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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2441 Reported in House (RH)]

                                                 Union Calendar No. 112
108th CONGRESS
  1st Session
                                H. R. 2441

                          [Report No. 108-205]

  To establish the Millennium Challenge Account to provide increased 
 support for developing countries that have fostered democracy and the 
rule of law, invested in their citizens, and promoted economic freedom; 
   to assess the impact and effectiveness of United States economic 
  assistance; to authorize the expansion of the Peace Corps, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2003

Mr. Hyde (for himself, Mr. Lantos, Mr. Green of Wisconsin, Ms. Harris, 
   Ms. Lee, Mr. Crowley, Mr. LaHood, and Mr. Janklow) introduced the 
 following bill; which was referred to the Committee on International 
                               Relations

                             July 14, 2003

  Additional sponsors: Mr. Bereuter, Mrs. McCarthy of New York, Mrs. 
  Napolitano, Mr. Shimkus, Ms. McCollum, Mr. Calvert, Mr. Platts, Mr. 
Larson of Connecticut, Mr. Schiff, Mr. Bachus, Mr. Leach, Mr. McCotter, 
Mr. English, Mr. Oxley, Mr. Whitfield, Mr. Simmons, Mr. Pickering, Mr. 
Terry, Mrs. Miller of Michigan, Mr. Smith of New Jersey, Mr. Upton, Mr. 
 King of New York, Mr. Ballenger, Mr. Thornberry, Mr. Nethercutt, Mrs. 
Wilson of New Mexico, Mr. Johnson of Illinois, Mr. Issa, Mrs. Northrup, 
Mr. Rohrabacher, Mr. Houghton, Mr. Conyers, Mr. Ackerman, Mr. Grijalva, 
    Mr. Boucher, Mr. Payne, Ms. Jackson-Lee of Texas, Mr. Wynn, Mr. 
  Tierney, Mr. Case, Mr. Farr, Mr. Moran of Virginia, Mr. Berman, Mr. 
Udall of Colorado, Mr. Frost, Ms. Woolsey, Mr. Weller, Mr. LaTourette, 
Mr. Faleomavaega, Mr. Blumenauer, Mr. Bell, Mr. Engel, Mr. Snyder, Mr. 
  Smith of Washington, Mr. Ballance, Ms. Ros-Lehtinen, Mr. Rogers of 
 Michigan, Mr. Dingell, Mr. Frank of Massachusetts, Mr. Price of North 
                   Carolina, Mrs. Bono, and Mr. Royce

                             July 14, 2003

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on June 
                               12, 2003]

_______________________________________________________________________

                                 A BILL

 
  To establish the Millennium Challenge Account to provide increased 
 support for developing countries that have fostered democracy and the 
rule of law, invested in their citizens, and promoted economic freedom; 
   to assess the impact and effectiveness of United States economic 
  assistance; to authorize the expansion of the Peace Corps, 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 Account Authorization and Peace Corps Expansion Act of 
2003''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                DIVISION A--MILLENNIUM CHALLENGE ACCOUNT

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Definitions.
Sec. 102. Sunset.

               TITLE II--MILLENNIUM CHALLENGE ASSISTANCE

Sec. 201. Findings; statement of policy.
Sec. 202. Authorization of assistance.
Sec. 203. Eligibility and related requirements.
Sec. 204. Millennium Challenge Compact.
Sec. 205. Suspension and termination of assistance.
Sec. 206. Annual report.
Sec. 207. Participation of certain United States businesses.
Sec. 208. Authorization of appropriations; related authorities.

              TITLE III--MILLENNIUM CHALLENGE CORPORATION

Sec. 301. Millennium Challenge Corporation.
Sec. 302. Chief Executive Officer.
Sec. 303. Board of Directors.
Sec. 304. Interagency coordination.
Sec. 305. Powers of the Corporation; related provisions.
Sec. 306. Transparency and accountability of the Corporation.
Sec. 307. Detail of personnel to the Corporation; other authorities and 
                            limitations.
Sec. 308. Millennium Challenge Advisory Council.
Sec. 309. Millennium Challenge seed grants.

   TITLE IV--PROVISIONS RELATING TO UNITED STATES ECONOMIC ASSISTANCE

Sec. 401. Definition.
Sec. 402. Framework for assistance.
Sec. 403. Report relating to impact and effectiveness of assistance.

      DIVISION B--REAUTHORIZATION AND EXPANSION OF THE PEACE CORPS

                      TITLE X--GENERAL PROVISIONS

Sec. 1001. Definitions.
Sec. 1002. Findings.

      TITLE XI--AMENDMENTS TO PEACE CORPS ACT; RELATED PROVISIONS

Sec. 1101. Advancing the goals of the Peace Corps.
Sec. 1102. Reports and consultations.
Sec. 1103. Special volunteer recruitment and placement for certain 
                            countries.
Sec. 1104. Global Infectious Diseases Initiative; coordination of HIV/
                            AIDS activities.
Sec. 1105. Peace Corps National Advisory Council.
Sec. 1106. Readjustment allowances.
Sec. 1107. Programs and projects of returned Peace Corps volunteers and 
                            former staff.
Sec. 1108. Declaration of policy.
Sec. 1109. Peace Corps in Sierra Leone.
Sec. 1110. Authorization of appropriations.

                DIVISION A--MILLENNIUM CHALLENGE ACCOUNT

                      TITLE I--GENERAL PROVISIONS

SEC. 101. DEFINITIONS.

    In this division:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on International Relations and 
                the Committee on Appropriations of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate.
            (2) Board.--The term ``Board'' means the Board of Directors 
        of the Corporation established pursuant to section 303 of this 
        Act.
            (3) Compact.--The term ``Compact'' means the Millennium 
        Challenge Compact described in section 204 of this Act.
            (4) Corporation.--The term ``Corporation'' means the 
        Millennium Challenge Corporation established under section 301 
        of this Act.
            (5) Council.--The term ``Council'' means the Millennium 
        Challenge Advisory Council established under section 308 of 
        this Act.
            (6) Millennium development goals.--The term ``Millennium 
        Development Goals'' means the key 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. 102. SUNSET.

    All authorities under this division (other than title IV) shall 
terminate on October 1, 2007.

               TITLE II--MILLENNIUM CHALLENGE ASSISTANCE

SEC. 201. 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 the Foreign 
        Assistance Act of 1961, 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 part I of 
        the Foreign Assistance Act of 1961, 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. 202. AUTHORIZATION OF ASSISTANCE.

    (a) Assistance.--The President, acting through the Chief Executive 
Officer of the Millennium Challenge Corporation, is authorized to 
provide assistance to eligible countries to support policies and 
programs that advance the progress of such countries in achieving 
lasting economic growth and poverty reduction and are in furtherance of 
the purposes of this title.
    (b) Principal Objectives.--Assistance provided under subsection (a) 
should advance a country's progress toward promoting the following 
principal objectives:
            (1) Fostering democratic societies, human rights, and the 
        rule of law.--The assistance should promote--
                    (A) political, social, and economic pluralism;
                    (B) respect for the rule of law;
                    (C) anti-corruption initiatives and law 
                enforcement;
                    (D) development of institutions of democratic 
                governance, including electoral and legislative 
                processes;
                    (E) transparent and accountable public 
                administration at all levels of government;
                    (F) a fair, competent, and independent judiciary; 
                and
                    (G) a free and independent media.
            (2) 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--
                    (A) 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;
                    (B) support for programs to strengthen and build 
                institutions, including primary health care systems, 
                infrastructure, facilities, and personnel that provide 
                quality health care;
                    (C) support for improved systems for the delivery 
                of healthy water and sanitation services; and
                    (D) 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 the Foreign Assistance Act of 1961).
            (3) 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--
                    (A) the reform and restructuring of banking and 
                financial systems, including by allowing foreign 
                competition in the banking and financial sectors, where 
                appropriate;
                    (B) the development of transparent and efficient 
                commercial codes and reduction in the regulatory burden 
                on business;
                    (C) the protection of property rights, including 
                private property and intellectual property rights, 
                including through the adoption and effective 
                enforcement of intellectual property treaties or 
                international agreements;
                    (D) support for market-based policies that support 
                increased agricultural production;
                    (E) a strong commitment to sound monetary and 
                budgetary policies;
                    (F) the development of small businesses, private 
                cooperatives, credit unions, and trade and labor 
                unions;
                    (G) the protection of internationally recognized 
                workers' rights; and
                    (H) the capacity of eligible countries to 
                ameliorate damage to the environment and respect other 
                environmental standards.

SEC. 203. ELIGIBILITY AND RELATED REQUIREMENTS.

    (a) Assistance for Low Income Countries.--
            (1) Fiscal year 2004.--A country shall be eligible to 
        receive assistance under section 202 for fiscal year 2004 if--
                    (A) the country is eligible for assistance from the 
                International Development Association, and the per 
                capita income of the country is equal to or less than 
                the historical ceiling of the International Development 
                Association for that year, as defined by the 
                International Bank for Reconstruction and Development;
                    (B) subject to paragraph (3), the country is not 
                ineligible to receive United States economic assistance 
                by reason of the application of section 116, 490, or 
                620A of the Foreign Assistance Act of 1961, or by 
                reason of the application of any other provision of 
                law; and
                    (C) the Chief Executive Officer of the Corporation 
                determines that the country has demonstrated a 
                commitment to--
                            (i) bolster democracy, human rights, good 
                        governance and the rule of law;
                            (ii) invest in the health and education of 
                        its citizens; and
                            (iii) promote sound economic policies that 
                        promote economic freedom and opportunity.
            (2) Fiscal years 2005 and 2006.--A country shall be 
        eligible to receive assistance under section 202 for fiscal 
        years 2005 and 2006 if--
                    (A) the per capita income of the country is equal 
                to or less than the historical ceiling of the 
                International Development Association for the fiscal 
                year involved, as defined by the International Bank for 
                Reconstruction and Development;
                    (B) the country meets the requirements of paragraph 
                (1)(B); and
                    (C) the country meets the requirements of clauses 
                (i) through (iii) of paragraph (1)(C), as determined by 
                the Chief Executive Officer.
            (3) Rule of construction.--For the purposes of determining 
        whether a country is eligible for receiving assistance under 
        section 202 pursuant to paragraph (1)(B), the exercise by the 
        President, the Secretary of State, or any other officer or 
        employee of the United States of any waiver or suspension of 
        any provision of law referred to in such paragraph shall not be 
        construed as satisfying the requirement of such paragraph.
    (b) Assistance for Lower Middle Income Countries.--
            (1) In general.--In addition to countries described in 
        subsection (a), a country shall be eligible to receive 
        assistance under section 202 for fiscal year 2006 if the 
        country--
                    (A) is classified as a lower middle income country 
                in the then most recent edition of the World 
                Development Report for Reconstruction and Development 
                published by the International Bank for Reconstruction 
                and Development;
                    (B) meets the requirements of subsection (a)(1)(B); 
                and
                    (C) meets the requirements of clauses (i) through 
                (iii) of subsection (a)(1)(C), as determined by the 
                Chief Executive Officer.
            (2) Limitation.--The total amount of assistance provided to 
        countries under this subsection for fiscal year 2006 may not 
        exceed 20 percent of the total amount of assistance provided to 
        all countries under section 202 for fiscal year 2006.
    (c) Assistance for Selected Low Income Countries.--
            (1) In general.--A country shall be eligible to receive 
        assistance for any of fiscal years 2004 through 2006 solely for 
        the purpose of becoming eligible to receive assistance under 
        subsection (a) if the country--
                    (A) meets the requirements of paragraphs (1)(B) and 
                (2)(A) of subsection (a);
                    (B) demonstrates a commitment to meeting the 
                requirements of clauses (i) through (iii) of subsection 
                (a)(1)(C), as determined by the Chief Executive 
                Officer; but
                    (C) fails to meet the eligibility criteria 
                necessary to receive assistance under section 202, as 
                established under subsection (e).
            (2) Administration.--Assistance for countries eligible by 
        reason of the application of this subsection shall be provided 
        through the United States Agency for International Development.
            (3) Allocation of funds.--Of the amount authorized to be 
        appropriated under section 208(a) for a fiscal year, not more 
        than 15 percent of such amount is authorized to be appropriated 
        to the President for the fiscal year to carry out this 
        subsection.
    (d) General Authority To Determine Eligibility.--
            (1) General authority.--The Chief Executive Officer shall 
        determine whether or not a country is eligible to receive 
        assistance under section 202.
            (2) Congressional notification.--Not later than 7 days 
        after making a determination of eligibility for a country under 
        paragraph (1), the Chief Executive Officer shall provide notice 
        thereof to the appropriate congressional committees. Such 
        notice shall include a certification of the determination of 
        the Chief Executive Officer that the country meets the 
        requirements of clauses (i) through (iii) of subsection 
        (a)(1)(C) in accordance with such subsection, subsection 
        (a)(2)(C), subsection (b)(1)(C), or subsection (c)(1)(B), as 
        the case may be.
    (e) Eligibility Criteria.--
            (1) Initial criteria and methodology.--As soon as 
        practicable after the date of the enactment of this Act, but 
        not later than 30 days prior to making any determination of 
        eligibility for a country under this section, the Chief 
        Executive Officer--
                    (A) shall consult in-person with the appropriate 
                congressional committees with respect to the 
                establishment of eligibility criteria and methodology 
                that the Chief Executive Officer proposes to use for 
                purposes of determining eligibility under this section;
                    (B) shall establish such eligibility criteria and 
                methodology; and
                    (C) shall prepare and transmit to such committees a 
                written report that contains such eligibility criteria 
                and methodology.
            (2) Revisions to criteria and methodology.--If the Chief 
        Executive Officer proposes to use revised or different criteria 
        from the criteria described in paragraph (1) in making a 
        determination of eligibility for a country under this section, 
        then, not later than 15 days prior to making such 
        determination, the Chief Executive Officer shall consult in-
        person with the appropriate congressional committees with 
        respect to such revised or different criteria and methodology 
        in accordance with paragraph (1)(A) and shall prepare and 
        transmit a written report in accordance with paragraph (1)(C).
    (f) Form of Assistance; Recipients.--
            (1) Form of assistance.--Assistance provided under section 
        202 for a country shall be provided to one or more of the 
        entities described in paragraph (2) on a nonrepayable basis and 
        in accordance with a fair, open, and competitive selection 
        process that results in the awarding of such assistance on a 
        merit basis using selection criteria that are made public by 
        the Corporation in advance and are otherwise in accordance with 
        standard and customary best practices for the provision of 
        similar types of assistance.
            (2) Recipients.--The entities referred to in paragraph (1) 
        are the following:
                    (A) The national government of the country.
                    (B) Regional or local governmental units of the 
                country.
                    (C) Nongovernmental organizations, including for-
                profit, not-for-profit, and voluntary organizations.
                    (D) International organizations and trust funds.
    (g) Congressional Notification.--The Chief Executive Officer may 
not make any grant or enter into any contract for assistance for a 
country under section 202 that exceeds $5,000,000 until 15 days after 
the date on which the Chief Executive Officer provides notification of 
the proposed grant or contract to the appropriate congressional 
committees in accordance with the procedures applicable to 
reprogramming notifications under section 634A of the Foreign 
Assistance Act of 1961.

SEC. 204. MILLENNIUM CHALLENGE COMPACT.

    (a) Compact.--The President, acting through the Chief Executive 
Officer of the Corporation, may provide assistance to an eligible 
country under section 202 only if the country enters into a contract 
with the United States, to be known as a ``Millennium Challenge 
Compact'', that establishes a multi-year plan for achieving shared 
development objectives in furtherance of the purposes of this title, 
and only if the President, acting through the Chief Executive Officer, 
provides to Congress notice regarding such Compact pursuant to 
subsection (h).
    (b) Elements.--
            (1) In general.--The Compact shall take into account the 
        national development strategy of the eligible country and shall 
        contain--
                    (A) the specific objectives that the country and 
                the United States expect to achieve;
                    (B) the responsibilities of the country and the 
                United States in the achievement of such objectives;
                    (C) regular benchmarks to measure, where 
                appropriate, progress toward achieving such objectives;
                    (D) an identification of the intended 
                beneficiaries, disaggregated by income level, gender, 
                and age, to the maximum extent practicable;
                    (E) a multi-year financial plan, including the 
                estimated amount of contributions by the Corporation 
                and the country and proposed mechanisms to implement 
                the plan and provide oversight, that describes how the 
                requirements of subparagraphs (A) through (D) will be 
                met, including identifying the role of civil society in 
                the achievement of such requirements;
                    (F) where appropriate, a description of the 
                responsibility of other donors in the achievement of 
                such objectives; and
                    (G) a plan to ensure appropriate fiscal 
                accountability for the use of assistance provided under 
                section 202.
            (2) Lower middle income countries.--In addition to the 
        elements described in subparagraphs (A) through (G) of 
        paragraph (1), with respect to a lower middle income country 
        described in section 203(b), the Compact shall identify an 
        appropriate contribution from the country relative to its 
        national budget, taking into account the prevailing economic 
        conditions, toward meeting the objectives of the Compact. Such 
        contribution shall be in addition to government spending 
        allocated for such purposes in the country's budget for the 
        year immediately preceding the establishment of the Compact and 
        shall continue for the duration of the Compact.
    (c) Definition.--In subsection (b), the term ``national development 
strategy'' means any strategy to achieve market-driven economic growth 
that has been developed by the government of the country in 
consultation with a wide variety of civic participation, including 
nongovernmental organizations, private and voluntary organizations, 
academia, women and student organizations, local trade and labor 
unions, and the business community.
    (d) Additional Provision Relating to Prohibition on Taxation.--In 
addition to the elements described in subsection (b), each Compact 
shall contain a provision that states that assistance provided by the 
United States under the Compact shall be exempt from taxation by the 
government of the eligible country.
    (e) Local Input.--In entering into a Compact, the United States and 
the eligible country--
            (1) shall take into account the local-level perspectives of 
        the rural and urban poor in the eligible country; and
            (2) should consult with private and voluntary 
        organizations, the business community, and other donors, in the 
        eligible country.
    (f) Consultation.--During any discussions with a country for the 
purpose of entering into a Compact with the country, officials of the 
Corporation participating in such discussions shall, at a minimum, 
consult with appropriate officials of the United States Agency for 
International Development, particularly with those officials 
responsible for the appropriate region or country on development issues 
related to the Compact.
    (g) Coordination With Other Donors.--To the maximum extent 
feasible, activities undertaken to achieve the objectives of the 
Compact shall be undertaken in coordination with the assistance 
activities of other donors.
    (h) Congressional and Public Notification.--Not later than 15 days 
prior to entering into a Compact with an eligible country, the 
President, acting through the Chief Executive Officer--
            (1) shall consult in-person with the appropriate 
        congressional committees with respect to the proposed Compact;
            (2) shall provide notification of the proposed Compact to 
        the appropriate congressional committees in accordance with the 
        procedures applicable to reprogramming notifications under 
        section 634A of the Foreign Assistance Act of 1961;
            (3) shall prepare and transmit to such committees a written 
        report that contains a detailed summary of the proposed Compact 
        and a copy of the full text of the Compact; and
            (4) shall publish such detailed summary and full text of 
        the proposed Compact in the Federal Register and on the 
        Internet website of the Corporation.
    (i) Assistance for Development of Compact.--Notwithstanding 
subsection (a), the Chief Executive Officer may enter into contracts or 
make grants for any eligible country for the purpose of facilitating 
the development of the Compact between the United States and the 
country.

SEC. 205. SUSPENSION AND TERMINATION OF ASSISTANCE.

    (a) Suspension of Assistance.--
            (1) In general.--The President shall suspend assistance in 
        whole or in part for a country under this title if the 
        President determines that--
                    (A) the country is engaged in activities which are 
                contrary to the national security interests of the 
                United States;
                    (B) the elected head of state of the country or any 
                member of the country's highest judicial tribunal has 
                been removed from that office or forcibly detained 
                through extra-constitutional processes; or
                    (C) the country has failed to adhere to its 
                responsibilities under the Compact.
            (2) Reinstatement.--The President may reinstate assistance 
        for a country under this title only if the President determines 
        that the country has demonstrated a commitment to correcting 
        each condition for which assistance was suspended under 
        paragraph (1).
            (3) Congressional notification.--A suspension of assistance 
        under paragraph (1), or a reinstatement of assistance under 
        paragraph (2), shall be effective beginning 15 days after the 
        date on which the President transmits to the appropriate 
        congressional committees a report that contains the 
        determination of the President under paragraph (1) or paragraph 
        (2), as the case may be.
    (b) Termination of Assistance.--
            (1) In general.--The President, acting through the Chief 
        Executive Officer of the Corporation, shall terminate all 
        assistance for a country under this title if the President 
        determines that the country has consistently failed to adhere 
        to its responsibilities under the Compact or has significantly 
        failed to meet the requirements of this title.
            (2) Congressional notification.--A termination of 
        assistance under paragraph (1) shall be effective beginning 15 
        days after the date on which the President, acting through the 
        Chief Executive Officer, provides notification of the proposed 
        termination of assistance to the congressional committees 
        specified in section 634A(a) of the Foreign Assistance Act of 
        1961 in accordance with the procedures applicable to 
        reprogramming notifications under that section.

SEC. 206. ANNUAL REPORT.

    (a) Report.--Not later than April 1, 2005, and not later than April 
1 of each year thereafter, the Chief Executive Officer of the 
Corporation shall prepare and transmit to the appropriate congressional 
committees a report on the implementation of this title for the 
preceding year.
    (b) Contents.--The report shall include the following:
            (1) A description and assessment of the eligibility 
        criteria and methodology utilized by the Chief Executive 
        Officer to determine eligibility for each country under section 
        203.
            (2) A description of the agreed upon measures of progress 
        contained in each Compact.
            (3)(A) An analysis, on a country-by-country, project-by-
        project basis, of the impact of assistance provided under this 
        title on the economic development of each country.
            (B) For each country, the analysis shall--
                    (i) to the maximum extent possible, be done on a 
                sector-by-sector basis, gender basis, and per capita 
                income basis, and identify trends within each of these 
                bases;
                    (ii) identify economic policy reforms conducive to 
                economic development that are supported by assistance 
                provided under this title;
                    (iii) describe, in quantified terms to the extent 
                practicable, the progress made in achieving assistance 
                objectives for the country;
                    (iv) describe the amount and nature of economic 
                assistance provided by other major donors which further 
                the purposes of this title; and
                    (v) discuss the commitment and contribution of the 
                country to achieving the assistance objectives 
                contained in its Compact.

SEC. 207. PARTICIPATION OF CERTAIN UNITED STATES BUSINESSES.

    (a) Participation.--To the maximum extent practicable, the 
President, acting through the Chief Executive Officer, shall ensure 
that United States small, minority-owned, and disadvantaged business 
enterprises fully participate in the provision of goods and services 
that are financed with funds made available under this title.
    (b) Report.--The Chief Executive Officer shall prepare and submit 
to the appropriate congressional committees an annual report that 
contains a description of the extent to which the requirement of 
subsection (a) has been met for the preceding year.

SEC. 208. AUTHORIZATION OF APPROPRIATIONS; RELATED AUTHORITIES.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the President, acting through the Chief Executive 
Officer of the Corporation, to carry out this division (other than 
title IV) $1,300,000,000 for fiscal year 2004, $3,000,000,000 for 
fiscal year 2005, and $5,000,000,000 for fiscal year 2006.
    (b) Additional Authorities.--Amounts appropriated pursuant to the 
authorization of appropriations under subsection (a)--
            (1) may be referred to as the ``Millennium Challenge 
        Account'';
            (2) are authorized to remain available until expended; and
            (3) are in addition to amounts otherwise available for such 
        purposes.

              TITLE III--MILLENNIUM CHALLENGE CORPORATION

SEC. 301. MILLENNIUM CHALLENGE CORPORATION.

    (a) Establishment.--There is hereby established in the executive 
branch a corporation to be known as the ``Millennium Challenge 
Corporation'' that shall be responsible for carrying out title II.
    (b) Government Corporation.--The Corporation shall be a Government 
corporation, as defined in section 103 of title 5, United States Code.

SEC. 302. CHIEF EXECUTIVE OFFICER.

    (a) Appointment.--The Corporation shall be headed by an individual 
who shall serve as Chief Executive Officer of the Corporation, who 
shall be appointed by the President, by and with the advice and consent 
of the Senate.
    (b) Compensation and Rank.--
            (1) In general.--The Chief Executive Officer shall be 
        compensated at the rate provided for level II of the Executive 
        Schedule under section 5313 of title 5, United States Code, and 
        shall have the equivalent rank of Deputy Secretary.
            (2) Amendment.--Section 5313 of title 5, United States 
        Code, is amended by adding at the end the following:
            ``Chief Executive Officer, Millennium Challenge 
        Corporation.''.
    (c) Authorities and Duties.--The Chief Executive Officer shall 
exercise the powers and discharge the duties of the Corporation and any 
other duties, as conferred on the Chief Executive Officer by the 
President.
    (d) Authority To Appoint Officers.--The Chief Executive Officer 
shall appoint all officers of the Corporation.

SEC. 303. BOARD OF DIRECTORS.

    (a) In General.--There shall be in the Corporation a Board of 
Directors.
    (b) Duties.--The Board may prescribe, amend, and repeal bylaws, 
rules, regulations, and procedures governing the manner in which the 
business of the Corporation may be conducted and in which the powers 
granted to it by law may be exercised.
    (c) Membership.--
            (1) In general.--The Board shall consist of--
                    (A) the Secretary of State, the Secretary of 
                Treasury, the Administrator of the United States Agency 
                for International Development, the Chief Executive 
                Officer of the Corporation, and the United States Trade 
                Representative; and
                    (B) four other individuals who shall be appointed 
                by the President, by and with the advice and consent of 
                the Senate, of which--
                            (i) one individual shall be appointed from 
                        among a list of individuals submitted by the 
                        majority leader of the House of 
                        Representatives;
                            (ii) one individual shall be appointed from 
                        among a list of individuals submitted by the 
                        minority leader of the House of 
                        Representatives;
                            (iii) one individual shall be appointed 
                        from among a list of individuals submitted by 
                        the majority leader of the Senate; and
                            (iv) one individual shall be appointed from 
                        among a list of individuals submitted by the 
                        minority leader of the Senate.
            (2) Ex-officio members.--In addition to members of the 
        Board described in paragraph (1), the Director of the Office of 
        Management and Budget, the President and Chief Executive 
        Officer of the Overseas Private Investment Corporation, the 
        Director of the Trade and Development Agency, and the Director 
        of the Peace Corps shall be non-voting members, ex officio, of 
        the Board.
    (d) Terms.--
            (1) Officers of federal government.--Each member of the 
        Board described in paragraphs (1)(A) and (2) of subsection (c) 
        shall serve for a term that is concurrent with the term of 
        service of the individual's position as an officer within the 
        other Federal department or agency.
            (2) Other members.--Each member of the Board described in 
        subsection (c)(1)(B) shall be appointed for a term of 3 years 
        and may be reappointed for a term of an additional 2 years.
            (3) Vacancies.--A vacancy in the Board shall be filled in 
        the manner in which the original appointment was made.
    (e) Chairperson.--The Secretary of State shall serve as the 
Chairperson of the Board.
    (f) Quorum.--A majority of the members of the Board shall 
constitute a quorum, which shall include at least one member of the 
Board described in subsection (c)(1)(B).
    (g) Meetings.--The Board shall meet at the call of the Chairperson.
    (h) Compensation.--
            (1) Officers of federal government.--
                    (A) In general.--A member of the Board described in 
                paragraphs (1)(A) and (2) of subsection (c) may not 
                receive additional pay, allowances, or benefits by 
                reason of their service on the Board.
                    (B) Travel expenses.--Each such member of the Board 
                shall receive travel expenses, including per diem in 
                lieu of subsistence, in accordance with applicable 
                provisions under subchapter I of chapter 57 of title 5, 
                United States Code.
            (2) Other members.--
                    (A) In general.--Except as provided in paragraph 
                (2), a member of the Board described in subsection 
                (c)(1)(B)--
                            (i) 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 
                        Board; and
                            (ii) 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 Board, 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.
                    (B) Limitation.--A member of the Council may not be 
                paid compensation under subparagraph (A)(i) for more 
                than thirty days in any calendar year.

SEC. 304. INTERAGENCY COORDINATION.

    In carrying out the functions described in this title, and 
consistent with section 101 of the National Security Act of 1947 (50 
U.S.C. 402), the President shall ensure coordination of assistance 
authorized under title II with foreign economic assistance programs and 
activities carried out by other Federal departments and agencies.

SEC. 305. POWERS OF THE CORPORATION; RELATED PROVISIONS.

    (a) Powers.--The Corporation--
            (1) may adopt, alter, and use a corporate seal, which shall 
        be judicially noticed;
            (2) may prescribe, amend, and repeal such rules, 
        regulations, and procedures as are necessary for carrying out 
        the functions of the Corporation and all Compacts;
            (3) may make and perform such contracts, grants, and other 
        agreements with any individual, corporation, or other private 
        or public entity, however designated and wherever situated, as 
        may be necessary for carrying out the functions of the 
        Corporation;
            (4) may determine and prescribe the manner in which its 
        obligations shall be incurred and its expenses allowed and 
        paid, including expenses for representation not exceeding 
        $95,000 in any fiscal year;
            (5) may lease, purchase, or otherwise acquire, own, hold, 
        improve, use or otherwise deal in and with such property (real, 
        personal, or mixed) or any interest therein, wherever situated, 
        as may be necessary for carrying out the functions of the 
        Corporation;
            (6) may accept gifts or donations of services or of 
        property (real, personal, or mixed), tangible or intangible, in 
        furtherance of the purposes of this division;
            (7) may hire or obtain passenger motor vehicles;
            (8) may use the United States mails in the same manner and 
        on the same conditions as the Executive departments (as defined 
        in section 101 of title 5, United States Code);
            (9) may, with the consent of any Executive agency (as 
        defined in section 105 of title 5, United States Code), use the 
        information, services, facilities, and personnel of that agency 
        on a full or partial reimbursement in carrying out the purposes 
        of this division; and
            (10) may sue and be sued, complain, and defend, in its 
        corporate name in any court of competent jurisdiction.
    (b) Offices.--
            (1) Principal office.--The Corporation shall maintain its 
        principal office in the metropolitan area of Washington, 
        District of Columbia.
            (2) Other offices.--The Corporation may establish other 
        offices in any place or places outside the United States in 
        which the Corporation may carry out any or all of its 
        operations and business.
    (c) Cooperation With Other Federal Departments and Agencies.--In 
order to avoid unnecessary expense and duplication of functions, 
efforts, and activities between the Corporation and other Federal 
departments and agencies the Chief Executive Officer, or the Chief 
Executive Officer's designee--
            (1)(A) shall consult, to the maximum extent practicable, 
        with the Administrator of the United States Agency for 
        International Development, or the Administrator's designee, in 
        order to coordinate the activities of the Corporation and the 
        Agency for International Development; and
            (B) shall consult with the heads of other departments and 
        agencies to ensure similar coordination of activities;
            (2)(A) shall ensure proper coordination of activities of 
        the Corporation with the provision of development assistance of 
        relevant international financial institutions, including the 
        International Bank for Reconstruction and Development, the 
        International Monetary Fund, and the regional multilateral 
        development banks; and
            (B) shall provide to each United States Executive Director 
        (or other United States representative) to the relevant 
        international financial institutions a copy of each proposed 
        Compact between the United States and an eligible country and a 
        copy of each such final Compact.
    (d) Positions With Foreign Governments.--When approved by the 
Corporation, in furtherance of its purposes, employees of the 
Corporation (including individuals detailed to the Corporation) may 
accept and hold offices or positions to which no compensation is 
attached with governments or governmental agencies of foreign countries 
or with international organizations.

SEC. 306. TRANSPARENCY AND ACCOUNTABILITY OF THE CORPORATION.

    The Corporation and its officers and employees shall be subject to 
the provisions of section 552 of title 5, United States Code (relating 
to freedom of information).

SEC. 307. DETAIL OF PERSONNEL TO THE CORPORATION; OTHER AUTHORITIES AND 
              LIMITATIONS.

    (a) Detail of Personnel.--Upon request of the Chief Executive 
Officer of the Corporation, the head of an agency may detail any 
employee of such agency to the Corporation on a fully or partially 
reimbursable basis. Any employee so detailed remains, for the purpose 
of preserving such employee's allowances, privileges, rights, 
seniority, and other benefits, an employee of the agency from which 
detailed.
    (b) Limitation on Total Service.--
            (1) In general.--Except as provided in paragraph (2), no 
        individual may serve in or under the Corporation (whether as an 
        employee of the Corporation, a detailee to the Corporation, or 
        a combination thereof) for a total period exceeding 5 years.
            (2) Exceptions.--
                    (A) Extension authority.--The Chief Executive 
                Officer may extend the 5-year period under paragraph 
                (1) for up to an additional 3 years, in the case of any 
                particular individual, if the Chief Executive Officer 
                determines that such extension is essential to the 
                achievement of the purposes of this division.
                    (B) Officers.--Nothing in this subsection shall 
                limit the period for which an individual may serve as 
                an officer of the Corporation appointed pursuant to 
                section 302(d) nor shall any period of service as such 
                an officer be taken into account for purposes of 
                applying this subsection.
    (c) Reemployment Rights.--
            (1) In general.--An employee of an agency who is serving 
        under a career or career conditional appointment (or the 
        equivalent), and who, with the consent of the head of such 
        agency, transfers to the Corporation, is entitled to be 
        reemployed in such employee's former position or a position of 
        like seniority, status, and pay in such agency, if such 
        employee--
                    (A) is separated from the Corporation--
                            (i) by reason of the application of 
                        subsection (b); or
                            (ii) for any other reason, other than 
                        misconduct, neglect of duty, or malfeasance; 
                        and
                    (B) applies for reemployment not later than 90 days 
                after the date of separation from the Corporation.
            (2) Specific rights.--An employee who satisfies paragraph 
        (1) is entitled to be reemployed (in accordance with such 
        paragraph) within 30 days after applying for reemployment and, 
        on reemployment, is entitled to at least the rate of basic pay 
        to which such employee would have been entitled had such 
        employee never transferred.
    (d) Basic Pay.--The Chief Executive Officer may fix the rate of 
basic pay of employees of the Corporation without regard to the 
provisions of--
            (1) chapter 51 of title 5, United States Code (relating to 
        the classification of positions), and
            (2) subchapter III of chapter 53 of such title (relating to 
        General Schedule pay rates),
except that no employee of the Corporation may receive a rate of basic 
pay that exceeds the rate for level II of the Executive Schedule under 
section 5313 of such title.
    (e) Assignment to United States Embassies.--An employee of the 
Corporation, including an individual detailed to or contracted by the 
Corporation, may be assigned to a United States diplomatic mission or 
consular post, or United States Agency for International Development 
field mission.
    (f) Privileges and Immunities.--The Secretary of State shall seek 
to ensure that an employee of the Corporation, including an individual 
detailed to or contracted by the Corporation, and the members of the 
family of such employee, while the employee is performing duties in any 
country or place outside the United States, enjoy the privileges and 
immunities that are enjoyed by a member of the Foreign Service, or the 
family of a member of the Foreign Service, as appropriate, of 
comparable rank and salary of such employee, if such employee or a 
member of the family of such employee is not a national of or 
permanently resident in such country or place.
    (g) Responsibility of Chief of Mission.--An employee of the 
Corporation, including an individual detailed to or contracted by the 
Corporation, and a member of the family of such employee, shall be 
subject to section 207 of the Foreign Service Act of 1980 (22 U.S.C. 
3927) in the same manner as United States Government employees while 
the employee is performing duties in any country or place outside the 
United States if such employee or member of the family of such employee 
is not a national of or permanently resident in such country or place.
    (h) Allocation of Funds.--
            (1) In general.--The Corporation may allocate or transfer 
        to the United States Agency for International Development or 
        any other agency any part of any funds available for carrying 
        out the purposes of this division. Such funds shall be 
        available for obligation and expenditure for the purposes for 
        which authorized, in accordance with authority granted in this 
        title or under authority governing the activities of the 
        agencies of the United States Government to which such funds 
        are allocated or transferred.
            (2) Congressional notification.--The Chief Executive 
        Officer shall notify the appropriate congressional committees 
        not later than 15 days prior to a transfer of funds under 
        paragraph (1) that exceeds $5,000,000.
            (3) Use of services.--For carrying out the purposes of this 
        division, the Corporation may utilize the services and 
        facilities of, or procure commodities from, any agency under 
        such terms and conditions as may be agreed to by the head of 
        the agency and the Corporation.
    (i) Funding Limitation.--Of the funds allocated under subsection 
(h) in any fiscal year, not more than 7 percent of such funds may be 
used for administrative expenses.
    (j) Other Authorities.--Except to the extent inconsistent with the 
provisions of this division, the administrative authorities under 
chapters 1 and 2 of part III of the Foreign Assistance Act of 1961 
shall apply to the provision of assistance under this division to the 
same extent and in the same manner as such authorities apply to the 
provision of economic assistance under part I of such Act.
    (k) Applicability of Government Corporation Control Act.--
            (1) In general.--The Corporation shall be subject to the 
        provisions of chapter 91 of subtitle VI of title 31, United 
        States Code, except that the Corporation shall not be 
        authorized to issue obligations or offer obligations to the 
        public.
            (2) Conforming amendment.--Section 9101(3) of title 31, 
        United States Code, is amended by adding at the end the 
        following:
                    ``(Q) the Millennium Challenge Corporation.''
    (l) Inspector General.--
            (1) In general.--The Inspector General of the United States 
        Agency for International Development shall serve as Inspector 
        General of the Corporation, and, in acting in such capacity, 
        may conduct reviews, investigations, and inspections of all 
        aspects of the operations and activities of the Corporation.
            (2) Authority of the board.--In carrying out its 
        responsibilities under this subsection, the Inspector General 
        shall report to the Board of Directors.
            (3) Reimbursement.--The Corporation shall reimburse the 
        United States Agency for International Development for all 
        expenses incurred by the Inspector General in connection with 
        the Inspector General's responsibilities under this subsection.
    (m) Comptroller General.--
            (1) In general.--The Comptroller General shall conduct 
        audits, evaluations, and investigations of the Corporation.
            (2) Scope.--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 may be 
        evaluated, investigated, or audited by the Comptroller General 
        in accordance with such rules and regulations as may be 
        prescribed by the Comptroller General.
            (3) Access and records.--Any evaluation, investigation, or 
        audit shall be conducted at the place or places where pertinent 
        information of the Corporation is normally kept. The 
        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 evaluation, 
        investigation, or audit; and full facilities for verifying 
        transactions with the balances and securities held by 
        depositories, fiscal agents, and custodians shall be afforded 
        to such representatives. All such books, accounts, financial 
        records, reports, files, and other papers or property of 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.--A report of such audit, evaluation, or 
        investigation shall be made by the Comptroller General to the 
        appropriate congressional committees and to the President, 
        together with such recommendations with respect thereto as the 
        Comptroller General shall deem advisable.
    (n) Definitions.--For purposes of this section--
            (1) the term ``agency'' means an Executive agency, as 
        defined by section 105 of title 5, United States Code; and
            (2) the term ``detail'' means the assignment or loan of an 
        employee, without a change of position, from the agency by 
        which such employee is employed to the Corporation.

SEC. 308. 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 title 
        II 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; 
                and
                    (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. 309. MILLENNIUM CHALLENGE SEED GRANTS.

    (a) Findings.--Congress finds the following:
            (1) Many countries in the developing world lack the 
        academic and public policy advocacy base essential to attaining 
        the principal objectives of the Millennium Challenge Account.
            (2) Because of widespread government repression of free 
        speech and poverty, the countries of Africa in particular 
        suffer an acute shortage of nongovernmental organizations which 
        effectively study and promote the principal objectives of the 
        Millennium Challenge Account.
            (3) The Millennium Challenge Account will struggle to reach 
        its goals unless countries in the developing world possess a 
        home grown intellectual commitment and culture of advocacy 
        aimed at promoting its principal objectives.
    (b) Assistance.--The Chief Executive Officer of the Corporation is 
authorized to provide assistance in support of nongovernmental 
organizations, (including universities and independent foundations and 
other organizations) in low income and lower middle income countries, 
which are undertaking research, education, and advocacy efforts aimed 
at promoting democratic societies, human rights, the rule of law, 
improved educational opportunities and health conditions, particularly 
for women and children, and economic freedom.
    (c) Limitation.--Not more than $10,000,000 of the amount made 
available to carry out this division for a fiscal year may be made 
available to carry out this section.

   TITLE IV--PROVISIONS RELATING TO UNITED STATES ECONOMIC ASSISTANCE

SEC. 401. DEFINITION.

    In this title, the term ``United States economic assistance'' means 
any bilateral economic assistance, from any budget functional category, 
that is provided by any department or agency of the United States to a 
foreign country, including such assistance that is intended--
            (1) to assist the development and economic advancement of 
        friendly foreign countries and peoples, including assistance 
        provided under title II (relating to the Millennium Challenge 
        Account);
            (2) to promote the freedom, aspirations, or sustenance of 
        friendly peoples under oppressive rule by unfriendly 
        governments;
            (3) to promote international trade and foreign direct 
        investment as a means of aiding economic growth;
            (4) to save lives and alleviate suffering of foreign 
        peoples during or following war, natural disaster, or complex 
        crisis;
            (5) to assist in recovery and rehabilitation of countries 
        or peoples following disaster or war;
            (6) to protect refugees and promote durable solutions to 
        aid refugees;
            (7) to promote sound environmental practices;
            (8) to assist in development of democratic institutions and 
        good governance by the people of foreign countries;
            (9) to promote peace and reconciliation or prevention of 
        conflict;
            (10) to improve the technical capacities of governments to 
        reduce production of and demand for illicit narcotics; and
            (11) to otherwise promote through bilateral foreign 
        economic assistance the national objectives of the United 
        States.

SEC. 402. FRAMEWORK FOR ASSISTANCE.

    (a) Sense of Congress.--It is the sense of Congress that a coherent 
framework for United States economic assistance should be established 
in accordance with this section.
    (b) Elements.--The framework described in subsection (a) includes 
the following elements:
            (1) The United States Agency for International Development, 
        under the direction and foreign policy guidance of the 
Secretary of State, should be responsible for--
                    (A) providing assistance to countries that face 
                natural and man-made disasters in order to provide 
                humanitarian relief to the peoples of such countries, 
                in coordination with refugee programs administered by 
                the Department of State;
                    (B) providing assistance to countries that are 
                suffering from conflicts or are in post-conflict 
                situations in order to provide humanitarian relief, 
                transition assistance, and reconstruction assistance;
                    (C) providing assistance to help moderate-to-poorly 
                performing countries achieve development progress in 
                the areas described in part I of the Foreign Assistance 
                Act of 1961, including progress toward becoming 
                eligible for assistance under this title, and to 
                promote international health worldwide, as well as 
                assisting in the development of country and regional 
                development strategies;
                    (D) addressing transnational problems, such as 
                environmental degradation, food insecurity, and health 
                problems; and
                    (E) assisting other Federal departments and 
                agencies, including the Corporation established under 
                title III, to carry out assistance activities abroad, 
                including providing technical assistance and advice to 
                such departments and agencies, coordinating its 
                assistance programs with such departments and agencies, 
                and using its field offices to help implement such 
                assistance.
            (2) The Corporation established under title III should 
        provide assistance to countries that have demonstrated a 
        commitment to bolstering democracy, good governance, and the 
        rule of law, to investing in the health and educations of their 
        people, and to promoting sound economic policies that foster 
        economic opportunity for their people.
            (3) The Department of State should be responsible for 
        allocating security assistance to support key foreign policy 
        objectives of the United States and shall administer assistance 
        in such areas as non-proliferation, anti-terrorism, counter-
        narcotics, and relief for refugees.
            (4) Other Federal departments and agencies with expertise 
        in international development-related activities, such as the 
        Overseas Private Investment Corporation, the Trade and 
        Development Agency, the Department of Agriculture, the 
        Department of Health and Human Services, and the Centers for 
        Disease Control and Prevention, to the extent such departments 
        and agencies have the authority to carry out development-
        related programs, and in coordination with the Department of 
        State and the United States Agency for International 
        Development, should provide expertise in specific technical 
        areas and shall provide assistance, including assistance 
        provided with funds made available from the Corporation to 
        assist United States Government international development 
        activities.

SEC. 403. REPORT RELATING TO IMPACT AND EFFECTIVENESS OF ASSISTANCE.

    (a) Report.--Not later than December 31, 2004, and December 31 of 
each third year thereafter, the President shall transmit to Congress a 
report which analyzes, on a country-by-country basis, the impact and 
effectiveness of United States economic assistance furnished under the 
framework established in section 402 to each country during the 
preceding three fiscal years. The report shall include the following 
for each recipient country:
            (1) An analysis of the impact of United States economic 
        assistance during the preceding three fiscal years on economic 
        development in that country, with a discussion of the United 
        States interests that were served by the assistance. This 
        analysis shall be done on a sector-by-sector basis to the 
        extent possible and shall identify any economic policy reforms 
        which were promoted by the assistance. This analysis shall--
                    (A) include a description, quantified to the extent 
                practicable, of the specific objectives the United 
                States sought to achieve in providing economic 
                assistance for that country, and
                    (B) specify the extent to which those objectives 
                were not achieved, with an explanation of why they were 
                not achieved.
            (2) A description of the amount and nature of economic 
        assistance provided by other donors during the preceding three 
        fiscal years, set forth by development sector to the extent 
        possible.
            (3) A discussion of the commitment of the host government 
        to addressing the country's needs in each development sector, 
        including a description of the resources devoted by that 
        government to each development sector during the preceding 
        three fiscal years.
            (4) A description of the trends, both favorable and 
        unfavorable, in each development sector.
            (5) Statistical and other information necessary to evaluate 
        the impact and effectiveness of United States economic 
assistance on development in the country.
            (6) A comparison of the analysis provided in the report 
        with relevant analyses by international financial institutions, 
        other international organizations, other donor countries, or 
        nongovernmental organizations.
    (b) Listing of Most and Least Successful Assistance Programs.--The 
report required by this section shall identify--
            (1) each country in which United States economic assistance 
        has been most successful, as indicated by the extent to which 
        the specific objectives the United States sought to achieve in 
        providing the assistance for the country, as referred to in 
        subsection (a)(1)(A), were achieved; and
            (2) each country in which United States economic assistance 
        has been least successful, as indicated by the extent to which 
        the specific objectives the United States sought to achieve in 
        providing the assistance for the country, as referred to in 
        subsection (a)(1)(A), were not achieved.
For each country listed pursuant to paragraph (2), the report shall 
explain why the assistance was not more successful and shall specify 
what the United States has done as a result.
    (c) De Minimus Exception.--Information under subsections (a) and 
(b) for a fiscal year shall not be required with respect to a country 
for which United States economic assistance for the country for the 
fiscal year is less than $5,000,000.

      DIVISION B--REAUTHORIZATION AND EXPANSION OF THE PEACE CORPS

                      TITLE X--GENERAL PROVISIONS

SEC. 1001. DEFINITIONS.

    In this division:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
            (2) Director.--The term ``Director'' means the Director of 
        the Peace Corps.
            (3) Host country.--The term ``host country'' means a 
        country whose government has invited the Peace Corps to 
        establish a Peace Corps program within the territory of the 
        country.
            (4) Peace corps volunteer.--The term ``Peace Corps 
        volunteer'' means a volunteer or a volunteer leader under the 
        Peace Corps Act.
            (5) Returned peace corps volunteer.--The term ``returned 
        Peace Corps volunteer'' means a person who has been certified 
        by the Director as having served satisfactorily as a Peace 
        Corps volunteer.

SEC. 1002. FINDINGS.

    Congress makes the following findings:
            (1) The Peace Corps was established in 1961 to promote 
        world peace and friendship through the service abroad of 
        volunteers who are United States citizens. The spirit of 
        service and commitment to helping others is a fundamental 
        component of democracy.
            (2) Since its establishment, more than 168,000 volunteers 
        have served in the Peace Corps in 136 countries throughout the 
        world.
            (3) The three goals codified in the Peace Corps Act which 
        have guided the Peace Corps and its volunteers over the years, 
        can work in concert to promote global acceptance of the 
        principles of international peace and nonviolent coexistence 
        among peoples of diverse cultures and systems of government.
            (4) The Peace Corps has sought to fulfill three goals--to 
        help people in developing countries meet basic needs, promote 
        understanding abroad of the values and ideals of the United 
        States, and promote an understanding of other peoples by the 
        people of the United States.
            (5) After more than 40 years of operation, the Peace Corps 
        remains the world's premier international service organization 
        dedicated to promoting grassroots development by working with 
        families and communities to improve health care for children, 
        expand agricultural production, teach in schools, fight 
        infectious diseases, protect the environment, and initiate 
        small business opportunities.
            (6) The Peace Corps remains committed to sending well 
        trained and well supported Peace Corps volunteers overseas to 
        promote international peace, cross-cultural awareness, and 
        mutual understanding between the United States and other 
        countries.
            (7) The Peace Corps is an independent agency, and, 
        therefore, no Peace Corps personnel or volunteers should be 
        used to accomplish any goal other than the goals established by 
        the Peace Corps Act.
            (8) The Crisis Corps has been an effective tool in 
        harnessing the skills and talents of returned Peace Corps 
        volunteers and should be expanded, to the maximum extent 
        practicable, to utilize the talent of returned Peace Corps 
        volunteers.
            (9) In fiscal year 2003, the Peace Corps is operating with 
        an annual budget of $295,000,000 in 70 countries, with more 
        than 7,000 Peace Corps volunteers.
            (10) There is deep misunderstanding and misinformation in 
        many parts of the world, particularly in countries with 
        substantial Muslim populations, with respect to United States 
        values and ideals. A new or expanded Peace Corps presence in 
        such places could foster better understanding between the 
        people of the United States and such countries.
            (11) Congress has declared, and the Peace Corps Act 
        provides, that the Peace Corps shall maintain, to the maximum 
        extent practicable and appropriate, a volunteer corps of at 
        least 10,000 individuals.
            (12) President George W. Bush has called for the doubling 
        of the number of Peace Corps volunteers in service.
            (13) Any expansion of the Peace Corps should not jeopardize 
        the quality of the Peace Corps volunteer experience and, 
        therefore, necessitates, among other things, an appropriate 
        increase in field and headquarters support staff.
            (14) In order to ensure that the proposed expansion of the 
        Peace Corps preserves the integrity of the program and the 
        security of volunteers, the integrated Planning and Budget 
        System supported by the Office of Planning and Policy Analysis 
        should continue its focus on strategic planning.
            (15) A streamlined, bipartisan Peace Corps National 
        Advisory Council composed of distinguished returned Peace Corps 
        volunteers, former Peace Corps staff, and other individuals 
        with diverse backgrounds and expertise can be a source of ideas 
        and suggestions that may be useful to the Director of the Peace 
        Corps as the Director discharges the duties and 
        responsibilities as head of the agency.

      TITLE XI--AMENDMENTS TO PEACE CORPS ACT; RELATED PROVISIONS

SEC. 1101. ADVANCING THE GOALS OF THE PEACE CORPS.

    (a) Recruitment of Volunteers.--Section 2A of the Peace Corps Act 
(22 U.S.C. 2501-1) is amended by adding at the end the following new 
sentence: ``As an independent agency, the Peace Corps shall be 
responsible for recruiting all of its volunteers.''.
    (b) Details and Assignments.--Section 5(g) of the Peace Corps Act 
(22 U.S.C. 2504(g)) is amended by striking ``Provided, That'' and 
inserting ``Provided, That such detail or assignment furthers the 
fulfillment of Peace Corps' development and public diplomacy goals as 
described in section 2: Provided further, That''.

SEC. 1102. REPORTS AND CONSULTATIONS.

    (a) Annual Reports; Consultations on New Initiatives.--Section 11 
of the Peace Corps Act (22 U.S.C. 2510) is amended to read as follows:

``SEC. 11. ANNUAL REPORTS; CONSULTATIONS ON NEW INITIATIVES.

    ``(a) Annual Reports.--The Director shall transmit to Congress, at 
least once in each fiscal year, a report on operations under this Act. 
Each report shall contain information--
            ``(1) describing efforts undertaken to improve coordination 
        of activities of the Peace Corps with activities of 
        international voluntary service organizations, such as the 
        United Nations volunteer program, and of host country voluntary 
        service organizations, including--
                    ``(A) a description of the purpose and scope of any 
                development project which the Peace Corps undertook 
                during the preceding fiscal year as a joint venture 
                with any such international or host country voluntary 
                service organizations; and
                    ``(B) recommendations for improving coordination of 
                development projects between the Peace Corps and any 
                such international or host country voluntary service 
                organizations;
            ``(2) describing--
                    ``(A) any major new initiatives that the Peace 
                Corps has under review for the upcoming fiscal year, 
                and any major initiatives that were undertaken in the 
                previous fiscal year that were not included in prior 
                reports to the Congress;
                    ``(B) the rationale for undertaking such new 
                initiatives;
                    ``(C) an estimate of the cost of such initiatives; 
                and
                    ``(D) the impact on the safety of volunteers;
            ``(3) describing in detail the Peace Corps plans, including 
        budgetary plans, to have 14,000 volunteers in service by 2007 
        while maintaining the quality of the volunteer experience, 
        ensuring the safety and security of all volunteers, and 
        providing for appropriate administrative and other support; and
            ``(4) describing standard security procedures for any 
        country in which the Peace Corps operates programs or is 
        considering doing so, as well as any special security 
        procedures contemplated because of changed circumstances in 
        specific countries, and assessing whether security conditions 
        would be enhanced--
                    ``(A) by co-locating volunteers with international 
                or local nongovernmental organizations; or
                    ``(B) with the placement of multiple volunteers in 
                one location.
    ``(b) Consultations on New Initiatives.--The Director of the Peace 
Corps shall consult with the appropriate congressional committees with 
respect to any major new initiatives not previously discussed in the 
latest annual report submitted to Congress under subsection (a) or in 
budget presentations. Whenever possible, such consultations should take 
place prior to the initiation of such initiatives, or as soon as 
practicable thereafter.''.
    (b) One-Time Report on Student Loan Forgiveness Programs.--Not 
later than 30 days after the date of enactment of this Act, the 
Director shall submit to the appropriate congressional committees a 
report--
            (1) describing the student loan forgiveness programs 
        currently available to Peace Corps volunteers upon completion 
        of their service;
            (2) comparing such programs with other Government-sponsored 
        student loan forgiveness programs; and
            (3) recommending any additional student loan forgiveness 
        programs which could attract more applications from low- and 
        middle-income individuals who are carrying considerable 
        student-loan debt burdens.
    (c) Annual Report to Congress on the Federal Equal Opportunity 
Recruitment Program (FEORP).--Not later than 90 days after the date of 
enactment of this Act and annually thereafter, the Director shall 
report on the progress of the Peace Corps in recruiting historically 
underrepresented groups. The Director shall prepare this report in 
accordance with section 7201 of title 5, United States Code, and 
subpart B of part 720 of title 5, Code of Federal Regulations.
    (d) Report on Maintaining the Integrity of the Medical Screening 
and Medical Placement Coordination Processes.--Not later than 120 days 
after the date of enactment of this Act, the Director shall prepare and 
submit to the appropriate congressional committees a report that--
            (1) describes the medical screening procedures and 
        standards of the Office of Medical Services/Screening Unit of 
        the Peace Corps to determine whether an applicant for Peace 
Corps service has worldwide clearance, limited clearance, a deferral 
period, or is not medically, including psychologically, qualified to 
serve in the Peace Corps as a volunteer;
            (2) describes the procedures and criteria for matching 
        applicants for Peace Corps service with a host country to 
        ensure that the applicant, reasonable accommodations 
        notwithstanding, can complete at least two years of volunteer 
        service without interruption to host country national projects 
        due to foreseeable medical conditions; and
            (3) with respect to each of fiscal years 2000 through 2002 
        and the first six months of fiscal year 2003, states the number 
        of--
                    (A) medical screenings conducted;
                    (B) applicants who have received worldwide 
                clearance, limited clearance, deferral periods, and 
                medical disqualifications to serve;
                    (C) Peace Corps volunteers who the agency has had 
                to separate from service due to the discovery of 
                undisclosed medical information; and
                    (D) Peace Corps volunteers who have terminated 
                their service early due to medical, including 
                psychological, reasons.

SEC. 1103. SPECIAL VOLUNTEER RECRUITMENT AND PLACEMENT FOR CERTAIN 
              COUNTRIES.

    (a) Report.--Not later than 60 days after the date of enactment of 
this Act, the Director shall submit to the appropriate congressional 
committees a report that--
            (1) describes the recruitment strategies to be employed by 
        the Peace Corps to recruit and train volunteers with the 
        appropriate language skills and interest in serving in host 
        countries; and
            (2) lists the countries that the Director has determined 
        should be priorities for special recruitment and placement of 
        Peace Corps volunteers.
    (b) Use of Returned Peace Corps Volunteers and Former Staff.--The 
Director is authorized and strongly urged to utilize the services of 
returned Peace Corps volunteers and former Peace Corps staff who have 
relevant language and cultural experience and may have served 
previously in countries with substantial Muslim populations, in order 
to open or reopen Peace Corps programs in such countries.

SEC. 1104. GLOBAL INFECTIOUS DISEASES INITIATIVE; COORDINATION OF HIV/
              AIDS ACTIVITIES.

    (a) Initiative.--
            (1) In general.--The Director, in cooperation with 
        international public health experts, such as the Centers for 
        Disease Control and Prevention, the National Institutes of 
        Health, the World Health Organization, the Pan American Health 
        Organization, and local public health officials, shall expand 
        the Peace Corps' program of training for Peace Corps volunteers 
        in the areas of education, prevention, and treatment of 
        infectious diseases which are prevalent in host countries in 
        order to ensure that the Peace Corps increases its contribution 
        to the global campaign against such diseases.
            (2) Additional requirement.--Activities for the education, 
        prevention, and treatment of infectious diseases in host 
        countries by the Peace Corps shall be undertaken in a manner 
        that is consistent with activities authorized under sections 
        104(c), 104A, 104B, and 104C of the Foreign Assistance Act of 
        1961.
    (b) Coordination of HIV/AIDS Activities.--
            (1) In general.--The Director should designate an officer 
        or employee of the Peace Corps who is located in the United 
        States to coordinate all HIV/AIDS activities within the Peace 
        Corps. Such individual may be an individual who is an officer 
        or employee of the Peace Corps on the date of the enactment of 
        this Act.
            (2) Field coordination.--In addition to the position 
        established under paragraph (1), the Director should designate 
        an individual within each country in sub-Saharan Africa, the 
        Western Hemisphere, and Asia in which Peace Corps volunteers 
        carry out HIV/AIDS activities to coordinate all such activities 
        of the Peace Corps in such countries.
    (c) Definitions.--In this section:
            (1) AIDS.--The term ``AIDS'' means the acquired immune 
        deficiency syndrome.
            (2) HIV.--The term ``HIV'' means the human immunodeficiency 
        virus, the pathogen that causes AIDS.
            (3) HIV/AIDS.--The term ``HIV/AIDS'' means, with respect to 
        an individual, an individual who is infected with HIV or living 
        with AIDS.
            (4) Infectious diseases.--The term ``infectious diseases'' 
        means HIV/AIDS, tuberculosis, and malaria.

SEC. 1105. PEACE CORPS NATIONAL ADVISORY COUNCIL.

    Section 12 of the Peace Corps Act (22 U.S.C. 2511; relating to the 
Peace Corps National Advisory Council) is amended--
            (1) in subsection (b)(2)--
                    (A) in subparagraph (C), by striking ``and'' after 
                the semicolon;
                    (B) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (C) by inserting after subparagraph (C) the 
                following:
            ``(D) make recommendations for utilizing the expertise of 
        returned Peace Corps volunteers and former Peace Corps staff in 
        fulfilling the goals of the Peace Corps; and'';
            (2) in subsection (c)(2)--
                    (A) in subparagraph (A)--
                            (i) in the first sentence--
                                    (I) by striking ``fifteen'' and 
                                inserting ``eleven''; and
                                    (II) by striking ``President, by 
                                and with the advice and consent of the 
                                Senate'' and inserting ``Director of 
                                the Peace Corps''; and
                            (ii) by striking the second sentence and 
                        inserting the following: ``Six of the members 
                        shall be former Peace Corps volunteers, at 
                        least one of whom shall have been a former 
                        staff member abroad or in the Washington 
                        headquarters, and not more than six shall be 
                        members of the same political party.'';
                    (B) by striking subparagraph (B);
                    (C) by amending subparagraph (D) to read as 
                follows:
    ``(D) The members of the Council shall be appointed to 2-year 
terms.'';
                    (D) in subparagraph (H), by striking ``nine'' and 
                inserting ``seven'';
                    (E) in subparagraph (I), by striking ``President 
                shall nominate'' and inserting ``Director shall 
                appoint''; and
                    (F) by redesignating subparagraphs (C), (D), (E), 
                (F), (G), (H), and (I) as subparagraphs (B), (C), (D), 
                (E), (F), (G), and (H), respectively; and
            (3) by amending subsection (g) to read as follows:
    ``(g) Chair.--The Director shall designate one of the voting 
members of the Council as Chair, who shall serve in that capacity for a 
term of two years. The Director may renew the term of a voting member 
appointed as Chair under the preceding sentence.''.

SEC. 1106. READJUSTMENT ALLOWANCES.

    The Peace Corps Act is amended--
            (1) in section 5(c) (22 U.S.C. 2504(c)), by striking ``$125 
        for each month of satisfactory service'' and inserting ``$275 
        for each month of satisfactory service during fiscal year 2004 
        and $300 for each month of satisfactory service thereafter''; 
        and
            (2) in section 6(1) (22 U.S.C. 2505(1)), by striking ``$125 
        for each month of satisfactory service'' and inserting ``$275 
        for each month of satisfactory service during fiscal year 2004 
        and $300 for each month of satisfactory service thereafter''.

SEC. 1107. PROGRAMS AND PROJECTS OF RETURNED PEACE CORPS VOLUNTEERS AND 
              FORMER STAFF.

    (a) Purpose.--The purpose of this section is to provide support for 
returned Peace Corps volunteers to develop and carry out programs and 
projects to promote the objectives of the Peace Corps Act, as set forth 
in section 2(a) of that Act (22 U.S.C. 2501(a)).
    (b) Grants to Certain Nonprofit Corporations.--
            (1) Grant authority.--
                    (A) In general.--To carry out the purpose of this 
                section, and subject to the availability of 
                appropriations, the Director may award grants on a 
                competitive basis to private nonprofit corporations for 
                the purpose of enabling returned Peace Corps volunteers 
                to use their knowledge and expertise to develop and 
                carry out the programs and projects described in 
                paragraph (2).
                    (B) Delegation of authority and transfer of 
                funds.--The Director may delegate the authority to 
                award grants under subparagraph (A) and may transfer 
                funds authorized under this section subject to the 
                notification procedures of section 634A of the Foreign 
                Assistance Act of 1961 to the Chief Executive Officer 
                of the Corporation for National and Community Service 
                (referred to in this section as the ``Corporation'').
            (2) Programs and projects.--Such programs and projects may 
        include--
                    (A) educational programs designed to enrich the 
                knowledge and interest of elementary school and 
                secondary school students in the geography and cultures 
                of other countries where the volunteers have served;
                    (B) projects that involve partnerships with local 
                libraries to enhance community knowledge about other 
                peoples and countries; and
                    (C) audio-visual projects that utilize materials 
                collected by the volunteers during their service that 
                would be of educational value to communities.
            (3) Eligibility for grants.--To be eligible to compete for 
        grants under this section, a nonprofit corporation shall have a 
        board of directors composed of returned Peace Corps volunteers 
        and former Peace Corps staff with a background in community 
        service, education, or health. If the grants are made by the 
        Corporation, the nonprofit corporation shall meet all 
        appropriate Corporation management requirements, as determined 
        by the Corporation.
    (c) Grant Requirements.--Such grants shall be made pursuant to a 
grant agreement between the Peace Corps or the Corporation and the 
nonprofit corporation that requires that--
            (1) the grant funds will only be used to support programs 
        and projects described in subsection (a) pursuant to proposals 
        submitted by returned Peace Corps volunteers (either 
        individually or cooperatively with other returned volunteers);
            (2) the nonprofit corporation will give consideration to 
        funding individual programs or projects by returned Peace Corps 
        volunteers, in amounts of not more than $50,000, under this 
        section;
            (3) not more than 20 percent of the grant funds made 
        available to the nonprofit corporation will be used for the 
        salaries, overhead, or other administrative expenses of the 
        nonprofit corporation;
            (4) the nonprofit corporation will not receive grant funds 
        for programs or projects under this section for a third or 
        subsequent year unless the nonprofit corporation makes 
        available, to carry out the programs or projects during that 
        year, non-Federal contributions--
                    (A) in an amount not less than $2 for every $3 of 
                Federal funds provided through the grant; and
                    (B) provided directly or through donations from 
                private entities, in cash or in kind, fairly evaluated, 
                including plant, equipment, or services; and
            (5) the nonprofit corporation shall manage, monitor, and 
        submit reports to the Peace Corps or the Corporation, as the 
        case may be, on each program or project for which the nonprofit 
        corporation receives a grant under this section.
    (d) Status of the Fund.--Nothing in this section shall be construed 
to make any nonprofit corporation supported under this section an 
agency or establishment of the Federal Government or to make the 
members of the board of directors or any officer or employee of such 
nonprofit corporation an officer or employee of the United States.
    (e) Factors in Awarding Grants.--In determining the number of 
nonprofit corporations to receive grants under this section for any 
fiscal year, the Peace Corps or the Corporation--
            (1) shall take into consideration the need to minimize 
        overhead costs that direct resources from the funding of 
        programs and projects; and
            (2) shall seek to ensure a broad geographical distribution 
        of grants for programs and projects under this section.
    (f) Congressional Oversight.--Grant recipients under this section 
shall be subject to the appropriate oversight procedures of Congress.
    (g) Funding.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this section up to $10,000,000. Such sum shall be in 
        addition to funds made available to the Peace Corps under this 
        division.
            (2) Availability.--Amounts appropriated pursuant to 
        paragraph (1) are authorized to remain available until 
        expended.
    (h) Crisis Corps.--
            (1) Statement of policy.--Congress states that the Crisis 
        Corps has been an effective tool in harnessing the skills and 
        talents of returned Peace Corps volunteers.
            (2) Increase in number of crisis corps assignments.--The 
        Director, in consultation with the governments of host 
        countries and appropriate nongovernmental organizations, shall 
        increase the number of available Crisis Corps assignments for 
        returned Peace Corps volunteers to at least 120 assignments in 
        fiscal year 2004, 140 assignments in fiscal year 2005, 160 
        assignments in fiscal year 2006, and 165 assignments in fiscal 
        year 2007.

SEC. 1108. DECLARATION OF POLICY.

    Congress declares its support for the goal announced by President 
Bush of doubling the number of Peace Corps volunteers to 14,000 by 2007 
and supports the funding levels necessary to accomplish this growth.

SEC. 1109. PEACE CORPS IN SIERRA LEONE.

    (a) Findings.--Congress makes the following findings:
            (1) Peace Corps service to Sierra Leone was suspended in 
        1994 due to a brutal civil war between the government and the 
        Revolutionary United Front (RUF).
            (2) Backed by British military intervention and a United 
        Nations peacekeeping operation, government authority has been 
        reestablished throughout the country and ``free and fair'' 
        national elections took place in May 2002.
            (3) Sierra Leone is a majority Muslim country.
            (4) The Peace Corps has given the safety and security of 
        its volunteers high priority.
    (b) Sense of Congress.--It is the sense of Congress that the Peace 
Corps should return its program to Sierra Leone as soon as security 
conditions are consistent with the safety and security of its 
volunteers.

SEC. 1110. AUTHORIZATION OF APPROPRIATIONS.

    Section 3(b)(1) of the Peace Corps Act (22 U.S.C. 2502(b)(1)) is 
amended by striking ``and $365,000,000 for fiscal year 2003'' and 
inserting ``$365,000,000 for fiscal year 2003, $366,868,000 for fiscal 
year 2004, $411,800,000 for fiscal year 2005, $455,930,000 for fiscal 
year 2006, and $499,400,000 for fiscal year 2007''.

                                                 Union Calendar No. 112

108th CONGRESS

  1st Session

                               H. R. 2441

                          [Report No. 108-205]

_______________________________________________________________________

                                 A BILL

  To establish the Millennium Challenge Account to provide increased 
 support for developing countries that have fostered democracy and the 
rule of law, invested in their citizens, and promoted economic freedom; 
   to assess the impact and effectiveness of United States economic 
  assistance; to authorize the expansion of the Peace Corps, and for 
                            other purposes.

_______________________________________________________________________

                             July 14, 2003

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
```