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108th CONGRESS
1st Session
S. 1240
To establish the Millennium Challenge Corporation, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 11, 2003
Mr. Lugar introduced the following bill; which was read twice and
referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To establish 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Millennium
Challenge Act of 2003''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings; purpose.
Sec. 3. Definitions.
TITLE I--MILLENNIUM CHALLENGE ASSISTANCE
Sec. 101. Establishment and management of the Millennium Challenge
Corporation.
Sec. 102. Authorization for Millennium Challenge assistance.
Sec. 103. Candidate country.
Sec. 104. Eligible country.
Sec. 105. Eligible entity.
Sec. 106. Millennium Challenge Contract.
Sec. 107. Suspension of assistance to an eligible country.
Sec. 108. Disclosure.
Sec. 109. Annual report to Congress.
TITLE II--STRUCTURE, FUNCTION, AND POWERS OF THE MILLENNIUM CHALLENGE
CORPORATION
Sec. 201. Chief executive officer.
Sec. 202. Millennium Challenge Board.
Sec. 203. Coordination with USAID.
Sec. 204. Powers of the Corporation.
Sec. 205. Principal office.
Sec. 206. Personnel authorities.
Sec. 207. Personnel outside the United States.
Sec. 208. Use of services of other agencies.
Sec. 209. Administrative authorities.
Sec. 210. Applicability of chapter 91 of title 31, United States code.
TITLE III--THE MILLENNIUM CHALLENGE ACCOUNT AND AUTHORIZATION OF
APPROPRIATIONS
Sec. 301. Establishment of the Millennium Challenge Account.
Sec. 302. Authorization of appropriations.
SEC. 2. FINDINGS; PURPOSE.
(a) Findings.--Congress makes the following findings:
(1) On March 14, 2002, President George W. Bush stated that
``America supports the international development goals in the
U.N. Millennium Declaration, and believes that the goals are a
shared responsibility of developed and developing countries.''
The President also called for a ``new compact for global
development, defined by new accountability for both rich and
poor nations'' and pledged support for increased assistance
from the United States through the establishment of a
Millennium Challenge Account for countries that govern justly,
invest in their own people, and encourage economic freedom.
(2) The elimination of extreme poverty and the achievement
of the other international development goals of the United
Nations Millennium Declaration adopted by the United Nations
General Assembly on September 8, 2000, are important objectives
and it is appropriate for the United States to make development
assistance available in a manner that will assist in achieving
such goals.
(3) The availability of financial assistance through a
Millennium Challenge Account, linked to performance by
developing countries, can contribute significantly to the
achievement of the international development goals of the
United Nations Millennium Declaration.
(b) Purposes.--The purposes of this Act are--
(1) to provide United States assistance for global
development through the Millennium Challenge Corporation, as
described in section 102; and
(2) to provide such assistance in a manner that promotes
economic growth and the elimination of extreme poverty and
strengthens good governance, economic freedom, and investments
in people.
SEC. 3. DEFINITIONS.
In this Act:
(1) Board.--The term ``Board'' means the Millennium
Challenge Board established by section 202.
(2) Candidate country.--The term ``candidate country''
means a country that meets the criteria set out in section 103.
(3) CEO.--The term ``CEO'' means the chief executive
officer of the Corporation.
(4) Corporation.--The term ``Corporation'' means the
Millennium Challenge Corporation established by section 101.
(5) Eligible country.--The term ``eligible country'' means
a candidate country that is determined, under section 104, as
being eligible to receive assistance under this Act.
(6) Millennium challenge account.--The term ``Millennium
Challenge Account'' means the account established under section
301.
TITLE I--MILLENNIUM CHALLENGE ASSISTANCE
SEC. 101. ESTABLISHMENT AND MANAGEMENT OF THE MILLENNIUM CHALLENGE
CORPORATION.
(a) Establishment.--There is established in the executive branch a
corporation within the meaning of section 103 of title 5, United States
Code, to be known as the Millennium Challenge Corporation with the
structure, function, and powers described in title II.
(b) Management of the Corporation.--
(1) In general.--The responsibility for the management of
the Corporation shall be vested in a chief executive officer,
who shall report to the Secretary of State.
(2) Consultation.--The CEO shall consult with the Board in
carrying out the responsibility described in paragraph (1).
SEC. 102. AUTHORIZATION FOR MILLENNIUM CHALLENGE ASSISTANCE.
(a) Authority.--The Corporation is authorized to provide assistance
to an eligible entity consistent with the purposes of this Act set out
in section 2(b) to conduct programs or projects consistent with the
objectives of a Millennium Challenge Contract. Assistance provided
under this Act may be provided notwithstanding any other provision of
law.
(b) Exception.--Assistance under this Act may not be used for
military assistance or training.
(c) Form of Assistance.--Assistance under this Act may be provided
in the form of grants to eligible entities.
(d) Coordination.--The provision of assistance under this Act shall
be coordinated with other United States foreign assistance programs.
(e) Applications.--An eligible entity seeking assistance under this
Act to conduct programs or projects consistent with the objectives of a
Millennium Challenge Contract shall submit a proposal for the use of
such assistance to the Board in such manner and accompanied by such
information as the Board may reasonably require.
SEC. 103. CANDIDATE COUNTRY.
(a) In General.--A country is a candidate country for the purposes
of this Act--
(1) during fiscal year 2004, if such country is eligible to
receive loans from the International Development Association;
(2) during fiscal year 2005, if the per capita income of
such country is less than the historical per capita income
cutoff of the International Development Association for that
year; and
(3) during any fiscal year after 2005--
(A) for which more than $5,000,000,000 has been
appropriated to the Millennium Challenge Account, if
the country is classified as a lower middle income
country by the World Bank on the first day of such
fiscal year; or
(B) for which not more than $5,000,000,000 has been
appropriated to such Millennium Challenge Account, the
per capita income of such country is less than the
historical per capita income cutoff of the
International Development Association for that year.
(b) Limitation on Assistance to Certain Candidate Countries.--In a
fiscal year in which subparagraph (A) of subsection (a)(3) applies with
respect to determining candidate countries, not more than 20 percent of
the amounts appropriated to the Millennium Challenge Account shall be
available for assistance to countries that would not be candidate
countries if subparagraph (B) of subsection (a)(3) applied during such
year.
SEC. 104. ELIGIBLE COUNTRY.
(a) Determination by the Board.--The Board shall determine whether
a candidate country is an eligible country by evaluating the
demonstrated commitment of the government of the candidate country to--
(1) just and democratic governance, including a
demonstrated commitment to--
(A) promote political pluralism and the rule of
law;
(B) respect human and civil rights;
(C) protect private property rights;
(D) encourage transparency and accountability of
government; and
(E) limit corruption;
(2) economic freedom, including a demonstrated commitment
to economic policies that--
(A) encourage citizens and firms to participate in
global trade and international capital markets;
(B) promote private sector growth; and
(C) strengthen market forces in the economy; and
(3) investments in the people of such country, including
improving the availability of educational opportunities and
health care for all citizens of such country.
(b) Assessing Eligibility.--
(1) In general.--To evaluate the demonstrated commitment of
a candidate country for the purposes of subsection (a), the
Board shall use objective and quantifiable indicators of a
candidate country's performance with respect to the criteria
described in paragraphs (1), (2), and (3) of such subsection.
(2) Annual publication of indicators.--
(A) Initial publication.--Not later than 45 days
prior to the final publication of indicators under
subparagraph (B) in any year, the Board shall publish
in the Federal Register and make available on the
Internet the indicators that the Board proposes to use
for the purposes of paragraph (1) in such year.
(B) Final publication.--Not later than 15 days
prior to the selection of eligible countries in any
year, the Board shall publish in the Federal Register
and make available on the Internet the indicators that
are to be used for the purposes of paragraph (1) in
such year.
(3) Consideration of public comment.--The Board shall
consider any comments on the proposed indicators published
under paragraph (2)(A) that are received within 30 days after
the publication of such indicators when selecting the
indicators to be used for the purposes of paragraph (1).
SEC. 105. ELIGIBLE ENTITY.
(a) Assistance.--Any eligible entity may receive assistance under
this Act to carry out a project in an eligible country for the purpose
of making progress toward achieving an objective of a Millennium
Challenge Contract.
(b) Determinations of Eligibility.--The Board shall determine
whether a person or governmental entity is an eligible entity for the
purposes of this section.
(c) Eligible Entities.--For the purposes of this section, an
eligible entity is--
(1) a government, including a local or regional government;
or
(2) a nongovernmental organization or other private entity.
SEC. 106. MILLENNIUM CHALLENGE CONTRACT.
(a) In General.--The Board shall invite the government of an
eligible country to enter into a Millennium Challenge Contract with the
Corporation. A Millennium Challenge Contract shall establish a
multiyear plan for the eligible country to achieve specific objectives
consistent with the purposes set out in section 2(b).
(b) Content.--A Millennium Challenge Contract shall include--
(1) specific objectives to be achieved by the eligible
country during the term of the Contract;
(2) a description of the actions to be taken by the
government of the eligible country and the United States
Government for achieving such objectives;
(3) the role and contribution of private entities,
nongovernmental organizations, and other organizations in
achieving such objectives;
(4) a description of beneficiaries, to the extent possible
disaggregated by gender;
(5) regular benchmarks for measuring progress toward
achieving such objectives;
(6) a schedule for achieving such objectives;
(7) a schedule of evaluations to be performed to determine
whether the country is meeting its commitments under the
Contract;
(8) a statement that the Corporation intends to consider
the eligible country's performance in achieving such objectives
in making decisions about providing continued assistance under
the Contract;
(9) the strategy of the eligible country to sustain
progress made toward achieving such objectives after the
expiration of the Contract;
(10) a plan to ensure financial accountability for any
assistance provided to a person or government in the eligible
country under this Act; and
(11) a statement that nothing in the Contract may be
construed to create a legally binding or enforceable obligation
on the United States Government or on the Corporation.
(c) Requirement for Consultation.--The Corporation shall seek to
ensure that the government of an eligible country consults with private
entities and nongovernmental organizations in the eligible country for
the purpose of ensuring that the terms of a Millennium Challenge
Contract entered into by the Corporation and the eligible country--
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