    [United States Statutes at Large, Volume 132, 115th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 115-167
    115th Congress

    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.

    [[Page 1277]]

    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

    [[Page 1278]]

    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

    [[Page 1279]]

    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:

    [[Page 1280]]

    ``(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.

    [[Page 1281]]

    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.

    [[Page 1282]]

    ``(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

    [[Page 1283]]

    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.

    Approved April 23, 2018.

    LEGISLATIVE HISTORY--H.R. 3445 (S. 832):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: No. 115-484 (Comm. on Foreign Affairs).
    CONGRESSIONAL RECORD, Vol. 164 (2018):
    Jan. 17, considered and passed House.
    Apr. 9, considered and passed Senate.
    DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2018):
    Apr. 23, Presidential statement.