be a matter of public record and subject 
to public inspection, unless otherwise specifically provided under law.

SEC. 11710. SENIOR FOREIGN SERVICE REQUIREMENT.

    Section 305 of the Foreign Service Act of 1980 (22 U.S.C. 3945) is 
amended by adding at the end the following:
    ``(e) Requirement.--Beginning 3 years from the date of enactment of 
this subsection, a Foreign Service Officer may not be promoted into the 
Senior Foreign Service of the Department of State or the United States 
Agency for International Development without having served at least one 
domestic rotation in a bureau or office that does not have a regional 
jurisdiction.''.

SEC. 11711. PAY PARITY FOR CRIMINAL INVESTIGATORS.

    Section 5541(2)(C)(xiv) of title 5, United State Code, is amended 
to read as follows:
                            ``(xiv) a Foreign Service officer, except 
                        that a Foreign Service officer serving as a 
                        criminal investigator in the Office of the 
                        Inspector General of the United States Agency 
                        for International Development shall be eligible 
                        for and receive availability pay on the same 
                        terms as a criminal investigator under section 
                        5545a.''.

             CHAPTER 2--DETAILS, FELLOWSHIPS, AND EXCHANGES

SEC. 11801. DETAILS TO FOREIGN GOVERNMENTS AND INTERNATIONAL 
              ORGANIZATIONS.

    (a) Details to Foreign Governments.--When consistent with and in 
furtherance of the purposes of this Act, the head of any Federal agency 
is authorized to detail any Federal employee of that agency to any 
office or position with any foreign government or foreign government 
agency, where acceptance of such office or position does not involve 
the taking of an oath of allegiance to another government or acceptance 
of compensation or other benefits from any foreign country by such 
employee.
    (b) Details to International Organizations.--When consistent with 
and in furtherance of the purposes of this Act, the head of any Federal 
agency is authorized to detail to any international organization or 
arrangement, any Federal employee of that agency to serve with, or as a 
member of, the international staff of such organization, or to render 
any technical, scientific, or professional advice or service to, or in 
cooperation with, such organization.
    (c) Status of Federal Employees Detailed.--
            (1) Retention of benefits.--Any Federal employee, while 
        detailed under this section--
                    (A) shall be considered a Federal employee and of 
                the Federal agency from which detailed for the purpose 
                of preserving his or her allowances, privileges, 
                rights, seniority, and other benefits as such; and
                    (B) shall continue to receive compensation, 
                allowances, and benefits from funds appropriated to 
                that agency or made available to that agency under this 
                Act, or may be detailed on a leave without pay status.
            (2) Allowances.--Any Federal employee assigned, detailed, 
        or appointed under this section, section 11203(b), section 
        11204 or section 11702, may receive (under such regulations as 
        the President may prescribe) representation allowances similar 
        to those allowed under section 905 of the Foreign Service Act 
        of 1980. The authorization of such allowances and other 
        benefits and the payment thereof out of any appropriations 
        available therefor shall be considered as meeting all the 
        requirements of section 5536 of title 5, United States Code.
    (d) Terms of Detail.--Details may be made under this section or 
section 408 of the Mutual Security Act of 1954 in accordance with any 
of the following:
            (1) Without reimbursement to the United States Government 
        by the foreign government or international organization.
            (2) Upon agreement by the foreign government or 
        international organization to reimburse the United States 
        Government for compensation, travel expenses, benefits, and 
        allowances, or any part thereof, payable to the Federal 
        employee concerned during the period of detail. Such 
        reimbursements (including foreign currencies) shall be credited 
        to the appropriation, fund, or account utilized for paying such 
        compensation, travel expenses, benefits, or allowances, or to 
        the appropriation, fund, or account currently available for 
        such purposes.
            (3) Upon an advance of funds, property, or services by the 
        foreign government or international organization to the United 
        States Government accepted with the approval of the President 
        for specified uses in furtherance of the purposes of this Act. 
        Funds so advanced may be established as a separate fund in the 
        Treasury of the United States Government, to be available for 
        the specified uses, and to be used for reimbursement of 
        appropriations or direct expenditure subject to the provisions 
        of this Act. Any unexpended balance of such account shall be 
        returned to the foreign government or international 
        organization.
            (4) Subject to the receipt by the United States Government 
        of a credit to be applied against the payment by the United 
        States Government of its share of the expenses of the 
        international organization to which the Federal employee is 
        detailed, such credit to be based upon the compensation, travel 
        expenses, benefits and allowances, or any part thereof, payable 
        to such employee during the period of detail in accordance with 
        subsection (c).

SEC. 11802. DETAILS TO UNITED STATES GOVERNMENT AGENCIES.

    (a) Authority To Detail.--The head of any Federal agency is 
authorized to detail Federal employees of that agency (hereinafter 
known as the ``detailing agency'') to any office or position in any 
other Federal agency (hereinafter known as the ``receiving agency''), 
for the purposes set out in subsection (b).
    (b) Purposes of Detail.--A detail under subsection (a) is 
authorized for the purposes of--
            (1) improving cooperation and collaboration between the 
        detailing agency and receiving agency,
            (2) rendering any technical, scientific, or professional 
        advice or service to the receiving agency, or
            (3) providing training and professional development to 
        employees of the detailing agency,
when such detail is consistent with and in furtherance of the purposes 
of this Act.
    (c) Congressional Detail.--The Secretary and the Administrator are 
each authorized to detail up to 5 employees of the Department of State 
and the United States Agency for International Development, 
respectively, each fiscal year to individual members and committees of 
Congress, notwithstanding the requirement for reimbursement in 
subsection (d). Such detailees shall be known as ``Congressional 
Fellows''.
    (d) Requirement for Reimbursement.--The receiving agency shall 
reimburse the detailing agency for the salary and allowances of each 
Federal employee for the period of the detail, unless--
            (1) the detail is for a period of less than two years;
            (2) a substantially equivalent number of Federal employees 
        are detailed to and from each agency in a fiscal year; or
            (3) not more than 15 Federal employees are detailed from a 
        single agency in a fiscal year.
    (e) Personnel Limitations.--Personnel detailed under this section 
shall not be counted for purposes of any limitation established by the 
Office of Management and Budget on the maximum number of personnel 
allowable for the detailing agency.
    (f) Waiver.--The Secretary and the Administrator are authorized to 
waive the requirement for reimbursement in subsection (d) for the 
detail of an employee of the Department of State or the Agency, 
respectively, for a period of up to 5 years if the receiving agency is 
the National Security Council.
    (g) Detail Defined.--In this section, the term ``detail'' means to 
detail, assign, or otherwise make available an employee to another 
agency, office, or organization.

SEC. 11803. SCIENCE AND TECHNOLOGY FELLOWSHIP PROGRAMS.

    Section 504 of the Foreign Relations Authorization Act, Fiscal Year 
1979 (22 U.S.C. 2656d) is amended by adding at the end the following:
    ``(e)(1) The Secretary is authorized to make grants or enter into 
cooperative agreements related to Department of State science and 
technology fellowship programs, including for assistance in recruiting 
fellows and the payment of stipends, travel, and other appropriate 
expenses to fellows.
    ``(2) Payment of stipends under the authority of paragraph (1) 
shall not be considered to be compensation for purposes of section 209 
of title 18, United States Code.
    ``(3) The total amount of grants made under the authority of 
paragraph (1) may not exceed $1,000,000 in any fiscal year.''.

SEC. 11804. FOREIGN RELATIONS EXCHANGE PROGRAMS.

    (a) In General.--The Secretary may establish exchange programs 
under which employees of the Department of State, including individuals 
appointed under title 5, United States Code, and members of the Foreign 
Service, may be assigned, for a period not to exceed 1 year, to a 
position with any foreign government or international entity that 
permits an employee of the foreign government or international entity, 
as the case may be, to be assigned to a position with the Department of 
State.
    (b) Department of State Employees.--During a period in which an 
employee of the Department of State is participating in an exchange 
program authorized under subsection (a), such employee shall, for the 
purposes of receiving salary and benefits, be treated as an employee 
detailed under section 11801.
    (c) Foreign Employees.--The salary and benefits of an employee of a 
foreign government or international entity participating in a program 
established under this section shall be paid by such government or 
entity during the period in which such employee is participating in the 
program, and shall not be reimbursed by the Department of State.
    (d) Rule of Construction.--Nothing in this section shall be 
construed to authorize the appointment as a Federal employee of--
            (1) an individual whose allegiance is to any country, 
        government, or foreign or international entity other than the 
        United States; or
            (2) an individual who has not met the requirements of 
        sections 3331, 3332, 3333, and 7311 of title 5, United States 
        Code, or any other provision of law concerning eligibility for 
        appointment, and continuation of employment, as a Federal 
        employee.

SEC. 11805. GUIDELINES FOR ROTATIONAL ASSIGNMENTS.

    (a) Career Guidelines.--The Administrator shall establish career 
guidelines for Foreign Service officers and civil service officers that 
incorporate interagency, intergovernmental, or international 
organization rotational assignments. The guidelines established under 
this subsection shall include--
            (1) selection;
            (2) professional education and training;
            (3) types of relevant interagency, intergovernmental, and 
        international organization assignments; and
            (4) such other matters as the Administrator considers 
        appropriate.
    (b) Promotions to Senior Ranks.--Not later than 2 years after the 
date of the enactment of this Act, the Administrator shall establish 
additional guidelines that consider participation by relevant employees 
in at least 1 interagency, intergovernmental, or international 
organizational rotational assignment of at least 6 months as a factor 
for promotion into the ranks of the Senior Foreign Service or Senior 
Executive Service.
    (c) Promotion Precepts.--The Administrator shall ensure that 
promotion precepts and promotion panels do not penalize employees who 
have been assigned to interagency, intergovernmental, or international 
organizations.

            CHAPTER 3--TRAINING AND PROFESSIONAL DEVELOPMENT

SEC. 11901. TRAINING OF FEDERAL PERSONNEL.

    (a) Authority To Conduct Training.--The head of each Federal agency 
carrying out activities under this Act is authorized to use funds made 
available under this Act to pay the costs, in accordance with 
subsection (b), of providing training for Federal personnel, through 
interchange or otherwise, at any State or local unit of government, 
public or private nonprofit institution, trade, labor, agricultural, or 
scientific association or organization, or commercial firm.
    (b) Payment of Costs.--Training costs shall be paid--
            (1) from funds made available to the employing agency;
            (2) for individuals performing functions within the United 
        States, from funds available for administrative expenses; and
            (3) for individuals performing functions outside the United 
        States, from funds available for the program, project, or 
        activity being carried out by such individual.
    (c) Limitation on Dual Employment.--Training under this section 
shall not be considered employment or holding of office under section 
5533 of title 5, United States Code.
    (d) Acceptance of Certain Payments.--Any payments or contributions 
in connection with training under this section may, as deemed 
appropriate by the head of the Federal agency authorizing such 
training, be made by private or public sources and be accepted by any 
trainee, or may be accepted by and credited to the current applicable 
appropriation of such agency. Any such payments or contributions shall 
be in lieu, or in reduction, of compensation received from the United 
States Government.

SEC. 11902. CAREER DEVELOPMENT.

    (a) Comprehensive Program.--The Secretary and the Administrator 
shall implement and maintain a comprehensive career-long program of 
professional training for the personnel of the Department of State and 
the United States Agency for International Development, respectively.
    (b) Participation Levels.--The Secretary and the Administrator 
shall ensure that in each fiscal year not less than 10 percent of 
personnel of the Department of State and the United States Agency for 
International Development receive professional training or participate 
in details, exchanges, fellowships, scholarships or other opportunities 
for professional development.
    (c) Institution for Training.--Section 701(b) of the Foreign 
Service Act of 1980 (22 U.S.C. 4021(b)) is amended to read as follows:
    ``(b)(1) The Secretary of State shall ensure that training offered 
by the institution--
            ``(A) meets the training needs of all foreign affairs 
        agencies;
            ``(B) is made available on an equal basis to personnel of 
        all foreign affairs agencies, including access to child care 
        facilities, travel, per diem, and reimbursements;
            ``(C) is responsive to requests by the heads of other 
        agencies for the development and implementation of specialized 
        training courses; and
            ``(D) is evaluated regularly for cost-effectiveness and for 
        results.
    ``(2) Other agencies shall avoid duplicating the facilities and 
training provided by the Secretary of State through the institution and 
otherwise.''.
    (d) Training Support Services.--Section 704(a)(4)(B) of the Foreign 
Service Act of 1980 (22 U.S.C. 4024(a)(4)(B)) is amended by striking 
``language instructors, linguists, and other academic and training 
specialists'' and inserting ``education and training specialists, 
including language instructors and linguists, and other specialists who 
perform work directly relating to the design, delivery, oversight, or 
coordination of training delivered by the institution''.
    (e) Requirements for Promotion.--The Secretary and the 
Administrator shall each establish a set of mandatory training 
requirements for promotion into the Senior Foreign Service.
    (f) Evaluation of Effectiveness.--The Secretary and the 
Administrator shall evaluate the effectiveness of all training and 
professional development programs for the personnel of the Department 
of State and the United States Agency for International Development, 
respectively, not later than 2 years after the date of the enactment of 
this Act, and not less than once every 5 years after thereafter. The 
results of such evaluations shall be made publicly available on the 
Internet.

SEC. 11903. LANGUAGE SKILLS DEVELOPMENT.

    (a) Development of System.--The Secretary and the Administrator 
shall develop a system for increasing the number and percentage of 
Foreign Service Officers at the Department of State and the United 
States Agency for International Development, respectively, who are 
proficient in the official language of the country of assignment.
    (b) Elements of System.--Such system shall include--
            (1) methods for identifying emerging areas of foreign 
        language shortfalls and projected language needs;
            (2) designation of Foreign Service positions for which a 
        minimum level of certified language proficiency is required, to 
        be known as ``language designated positions'';
            (3) designation of languages for which there is a critical 
        unmet need, to be known as ``critical languages'';
            (4) development of policies and procedures relating to 
        assignments, length of rotations, recruitment, retention, 
        training, and promotion to--
                    (A) ensure that there are a sufficient number of 
                Foreign Service officers able and available to fill 
                language designated positions; and
                    (B) remedy shortfalls in critical languages;
            (5) establishment of clear and measurable performance goals 
        and objectives; and
            (6) requirements for monitoring and evaluation of progress.
    (c) Transmission to Congress.--The Secretary and the Administrator 
shall transmit to the appropriate congressional committees, not later 
than 1 year after the date of the enactment of this Act, a report on 
the system developed under subsection (a) and a plan for its 
implementation, including any budgetary implications.
    (d) Implementation Reports.--One year after the date on which the 
report is transmitted pursuant to subsection (c), and each of the next 
2 years thereafter, the Secretary and the Administrator shall transmit 
to the appropriate congressional committees a report on the status of 
implementation of the system developed under subsection (a).
    (e) Repeal of Duplicative Report.--Section 702 of the Foreign 
Service Act of 1980 (22 U.S.C. 4022) is amended by striking subsection 
(c).
    (f) Availability of Funds.--Notwithstanding section 11302, amounts 
made available to the Agency to carry out this section shall not be 
considered to be operating expenses.

                   TITLE XII--AMENDMENTS AND REPEALS

                         Subtitle A--Amendments

SEC. 12101. AMENDMENTS RELATING TO ASSISTANCE TO COMBAT HIV/AIDS, 
              TUBERCULOSIS, AND MALARIA.

    (a) Assistance To Combat HIV/AIDS.--Subtitle A of title III of the 
United States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act 
of 2003 (22 U.S.C. 7631 et seq.) is amended--
            (1) by redesignating section 301 as section 301A;
            (2) in the heading of section 301A (as redesignated), by 
        inserting ``other provisions relating to'' before 
        ``assistance''; and
            (3) by inserting before section 301A (as redesignated) the 
        following new section:

``SEC. 301. ASSISTANCE TO COMBAT HIV/AIDS.

    ``(a) Finding.--Congress recognizes that the alarming spread of 
HIV/AIDS in countries in sub-Saharan Africa, the Caribbean, Central 
Asia, Eastern Europe, Latin America and other developing countries is a 
major global health, national security, development, and humanitarian 
crisis.
    ``(b) Policy.--
            ``(1) Objectives.--It is a major objective of the foreign 
        assistance program of the United States to provide assistance 
        for the prevention and treatment of HIV/AIDS and the care of 
        those affected by the disease. It is the policy objective of 
        the United States, by 2013, to--
                    ``(A) assist partner countries to--
                            ``(i) prevent 12,000,000 new HIV infections 
                        worldwide;
                            ``(ii) support--
                                    ``(I) the increase in the number of 
                                individuals with HIV/AIDS receiving 
                                antiretroviral treatment above the goal 
                                established under section 402(a)(3) and 
                                increased pursuant to paragraphs (1) 
                                through (3) of section 403(d); and
                                    ``(II) additional treatment through 
                                coordinated multilateral efforts;
                            ``(iii) support care for 12,000,000 
                        individuals infected with or affected by HIV/
                        AIDS, including 5,000,000 orphans and 
                        vulnerable children affected by HIV/AIDS, with 
                        an emphasis on promoting a comprehensive, 
                        coordinated system of services to be integrated 
                        throughout the continuum of care;
                            ``(iv) provide at least 80 percent of the 
                        target population with access to counseling, 
                        testing, and treatment to prevent the 
                        transmission of HIV from mother-to-child;
                            ``(v) provide care and treatment services 
                        to children with HIV in proportion to their 
                        percentage within the HIV-infected population 
                        of a given partner country; and
                            ``(vi) train and support retention of 
                        health care professionals, paraprofessionals, 
                        and community health workers in HIV/AIDS 
                        prevention, treatment, and care, with the 
                        target of providing such training to at least 
                        140,000 new health care professionals and 
                        paraprofessionals with an emphasis on training 
                        and in country deployment of critically needed 
                        doctors and nurses;
                    ``(B) strengthen the capacity to deliver primary 
                health care in developing countries, especially in sub-
                Saharan Africa;
                    ``(C) support and help countries in their efforts 
                to achieve staffing levels of at least 2.3 doctors, 
                nurses, and midwives per 1,000 population, as called 
                for by the World Health Organization; and
                    ``(D) help partner countries to develop 
                independent, sustainable HIV/AIDS programs.
            ``(2) Coordinated global strategy.--The United States and 
        other countries with the sufficient capacity should provide 
        assistance to countries in sub-Saharan Africa, the Caribbean, 
        Central Asia, Eastern Europe, and Latin America, and other 
        countries and regions confronting HIV/AIDS epidemics in a 
        coordinated global strategy to help address generalized and 
        concentrated epidemics through HIV/AIDS prevention, treatment, 
        care, monitoring and evaluation, and related activities.
            ``(3) Priorities.--The United States Government's response 
        to the global HIV/AIDS pandemic and the Government's efforts to 
        help countries assume leadership of sustainable campaigns to 
        combat their local epidemics should place high priority on--
                    ``(A) the prevention of the transmission of HIV;
                    ``(B) moving toward universal access to HIV/AIDS 
                prevention counseling and services;
                    ``(C) meaningful cost-sharing assurances by the 
                partner country; and
                    ``(D) the inclusion of transition strategies to 
                ensure sustainability of such programs and activities, 
                including health care systems, under other 
                international donor support, or budget support by 
                respective foreign governments.
    ``(c) Authorization.--
            ``(1) In general.--Consistent with section 1321 of the 
        Global Partnerships Act of 2012, the President is authorized to 
        furnish assistance, on such terms and conditions as the 
        President may determine, for HIV/AIDS, including to prevent, 
        treat, and monitor HIV/AIDS, and carry out related activities, 
        in countries in sub-Saharan Africa, the Caribbean, Central 
        Asia, Eastern Europe, Latin America, and other countries and 
        areas, particularly with respect to refugee populations or 
        those in postconflict settings in such countries and areas with 
        significant or increasing HIV incidence rates.
            ``(2) Role of ngos.--It is the sense of Congress that the 
        President should provide an appropriate level of assistance 
        under paragraph (1) through nongovernmental organizations 
        (including faith-based and community-based organizations) in 
        countries in sub-Saharan Africa, the Caribbean, Central Asia, 
        Eastern Europe, Latin America, and other countries and areas 
        affected by the HIV/AIDS pandemic, particularly with respect to 
        refugee populations or those in post-conflict settings in such 
        countries and areas with significant or increasing HIV 
        incidence rates.
            ``(3) Coordination of assistance efforts.--The President 
        shall coordinate the provision of assistance under paragraph 
        (1) with the provision of related assistance by the Joint 
        United Nations Programme on HIV/AIDS (UNAIDS), the United 
        Nations Children's Fund (UNICEF), the World Health Organization 
        (WHO), the United Nations Development Programme (UNDP), the 
        Global Fund to Fight AIDS, Tuberculosis and Malaria and other 
        appropriate international organizations (such as the 
        International Bank for Reconstruction and Development), 
        relevant regional multilateral development institutions, 
        national, state, and local governments of partner countries, 
        other international actors, appropriate governmental and 
        nongovernmental organizations, and relevant executive branch 
        agencies within the framework of the principles of the Three 
        Ones.
    ``(d) Activities Supported.--Assistance provided under subsection 
(c) shall, to the maximum extent practicable, be used to carry out the 
following activities:
            ``(1) Prevention.--Prevention of HIV/AIDS through 
        activities including--
                    ``(A) programs and efforts that are designed or 
                intended to impart knowledge with the exclusive purpose 
                of helping individuals avoid behaviors that place them 
                at risk of HIV infection, including integration of such 
                programs into health programs and the inclusion in 
                counseling programs of information on methods of 
                avoiding infection of HIV, including delaying sexual 
                debut, abstinence, fidelity and monogamy, reduction of 
                casual sexual partnering and multiple concurrent sexual 
                partnering, reducing sexual violence and coercion, 
                including child marriage, widow inheritance, and 
                polygamy, and where appropriate, use of male and female 
                condoms;
                    ``(B) assistance to establish and implement 
                culturally appropriate HIV/AIDS education and 
                prevention programs that are designed with local input 
                and focus on helping individuals avoid infection of 
                HIV/AIDS, implemented through nongovernmental 
                organizations, including faith-based and community-
                based organizations, particularly those locally based 
                organizations that utilize both professionals and 
                volunteers with appropriate skills, experience, and 
                community presence;
                    ``(C) assistance for the purpose of encouraging men 
                to be responsible in their sexual behavior, child 
                rearing, and to respect women;
                    ``(D) assistance for the purpose of providing 
                voluntary testing and counseling (including the 
                incorporation of confidentiality protections with 
                respect to such testing and counseling) and promoting 
                the use of provider-initiated or `opt-out' voluntary 
                testing in accordance with World Health Organization 
                guidelines;
                    ``(E) assistance for the purpose of preventing 
                mother-to-child transmission of the HIV infection, 
                including medications to prevent such transmission and 
                access to infant formula and other alternatives for 
                infant feeding;
                    ``(F) assistance to--
                            ``(i) achieve the goal of reaching 80 
                        percent of pregnant women for prevention and 
                        treatment of mother-to-child transmission of 
                        HIV in countries in which the United States is 
                        implementing HIV/AIDS programs by 2013; and
                            ``(ii) promote infant feeding options and 
                        treatment protocols that meet the most recent 
                        criteria established by the World Health 
                        Organization;
                    ``(G) medical male circumcision programs as part of 
                national strategies to combat the transmission of HIV/
                AIDS;
                    ``(H) assistance to ensure a safe blood supply and 
                sterile medical equipment;
                    ``(I) assistance to help avoid substance abuse and 
                intravenous drug use that can lead to HIV infection;
                    ``(J) assistance for the purpose of increasing 
                women's access to employment opportunities, income, 
                productive resources, and microfinance programs, where 
                appropriate; and
                    ``(K) assistance for counseling, testing, 
                treatment, care, and support programs, including--
                            ``(i) counseling and other services for the 
                        prevention of reinfection of individuals with 
                        HIV/AIDS;
                            ``(ii) counseling to prevent sexual 
                        transmission of HIV, including--
                                    ``(I) life skills development for 
                                practicing abstinence and faithfulness;
                                    ``(II) reducing the number of 
                                sexual partners;
                                    ``(III) delaying sexual debut; and
                                    ``(IV) ensuring correct and 
                                consistent use of condoms;
                            ``(iii) assistance to engage underlying 
                        vulnerabilities to HIV/AIDS, especially those 
                        of women and girls;
                            ``(iv) assistance for appropriate HIV/AIDS 
                        education programs and training targeted to 
                        prevent the transmission of HIV among men who 
                        have sex with men;
                            ``(v) assistance to provide male and female 
                        condoms;
                            ``(vi) diagnosis and treatment of other 
                        sexually transmitted infections;
                            ``(vii) strategies to address the stigma 
                        and discrimination that impede HIV/AIDS 
                        prevention efforts; and
                            ``(viii) assistance to facilitate 
                        widespread access to microbicides for HIV 
                        prevention, if safe and effective products 
                        become available, including financial and 
                        technical support for culturally appropriate 
                        introductory programs, procurement, 
                        distribution, logistics management, program 
                        delivery, acceptability studies, provider 
                        training, demand generation, and 
                        postintroduction monitoring.
            ``(2) Treatment.--The treatment and care of individuals 
        with HIV/AIDS, including--
                    ``(A) assistance to establish and implement 
                programs to strengthen and broaden indigenous health 
                care delivery systems and the capacity of such systems 
                to deliver HIV/AIDS pharmaceuticals and otherwise 
                provide for the treatment of individuals with HIV/AIDS, 
                including clinical training for indigenous 
                organizations and health care providers;
                    ``(B) assistance to strengthen and expand hospice 
                and palliative care programs to assist patients 
                debilitated by HIV/AIDS, their families, and the 
                primary caregivers of such patients, including programs 
                that utilize faith-based and community-based 
                organizations;
                    ``(C) assistance for the purpose of the care and 
                treatment of individuals with HIV/AIDS through the 
                provision of pharmaceuticals, including antiretrovirals 
                and other pharmaceuticals and therapies for the 
                treatment of opportunistic infections, pain management, 
                nutritional support, and other treatment modalities;
                    ``(D) as part of care and treatment of HIV/AIDS, 
                assistance (including prophylaxis and treatment) for 
                common HIV/AIDS-related opportunistic infections for 
                free or at a rate at which it is easily affordable to 
                the individuals and populations being served; and
                    ``(E) as part of care and treatment of HIV/AIDS, 
                assistance or referral to available and adequately 
                resourced service providers for nutritional support, 
                including counseling and where necessary the provision 
                of commodities, for persons meeting malnourishment 
                criteria and their families.
            ``(3) Preventative intervention education and 
        technologies.--(A) With particular emphasis on specific 
        populations that represent a particularly high risk of 
        contracting or spreading HIV/AIDS, including those exploited 
        through the sex trade, victims of rape and sexual assault, 
        individuals already infected with HIV/AIDS, and in cases of 
        occupational exposure of health care workers, assistance with 
        efforts to reduce the risk of HIV/AIDS infection including 
        post-exposure pharmaceutical prophylaxis, and necessary 
        pharmaceuticals and commodities, including test kits, condoms, 
        and, when proven effective, microbicides.
            ``(B) Bulk purchases of available test kits, condoms, and, 
        when proven effective, microbicides that are intended to reduce 
        the risk of HIV/AIDS transmission and for appropriate program 
        support for the introduction and distribution of these 
        commodities, as well as education and training on the use of 
        the technologies.
            ``(4) Monitoring.--The monitoring of programs, projects, 
        and activities carried out pursuant to paragraphs (1) through 
        (3), including--
                    ``(A) monitoring to ensure that adequate controls 
                are established and implemented to provide HIV/AIDS 
                pharmaceuticals and other appropriate medicines to poor 
                individuals with HIV/AIDS;
                    ``(B) appropriate evaluation and surveillance 
                activities;
                    ``(C) monitoring to ensure that appropriate 
                measures are being taken to maintain the sustainability 
                of HIV/AIDS pharmaceuticals (especially 
                antiretrovirals) and ensure that drug resistance is not 
                compromising the benefits of such pharmaceuticals;
                    ``(D) monitoring to ensure appropriate law 
                enforcement officials are working to ensure that HIV/
                AIDS pharmaceuticals are not diminished through illegal 
                counterfeiting or black market sales of such 
                pharmaceuticals;
                    ``(E) carrying out and expanding program 
                monitoring, impact evaluation research and analysis, 
                and operations research and disseminating data and 
                findings through mechanisms to be developed by the 
                Coordinator of United States Government Activities to 
                Combat HIV/AIDS Globally, in coordination with the 
                Director of the Centers for Disease Control, in order 
                to--
                            ``(i) improve accountability, increase 
                        transparency, and ensure the delivery of 
                        evidence-based services through the collection, 
                        evaluation, and analysis of data regarding 
                        gender-responsive interventions, disaggregated 
                        by age and sex;
                            ``(ii) identify and replicate effective 
                        models; and
                            ``(iii) develop gender indicators to 
                        measure outcomes and the impacts of 
                        interventions; and
                    ``(F) establishing appropriate systems to--
                            ``(i) gather epidemiological and social 
                        science data on HIV; and
                            ``(ii) evaluate the effectiveness of 
                        prevention efforts among men who have sex with 
                        men, with due consideration to stigma and risks 
                        associated with disclosure.
            ``(5) Pharmaceuticals.--
                    ``(A) Procurement.--The procurement of HIV/AIDS 
                pharmaceuticals, antiviral therapies, and other 
                appropriate medicines, including medicines to treat 
                opportunistic infections.
                    ``(B) Mechanisms for quality control and 
                sustainable supply.--Mechanisms to ensure that such 
                HIV/AIDS pharmaceuticals, antiretroviral therapies, and 
                other appropriate medicines are quality-controlled and 
                sustainably supplied.
                    ``(C) Mechanism to ensure cost-effective drug 
                purchasing.--Subject to subparagraph (B), mechanisms to 
                ensure that safe and effective pharmaceuticals, 
                including antiretrovirals and medicines to treat 
                opportunistic infections, are purchased at the lowest 
                possible price at which such pharmaceuticals may be 
                obtained in sufficient quantity on the world market, 
                provided that such pharmaceuticals are approved, 
                tentatively approved, or otherwise authorized for use 
                by--
                            ``(i) the Food and Drug Administration;
                            ``(ii) a stringent regulatory agency 
                        acceptable to the Secretary of Health and Human 
                        Services; or
                            ``(iii) a quality assurance mechanism 
                        acceptable to the Secretary of Health and Human 
                        Services.
                    ``(D) Distribution.--The distribution of such HIV/
                AIDS pharmaceuticals, antiviral therapies, and other 
                appropriate medicines (including medicines to treat 
                opportunistic infections) to qualified national, 
                regional, or local organizations for the treatment of 
                individuals with HIV/AIDS in accordance with 
                appropriate HIV/AIDS testing and monitoring 
                requirements and treatment protocols and for the 
                prevention of mother-to-child transmission of the HIV 
                infection.
            ``(6) Related and coordinated activities.--The conduct of 
        related activities, including--
                    ``(A) the care and support of children who are 
                orphaned by the HIV/AIDS pandemic, including services 
                designed to care for orphaned children in a family 
                environment which rely on extended family members;
                    ``(B) improved infrastructure and institutional 
                capacity to develop and manage education, prevention, 
                and treatment programs, including training and the 
                resources to collect and maintain accurate HIV 
                surveillance data to target programs and measure the 
                effectiveness of interventions;
                    ``(C) vaccine research and development partnership 
                programs with specific plans of action to develop a 
                safe, effective, accessible, preventive HIV vaccine for 
                use throughout the world;
                    ``(D) coordinated or referred activities to--
                            ``(i) enhance the clinical impact of HIV/
                        AIDS care and treatment; and
                            ``(ii) ameliorate the adverse social and 
                        economic costs often affecting AIDS-impacted 
                        families and communities through the direct 
                        provision, as necessary, or through the 
                        referral, if possible, of support services, 
                        including--
                                    ``(I) nutritional and food support;
                                    ``(II) safe drinking water and 
                                adequate sanitation;
                                    ``(III) nutritional counseling;
                                    ``(IV) income-generating activities 
                                and livelihood initiatives;
                                    ``(V) maternal and child health 
                                care;
                                    ``(VI) primary health care;
                                    ``(VII) the diagnosis and treatment 
                                of other infectious or sexually 
                                transmitted diseases;
                                    ``(VIII) substance abuse and 
                                treatment services; and
                                    ``(IX) legal services;
                    ``(E) coordinated or referred activities to link 
                programs addressing HIV/AIDS with programs addressing 
                gender-based violence in areas of significant HIV 
                prevalence to assist countries in the development and 
                enforcement of women's health, children's health, and 
                HIV/AIDS laws and policies that--
                            ``(i) prevent and respond to violence 
                        against women and girls;
                            ``(ii) promote the integration of screening 
                        and assessment for gender-based violence into 
                        HIV/AIDS programming;
                            ``(iii) promote appropriate HIV/AIDS 
                        counseling, testing, and treatment into gender-
                        based violence programs; and
                            ``(iv) assist governments to develop 
                        partnerships with civil society organizations 
                        to create networks for psychosocial, legal, 
                        economic, or other support services;
                    ``(F) coordinated or referred activities to--
                            ``(i) address the frequent coinfection of 
                        HIV and tuberculosis, in accordance with World 
                        Health Organization guidelines;
                            ``(ii) promote provider-initiated or `opt-
                        out' HIV/AIDS counseling and testing and 
                        appropriate referral for treatment and care to 
                        individuals with tuberculosis or its symptoms, 
                        particularly in areas with significant HIV 
                        prevalence; and
                            ``(iii) strengthen programs to ensure that 
                        individuals testing positive for HIV receive 
                        tuberculosis screening and to improve 
                        laboratory capacities, infection control, and 
                        adherence; and
                    ``(G) activities to--
                            ``(i) improve the effectiveness of national 
                        responses to HIV/AIDS;
                            ``(ii) strengthen overall health systems in 
                        high-prevalence countries, including support 
                        for workforce training, retention, and 
                        effective deployment, capacity building, 
                        laboratory development, equipment maintenance 
                        and repair, and public health and related 
                        public financial management systems and 
                        operations;
                            ``(iii) encourage fair and transparent 
                        procurement practices among partner countries; 
                        and
                            ``(iv) promote in-country or intra-regional 
                        pediatric training for physicians and other 
                        health professionals, preferably through 
                        public-private partnerships involving colleges 
                        and universities, with the goal of increasing 
                        pediatric HIV workforce capacity.
            ``(7) Comprehensive hiv/aids public-private partnerships.--
        The establishment and operation of public-private partnership 
        entities within countries in sub-Saharan Africa, the Caribbean, 
        and other countries affected by the HIV/AIDS pandemic that are 
        dedicated to supporting the national strategy of such countries 
        regarding the prevention, treatment, and monitoring of HIV/
        AIDS. Each such public-private partnership should--
                    ``(A) support the development, implementation, and 
                management of comprehensive HIV/AIDS plans in support 
                of the national HIV/AIDS strategy;
                    ``(B) operate at all times in a manner that 
                emphasizes efficiency, accountability, and results-
                driven programs;
                    ``(C) engage both local and foreign development 
                partners and donors, including businesses, government 
                agencies, academic institutions, nongovernmental 
                organizations, foundations, multilateral development 
                agencies, and faith-based organizations, to assist the 
                country in coordinating and implementing HIV/AIDS 
                prevention, treatment, and monitoring programs in 
                accordance with its national HIV/AIDS strategy;
                    ``(D) provide technical assistance, consultant 
                services, financial planning, monitoring and 
                evaluation, and research in support of the national 
                HIV/AIDS strategy; and
                    ``(E) establish local human resource capacities for 
                the national HIV/AIDS strategy through the transfer of 
                medical, managerial, leadership, and technical skills.
            ``(8) Compacts and framework agreements.--The development 
        of compacts or framework agreements, tailored to local 
        circumstances, with national governments or regional 
        partnerships in countries with significant HIV/AIDS burdens to 
        promote host government commitment to deeper integration of 
        HIV/AIDS services into health systems, contribute to health 
        systems overall, and enhance sustainability, including--
                    ``(A) meaningful cost-sharing assurances by the 
                partner country; and
                    ``(B) transition strategies to ensure 
                sustainability of such programs and activities, 
                including health care systems, under other 
                international donor support, or budget support by 
                respective foreign governments.
    ``(e) Compacts and Framework Agreements.--
            ``(1) Findings.--Congress makes the following findings:
                    ``(A) The congressionally mandated Institute of 
                Medicine report entitled `PEPFAR Implementation: 
                Progress and Promise' states: `The next strategy [of 
                the U.S. Global AIDS Initiative] should squarely 
                address the needs and challenges involved in supporting 
                sustainable country HIV/AIDS programs, thereby 
                transitioning from a focus on emergency relief.'.
                    ``(B) One mechanism to promote the transition from 
                an emergency to a public health and development 
                approach to HIV/AIDS is through compacts or framework 
                agreements between the United States Government and 
                each participating nation.
            ``(2) Elements.--Compacts on HIV/AIDS authorized under 
        subsection (d)(8) shall include the following elements:
                    ``(A) Compacts whose primary purpose is to provide 
                direct services to combat HIV/AIDS are to be made 
                between--
                            ``(i) the United States Government; and
                            ``(ii)(I) national or regional entities 
                        representing low-income countries served by an 
                        existing United States Agency for International 
                        Development or Department of Health and Human 
                        Services presence or regional platform; or
                            ``(II) countries or regions--
                                    ``(aa) experiencing significantly 
                                high HIV prevalence or risk of 
                                significantly increasing incidence 
                                within the general population;
                                    ``(bb) served by an existing United 
                                States Agency for International 
                                Development or Department of Health and 
                                Human Services presence or regional 
                                platform; and
                                    ``(cc) that have inadequate 
                                financial means within such country or 
                                region.
                    ``(B) Compacts whose primary purpose is to provide 
                limited technical assistance to a country or region 
                connected to services provided within the country or 
                region--
                            ``(i) may be made with other countries or 
                        regional entities served by an existing United 
                        States Agency for International Development or 
                        Department of Health and Human Services 
                        presence or regional platform;
                            ``(ii) shall require significant 
                        investments in HIV prevention, care, and 
                        treatment services by the host country;
                            ``(iii) shall be time-limited in terms of 
                        United States contributions; and
                            ``(iv) shall be made only upon prior 
                        notification to Congress--
                                    ``(I) justifying the need for such 
                                compacts;
                                    ``(II) describing the expected 
                                investment by the country or regional 
                                entity; and
                                    ``(III) describing the scope, 
                                nature, expected total United States 
                                investment, and time frame of the 
                                limited technical assistance under the 
                                compact and its intended impact.
                    ``(C) Compacts shall include provisions to--
                            ``(i) promote local and national efforts to 
                        reduce stigma associated with HIV/AIDS; and
                            ``(ii) work with and promote the role of 
                        civil society in combating HIV/AIDS.
                    ``(D) Compacts shall take into account the overall 
                national health and development and national HIV/AIDS 
                and public health strategies of each country.
                    ``(E) Compacts shall contain--
                            ``(i) consideration of the specific 
                        objectives that the country and the United 
                        States expect to achieve during the term of a 
                        compact;
                            ``(ii) consideration of the respective 
                        responsibilities of the country and the United 
                        States in the achievement of such objectives;
                            ``(iii) consideration of regular benchmarks 
                        to measure progress toward achieving such 
                        objectives;
                            ``(iv) an identification of the intended 
                        beneficiaries, disaggregated by gender and age, 
                        and including information on orphans and 
                        vulnerable children, to the maximum extent 
                        practicable;
                            ``(v) consideration of the methods by which 
                        the compact is intended to--
                                    ``(I) address the factors that put 
                                women and girls at greater risk of HIV/
                                AIDS; and
                                    ``(II) strengthen elements such as 
                                the economic, educational, and social 
                                status of women, girls, orphans, and 
                                vulnerable children and the inheritance 
                                rights and safety of such individuals;
                            ``(vi) consideration of the methods by 
                        which the compact will--
                                    ``(I) strengthen the health care 
                                capacity, including factors such as the 
                                training, retention, deployment, 
                                recruitment, and utilization of health 
                                care workers;
                                    ``(II) improve supply chain 
                                management; and
                                    ``(III) improve the health systems 
                                and infrastructure of the partner 
                                country, including the ability of 
                                compact participants to maintain and 
                                operate equipment transferred or 
                                purchased as part of the compact;
                            ``(vii) consideration of proposed 
                        mechanisms to provide oversight;
                            ``(viii) consideration of the role of civil 
                        society in the development of a compact and the 
                        achievement of its objectives;
                            ``(ix) a description of the current and 
                        potential participation of other donors in the 
                        achievement of such objectives, as appropriate; 
                        and
                            ``(x) consideration of a plan to ensure 
                        appropriate fiscal accountability for the use 
                        of assistance.
                    ``(F) For regional compacts, priority shall be 
                given to countries that are included in regional funds 
                and programs in existence as of the date of the 
                enactment of the Tom Lantos and Henry J. Hyde United 
                States Global Leadership Against HIV/AIDS, 
                Tuberculosis, and Malaria Reauthorization Act of 2008.
                    ``(G) Amounts made available for compacts described 
                in subparagraphs (A) and (B) shall be subject to the 
                inclusion of--
                            ``(i) meaningful cost-sharing assurances by 
                        the partner country; and
                            ``(ii) transition strategies to ensure 
                        sustainability of such programs and activities, 
                        including health care systems, under other 
                        international donor support, and budget support 
                        by respective foreign governments.
            ``(3) Local input.--In entering into a compact on HIV/AIDS 
        authorized under subsection (d)(8), the Coordinator of United 
        States Government Activities to Combat HIV/AIDS Globally shall 
        seek to ensure that the government of a country--
                    ``(A) takes into account the local perspectives of 
                the rural and urban poor, including women, in each 
                country; and
                    ``(B) consults with private and voluntary 
                organizations, including faith-based organizations, the 
                business community, and other donors in the country.
            ``(4) Congressional and public notification after entering 
        into a compact.--Not later than 10 days after entering into a 
        compact authorized under subsection (d)(8), the Global AIDS 
        Coordinator shall--
                    ``(A) submit a report containing a detailed summary 
                of the compact and a copy of the text of the compact 
                to--
                            ``(i) the Committee on Foreign Relations of 
                        the Senate;
                            ``(ii) the Committee on Appropriations of 
                        the Senate;
                            ``(iii) the Committee on Foreign Affairs of 
                        the House of Representatives; and
                            ``(iv) the Committee on Appropriations of 
                        the House of Representatives; and
                    ``(B) publish such information in the Federal 
                Register and on the Internet website of the Office of 
                the Global AIDS Coordinator.
    ``(f) Annual Report.--
            ``(1) In general.--Not later than January 31 of each year, 
        the President shall submit to the Committee on Foreign 
        Relations of the Senate and the Committee on Foreign Affairs of 
        the House of Representatives a report on the implementation of 
        this section for the prior fiscal year.
            ``(2) Report elements.--Each report shall include--
                    ``(A) a description of efforts made by each 
                relevant executive branch agency to implement the 
                policies set forth in this section, section 302, and 
                section 303;
                    ``(B) a description of the programs established 
                pursuant to such sections;
                    ``(C) a detailed breakdown of funding allocations, 
                by program and by country, for prevention activities; 
                and
                    ``(D) a detailed assessment of the impact of 
                programs established pursuant to such sections, 
                including--
                            ``(i)(I) the effectiveness of such programs 
                        in reducing--
                                            ``(aa) the transmission of 
                                        HIV, particularly in women and 
                                        girls;
                                            ``(bb) mother-to-child 
                                        transmission of HIV, including 
                                        through drug treatment and 
                                        therapies, either directly or 
                                        by referral; and
                                            ``(cc) mortality rates from 
                                        HIV/AIDS;
                            ``(II) the number of patients receiving 
                        treatment for AIDS in each country that 
                        receives assistance under this Act;
                            ``(III) an assessment of progress towards 
                        the achievement of annual goals set forth in 
                        the timetable required under the 5-year 
                        strategy established under section 101 and, if 
                        annual goals are not being met, the reasons for 
                        such failure; and
                            ``(IV) retention and attrition data for 
                        programs receiving United States assistance, 
                        including mortality and loss to follow-up 
                        rates, organized overall and by country;
                            ``(ii) the progress made toward--
                                    ``(I) improving health care 
                                delivery systems (including the 
                                training of health care workers, 
                                including doctors, nurses, midwives, 
                                pharmacists, laboratory technicians, 
                                and compensated community health 
                                workers, and the use of codes of 
                                conduct for ethical recruiting 
                                practices for health care workers);
                                    ``(II) advancing safe working 
                                conditions for health care workers; and
                                    ``(III) improving infrastructure to 
                                promote progress toward universal 
                                access to HIV/AIDS prevention, 
                                treatment, and care by 2013;
                            ``(iii) a description of coordination 
                        efforts with relevant executive branch agencies 
                        to link HIV/AIDS clinical and social services 
                        with non-HIV/AIDS services as part of the 
                        United States health and development agenda;
                            ``(iv) a detailed description of integrated 
                        HIV/AIDS and food and nutrition programs and 
                        services, including--
                                    ``(I) the amount spent on food and 
                                nutrition support;
                                    ``(II) the types of activities 
                                supported; and
                                    ``(III) an assessment of the 
                                effectiveness of interventions carried 
                                out to improve the health status of 
                                persons with HIV/AIDS receiving food or 
                                nutritional support;
                            ``(v) a description of efforts to improve 
                        harmonization, in terms of relevant executive 
                        branch agencies, coordination with other public 
                        and private entities, and coordination with 
                        partner countries' national strategic plans as 
                        called for in the `Three Ones';
                            ``(vi) a description of--
                                    ``(I) the efforts of partner 
                                countries that were signatories to the 
                                Abuja Declaration on HIV/AIDS, 
                                Tuberculosis, and Other Related 
                                Infectious Diseases to adhere to the 
                                goals of such Declaration in terms of 
                                investments in public health, including 
                                HIV/AIDS; and
                                    ``(II) a description of the HIV/
                                AIDS investments of partner countries 
                                that were not signatories to such 
                                Declaration;
                            ``(vii) a detailed description of any 
                        compacts or framework agreements reached or 
                        negotiated between the United States and any 
                        partner countries, including a description of 
                        the elements of compacts described in 
                        subsection (e);
                            ``(viii) a description of programs serving 
                        women and girls, including--
                                    ``(I) HIV/AIDS prevention programs 
                                that address the vulnerabilities of 
                                girls and women to HIV/AIDS;
                                    ``(II) information on the number of 
                                individuals served by programs aimed at 
                                reducing the vulnerabilities of women 
                                and girls to HIV/AIDS and data on the 
                                types, objectives, and duration of 
                                programs to address these issues;
                                    ``(III) information on programs to 
                                address the particular needs of 
                                adolescent girls and young women; and
                                    ``(IV) programs to prevent gender-
                                based violence or to assist victims of 
                                gender based violence as part of, or in 
                                coordination with, HIV/AIDS programs;
                            ``(ix) a description of strategies, goals, 
                        programs, and interventions to--
                                    ``(I) address the needs and 
                                vulnerabilities of youth populations;
                                    ``(II) expand access among young 
                                men and women to evidence-based HIV/
                                AIDS health care services and HIV 
                                prevention programs, including 
                                abstinence education programs; and
                                    ``(III) expand community-based 
                                services to meet the needs of orphans 
                                and of children and adolescents 
                                affected by or vulnerable to HIV/AIDS 
                                without increasing stigmatization;
                            ``(x) a description of--
                                    ``(I) the specific strategies 
                                funded to ensure the reduction of HIV 
                                infection among injection drug users;
                                    ``(II) the number of injection drug 
                                users, by country, reached by such 
                                strategies; and
                                    ``(III) medication-assisted drug 
                                treatment for individuals with HIV or 
                                at risk of HIV;
                            ``(xi) a detailed description of program 
                        monitoring, operations research, and impact 
                        evaluation research, including--
                                    ``(I) the amount of funding 
                                provided for each research type;
                                    ``(II) an analysis of cost-
                                effectiveness models; and
                                    ``(III) conclusions regarding the 
                                efficiency, effectiveness, and quality 
                                of services as derived from previous or 
                                ongoing research and monitoring 
                                efforts;
                            ``(xii) building capacity to identify, 
                        investigate, and stop nosocomial transmission 
                        of infectious diseases, including HIV and 
                        tuberculosis; and
                            ``(xiii) a description of staffing levels 
                        of United States Government HIV/AIDS teams in 
                        countries with significant HIV/AIDS programs, 
                        including whether or not a full-time 
                        coordinator was on staff for the year.
    ``(g) Funding Limitation.--Of the funds made available to carry out 
this section in any fiscal year, not more than 7 percent may be used 
for the administrative expenses of the United States Agency for 
International Development in support of activities described in this 
section, section 302, and section 303. Such amount shall be in addition 
to other amounts otherwise available for such purposes.
    ``(h) Definitions.--In this section:
            ``(1) AIDS.--The term `AIDS' means acquired immune 
        deficiency syndrome.
            ``(2) HIV.--The term `HIV' means the human immunodeficiency 
        virus, the pathogen that causes AIDS.
            ``(3) HIV/AIDS.--The term `HIV/AIDS' means, with respect to 
        an individual, an individual who is infected with HIV or living 
        with AIDS.
            ``(4) Relevant executive branch agencies.--The term 
        `relevant executive branch agencies' means the Department of 
        State, the United States Agency for International Development, 
        the Department of Health and Human Services (including its 
        agencies and offices), and any other department or agency of 
        the United States that participates in international HIV/AIDS 
        activities pursuant to the authorities of such department or 
        agency or this Act.''.
    (b) Assistance To Combat Tuberculosis.--Subtitle A of title III of 
the United States Leadership Against HIV/AIDS, Tuberculosis and Malaria 
Act of 2003 (22 U.S.C. 7631 et seq.) is amended--
            (1) by redesignating section 302 as section 302A;
            (2) in the heading of section 302A (as redesignated), by 
        inserting ``other provisions relating to'' before 
        ``assistance''; and
            (3) by inserting before section 302A (as redesignated) the 
        following new section:

``SEC. 302. ASSISTANCE TO COMBAT TUBERCULOSIS.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) Congress recognizes the growing international problem 
        of tuberculosis and the impact its continued existence has on 
        those countries that had previously largely controlled the 
        disease.
            ``(2) Congress further recognizes that the means exist to 
        control and treat tuberculosis through expanded use of the DOTS 
        (Directly Observed Treatment Short-course) treatment strategy, 
        including DOTS-Plus to address multi-drug resistant 
        tuberculosis, and adequate investment in newly created 
        mechanisms to increase access to treatment, including the 
        Global Tuberculosis Drug Facility established in 2001 pursuant 
        to the Amsterdam Declaration to Stop TB and the Global Alliance 
        for TB Drug Development.
    ``(b) Policy.--It is a major objective of the foreign assistance 
program of the United States to control tuberculosis. In all countries 
in which the Government of the United States has established 
development programs, particularly in countries with the highest burden 
of tuberculosis and other countries with high rates of tuberculosis, 
the United States should support the objectives of the Global Plan to 
Stop TB, including through achievement of the following goals:
            ``(1) Reduce by half the tuberculosis death and disease 
        burden from the 1990 baseline.
            ``(2) Sustain or exceed the detection of at least 70 
        percent of sputum smear-positive cases of tuberculosis and the 
        successful treatment of at least 85 percent of the cases 
        detected in countries with established United States Agency for 
        International Development tuberculosis programs.
            ``(3) In support of the Global Plan to Stop TB, the 
        President shall establish a comprehensive, 5-year United States 
        strategy to expand and improve United States efforts to combat 
        tuberculosis globally, including a plan to support--
                    ``(A) the successful treatment of 4,500,000 new 
                sputum smear tuberculosis patients under DOTS programs 
                by 2013, primarily through direct support for needed 
                services, commodities, health workers, and training, 
                and additional treatment through coordinated 
                multilateral efforts; and
                    ``(B) the diagnosis and treatment of 90,000 new 
                multiple drug resistant tuberculosis cases by 2013, and 
                additional treatment through coordinated multilateral 
                efforts.
    ``(c) Authorization.--To carry out this section and consistent with 
section 1321 of the Global Partnerships Act of 2012, the President is 
authorized to furnish assistance, on such terms and conditions as the 
President may determine, for the prevention, treatment, control, and 
elimination of tuberculosis.
    ``(d) Coordination.--In carrying out this section, the President 
shall coordinate with the World Health Organization, the Global Fund to 
Fight AIDS, Tuberculosis, and Malaria, and other organizations with 
respect to the development and implementation of a comprehensive 
tuberculosis control program.
    ``(e) Priority To Stop TB Strategy.--In furnishing assistance under 
subsection (c), the President shall give priority to--
            ``(1) direct services described in the Stop TB Strategy, 
        including expansion and enhancement of Directly Observed 
        Treatment Short-course (DOTS) coverage, rapid testing, 
        treatment for individuals infected with both tuberculosis and 
        HIV, and treatment for individuals with multi-drug resistant 
        tuberculosis (MDR-TB), strengthening of health systems, use of 
        the International Standards for Tuberculosis Care by all 
        providers, empowering individuals with tuberculosis, and 
        enabling and promoting research to develop new diagnostics, 
        drugs, and vaccines, and program-based operational research 
        relating to tuberculosis; and
            ``(2) funding for the Global Tuberculosis Drug Facility, 
        the Stop Tuberculosis Partnership, and the Global Alliance for 
        TB Drug Development.
    ``(f) Assistance for the World Health Organization and the Stop 
Tuberculosis Partnership.--In carrying out this section, the President, 
acting through the Administrator of the United States Agency for 
International Development, is authorized to provide increased resources 
to the World Health Organization and the Stop Tuberculosis Partnership 
to improve the capacity of countries with high rates of tuberculosis 
and other affected countries to implement the Stop TB Strategy and 
specific strategies related to addressing multiple drug resistant 
tuberculosis (MDR-TB) and extensively drug resistant tuberculosis (XDR-
TB).
    ``(g) Annual Report.--The President shall submit an annual report 
to Congress that describes the impact of United States foreign 
assistance on efforts to control tuberculosis, including--
            ``(1) the number of tuberculosis cases diagnosed and the 
        number of cases cured in countries receiving United States 
        bilateral foreign assistance for tuberculosis control purposes;
            ``(2) a description of activities supported with United 
        States tuberculosis resources in each country, including a 
        description of how those activities specifically contribute to 
        increasing the number of people diagnosed and treated for 
        tuberculosis;
            ``(3) in each country receiving bilateral United States 
        foreign assistance for tuberculosis control purposes, the 
        percentage provided for direct tuberculosis services in 
        countries receiving United States bilateral foreign assistance 
        for tuberculosis control purposes;
            ``(4) a description of research efforts and clinical trials 
        to develop new tools to combat tuberculosis, including 
        diagnostics, drugs, and vaccines supported by United States 
        bilateral assistance;
            ``(5) the number of persons who have been diagnosed and 
        started treatment for multidrug-resistant tuberculosis in 
        countries receiving United States bilateral foreign assistance 
        for tuberculosis control programs;
            ``(6) a description of the collaboration and coordination 
        of United States anti-tuberculosis efforts with the World 
        Health Organization, the Global Fund, and other major public 
        and private entities within the Stop TB Strategy;
            ``(7) the constraints on implementation of programs posed 
        by health workforce shortages and capacities;
            ``(8) the number of people trained in tuberculosis control; 
        and
            ``(9) a breakdown of expenditures for direct patient 
        tuberculosis services, drugs and other commodities, drug 
        management, training in diagnosis and treatment, health systems 
        strengthening, research, and support costs.
    ``(h) Definitions.--In this section:
            ``(1) DOTS.--The term `DOTS' or `Directly Observed 
        Treatment Short-course' means the World Health Organization-
        recommended strategy for treating tuberculosis, including--
                    ``(A) low-cost and effective diagnosis, treatment, 
                and monitoring of tuberculosis;
                    ``(B) a reliable drug supply;
                    ``(C) a management strategy for public health 
                systems;
                    ``(D) health system strengthening;
                    ``(E) promotion of the use of the International 
                Standards for Tuberculosis Care by all care providers;
                    ``(F) bacteriology under an external quality 
                assessment framework;
                    ``(G) short-course chemotherapy; and
                    ``(H) sound reporting and recording systems.
            ``(2) DOTS-Plus.--The term `DOTS-Plus' means a 
        comprehensive tuberculosis management strategy that is built 
        upon and works as a supplement to the standard DOTS strategy, 
        and which takes into account specific issues (such as use of 
        second line anti-tuberculosis drugs) that need to be addressed 
        in areas where there is high prevalence of multidrug resistant 
        tuberculosis.
            ``(3) Global alliance for tuberculosis drug development.--
        The term `Global Alliance for Tuberculosis Drug Development' 
        means the public-private partnership that brings together 
        leaders in health, science, philanthropy, and private industry 
        to devise new approaches to tuberculosis and to ensure that new 
        medications are available and affordable in high tuberculosis 
        burden countries and other affected countries.
            ``(5) Stop tb strategy.--The term `Stop TB Strategy' means 
        the 6-point strategy to reduce tuberculosis developed by the 
        World Health Organization, which is described in the Global 
        Plan to Stop TB 2006-2015: Actions for Life, a comprehensive 
        plan developed by the Stop TB Partnership that sets out the 
        actions necessary to achieve the millennium development goal of 
        cutting tuberculosis deaths and disease burden in half by 2015.
            ``(6) Stop tuberculosis partnership.--The term `Stop 
        Tuberculosis Partnership' means the partnership of the World 
        Health Organization, donors including the United States, high 
        tuberculosis burden countries, multilateral agencies, and 
        nongovernmental and technical agencies committed to short- and 
        long-term measures required to control and eventually eliminate 
        tuberculosis as a public health problem in the world.''.
    (c) Assistance To Combat Malaria.--Subtitle A of title III of the 
United States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act 
of 2003 (22 U.S.C. 7631 et seq.) is amended--
            (1) by redesignating section 303 as section 303A;
            (2) in the heading of section 303A (as redesignated), by 
        inserting ``other provisions relating to'' before 
        ``assistance''; and
            (3) by inserting before section 303A (as redesignated) the 
        following new section:

``SEC. 303. ASSISTANCE TO COMBAT MALARIA.

    ``(a) Finding.--Congress finds that malaria kills more people 
annually than any other communicable disease except tuberculosis, that 
more than 90 percent of all malaria cases are in sub-Saharan Africa, 
and that children and women are particularly at risk. Congress 
recognizes that there are cost-effective tools to decrease the spread 
of malaria and that malaria is a curable disease if promptly diagnosed 
and adequately treated.
    ``(b) Policy.--It is a major objective of the foreign assistance 
program of the United States to provide assistance for the prevention, 
control, treatment, and cure of malaria.
    ``(c) Authorization.--To carry out this section and consistent with 
section 1321 of the Global Partnerships Act of 2012, the President is 
authorized to furnish assistance, on such terms and conditions as the 
President may determine, for the prevention, treatment, control, and 
elimination of malaria.
    ``(d) Coordination.--In carrying out this section, the President 
shall coordinate with the World Health Organization, the Global Fund to 
Fight AIDS, Tuberculosis, and Malaria, the Department of Health and 
Human Services (the Centers for Disease Control and Prevention and the 
National Institutes of Health), and other organizations with respect to 
the development and implementation of a comprehensive malaria control 
program.''.
    (d) Technical and Conforming Amendments.--The United States 
Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 2003 (22 
U.S.C. 7601 et seq.) is amended--
            (1) in section 3(12), by striking ``Foreign Assistance Act 
        of 1961'' and inserting ``Global Partnerships Act of 2012'';
            (2) in section 101(f)(1)(A), by inserting at the end before 
        the period the following: ``(as such sections were in effect on 
        the day before the date of the enactment of the Global 
        Partnerships Act of 2012)'';
            (3) in section 202(d)(4)(B)--
                    (A) in clause (iii), by striking ``section 104A of 
                the Foreign Assistance Act of 1961 (as added by section 
                301 of this Act)'' and inserting ``section 301 of this 
                Act''; and
                    (B) in clause (iv), by striking ``sections 104A, 
                104B, and 104C of the Foreign Assistance Act of 1961 
                (as added by title III of this Act)'' and inserting 
                ``sections 301, 302, and 303 of this Act'';
            (4) in section 204(b)(1), by striking ``section 129 of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2152)'' and inserting 
        ``section 1132 of the Global Partnerships Act of 2012'';
            (5) in section 301A (as redesignated)--
                    (A) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) by striking ``section 104(c) of 
                                the Foreign Assistance Act of 1961 (22 
                                U.S.C. 2151b(c))'' and inserting 
                                ``section 1304 of the Global 
                                Partnerships Act of 2012''; and
                                    (II) by striking ``section 104A of 
                                the Foreign Assistance Act of 1961, as 
                                added by subsection (a)'' and inserting 
                                ``section 301''; and
                            (ii) in paragraph (3), by striking 
                        ``section 104A(d)(4) of the Foreign Assistance 
                        Act of 1961 (as added by subsection (a))'' and 
                        inserting ``section 301(d)(5)''; and
                    (B) in subsection (d), by striking ``under section 
                104A of the Foreign Assistance Act of 1961'' and 
                inserting ``under section 1304 of the Global 
                Partnerships Act of 2012'';
            (6) in section 302A(b)(1) (as redesignated)--
                    (A) by striking ``section 104(c) of the Foreign 
                Assistance Act of 1961 (22 U.S.C. 2151b(c))'' and 
                inserting ``section 1304 of the Global Partnerships Act 
                of 2012''; and
                    (B) by striking ``section 104B of the Foreign 
                Assistance Act of 1961, as added by subsection (a)'' 
                and inserting ``section 302''; and
            (7) in section 303A(b)(1) (as redesignated)--
                    (A) by striking ``section 104(c) of the Foreign 
                Assistance Act of 1961 (22 U.S.C. 2151b(c))'' and 
                inserting ``section 1304 of the Global Partnerships Act 
                of 2012''; and
                    (B) by striking ``section 104C of the Foreign 
                Assistance Act of 1961, as added by subsection (a)'' 
                and inserting ``section 303'';
            (8) in section 304A (as redesignated)--
                    (A) in subsection (e), by striking ``section 104C 
                of the Foreign Assistance Act of 1961 (22 U.S.C. 2151b-
                4)'' and inserting ``section 303''; and
                    (B) in subsection (f), by striking ``section 
                104C'';
            (9) in section 312(c)(4)(C)(ii), by striking ``104A(f) of 
        the Foreign Assistance Act of 1961'' and inserting ``section 
        301(f)''; and
            (10) in section 403--
                    (A) in subsection (a)(4), by striking ``section 
                104A(e) of the Foreign Assistance Act of 1961 (22 
                U.S.C. 2151b-2(e))'' and inserting ``section 301(e) of 
                this Act''; and
                    (B) in subsection (d)(4), by striking ``section 
                104A(b)(1)(A) of the Foreign Assistance Act of 1961 (22 
                U.S.C. 2151b-2(b)(1)(A))'' and inserting ``section 
                301(b)(1)(A) of this Act''.
    (e) Clerical Amendment.--The table of contents in section 1(b) of 
the United States Leadership Against HIV/AIDS, Tuberculosis and Malaria 
Act of 2003 (22 U.S.C. 7601 note) is amended by striking the items 
relating to sections 301 through 303 and inserting the following new 
items:

``Sec. 301. Assistance to combat HIV/AIDS.
``Sec. 301A. Other provisions relating to assistance to combat HIV/
                            AIDS.
``Sec. 302. Assistance to combat tuberculosis.
``Sec. 302A. Other provisions relating to assistance to combat 
                            tuberculosis.
``Sec. 303. Assistance to combat malaria.
``Sec. 303A. Other provisions relating to assistance to combat 
                            malaria.''.
    (f) Transfer of Prior Year Funds.--Unobligated balances of funds 
made available under sections 104A, 104B and 104C of the Foreign 
Assistance Act of 1961 (as in effect on the day before the date of the 
enactment of this Act) shall be transferred to, merged with, and made 
available for the same purposes as funds made available under sections 
301, 302 and 303, respectively, of the United States Leadership Against 
HIV/AIDS, Tuberculosis and Malaria Act of 2003 (as added by this 
section).

SEC. 12102. AMENDMENTS TO THE MILLENNIUM CHALLENGE ACT OF 2003.

    (a) Extension of Compacts.--Section 609(j) of the Millennium 
Challenge Act of 2003 (22 U.S.C. 7708(j)) is amended to read as 
follows:
    ``(j) Extension of Compact.--
            ``(1) In general.--Except as provided under paragraph (2), 
        the duration of a Compact shall not exceed 5 years.
            ``(2) Exception.--The duration of a Compact may be extended 
        beyond 5 years if--
                    ``(A) the Compact was signed prior to the date of 
                enactment of the Global Partnerships Act of 2012;
                    ``(B) the Board determines that a project included 
                in the Compact cannot be completed in 5 years or less;
                    ``(C) the Board approves an extension of the 
                Compact that does not extend the total duration of the 
                Compact beyond 7 years; and
                    ``(D) the appropriate congressional committees are 
                notified in accordance with subsection (i).''.
    (b) Concurrent and Subsequent Compacts.--
            (1) In general.--Section 609(k) of the Millennium Challenge 
        Act of 2003 (22 U.S.C. 7708(k)) is amended to read as follows:
    ``(k) Concurrent and Subsequent Compacts.--
            ``(1) In general.--Subject to paragraph (2), and in 
        accordance with the requirements of this title, an eligible 
        country and the United States--
                    ``(A) may enter into and have in effect more than 
                one Compact at any given time; and
                    ``(B) may enter into subsequent Compacts after the 
                expiration of existing Compacts.
            ``(2) Requirements.--An eligible country and the United 
        States may enter into concurrent or subsequent Compacts if the 
        Board determines that such country--
                    ``(A) is making or has made significant, consistent 
                progress in implementing the terms of any existing or 
                prior Compact; and
                    ``(B) will contribute, in the case of a candidate 
                country as defined in section 606(a), not less than 7.5 
                percent of the total amount agreed upon for a 
                subsequent Compact, or in the case of a candidate 
                country as defined in section 606(b), not less than 15 
                percent of the total amount agreed upon for a 
                subsequent Compact.
            ``(3) Funding.--The Corporation shall commit any funding 
        for a concurrent Compact at the time it funds the Compact.
            ``(4) Timing.--A concurrent Compact shall be signed not 
        later than 2 years after the signing of the earlier Compact.
            ``(5) Limitation.--The Corporation may provide not more 
        than 15 years of Compact funding to any country.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        applies with respect to Compacts entered into between the 
        United States and an eligible country under the Millennium 
        Challenge Act of 2003 (22 U.S.C. 7701 et seq.) before, on, or 
        after the date of the enactment of this Act.
    (c) Maintaining Candidate Status for Purposes of Income Category.--
Section 606 of the Millennium Challenge Act of 2003 (22 U.S.C. 7705) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in the heading, by striking ``Fiscal 
                        year 2004'' and inserting ``In general'';
                            (ii) in the matter preceding subparagraph 
                        (A), by striking ``for fiscal year 2004'' and 
                        inserting ``for a fiscal year'';
                            (iii) in subparagraph (A) to read as 
                        follows:
                    ``(A) the country--
                            ``(i) has a per capita income that is not 
                        greater than the World Bank's lower middle 
                        income country threshold for such fiscal year; 
                        and
                            ``(ii) is among the 75 lowest per capita 
                        income countries, as identified by the World 
                        Bank; and''; and
                            (iv) in subparagraph (B), by striking 
                        ``subject to paragraph (3)'' and inserting 
                        ``subject to paragraph (2)'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2);
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``for fiscal year 2006 or a 
                        subsequent fiscal year'' and inserting ``for a 
                        fiscal year''; and
                            (ii) by striking subparagraphs (A) and (B) 
                        and inserting the following:
                    ``(A) has a per capita income that is not greater 
                than the World Bank's lower middle income country 
                threshold for such fiscal year;
                    ``(B) is not among the 75 lowest per capita income 
                countries as identified by the World Bank; and
                    ``(C) meets the requirements under subsection 
                (a)(1)(B).''; and
                    (B) in paragraph (2)--
                            (i) by striking ``for fiscal year 2006 or 
                        any subsequent fiscal year'' and inserting 
                        ``for a fiscal year''; and
                            (ii) by striking ``for fiscal year 2006 or 
                        the subsequent fiscal year, as the case may 
                        be'' and inserting ``for such fiscal year'';
            (3) by redesignating existing subsection (c) as subsection 
        (d); and
            (4) by inserting after subsection (b) the following:
    ``(c) Maintaining Candidate Status.--Any candidate country whose 
per capita income changes in a given fiscal year such that the 
country's income classification as `low income' or `lower middle 
income' changes, shall retain its candidacy at the former income 
category for the year of such transition and for the two subsequent 
fiscal years.''.
    (d) Conforming Amendments.--The Millennium Challenge Act of 2003 is 
amended--
            (1) in section 603(1)(A) (22 U.S.C. 7702(1)(A)), by 
        striking ``International Relations'' and inserting ``Foreign 
        Affairs'';
            (2) in section 605(e)(4) (22 U.S.C. 7704(e)(4))--
                    (A) by striking ``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))'' and inserting ``The principles and 
                restrictions on use of funds contained in section 1305 
                of the Global Partnerships Act of 2012''; and
                    (B) by striking ``part I'' and inserting ``title 
                I'';
            (3) in section 606(a)(1)(B) (22 U.S.C. 7705(a)(1)(B))--
                    (A) by striking ``part I of the Foreign Assistance 
                Act of 1961'' and inserting ``title I of the Global 
                Partnerships Act of 2012''; and
                    (B) by striking ``any provision of the Foreign 
                Assistance Act of 1961'' and inserting ``any provision 
                of the Global Partnerships Act of 2012''; and
            (4) in section 614(d) (22 U.S.C. 7713(d)), by striking 
        ``Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.)'' and 
        inserting ``Global Partnerships Act of 2012''.

SEC. 12103. AMENDMENTS TO THE MIGRATION AND REFUGEE ASSISTANCE ACT OF 
              1962.

    Section 2(c) of the Migration and Refugee Assistance Act of 1962 
(22 U.S.C. 2601(c)) is amended--
            (1) in paragraph (1), by striking ``President'' and 
        inserting ``Secretary of State''; and
            (2) in paragraph (2), by striking ``$100,000,000'' and 
        inserting ``$200,000,000''.

SEC. 12104. AMENDMENTS TO THE FULBRIGHT-HAYS ACT.

    The Mutual Educational and Cultural Exchange Act of 1961 (commonly 
known as the ``Fulbright-Hays Act'') is amended--
            (1) in section 102(b)(3) (22 U.S.C. 2452(b)(3)), by 
        inserting ``, hospital centers for medical education and 
        research, and other'' after ``operation of schools''; and
            (2) in section 112(a)(5) (22 U.S.C. 2460(a)(5)) to read as 
        follows:
            ``(5) the American Schools and Hospitals Abroad Program 
        which provides financial assistance to the operations of 
        American-sponsored schools, hospital centers for medical 
        education and research, and other institutions of learning 
        abroad;''.

                          Subtitle B--Repeals

SEC. 12201. REPEAL OF LAWS INCORPORATED IN THIS ACT.

    The following provisions of law are hereby repealed:
            (1) The Foreign Assistance Act of 1961 (Public Law 87-195).
            (2) The Arms Export Control Act (Public Law 90-629).
            (3) Sections 664 and 665 of the Foreign Relations 
        Authorization Act, Fiscal Year 2003 (Public Law 107-228).
            (4) Sections 2121 and 2122 of the ADVANCE Democracy Act of 
        2007 (title XXI of Public Law 110-53).
            (5) Section 7307 of title 10, United States Code.
            (6) Section 12001 of the Department of Defense 
        Appropriations Act, 2005 (Public Law 108-287).

SEC. 12202. REPEAL OF LAWS INCONSISTENT WITH THIS ACT.

    Sections 1511, 1522, and 1523(d) of the Foreign Affairs Reform and 
Restructuring Act of 1998 (division G of Public Law 105-277) are hereby 
repealed.

SEC. 12203. REPEAL OF OBSOLETE PROVISIONS OF LAW.

    The following provisions of law are hereby repealed:
            (1) The Trafficking Victims Protection Reauthorization Act 
        of 2003 (Public Law 108-193).
            (2) The Torture Victims Relief Reauthorization Act of 2003 
        (Public Law 108-179).
            (3) The HELP Commission Act (section 637 of division B of 
        Public Law 108-99).
            (4) The International Anti-Corruption and Good Governance 
        Act of 2000 (Public Law 106-309).
            (5) The Iraq Liberation Act of 1998 (Public Law 105-338).
            (6) The Agriculture Export Relief Act of 1998 (Public Law 
        105-194).
            (7) Title I of the International Narcotics Control 
        Corrections Act of 1994 (Public Law 103-447).
            (8) The South African Democratic Transition Support Act of 
        1993 (Public Law 103-149).
            (9) Public Law 102-270 (relating to the peace process in 
        Liberia).
            (10) Title III of the Conventional Forces in Europe Treaty 
        Implementation Act of 1991.
            (11) The Emergency Supplemental Persian Gulf Refugee 
        Assistance Act of 1991 (Public Law 102-45).
            (12) The Emergency Supplemental Assistance for Israel Act 
        of 1991 (Public Law 102-21).
            (13) The Urgent Assistance for Democracy in Panama Act of 
        1990 (Public Law 101-243).
            (14) The Survival Assistance to Victims of Civil Strife in 
        Central America (Public Law 101-215).
            (15) The Bangladesh Disaster Assistance Act of 1988 (Public 
        Law 100-576).
            (16) The International Cooperation to Protect Biological 
        Diversity (Public Law 100-530).
            (17) The Overseas Private Investment Corporation Amendments 
        Act of 1988 (Public Law 100-461).
            (18) The American Aid to Poland Act of 1988 (Part II of 
        Public Law 100-418).
            (19) Public Law 100-276 (relating to peace, democracy and 
        reconciliation in Central America).
            (20) The Special Foreign Assistance Act of 1986 (Public Law 
        99-529).
            (21) The Jordan Supplemental Economic Assistance 
        Authorization Act of 1985 (Public Law 99-88).
            (22) The African Famine Relief and Recovery Act of 1985 
        (Public Law 99-8).
            (23) The International Security and Development Assistance 
        Authorizations Act of 1983 (Public Law 98-151).
            (24) The Lebanon Emergency Assistance Act of 1983 (Public 
        Law 98-43).
            (25) The International Security and Development Cooperation 
        Act of 1981 (Public Law 97-113).
            (26) The International Security and Development Cooperation 
        Act of 1980 (Public Law 96-533), other than section 110 and 
        title V of such Act.
            (27) The International Development Cooperation Act of 1979 
        (Public Law 96-92).
            (28) The International Security Assistance Act of 1979 
        (Public Law 96-53).
            (29) The Special International Security Assistance Act of 
        1979 (Public Law 96-35).
            (30) The International Development and Food Assistance Act 
        of 1978 (Public Law 95-424).
            (31) The International Security Assistance Act of 1978 
        (Public Law 95-384).
            (32) The International Security Assistance Act of 1977 
        (Public Law 95-92).
            (33) The International Development and Food Assistance Act 
        of 1977 (Public Law 95-88), other than sections 1, 132, and 133 
        of such Act.
            (34) The International Security Assistance and Arms Export 
        Control Act of 1976 (Public Law 94-329), except for section 
        601.
            (35) The International Development and Food Assistance Act 
        of 1975 (Public Law 94-161).
            (36) The Foreign Assistance Act of 1974 (Public Law 93-
        559).
            (37) The Emergency Security Assistance Act of 1973 (Public 
        Law 93-199).
            (38) The Foreign Assistance Act of 1973 (Public Law 93-
        189).
            (39) The Foreign Assistance Act of 1971 (Public Law 92-
        226).
            (40) The Act entitled, ``An Act to Amend the Foreign 
        Military Sales Act, and for other purposes,'' approved January 
        12, 1971 (Public Law 91-672).
            (41) The Special Foreign Assistance Act of 1971 (Public Law 
        91-652).
            (42) The Foreign Assistance Act of 1968 (Public Law 90-
        554).
            (43) The Foreign Assistance Act of 1964 (Public Law 88-
        633).
            (44) The Latin American Development Act (Public Law 86-
        735).

SEC. 12204. REPEAL OF UNNECESSARY REPORTING REQUIREMENTS.

    The following provisions of law are repealed:
            (1) Section 560(g) of Public Law 103-87.
            (2) Section 104 of Public Law 102-511.
            (3) Section 1012(c) of Public Law 103-337.
            (4) Subsections (c)(4) and (c)(5) of section 601 of Public 
        Law 96-465.
            (5) Section 585 of division A of Public Law 104-208.
            (6) Section 8 of Public Law 107-245.
            (7) Section 807 of Public Law 98-164.

                     Subtitle C--Savings Provisions

SEC. 12301. REFERENCES TO FORMER AUTHORITIES.

    (a) In General.--Effective beginning on the date of the enactment 
of this Act--
            (1) any reference to part I of the Foreign Assistance Act 
        of 1961 shall be deemed to be a reference to title I of this 
        Act;
            (2) any reference to section 104(f) of the Foreign 
        Assistance Act of 1961 shall be deemed to be a reference to 
        section 1305 of this Act;
            (3) any reference to section 104A, 104B, or 104C of the 
        Foreign Assistance Act of 1961 shall be deemed to be a 
        reference to section 301, 302, or 303, respectively, of the 
        United States Leadership Against HIV/AIDS, Tuberculosis and 
        Malaria Act of 2003 (as added by this Act);
            (4) any reference to section 109 or 610 of the Foreign 
        Assistance Act of 1961 shall be deemed to be a reference to 
        section 10602 of this Act;
            (5) any reference to section 116(a) or 502B of the Foreign 
        Assistance Act of 1961 shall be deemed to be a reference to 
        section 10101 of this Act;
            (6) any reference to section 116(d) of the Foreign 
        Assistance Act of 1961 shall be deemed to be a reference to 
        section 3102 of this Act;
            (7) any reference to section 451 of the Foreign Assistance 
        Act of 1961 shall be deemed to be a reference to section 10601 
        of this Act;
            (8) any reference to chapter 4 of part II of the Foreign 
        Assistance Act of 1961 shall be deemed to be a reference to 
        subtitle A of title IV of this Act;
            (9) any reference to section 614 of the Foreign Assistance 
        Act of 1961 shall be deemed to be a reference to section 10603 
        of this Act;
            (10) any reference to section 620A of the Foreign 
        Assistance Act of 1961 shall be deemed to be a reference to 
        section 10401 of this Act;
            (11) any reference to section 620H of the Foreign 
        Assistance Act of 1961 shall be deemed to be a reference to 
        section 10402 of this Act;
            (12) any reference to section 620M of the Foreign 
        Assistance Act of 1961 shall be deemed to be a reference to 
        section 10102 of this Act;
            (13) any reference to section 632 of the Foreign Assistance 
        Act of 1961 shall be deemed to be a reference to section 11504 
        of this Act;
            (14) any reference to section 634 of the Foreign Assistance 
        Act of 1961 shall be deemed to be a reference to section 9302 
        of this Act;
            (15) any reference to section 634A of the Foreign 
        Assistance Act of 1961 shall be deemed to be a reference to 
        section 9401 of this Act; and
            (16) any reference to section 653 of the Foreign Assistance 
        Act of 1961 shall be deemed to be a reference to section 9303 
        of this Act.
    (b) United States Agency for International Development.--References 
in any provision of law to the ``Agency for International Development'' 
shall be deemed to be a reference to the ``United States Agency for 
International Development''.

SEC. 12302. REPEAL OF PROVISIONS AMENDING OTHER LAWS.

    Except as otherwise provided in this Act, the repeal by this Act of 
any provision of law that amended or repealed another provision of law 
does not affect in any way that amendment or repeal.

SEC. 12303. SAVINGS PROVISIONS.

    (a) In General.--Except as may be expressly provided to the 
contrary in this Act, all determinations, authorizations, regulations, 
orders, contracts, agreements, and other actions issued, undertaken, or 
entered into under authority of any provision of law repealed by this 
Act shall continue in full force and effect until modified by 
appropriate authority.
    (b) Conditions.--Wherever provisions of this Act establish 
conditions which must be complied with before use may be made of 
authority contained in, or funds made available to carry out the 
provisions of, this Act, compliance with, or satisfaction of, 
substantially similar conditions under provisions repealed by this Act 
shall be deemed to constitute compliance with the conditions 
established by this Act.
    (c) Availability of Funds.--Funds made available pursuant to 
provisions of law repealed by this Act shall, unless otherwise 
authorized or provided by law, remain available for their original 
purposes in accordance with the provisions of law originally applicable 
thereto, or in accordance with the provisions of law currently 
applicable to those purposes.
    (d) References.--References in law to provisions repealed by this 
Act may hereafter be deemed to be references to corresponding 
provisions of this Act, on a case-by-case basis as may be appropriate.
    (e) Certain Presidential Appointees.--The repeal by this Act of any 
provision of the Foreign Assistance Act of 1961 providing for the 
appointment of an individual to a position by the President, by and 
with the advice and consent of the Senate, and the reenactment by this 
Act of that provision in substantively identical form does not require 
the reappointment of the individual holding that position on the 
effective date of this Act.
    (f) Guarantees and Loans Under Former Authority.--Guarantees 
committed or outstanding under the former authorities of sections 108, 
222, and 222A of the Foreign Assistance Act of 1961, as in effect on 
the day before the date of the enactment of this Act, loans obligated 
under section 108 on or before such date, the fees and interest 
collected in connection with such guarantees and loans, and income on 
claims receivable with respect to such guarantees and loans, shall 
continue to be subject to provisions of such Act originally applicable 
to those guarantees and loans and the Federal Credit Reform Act of 
1990.
    (g) Severability.--If any provision of this Act, or the application 
of such provision to any person or circumstance, shall be held invalid, 
the validity of the remainder of this Act, and of the applicability of 
such provision to other persons or circumstances, shall not be affected 
thereby.

SEC. 12304. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
the date of the enactment of this Act.
                                 <all>