II 

Calendar No. 534 

114TH CONGRESS 

2D SESSION S. 1605 

To amend the Millennium Challenge Act of 2003 to authorize concurrent 

compacts for purposes of regional economic integration and cross-border 

collaborations, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 18, 2015 

Mr. CARDIN (for himself, Mr. FLAKE, Mr. COONS, and Mr. ISAKSON) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations 

JUNE 28, 2016 

Reported by Mr. CORKER, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To amend the Millennium Challenge Act of 2003 to authorize 

concurrent compacts for purposes of regional economic 

integration and cross-border collaborations, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Millennium Compacts 

3 for Regional Economic Integration Act’’ or the ‘‘M–CORE 

4 Act’’. 

5 SEC. 2. FINDINGS. 

6 Congress makes the following findings: 

7 (1) Over the last 50 years, economies around 

8 the world have experienced significant and sustained 

9 growth that has been fueled by support to regional 

10 infrastructure and integrated trade agreements. 

11 (2) Unfortunately, many countries and their 

12 economies are isolated and will require greater sup13 port to benefit from regional integration of markets, 

14 infrastructure, and trade promotion-type policies. 

15 (3) By connecting isolated economies around 

16 the world, there exists the potential to increase in17 vestment opportunities and support market-based 

18 growth. 

19 (4) Developing countries, international organi20 zations, and regional economic bodies have increas21 ingly realized that key drivers to economic growth 

22 must involve greater cross-border collaboration and 

23 regional economic integration. 

24 (5) The Millennium Challenge Corporation 

25 (MCC) plays a unique role in economic development 

26 throughout the world and pursues its mission of reVerDate Sep 11 2014 23:41 Jun 28, 2016 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S1605.RS S1605

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1 ducing poverty through economic growth by making 

2 time-bound grant investments through data selec3 tivity, country ownership, and a focus on results. 

4 (6) The MCC’s compacts have increased access 

5 to reliable power, built highway corridors, and im6 proved business climates, thereby promoting eco7 nomic growth and cross-border engagement within 

8 MCC partner countries. 

9 (7) The MCC’s extensive analysis has concluded 

10 that a regional approach to poverty reduction, under 

11 the right circumstances, can present opportunities to 

12 take advantage of higher rates of return on invest13 ment and larger scale reductions in poverty. 

14 (8) This increased flexibility would promote eco15 nomic growth and cross-border engagement between 

16 and among countries, creating larger and more com17 patible markets and enabling the United States pri18 vate sector to compete more effectively and partner 

19 with the host-country private sectors. 

20 (9) The MCC is developing new partnerships in 

21 Asia, including implementation of current compacts 

22 in Indonesia and the Philippines, new compacts for 

23 Mongolia and the Philippines, and MCC’s first-ever 

24 compact engagement in South Asia. 


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1 (10) In Central America, the MCC’s work in 

2 road infrastructure could potentially have had an 

3 even greater impact had the roads connected across 

4 borders. 

5 (11) In Africa, neighboring countries could col6 laborate on a regional power pool, connect land 

7 locked countries to transport, or address other pol8 icy, institutional, and logistical issues that hamper 

9 trade. 

10 (12) To make a coordinated regional investment 

11 across several countries work, the Board of Direc12 tors of the MCC would need to select a block of 

13 countries at the same time to coordinate project de14 velopment and compact signings, which is unreal15 istic, or be able to enter into a concurrent compact 

16 with one of those countries, for which it currently 

17 lacks authority. 

18 SEC. 3. PURPOSE. 

19 The purpose of this Act is to expand the Millennium 

20 Challenge Corporation’s ability to develop compacts with 

21 countries, particularly in Africa, that promote regional 

22 economic integration and cross-border collaborations. 

23 SEC. 4. MILLENNIUM CHALLENGE COMPACT. 

24 (a) IN GENERAL.—Section 609 of the Millennium 

25 Challenge Act of 2003 (22 U.S.C. 7708) is amended— 


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1 (1) in subsection (k), by striking the first sen2 tence; and 

3 (2) by adding after subsection (k) the following 

4 new subsection: 

5 ‘‘(l) CONCURRENT COMPACTS.—An eligible country 

6 and the United States that have entered into and have 

7 in effect a Compact under this section may enter into and 

8 have in effect at the same time not more than one addi9 tional Compact in accordance with the requirements of 

10 this title if— 

11 ‘‘(1) one or both of the Compacts are or will be 

12 for purposes of regional economic integration, in13 creased regional trade, or cross-border collabora14 tions; and 

15 ‘‘(2) the Board determines that the country is 

16 making considerable and demonstrable progress in 

17 implementing the terms of any existing Compacts 

18 and supplementary agreements thereto.’’. 

19 (b) APPLICABILITY.—The amendments made by sub20 section (a) apply with respect to Compacts entered into 

21 between the United States and an eligible country under 

22 the Millennium Challenge Act of 2003 (22 U.S.C. 7701 

23 et seq.) before, on, or after the date of the enactment of 

24 this Act. 


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1 (c) CONFORMING AMENDMENT.—Section 

2 613(b)(2)(A) of such Act (22 U.S.C. 7712(b)(2)(A)) is 

3 amended by striking ‘‘the’’ before ‘‘Compact’’ and insert4 ing ‘‘any’’. 

5 SECTION 1. SHORT TITLE. 

6 This Act may be cited as the ‘‘Millennium Compacts 

7 for Regional Economic Integration Act’’ or the ‘‘M-CORE 

8 Act’’. 

9 SEC. 2. PURPOSE. 

10 The purpose of this Act is to expand the Millennium 

11 Challenge Corporation’s ability to develop compacts with 

12 countries, particularly in Africa, that promote regional eco13 nomic integration and cross-border collaborations, and 

14 make other changes to the Millennium Challenge Act of 

15 2003 to promote the Millennium Challenge Corporation’s 

16 mission. 

17 SEC. 3. MILLENNIUM CHALLENGE COMPACT. 

18 (a) IN GENERAL.—Section 609 of the Millennium 

19 Challenge Act of 2003 (22 U.S.C. 7708) is amended— 

20 (1) in subsection (k), by striking the first sen21 tence; and 

22 (2) by adding after subsection (k) the following 

23 new subsection: 

24 ‘‘(l) CONCURRENT COMPACTS.—An eligible country 

25 and the United States that have entered into and have in 


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1 effect a Compact under this section may enter into and have 

2 in effect at the same time not more than one additional 

3 Compact in accordance with the requirements of this title 

4 if— 

5 ‘‘(1) one or both of the Compacts are or will be 

6 for purposes of regional economic integration, in7 creased regional trade, or cross-border collaborations; 

8 and 

9 ‘‘(2) the Board determines that the country is 

10 making considerable and demonstrable progress in 

11 implementing the terms of any existing Compacts and 

12 supplementary agreements thereto.’’. 

13 (b) APPLICABILITY.—The amendments made by sub14 section (a) apply with respect to Compacts entered into be15 tween the United States and an eligible country under the 

16 Millennium Challenge Act of 2003 (22 U.S.C. 7701 et seq.) 

17 before, on, or after the date of the enactment of this Act. 

18 (c) CONFORMING AMENDMENT.—Section 613(b)(2)(A) 

19 of such Act (22 U.S.C. 7712(b)(2)(A)) is amended by strik20 ing ‘‘the Compact’’ and inserting ‘‘any Compact’’. 

21 SEC. 4. CANDIDACY STATUS. 

22 Section 606(a)(2) of the Millennium Challenge Act of 

23 2003 (22 U.S.C. 7705) is amended— 


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1 (1) by redesignating subparagraphs (A) and (B) 

2 as clauses (i) and (ii), respectively, and moving such 

3 clauses, as so redesignated, 2 ems to the right; 

4 (2) by striking ‘‘FISCAL YEARS.—A country’’ and 

5 inserting the following ‘‘FISCAL YEARS.— 

6 ‘‘(A) IN GENERAL.—A country’’; and 

7 (3) by adding at the end the following new sub8 paragraph: 

9 ‘‘(B) TREATMENT OF COUNTRIES WITH PER

10 CAPITA INCOME CHANGES.—A country qualifying 

11 for candidate status under this section with a 

12 per capita income that changes in the fiscal year 

13 such that the country would be reclassified from 

14 a low income country to a lower middle income 

15 country or from a lower middle income country 

16 to a low income country shall retain its can17 didacy status in its former income classification 

18 for such fiscal year and the two subsequent fiscal 

19 years.’’. 

20 SEC. 5. CARRYOVER AUTHORITY FOR PRIVATE SECTOR 

21 MEMBERS OF BOARD OF DIRECTORS. 

22 Section 604(c)(4)(B) of the Millennium Challenge Act 

23 of 2003 (22 U.S.C. 7703(c)(4)(B)) is amended— 

24 (1) by striking ‘‘3 years and may be’’ and insert25 ing ‘‘3 years, may be’’; and 


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1 (2) by inserting ‘‘, and may continue in each 

2 appointment to serve until his or her successor is ap3 pointed, but in no case more than one year after such 

4 appointment or reappointment, as the case may be, 

5 has expired’’ after ‘‘an additional 2 years’’. 

6 SEC. 6. PUBLIC NOTIFICATION OF ENTERING INTO A COM7 PACT. 

8 Section 610 of the Millennium Challenge Act of 2003 

9 (22 U.S.C. 7709(b)) is amended by striking paragraph (2) 

10 and inserting the following new paragraph: 

11 ‘‘(2) shall publish in the Federal Register a no12 tice that such detailed summary and the text of the 

13 Compact is available on the Internet website of the 

14 Corporation and provide the address of the website.’’. 

15 SEC. 7. RESTRICTION ON THE USE OF THRESHOLD PRO16 GRAM FUNDS. 

17 Subsection (d) of section 616 of the Millennium Chal18 lenge Act of 2003 (22 U.S.C. 7715) is amended to read as 

19 follows: 

20 ‘‘(d) FUNDING.— 

21 ‘‘(1) FISCAL YEAR 2004.—Not more than 10 per22 cent of the amount appropriated pursuant to the au23 thorization of appropriations under section 619(a) for 

24 fiscal year 2004 is authorized to be made available to 

25 carry out this section. 


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1 ‘‘(2) RESTRICTION RELATING TO THRESHOLD

2 PROGRAMS.—None of the funds authorized to carry 

3 out the purposes of this Act shall be available for as4 sistance under this section to a country that does not 

5 qualify as a candidate country under section 606 for 

6 the fiscal year when such assistance is provided.’’. 

7 SEC. 8. ADDITIONAL REPORTING TO THE BOARD ON THE 

8 TREATMENT OF CIVIL SOCIETY IN AN ELIGI9 BLE COUNTRY. 

10 Section 607 of the Millennium Challenge Act of 2003 

11 (22 U.S.C. 7706) is amended— 

12 (1) in subsection (b)(1)— 

13 (A) in subparagraph (D), by striking ‘‘; 

14 and’’ and inserting a semicolon; 

15 (B) in subparagraph (E), by striking the 

16 semicolon at the end and inserting ‘‘; and’’; and 

17 (C) by adding at the end the following new 

18 subparagraph: 

19 ‘‘(F) the quality of the civil society enabling 

20 environment;’’; 

21 (2) by redesignating subsections (d) and (e) as 

22 subsections (f) and (g), respectively; and 

23 (3) by inserting after subsection (c) the following 

24 new subsection: 


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1 ‘‘(e) REPORTING ON TREATMENT OF CIVIL SOCIETY.— 

2 Before the Board selects an eligible country for a Compact 

3 under section 607(c), the Corporation shall provide to the 

4 Board information on the country’s treatment of civil soci5 ety, including classified information when appropriate. The 

6 information shall include an assessment and analysis of 

7 factors such as— 

8 ‘‘(1) any relevant laws governing the formation 

9 or establishment of a civil society organization, par10 ticularly laws intended to curb the activities of for11 eign civil society organizations; 

12 ‘‘(2) any relevant laws governing the operations 

13 of a civil society organization, particularly those laws 

14 seeking to define or otherwise regulate the actions of 

15 foreign civil society organizations; 

16 ‘‘(3) laws relating to the legal status of civil soci17 ety organizations, including laws which effectively 

18 discriminate against foreign civil society organiza19 tions as compared to similarly situated domestic or20 ganizations; 

21 ‘‘(4) laws regulating the freedom of expression 

22 and peaceful assembly; and 

23 ‘‘(5) laws regulating the usage of the Internet 

24 generally and by foreign civil society organizations in 

25 particular.’’. 


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1 SEC. 9. STUDY ON SUBNATIONAL COMPACTS. 

2 (a) IN GENERAL.—Not later than 180 days after the 

3 date of the enactment of this Act, the Millennium Challenge 

4 Corporation shall submit to the appropriate congressional 

5 committees a study assessing the feasibility and desirability 

6 of developing partnerships at the subnational level within 

7 candidate countries that would be complementary to, and, 

8 where applicable, concurrent with, any Millennium Chal9 lenge Corporation national-level or regional investments. 

10 (b) CONTENT.—The study required under subsection 

11 (a) shall examine, at a minimum, the following issues: 

12 (1) The extent to which targeting investments at 

13 the subnational level might provide new opportunities 

14 for reducing poverty through economic growth. 

15 (2) The extent to which traditional approaches to 

16 defining poverty may not adequately capture the na17 ture of poverty within a country. 

18 (3) What types of subnational entities might be 

19 appropriate partners for subnational Millennium 

20 Challenge Corporation compacts, how such candidates 

21 might best be identified, and what role each national 

22 government should play in creating or implementing 

23 a subnational partnership. 

24 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE25 FINED.—In this section, the term ‘‘appropriate congres26 sional committees’’ means— 


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1 (1) the Committee on Foreign Relations and the 

2 Committee on Appropriations of the Senate; and 

3 (2) the Committee on Foreign Affairs and the 

4 Committee on Appropriations of the House of Rep5 resentatives. 


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Calendar No. 534 

114TH CONGRESS 

2D SESSION S. 1605 

A BILL 

To amend the Millennium Challenge Act of 2003 to 

collaborations, and for other purposes. regional economic integration and cross-border authorize concurrent compacts for purposes of 

JUNE 28, 2016 

Reported with an amendment 


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