[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3445 Enrolled Bill (ENR)]

        H.R.3445

                     One Hundred Fifteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
           the third day of January, two thousand and eighteen


                                 An Act


 
To enhance the transparency and accelerate the impact of programs under 
  the African Growth and Opportunity Act and the Millennium Challenge 
                  Corporation, 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.
    This Act may be cited as the ``African Growth and Opportunity Act 
and Millennium Challenge Act Modernization Act'' or the ``AGOA and MCA 
Modernization Act''.
SEC. 2. TABLE OF CONTENTS.
    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

     TITLE I--ENHANCEMENT OF THE AFRICAN GROWTH AND OPPORTUNITY ACT

Sec. 101. Statement of policy.
Sec. 102. Definitions.
Sec. 103. Activities in support of transparency.
Sec. 104. Activities in support of trade capacity building.

     TITLE II--MODERNIZATION OF THE MILLENNIUM CHALLENGE CORPORATION

Sec. 201. Candidacy status.
Sec. 202. Carryover authority for private-sector members of board of 
          directors.
Sec. 203. Additional reporting to the board on the treatment of civil 
          society in an eligible country.
Sec. 204. Concurrent compacts under the Millennium Challenge Act of 
          2003.
Sec. 205. Public notification of entering into a compact.
Sec. 206. Disclosure.
Sec. 207. Restriction on the use of assistance under section 616.
Sec. 208. Study on subnational compacts.

     TITLE I--ENHANCEMENT OF THE AFRICAN GROWTH AND OPPORTUNITY ACT

    SEC. 101. STATEMENT OF POLICY.
    It is the policy of the United States to support efforts to--
        (1) improve the rule of law, promote free and fair elections, 
    strengthen and expand the private sector, and fight corruption in 
    sub-Saharan Africa; and
        (2) promote the role of women in social, political, and 
    economic development in sub-Saharan Africa.
    SEC. 102. DEFINITIONS.
    In this title--
        (1) Agoa website.--The term ``AGOA Website'' means the website 
    established pursuant to section 103(a).
        (2) Eligible sub-saharan african country.--The term ``eligible 
    sub-Saharan African country'' means a country that the President 
    has determined meets the eligibility requirements set forth in 
    section 104 of the African Growth and Opportunity Act (19 U.S.C. 
    3703).
    SEC. 103. ACTIVITIES IN SUPPORT OF TRANSPARENCY.
    (a) AGOA Website.--
        (1) In general.--The President shall establish a publicly 
    available website for the collection and dissemination of 
    information regarding the African Growth and Opportunity Act (19 
    U.S.C. 3701 et seq.).
        (2) Contents.--The President shall publish on the AGOA Website 
    the information described in paragraph (1), including--
            (A) information and technical assistance provided at United 
        States Agency for International Development regional trade 
        hubs; and
            (B) a link to the websites of United States embassies 
        located in eligible sub-Saharan African countries.
        (3) Actions by united states embassies.--The Secretary of State 
    should direct United States embassies located in eligible sub-
    Saharan African countries to--
            (A) encourage individuals and businesses in such countries 
        to use the benefits available under the African Growth and 
        Opportunity Act; and
            (B) include a link to the AGOA Website on the websites of 
        such diplomatic missions.
    (b) AGOA Forum.--After each meeting of the United States-Sub-
Saharan Africa Trade and Economic Cooperation Forum, the President 
should publish on the AGOA Website the following:
        (1) The outcomes of the meeting of the Forum, including any 
    commitments made by member countries and the private sector.
        (2) An assessment of progress made with respect to any 
    commitments made by member countries and the private sector from 
    the previous meeting of the Forum.
    (c) Other Information.--The President should disseminate the 
information required under this section in a digital format to the 
public and publish such information on the AGOA Website.
    SEC. 104. ACTIVITIES IN SUPPORT OF TRADE CAPACITY BUILDING.
    The President should--
        (1) develop and implement policies that--
            (A) encourage and facilitate cross-boundary cooperation 
        among eligible sub-Saharan African countries in order to 
        facilitate trade; and
            (B) encourage the provision of technical assistance to 
        eligible sub-Saharan African countries to establish and sustain 
        adequate trade capacity development;
        (2) provide specific training for businesses in eligible sub-
    Saharan African countries and government trade officials of such 
    countries on accessing the benefits under the African Growth and 
    Opportunity Act and other trade preference programs;
        (3) provide capacity building for African entrepreneurs and 
    trade associations on production strategies, quality standards, 
    formation of cooperatives, market research, and market development;
        (4) provide capacity building training to promote 
    diversification of African products and value-added processing; and
        (5) provide capacity building and technical assistance funding 
    for African businesses and institutions to help such businesses and 
    institutions comply with United States counterterrorism initiatives 
    and policies.

    TITLE II--MODERNIZATION OF THE MILLENNIUM CHALLENGE CORPORATION

    SEC. 201. CANDIDACY STATUS.
    (a) Low Income Countries.--Section 606(a) of the Millennium 
Challenge Act of 2003 (22 U.S.C. 7705(a)) is amended--
        (1) in paragraph (1)(B), by striking ``(3)'' and inserting 
    ``(4)'';
        (2) in paragraph (2)--
            (A) by amending the paragraph heading to read as follows: 
        ``Fiscal years 2005 through 2012''; and
            (B) by striking ``fiscal year 2005 or a subsequent fiscal 
        year'' and inserting ``each of fiscal years 2005 through 
        2012'';
        (3) by redesignating paragraph (3) as paragraph (4); and
        (4) by inserting after paragraph (2) the following:
        ``(3) Fiscal year 2013 and subsequent fiscal years.--A country 
    shall be a candidate country for purposes of eligibility for 
    assistance for fiscal year 2013 or a subsequent fiscal year if the 
    country--
            ``(A) has a per capita income not greater than the lower 
        middle income country threshold established by the 
        International Bank for Reconstruction and Development for such 
        fiscal year;
            ``(B) is among the 75 countries identified by the 
        International Bank for Reconstruction and Development as having 
        the lowest per capita income; and
            ``(C) meets the requirements under paragraph (1)(B).''.
    (b) Lower Middle Income Countries.--Section 606(b) of the 
Millennium Challenge Act of 2003 (22 U.S.C. 7705(b)) is amended--
        (1) in paragraph (1)--
            (A) by amending the paragraph heading to read as follows: 
        ``Fiscal years 2006 through 2012''; and
            (B) in the matter preceding subparagraph (A), by striking 
        ``fiscal year 2006 or a subsequent fiscal year'' and inserting 
        ``fiscal years 2006 through 2012'';
        (2) by redesignating paragraph (2) as paragraph (3); and
        (3) by inserting after paragraph (1) the following:
        ``(2) Fiscal year 2013 and subsequent fiscal years.--In 
    addition to the countries described in subsection (a), a country 
    shall be a candidate country for purposes of eligibility for 
    assistance for fiscal year 2013 or a subsequent fiscal year if the 
    country--
            ``(A) has a per capita income not greater than the lower 
        middle income country threshold established by the 
        International Bank for Reconstruction and Development for the 
        fiscal year;
            ``(B) is not among the 75 countries identified by the 
        International Bank for Reconstruction and Development as having 
        the lowest per capita income; and
            ``(C) meets the requirements under subsection (a)(1)(B).''.
    (c) Reclassification.--Section 606 of the Millennium Challenge Act 
of 2003 (22 U.S.C. 7705) is amended--
        (1) by redesignating subsection (c) as subsection (d); and
        (2) by inserting after subsection (b) the following:
    ``(c) Treatment of Countries With Per Capita Income Changes.--A 
country qualifying for candidate status under this section with a per 
capita income that changes during the fiscal year such that the country 
would be reclassified from a low income country to a lower middle 
income country or from a lower middle income country to a low income 
country shall retain its candidacy status in its former income 
classification for such fiscal year and the 2 subsequent fiscal 
years.''.
    SEC. 202. CARRYOVER AUTHORITY FOR PRIVATE-SECTOR MEMBERS OF BOARD 
      OF DIRECTORS.
    Section 604(c)(4)(B) of the Millennium Challenge Act of 2003 (22 
U.S.C. 7703(c)(4)(B)) is amended to read as follows:
            ``(B) Other members.--Each member of the Board described in 
        paragraph (3)(B)--
                ``(i) shall be appointed for a term of 3 years;
                ``(ii) may be reappointed for a term of an additional 2 
            years; and
                ``(iii) may continue to serve in each such appointment 
            until the earlier of--

                    ``(I) the date on which his or her successor is 
                appointed; or
                    ``(II) the date that is 1 year after the expiration 
                of his or her appointment or reappointment, as the case 
                may be.''.

    SEC. 203. ADDITIONAL REPORTING TO THE BOARD ON THE TREATMENT OF 
      CIVIL SOCIETY IN AN ELIGIBLE COUNTRY.
    Section 607 of the Millennium Challenge Act of 2003 (22 U.S.C. 
7706) is amended--
        (1) in subsection (a), by adding at the end the following: ``A 
    determination whether a country is eligible for a subsequent, non-
    concurrent Millennium Challenge Compact shall also be based, to the 
    extent practicable, on significantly improved performance across 
    the criteria in subsection (b) that, at a minimum, are relevant to 
    the preceding Compact, compared to the country's performance with 
    respect to such criteria when selected for such preceding 
    Compact.''
        (2) in subsection (b)(1)--
            (A) in subparagraph (D), by striking ``and'' at the end;
            (B) in subparagraph (E), by adding ``and'' at the end; and
            (C) by adding at the end the following:
            ``(F) the quality of the civil society enabling 
        environment;'';
        (3) by redesignating subsections (d) and (e) as subsections (e) 
    and (f), respectively; and
        (4) by inserting after subsection (c) the following:
    ``(d) Reporting on Treatment of Civil Society.--For the 7-year 
period beginning on the date of the enactment of this subsection, 
before the Board selects an eligible country for a Compact under 
subsection (c), the Corporation shall provide information to the Board 
regarding the country's treatment of civil society, including 
classified information, as appropriate. The information shall include 
an assessment and analysis of factors including--
        ``(1) any relevant laws governing the formation or 
    establishment of a civil society organization, particularly laws 
    intended to curb the activities of foreign civil society 
    organizations;
        ``(2) any relevant laws governing the operations of a civil 
    society organization, particularly those laws seeking to define or 
    otherwise regulate the actions of foreign civil society 
    organizations;
        ``(3) laws relating to the legal status of civil society 
    organizations, including laws which effectively discriminate 
    against foreign civil society organizations as compared to 
    similarly situated domestic organizations;
        ``(4) laws regulating the freedom of expression and peaceful 
    assembly; and
        ``(5) laws regulating the usage of the Internet, particularly 
    by foreign civil society organizations.''.
    SEC. 204. CONCURRENT COMPACTS UNDER THE MILLENNIUM CHALLENGE ACT OF 
      2003.
    (a) In General.--Section 609 of the Millennium Challenge Act of 
2003 (22 U.S.C. 7708) is amended--
        (1) by striking the first sentence of subsection (k);
        (2) by redesignating subsection (k) (as so amended) as 
    subsection (l); and
        (3) by inserting after subsection (j) the following:
    ``(k) Concurrent Compacts.--An eligible country that has entered 
into and has in effect a Compact under this section may enter into and 
have in effect at the same time not more than one additional Compact in 
accordance with the requirements of this title if--
        ``(1) one or both of the Compacts are or will be for purposes 
    of regional economic integration, increased regional trade, or 
    cross-border collaborations; and
        ``(2) the Board determines that the country is making 
    considerable and demonstrable progress in implementing the terms of 
    the existing Compact and supplementary agreements thereto.''.
    (b) Conforming Amendment.--Section 613(b)(2)(A) of such Act (22 
U.S.C. 7712(b)(2)(A)) is amended by striking ``the'' before ``Compact'' 
and inserting ``any''.
    (c) Applicability.--The amendments made by this section apply with 
respect to Compacts entered into between the United States and an 
eligible country under the Millennium Challenge Act of 2003 before, on, 
or after the date of the enactment of this Act.
    SEC. 205. PUBLIC NOTIFICATION OF ENTERING INTO A COMPACT.
    Section 610 of the Millennium Challenge Act of 2003 (22 U.S.C. 
7709) is amended to read as follows:
    ``SEC. 610. CONGRESSIONAL AND PUBLIC NOTIFICATION.
    ``(a) Congressional Consultations and Notifications.--
        ``(1) In general.--The Board, acting through the Chief 
    Executive Officer, shall consult with and notify the appropriate 
    congressional committees not later than 15 days before taking any 
    of the actions described in paragraph (2).
        ``(2) Actions described.--The actions described in this 
    paragraph are--
            ``(A) providing assistance for an eligible country under 
        section 609(g);
            ``(B) commencing negotiations with an eligible country to 
        provide assistance for--
                ``(i) a Compact under section 605; or
                ``(ii) an agreement under section 616;
            ``(C) signing such a Compact or agreement; and
            ``(D) terminating assistance under such a Compact or 
        agreement.
        ``(3) Economic justification.--Any notification relating to the 
    intent to negotiate or sign a Compact shall include a report 
    describing the projected economic justification for the Compact, 
    including, as applicable--
            ``(A) the expected economic rate of return of the Compact;
            ``(B) a cost-benefit analysis of the Compact;
            ``(C) a description of the impact on beneficiary 
        populations;
            ``(D) the likelihood that the investment will catalyze 
        private sector investments; and
            ``(E) any other applicable economic factors that justify 
        each project to be funded under such a Compact to the extent 
        practicable and appropriate.
        ``(4) Risk management plan.--Not later than 60 days before 
    signing each concurrent Compact, as authorized under section 609, 
    the Board, acting through the Chief Executive Officer, shall 
    consult with and provide to the appropriate congressional 
    committees--
            ``(A) an assessment and, as appropriate, the identification 
        of potential measures to mitigate risks, of--
                ``(i) the countries' commitment to regional integration 
            and cross-border cooperation and capacity to carry out 
            commitments;
                ``(ii) political and policy risks, including risks that 
            could affect country eligibility;
                ``(iii) risks associated with realizing economic 
            returns;
                ``(iv) time and completion risks; and
                ``(v) cost and financial risks; and
            ``(B) an assessment of measures to be taken to mitigate any 
        identified risks, including--
                ``(i) securing other potential donors to finance 
            projects or parts of projects as needed; and
                ``(ii) partnering with regional organizations to 
            support and oversee effective cross-border cooperation.
    ``(b) Congressional and Public Notification After Entering Into a 
Compact.--Not later than 10 days after entering into a Compact with an 
eligible country, the Board, acting through the Chief Executive 
Officer, shall--
        ``(1) publish the text of the Compact on the website of the 
    Corporation;
        ``(2) provide the appropriate congressional committees with a 
    detailed summary of the Compact and, upon request, the text of the 
    Compact; and
        ``(3) publish in the Federal Register a detailed summary of the 
    Compact and a notice of availability of the text of the Compact on 
    the website of the Corporation.''.
    SEC. 206. DISCLOSURE.
    (a) Requirement for Timely Disclosure.--Section 612(a) of the 
Millennium Challenge Act of 2003 (22 U.S.C. 7711(a)) is amended--
        (1) in the subsection heading, by inserting ``Timely'' before 
    ``Disclosure''; and
        (2) in the matter preceding paragraph (1)--
            (A) by striking ``The Corporation'' and inserting ``Not 
        later than 90 days after the last day of each fiscal quarter, 
        the Corporation''; and
            (B) by striking ``on at least a quarterly basis,''.
    (b) Dissemination.--Section 612(b) of the Millennium Challenge Act 
of 2003 (22 U.S.C. 7711(b)) is amended to read as follows:
    ``(b) Dissemination.--The Board, acting through the Chief Executive 
Officer, shall make the information required to be disclosed under 
subsection (a) available to the public--
        ``(1) by publishing it on the website of the Corporation;
        ``(2) by providing notice of the availability of such 
    information in the Federal Register; and
        ``(3) by any other methods that the Board determines to be 
    appropriate.''.
    SEC. 207. RESTRICTION ON THE USE OF ASSISTANCE UNDER SECTION 616.
    Section 616(d) of the Millennium Challenge Act of 2003 (22 U.S.C. 
7715(d)) is amended to read as follows:
    ``(d) Funding.--
        ``(1) Limitation.--Not more than 10 percent of the amounts made 
    available to carry out this Act for a fiscal year may be made 
    available to carry out this section.
        ``(2) Restriction relating to assistance.--None of the funds 
    authorized to carry out the purposes of this Act shall be available 
    for assistance under this section to a country that does not 
    qualify as a candidate country under section 606 for the fiscal 
    year during which such assistance is provided.''.
    SEC. 208. STUDY ON SUBNATIONAL COMPACTS.
    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Board of the Millennium Challenge 
Corporation, acting through the Chief Executive Officer, shall submit a 
study to the appropriate congressional committees that assesses the 
feasibility and desirability of developing partnerships at the 
subnational level within candidate countries that would be 
complementary to, and, as applicable, concurrent with, any Millennium 
Challenge Corporation national-level or regional investments.
    (b) Content.--The study required under subsection (a) shall 
examine--
        (1) the extent to which targeting investments at the 
    subnational level might provide new opportunities for reducing 
    poverty through economic growth;
        (2) the extent to which traditional approaches to defining 
    poverty may not adequately capture the nature of poverty within a 
    country;
        (3) the types of subnational entities that might be appropriate 
    partners for subnational Millennium Challenge Corporation compacts;
        (4) how candidates for subnational partners might best be 
    identified; and
        (5) what role each national government should play in creating 
    or implementing a subnational partnership.
    (c) Appropriate Congressional Committees.--In this subsection, the 
term ``appropriate congressional committees'' means--
        (1) the Committee on Foreign Relations of the Senate;
        (2) the Committee on Appropriations of the Senate;
        (3) the Committee on Foreign Affairs of the House of 
    Representatives; and
        (4) the Committee on Appropriations of the House of 
    Representatives.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.