Text: H.R.3445 — 115th Congress (2017-2018)All Information (Except Text)

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Public Law No: 115-167 (04/23/2018)

 
[115th Congress Public Law 167]
[From the U.S. Government Publishing Office]



[[Page 1275]]

    AFRICAN GROWTH AND OPPORTUNITY ACT AND MILLENNIUM CHALLENGE ACT 
                            MODERNIZATION ACT

[[Page 132 STAT. 1276]]

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. <<NOTE: Apr. 23, 2018 -  [H.R. 
                                3445]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: African Growth 
and Opportunity Act and Millennium Challenge Act Modernization Act.>> 
SECTION 1. <<NOTE: 19 USC 3701 note.>>  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. <<NOTE: 19 USC 3701 note.>>  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 132 STAT. 1277]]

SEC. 102. <<NOTE: 19 USC 3707 note.>>  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. <<NOTE: President. 19 USC 3707.>>  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) <<NOTE: Web posting.>>  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 132 STAT. 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 132 STAT. 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 132 STAT. 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. <<NOTE: Time 
period. Classified information.>> --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. <<NOTE: Assessment. Analysis.>>  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) <<NOTE: Determination.>>  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) <<NOTE: 22 USC 7708 note.>>  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 132 STAT. 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. <<NOTE: Deadlines.>>  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) <<NOTE: Reports.>>  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) <<NOTE: Assessments.>>  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 132 STAT. 1282]]

    ``(b) <<NOTE: Web posting.>>  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) <<NOTE: Summary.>>  provide the appropriate 
        congressional committees with a detailed summary of the Compact 
        and, upon request, the text of the Compact; and
            ``(3) <<NOTE: Federal Register, publication.>>  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) <<NOTE: Deadline.>>  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.-- <<NOTE: Public information.>> The Board, 
acting through the Chief Executive Officer, shall make the information 
required to be disclosed under subsection (a) available to the public--
            ``(1) <<NOTE: Web posting.>>  by publishing it on the 
        website of the Corporation;
            ``(2) <<NOTE: Notification. Federal Register, 
        publication.>>  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) <<NOTE: Deadline. Assessments.>>  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 132 STAT. 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) <<NOTE: Definition.>>  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.

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