[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3445 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 358
115th CONGRESS
   2d Session
                                H. R. 3445

                          [Report No. 115-484]

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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2017

   Mr. Royce of California (for himself, Mr. Engel, Mr. Smith of New 
Jersey, and Ms. Bass) introduced the following bill; which was referred 
                  to the Committee on Foreign Affairs

                            January 3, 2018

Additional sponsors: Ms. Sewell of Alabama, Mr. Ted Lieu of California, 
               Mr. Reichert, Mr. Capuano, and Mr. Serrano

                            January 3, 2018

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
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. Activities in support of transparency.
Sec. 103. Activities in support of trade capacity building.
Sec. 104. Eligible sub-Saharan African country.
    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. ACTIVITIES IN SUPPORT OF TRANSPARENCY.

    (a) AGOA Website.--
            (1) In general.--The President shall establish a publicly 
        available internet website for the collection and dissemination 
        of information regarding the African Growth and Opportunity Act 
        (in this section referred to as the ``AGOA Website'').
            (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 internet 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) promote the use by such countries of the 
                benefits available under the African Growth and 
                Opportunity Act (19 U.S.C. 3701 et seq.); and
                    (B) include on the internet websites of such 
                diplomatic missions a link to the AGOA Website.
    (b) AGOA Forum.--The President should, after each meeting of the 
United States-Sub-Saharan Africa Trade and Economic Cooperation Forum, 
publish on the AGOA Website established under subsection (a) 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 
information required by this section in a digital format to the public 
and publish such information on the AGOA Website established under 
subsection (a).

SEC. 103. ACTIVITIES IN SUPPORT OF TRADE CAPACITY BUILDING.

    The President should take the following actions:
            (1) Developing and implementing policies to--
                    (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) Providing 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) Providing capacity building for African entrepreneurs 
        and trade associations on production strategies, quality 
        standards, formation of cooperatives, market research, and 
        market development.
            (4) Providing capacity building training to promote 
        diversification of African products and value-added processing.
            (5) Providing 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.

SEC. 104. ELIGIBLE SUB-SAHARAN AFRICAN COUNTRY.

    In this title, 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).

    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 two 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 one 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 (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;'';
            (2) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (3) by inserting after subsection (c) the following:
    ``(d) Reporting on Treatment of Civil Society.--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 internet 
        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 internet 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 internet 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.
                                                 Union Calendar No. 358

115th CONGRESS

   2d Session

                               H. R. 3445

                          [Report No. 115-484]

_______________________________________________________________________

                                 A BILL

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.

_______________________________________________________________________

                            January 3, 2018

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed