Millennium Challenge Accountability Act of 2004 - Amends the Consolidated Appropriations Act, 2004 to: (1) direct the Comptroller General to conduct annual audits, evaluations, and investigations of the Millennium Challenge Corporation; (2) establish the Millennium Challenge Advisory Council; and (3) transfer statutory authority to the Foreign Assistance Act of 1961 for the Millennium Challenge program, the HELP Commission Act, and the Foreign Aid Impact Assessment Act.
Amends the Foreign Assistance Act of 1961 to repeal specified provisions respecting: (1) general development assistance; (2) prototype desalting plants; and (3) international disaster assistance.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4558 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 4558
To authorize the Comptroller General to conduct audits, evaluations,
and investigations of the Millennium Challenge Corporation, to
establish the Millennium Challenge Advisory Council, to transfer the
Millennium Challenge program to the Foreign Assistance Act of 1961, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 14, 2004
Mr. Hyde introduced the following bill; which was referred to the
Committee on International Relations
_______________________________________________________________________
A BILL
To authorize the Comptroller General to conduct audits, evaluations,
and investigations of the Millennium Challenge Corporation, to
establish the Millennium Challenge Advisory Council, to transfer the
Millennium Challenge program to the Foreign Assistance Act of 1961, 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 Accountability Act of 2004''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--MILLENNIUM CHALLENGE ACT OF 2003
Sec. 101. Oversight by General Accounting Office.
Sec. 102. Millennium Challenge Advisory Council.
Sec. 103. Findings; Statement of policy.
Sec. 104. Definitions.
Sec. 105. Principal objectives.
Sec. 106. Transfer to Foreign Assistance Act of 1961.
TITLE II--MISCELLANEOUS PROVISIONS
Subtitle A--HELP Commission Act; Foreign Aid Impact Assessment Act
Sec. 201. HELP Commission Act.
Sec. 202. Foreign Aid Impact Assessment Act.
Subtitle B--Repeals; Related Provisions
Sec. 211. Repeals; conforming amendments.
Sec. 212. General authorities.
TITLE I--MILLENNIUM CHALLENGE ACT OF 2003
SEC. 101. OVERSIGHT BY GENERAL ACCOUNTING OFFICE.
Section 614 of title VI of division D of the Consolidated
Appropriations Act, 2004 (Public Law 108-199; 22 U.S.C. 7713) is
amended by adding at the end the following new subsection:
``(h) Comptroller General.--
``(1) In general.--The Comptroller General shall conduct on
an annual basis and as appropriate audits, evaluations, and
investigations of the Corporation.
``(2) Scope.--In carrying out this subsection, the
Comptroller General may conduct audits, evaluations, and
investigations of the activities and financial transactions of
the Corporation for any fiscal year during which Federal funds
are available to finance any portion of its operations in
accordance with such rules and regulations as may be prescribed
by the Comptroller General.
``(3) Location; access to documents.--
``(A) Location.--The Comptroller General shall
conduct an audit, evaluation, or investigation under
this subsection at the place or places where pertinent
information of the Corporation is normally kept.
``(B) Access to documents.--In conducting an audit,
evaluation, or investigation under this subsection,
representatives of the General Accounting Office shall
have access to all books, accounts, financial records,
reports, files, and other papers or property belonging
to or in use by the Corporation and necessary to
facilitate the audit, evaluation, or investigation. In
addition, the representatives shall be afforded full
facilities for verifying transactions with the balances
and securities held by depositories, fiscal agents, and
custodians of the Corporation.
``(C) Rule of construction.--All books, accounts,
financial records, reports, files, and other papers or
property belonging to or in use by the Corporation
shall remain in the possession and custody of the
Corporation throughout the period beginning on the date
such possession or custody commences and ending three
years after such date, but the General Accounting
Office may require the retention of such books,
accounts, financial records, reports, files, papers, or
property for a longer period under section 3523(c) of
title 31, United States Code.
``(4) Report.--The Comptroller General shall prepare and
submit to the President and the appropriate congressional
committees a report that contains the results of each audit,
evaluation, or investigation conducted under this subsection,
including any recommendations as the Comptroller General
determines to be appropriate.''.
SEC. 102. MILLENNIUM CHALLENGE ADVISORY COUNCIL.
Title VI of division D of the Consolidated Appropriations Act,
2004 (Public Law 108-199; 22 U.S.C. 7701 et seq.) is amended by adding
at the end the following new section:
``SEC. 620. MILLENNIUM CHALLENGE ADVISORY COUNCIL.
``(a) Establishment.--There is hereby established in the executive
branch an advisory council to the Corporation to be known as the
Millennium Challenge Advisory Council.
``(b) Functions.--
``(1) General functions.--The Council shall advise and
consult with the Chief Executive Officer of the Corporation and
the Board of Directors with respect to policies and programs
designed to further the purposes of this division and shall
periodically report to the Congress with respect to the
activities of the Corporation. In addition, the Council shall
review on an annual basis the criteria and methodology used to
determine eligibility of countries for assistance under this
title and make recommendations to the Chief Executive Officer
and the Board to improve the effectiveness of such criteria and
methodology in order to achieve the purposes of this division.
``(2) Additional functions.--Members of the Council shall
(subject to subsection (d)(1)) conduct on-site inspections, and
make examinations, of the activities of the Corporation in the
United States and in other countries in order to--
``(A) evaluate the accomplishments of the
Corporation;
``(B) assess the potential capabilities and the
future role of the Corporation;
``(C) make recommendations to the Chief Executive
Officer, the Board of Directors, and Congress, for the
purpose of guiding the future direction of the
Corporation and of helping to ensure that the purposes
and programs of the Corporation are carried out in ways
that are economical, efficient, responsive to changing
needs in developing countries and to changing
relationships among people, and in accordance with law;
``(D) make such other evaluations, assessments, and
recommendations as the Council considers appropriate.
``(3) Public participation.--The Council may provide for
public participation in its activities, consistent with section
552b of title 5, United States Code.
``(c) Membership.--
``(1) In general.--The Council shall consist of seven
individuals, who shall be appointed by the Chief Executive
Officer, and who shall be broadly representative of
nongovernmental entities with expertise and interest in
international trade and economic development, including
business and business associations, trade and labor unions,
private and voluntary organizations, foundations, public policy
organizations, academia, and other entities as the Chief
Executive Officer determines appropriate.
``(2) Additional requirement.--No member appointed under
paragraph (1) may be an officer or employee of the United
States Government.
``(d) Compensation.--
``(1) In general.--Except as provided in paragraph (2), a
member of the Council--
``(A) shall be paid compensation out of funds made
available for the purposes of this title at the daily
equivalent of the highest rate payable under section
5332 of title 5, United States Code, for each day
(including travel time) during which the member is
engaged in the actual performance of duties as a member
of the Council; and
``(B) while away from the member's home or regular
place of business on necessary travel, as determined by
the Chief Executive Officer, in the actual performance
of duties as a member of the Council, shall be paid per
diem, travel, and transportation expenses in the same
manner as is provided under subchapter I of chapter 57
of title 5, United States Code.
``(2) Limitation.--A member of the Council may not be paid
compensation under paragraph (1)(A) for more than thirty days
in any calendar year.
``(e) Quorum.--A majority of the members of the Council shall
constitute a quorum for the purposes of transacting any business.
``(f) Financial Interests of Members.--A member of the Council
shall disclose to the Chairperson of the Council and the Chief
Executive Officer of the existence of any direct or indirect financial
interest of that member in any particular matter before the Council and
may not vote or otherwise participate as a Council member with respect
to that particular matter.
``(g) Chairperson.--The Chief Executive Officer shall designate one
of the members of the Council as Chairperson, who shall serve in that
capacity for a term of two years. The Chief Executive Officer may renew
the term of the member appointed as Chairperson under the preceding
sentence.
``(h) Meetings; Bylaws and Regulations.--
``(1) Meetings.--The Council shall hold a regular meeting
during each calendar quarter and shall meet at the call of the
President, the Chief Executive Officer, the Chairperson of the
Board, the Chairperson of the Council, or two members of the
Council.
``(2) Bylaws and regulations.--The Council shall prescribe
such bylaws and regulations as it considers necessary to carry
out its functions. Such bylaws and regulations shall include
procedures for fixing the time and place of meetings, giving or
waiving of notice of meetings, and keeping of minutes of
meetings.
``(i) Report to the President, Chief Executive Officer, and
Board.--
``(1) Report.--Not later than January 1, 2005, and not
later than January 1 of each year thereafter that the
Corporation is in existence, the Council shall submit to the
President, the Chief Executive Officer, and the Board a report
on its views on the programs and activities of the Corporation.
``(2) Contents.--Each report shall contain a summary of the
advice and recommendations provided by the Council to the Chief
Executive Officer and the Board during the period covered by
the report and such recommendations (including recommendations
for administrative or legislative action) as the Council
considers appropriate to make to the Congress.
``(3) Additional requirement.--Not later than 90 days after
receiving each such report, the Chief Executive Officer shall
transmit to Congress a copy of the report, together with any
comments concerning the report that the Chief Executive Officer
considers appropriate.
``(j) Administrative Assistance.--The Chief Executive Officer shall
make available to the Council such personnel, administrative support
services, and technical assistance as are necessary to carry out its
functions effectively.
``(k) Termination.--Section 14(a)(2)(B) of the Federal Advisory
Committee Act (5 U.S.C. App.; relating to the termination of advisory
committees) shall not apply to the Council. Notwithstanding section 102
of this Act, the authorities of the Council shall terminate on December
31, 2007.''.
SEC. 103. FINDINGS; STATEMENT OF POLICY.
Title VI of division D of the Consolidated Appropriations Act, 2004
(Public Law 108-199; 22 U.S.C. 7701 et seq.) is amended by inserting
after section 601 the following new section:
``SEC. 601A. FINDINGS; STATEMENT OF POLICY.
``(a) Findings.--Congress finds the following:
``(1) A principal objective of United States foreign
assistance programs, as stated in section 101 of this Act, is
the `encouragement and sustained support of the people of
developing countries in their efforts to acquire the knowledge
and resources essential to development and to build the
economic, political, and social institutions which will improve
the quality of their lives'.
``(2) The expanding acceptance of free trade and open
markets and the spread of democracy and the rule of law have
brought a better way of life to an increasing number of people
in the world.
``(3) Inequalities between men and women undermine
development and poverty-reduction efforts in fundamental ways.
A woman's limited access to resources and restrictions on the
exercise of her rights, including the right to participate in
social and political processes, disables her from maximizing
her contribution to her family's health, education, and general
well-being.
``(4) On March 14, 2002, the President noted the successes
of development assistance programs: `The advances of free
markets and trade and democracy and rule of law have brought
prosperity to an ever-widening circle of people in this world.
During our lifetime, per capita income in the poorest countries
has nearly doubled. Illiteracy has been cut by one-third,
giving more children a chance to learn. Infant mortality has
been almost halved, giving more children a chance to live.'.
``(5) Development is neither an easy process nor a linear
one. There are successes and there are failures. Today, too
many people are still living in poverty, disease has eroded
many of the economic and social gains of previous decades, and
many countries have not adopted policies, for a variety of
reasons, that would enable them to compete in an open and
equitable international economic system.
``(6) More countries and more people will be able to
participate in and benefit from the opportunities afforded by
the global economy if the following conditions for sound and
sustainable economic development are met:
``(A) Security.--Security is necessary for economic
development. Persistent poverty and oppression can lead
to hopelessness, despair, and to failed states that
become havens for terrorists.
``(B) Policies that support broad-based economic
growth.--Successful long-term development can only
occur through broad-based economic growth that enables
the poor to increase their incomes and have access to
productive resources and services so that they can lead
lives of decency, dignity, and hope.
``(C) Democracy and the rule of law.--Democratic
development, political pluralism, and respect for
internationally recognized human rights are
intrinsically linked to economic and social progress.
The ability of people to participate in the economic
and political processes affecting their lives is
essential to sustained growth. The rule of law and a
commitment to fight corruption is also critical to the
development of a prosperous society.
``(D) Investments in people.--Economic growth and
democracy can be sustained only if both men and women
have the basic tools and capabilities that foster the
opportunity for participation in the economic, social,
and political life of their countries. Successful
development of countries requires citizens who are
literate, healthy, and prepared and able to work.
``(7) Economic assistance programs authorized under this
part, as administered by the United States Agency for
International Development and other Federal agencies, are of
critical importance in assisting countries to be in a position
to maximize the effectiveness of assistance authorized by this
title.
``(8) It is in the national interest of the United States
to help those countries that are implementing the economic and
political reforms necessary for development to occur.
``(9) On March 14, 2002, the President stated that the
`growing divide between wealth and poverty, between opportunity
and misery, is both a challenge to our compassion and a source
of instability . . . [w]e must confront it . . . [w]e must
include every African, every Asian, every Latin American, every
Muslim, in an expanding circle of development.'.
``(10) The President has pledged that funds requested for
the Millennium Challenge Account shall be in addition to, and
not a substitute for, existing development and humanitarian
programs.
``(11) Development assistance alone is not sufficient to
stimulate economic growth and development. Assistance has been
shown to have a positive impact on growth and development in
developing countries with sound policies and institutions. If
countries have poor policies and institutions, however, it is
highly unlikely that assistance will have a net positive
effect.
``(12) Economic development, and the achievement of the
Millennium Development Goals, must be a shared responsibility
between donor and recipient countries.
``(b) Statement of Policy Regarding a New Compact for Global
Development.--It is, therefore, the policy of the United States to
support a new compact for global development that--
``(1) increases support by donor countries to those
developing countries that are fostering democracy and the rule
of law, investing in their people, and promoting economic
freedom for all their people;
``(2) recognizes, however, that it is the developing
countries themselves that are primarily responsible for the
achievement of those goals;
``(3) seeks to coordinate the disparate development
assistance policies of donor countries, and to harmonize the
trade and finance policies of donor countries with their
respective development assistance programs; and
``(4) aims to reduce poverty by significantly increasing
the economic growth trajectory of beneficiary countries through
investing in the productive potential of the people of such
countries.''.
SEC. 104. DEFINITIONS.
(a) Council.--Section 603 of title VI of division D of the
Consolidated Appropriations Act, 2004 (Public Law 108-199; 22 U.S.C.
7702) is amended--
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6) the following new
paragraph:
``(7) Council.--The term `Council' means the Millennium
Challenge Advisory Council established under section 620 of
this title.''.
(b) Millennium Development Goals.--Section 603 of title VI of
division D of the Consolidated Appropriations Act, 2004, as amended by
subsection (a), is further amended by adding at the end the following
new paragraph:
``(9) Millennium development goals.--The term `Millennium
Development Goals' means the key development objectives
described in the United Nations Millennium Declaration, as
contained in United Nations General Assembly Resolution 55/2
(September 2000), which aim to eradicate extreme poverty and
hunger, achieve universal primary education, promote gender
equality and empower women, reduce child mortality, improve
maternal health, combat HIV/AIDS, malaria, and other infectious
diseases, ensure environmental sustainability, and develop a
global partnership for development.''.
SEC. 105. PRINCIPAL OBJECTIVES.
Section 605(a) of title VI of division D of the Consolidated
Appropriations Act, 2004 (Public Law 108-199; 22 U.S.C. 7704(a)) is
amended--
(1) by striking ``Notwithstanding'' and inserting the
following:
``(1) In general.--Notwithstanding''; and
(2) by adding at the end the following:
``(2) Principal objectives.--Assistance provided under
paragraph (1) should advance a country's progress toward
promoting the following principal objectives:
``(A) Fostering democratic societies, human rights,
and the rule of law.--The assistance should promote--
``(i) political, social, and economic
pluralism;
``(ii) respect for the rule of law;
``(iii) anti-corruption initiatives and law
enforcement;
``(iv) development of institutions of
democratic governance, including electoral and
legislative processes;
``(v) transparent and accountable public
administration at all levels of government;
``(vi) a fair, competent, and independent
judiciary; and
``(vii) a free and independent media.
``(B) Fostering investment in education and health
infrastructure and systems.--The assistance should
foster improved educational opportunities and health
conditions, particularly for women and children,
including through--
``(i) support for programs and personnel
that promote broad-based primary education,
including through the development of academic
curricula, by making available textbooks and
other educational materials, and through
appropriate use of technology;
``(ii) support for programs to strengthen
and build institutions, including primary
health care systems, infrastructure,
facilities, and personnel that provide quality
health care;
``(iii) support for improved systems for
the delivery of healthy water and sanitation
services; and
``(iv) support for programs that reduce
child mortality (including those programs that
combat HIV/AIDS, malaria, tuberculosis, and
other infectious diseases, consistent with
sections 104(c), 104A, 104B, and 104C of this
Act).
``(C) Promoting economic freedom, broad-based
economic growth, and fostering free market systems.--
The assistance should foster the institutions and
conditions needed to promote free market systems,
trade, and investment, including--
``(i) the reform and restructuring of
banking and financial systems, including by
allowing foreign competition in the banking and
financial sectors, where appropriate;
``(ii) the development of transparent and
efficient commercial codes and reduction in the
regulatory burden on business;
``(iii) the protection of property rights,
including--
``(I) private property and
intellectual property rights, including
through the adoption and effective
enforcement of intellectual property
treaties or international agreements;
and
``(II) the establishment and
maintenance of an efficient and
integrated legal property system that,
among other things, facilitates the
ability of the poor, particularly
women, to convert physical and
intellectual assets into capital, such
as utilizing existing practices and
customs that allow assets to be
documented in a manner that makes the
assets widely transferable,
leveragable, and fungible, that allows
individuals to hold legal title to
their property, and that holds owners
accountable for transactions involving
their property;
``(iv) support for market-based policies
that support increased agricultural production;
``(v) a strong commitment to sound monetary
and budgetary policies;
``(vi) the development of small businesses,
private cooperatives, credit unions, and trade
and labor unions;
``(vii) the protection of internationally
recognized workers' rights; and
``(viii) the capacity of eligible countries
to ameliorate damage to the environment and
respect other environmental standards.''.
SEC. 106. TRANSFER TO FOREIGN ASSISTANCE ACT OF 1961.
(a) Transfer.--Title VI of division D of the Consolidated
Appropriations Act, 2004 (Public Law 108-199) (other than the short
title of such division) is hereby--
(1) transferred from the Consolidated Appropriations Act,
2004, to the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.); and
(2) inserted after title V of chapter 2 of part I of the
Foreign Assistance Act of 1961.
(b) Redesignation.--Title VI of chapter 2 of part I of the Foreign
Assistance Act of 1961 (as added by subsection (a)) is amended--
(1) by redesignating sections 601 through 620 as sections
251 through 270, respectively; and
(2) by striking each reference in such title to any of
sections 601 through 620 and inserting a reference to the
corresponding section number (as redesignated by paragraph
(1)).
(c) Conforming Amendment.--The table of contents of the
Consolidated Appropriations Act, 2004 (Public Law 108-199) is amended
by striking the item relating to title VI of division D of such Act.
TITLE II--MISCELLANEOUS PROVISIONS
Subtitle A--HELP Commission Act; Foreign Aid Impact Assessment Act
SEC. 201. HELP COMMISSION ACT.
(a) Transfer to the Foreign Assistance Act of 1961.--Section 637 of
title VI of division B of the Consolidated Appropriations Act, 2004
(Public Law 108-199) is hereby--
(1) transferred from the Consolidated Appropriations Act,
2004, to the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.); and
(2) inserted after section 134 of the Foreign Assistance
Act of 1961.
(b) Redesignation.--Chapter 1 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2151 et seq.) is amended by redesignating
section 637 (as added by subsection (a)) as section 135.
(c) Conforming Amendment.--Section 135 of the Foreign Assistance
Act of 1961 (as redesignated by subsection (b)) is amended by striking
the section designation and all that follows through ``(a) This
section'' and inserting the following:
``SEC. 135. HELP COMMISSION ACT.
``(a) This section''.
SEC. 202. FOREIGN AID IMPACT ASSESSMENT ACT.
(a) Redesignation.--Section 135 of the Foreign Assistance Act of
1961 (as added by section 201) is amended by redesignating subsection
(k) of such section as section 136.
(b) Conforming Amendments.--Section 136 of the Foreign Assistance
Act of 1961 (as added by subsection (a)) is amended--
(1) by redesignating each paragraph, subparagraph, and
clause of such section as a subsection, paragraph, or
subparagraph, respectively;
(2) by striking the section designation and all that
follows through ``(a) Not later than'' and inserting the
following:
``SEC. 136. FOREIGN AID IMPACT ASSESSMENT ACT.
``(a) Not later than'';
(3) in paragraphs (1) and (2) of subsection (b) (as
redesignated by paragraph (1)), by striking ``paragraph
(1)(A)(i)'' each place it appears and inserting ``subsection
(a)(1)(A)''; and
(4) in subsection (c) (as redesignated by paragraph (1)),
by striking ``paragraphs (1) and (2)'' and inserting
``subsections (a) and (b)''.
Subtitle B--Repeals; Related Provisions
SEC. 211. REPEALS; CONFORMING AMENDMENTS.
(a) Repeals.--
(1) General development assistance.--The following
provisions of chapter 1 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2151 et seq.) are hereby repealed: Sections
107, 110, 120, 124, 125, 127, and 128.
(2) Prototype desalting plant.--Section 219 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2179) is hereby repealed.
(3) International disaster assistance.--The following
provisions of chapter 9 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2292 et seq.) are hereby repealed: Sections
494, 495, and 495B through 495K.
(b) Conforming Amendments.--(1) Section 299(a) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2220d(a)) is amended by striking
``sections 110(b) and'' and inserting ``section''.
(2) Section 210 of title 35, United States Code, is amended by
striking paragraph (15).
SEC. 212. GENERAL AUTHORITIES.
(a) Amendment.--Section 635(a) of the Foreign Assistance Act of
1961 (22 U.S.C. 2395(a)) is amended to read as follows: ``(a) Except as
otherwise specifically provided in this Act, assistance under this Act
may be provided on such terms and conditions as the President may
determine to countries, organizations, and areas on a grant basis or on
such terms, including cash, credit, or other terms of repayment
(including repayment in foreign currencies or by transfer to the United
States Government of commodities) as may be deemed to be best suited to
the achievement of the purposes of this Act. Assistance may be provided
on a bilateral basis or through regional, multilateral, private, or
other entities.''.
(b) Repeal.--Section 122 of the Foreign Assistance Act of 1961 (22
U.S.C. 2151t) is hereby repealed.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on International Relations.
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