To adapt the lessons of foreign aid to underdeveloped economies to the provision of Federal economic development assistance to similarly situated remote Native American communities, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Native American Challenge 
Demonstration Project Act of 2007''.

SEC. 2. PURPOSES.

    The purposes of this Act are to--
            (1) adapt the lessons of foreign aid to underdeveloped 
        economies, such as the experience of the Millennium Challenge 
        Corporation, to the provision of Federal economic development 
        assistance to similarly situated remote Native American 
        communities;
            (2) provide Federal economic development assistance for 
        Native communities through the Native American Challenge 
        Demonstration Project;
            (3) administer Federal economic development assistance in a 
        manner that promotes economic growth and the elimination of 
        poverty and strengthens good governance, entrepreneurship, and 
        investment in Native communities;
            (4) improve the effectiveness of Federal economic 
        development assistance by encouraging the integration and 
        coordination of such assistance in Native American communities;
            (5) promote sustainable economic growth and poverty 
        reduction policies in Native American communities in a manner 
        that promotes self-determination and self-sufficiency among 
        remote Native American communities while preserving their 
        cultural values; and
            (6) establish a demonstration project which, if successful, 
        may be broadly applied to other Native American communities in 
        the United States.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Eligible entity.--The term `` eligible entity'' means--
                    (A) the Association of Village Council Presidents, 
                the Bristol Bay Native Association, and the Alaska 
                Federation of Natives applying jointly;
                    (B) in the State of Hawaii, a consortia of local 
                Native Hawaiian community organizations to be 
                determined by the Secretary in consultation with the 
                Secretary of Interior and the Office of Hawaiian 
                Affairs; and
                    (C) in the contiguous states, up to three 
                organizations to be determined by the Secretary in 
                consultation with the Secretary of the Interior, which 
                organizations may be Indian tribes, consortia of Indian 
                tribes, or nongovernmental entities authorized by one 
                or more Indian tribes.
            (2) Compact.--The term ``compact'' means a binding 
        agreement with the United States pursuant to this Act.
            (3) Economic development strategy of the eligible entity.--
        The term ``economic development strategy of the eligible 
        entity'' means a strategy written by the eligible entity and 
        designed to achieve sustainable economic growth and reduce 
        poverty over a defined period, developed in consultation with 
        public and private sector entities as appropriate to the 
        geographic area and intended beneficiaries of the compact.
            (4) Indian tribe.--The term ``Indian tribe'' shall have the 
        meaning given the term in section 4(e) of the Indian Self 
        Determination and Education Assistance Act (25 U.S.C. 450 et 
        seq.).
            (5) Renewal.--The term ``renewal'' means the negotiated 
        extension of a compact.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce, Office of the Secretary.

SEC. 4. NATIVE AMERICAN MILLENNIUM CHALLENGE DEMONSTRATION PROJECT.

    (a) Establishment.--The Secretary shall establish and implement a 
demonstration project in the Department of Commerce.
    (b) Authorization of Assistance.--The Secretary may provide 
assistance under this section to an eligible entity that enters a 
compact with the United States pursuant to this Act.
    (c) Form of Assistance.--Assistance under this section--
            (1) shall be provided in the form of funding agreements 
        established by the compacts;
            (2) may not be provided in the form of loans; and
            (3) may not be used for gaming activities pursuant to the 
        Indian Gaming Regulatory Act (25 USC 2701 et seq.).
    (d) Coordination.--
            (1) In general.--The provision of assistance under this 
        section shall be coordinated with other Federal economic 
        development assistance programs for Native Americans.
            (2) Integrated funding.--The Secretary, in cooperation with 
        other Secretaries as appropriate, shall, upon execution of a 
        compact with an eligible entity, authorize the eligible entity 
        to coordinate its federally funded economic development 
        assistance programs in a manner that integrates the program 
        services into a single, coordinated program.
            (3) Agencies and departments.--The Federal agencies and 
        departments administering economic development assistance 
        programs for Native Americans are the following:
                    (A) Department of Agriculture.
                    (B) Department of Commerce.
                    (C) Department of Energy.
                    (D) Department of Health and Human Services.
                    (E) Department of Housing and Urban Development.
                    (F) Department of the Interior.
                    (G) Small Business Administration.
                    (H) Such other Federal agencies and 
                instrumentalities as the Secretary determines 
                appropriate.
    (e) Programs Affected.--The programs that may be integrated 
pursuant to this Act shall include any program under which an Indian 
tribe is eligible for receipt of funds under a statutory or 
administrative formula for economic development purposes.
    (f) Waiver Authority.--Upon receipt of the executed compact, the 
Secretary shall consult with the eligible entity and the Secretary of 
each Federal agency or department providing funds to be used to 
implement the compact in order to identify any waivers of statutory 
requirements or applicable regulations, policies, or procedures 
necessary to enable the eligible entity to implement its compact.

SEC. 5. NATIVE AMERICAN CHALLENGE COMPACTS.

    (a) Compacts.--The Secretary shall develop and recommend procedures 
for considering proposals for compacts submitted by eligible entities. 
The Secretary may provide assistance to an eligible entity only if the 
eligible entity enters into an agreement with the United States, to be 
known as a ``Native American Challenge Compact'', that establishes a 
multi-year plan for achieving development objectives in furtherance of 
the purposes of this Act.
    (b) Eligible Entities-Criteria for Selection.--The Secretary shall 
develop an application process and criteria for selecting the eligible 
entities, taking into account--
            (1) the purposes of this Act;
            (2) the economic development strategy of the eligible 
        entity;
            (3) the remoteness of the reservation or community to be 
        served;
            (4) its general economic status;
            (5) poverty rates; and
            (6) the capacity of the applicant.
    (c) Assistance for Development of a Compact.--To the extent that 
funds have been appropriated in advance and are available for this 
section, the Secretary may enter into contracts with or make grants to 
any eligible entity for the purposes of facilitating the development 
and implementation of a compact between the United States and the 
eligible entity.
    (d) Duration and Extension.--The term of an initial compact may not 
exceed five years. An eligible entity and the United States may enter 
into one or more subsequent compacts in accordance with the 
requirements of this Act. If a compact is nearing its expiration or has 
expired, the eligible entity and the United States may renegotiate or 
extend the compact for as many periods as the parties agree, with each 
period not exceeding 10 years.
    (e) Application.--The Secretary shall develop and recommend 
procedures for considering proposals for compacts submitted by eligible 
entities.
    (f) Elements.--In furtherance of the economic development strategy 
of the eligible entity, the compact shall contain--
            (1) a description of the specific objectives for 
        sustainable economic development and the reduction of poverty 
        that the eligible entity and the United States expect to 
        achieve during the term of the compact;
            (2) a description of the respective roles and 
        responsibilities of the eligible entity and the United States 
        in the achievement of such objectives;
            (3) a list and description of regular benchmarks to measure 
        progress toward achieving such objectives;
            (4) an identification of the intended beneficiaries, 
        disaggregated by income level, gender, and age, to the maximum 
        extent practical; and
            (5) a multi-year financial plan to guide the implementation 
        of the compact, including the estimated level of funding and 
        other contributions by the United States and the eligible 
        entity, proposed mechanisms to execute the plan, and periodic 
        assessments to determine whether the requirements of 
        subparagraphs (1) through (4) are being met.
    (g) Suspension and Termination of Assistance.--
            (1) In general.--The Secretary may suspend or terminate 
        assistance in whole or in part for an entity that has entered a 
        compact with the United States if the Secretary determines 
        that--
                    (A) the entity has failed to adhere to its 
                responsibilities under the compact, or
                    (B) the entity has engaged in a pattern of actions 
                inconsistent with the purposes of this Act.
    (h) Reinstatement.--The Secretary may reinstate assistance for an 
entity only if the Secretary determines that the entity has 
demonstrated a commitment to correcting each condition for which 
assistance was suspended or terminated under subsection (f).

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this Act $20,000,000 for each of fiscal years 2008 through 2012. 
Any funds authorized but not appropriated may be appropriated in 
subsequent fiscal years, provided that the cumulative level of funds 
authorized to be appropriated for Fiscal Year 2008 through 2012 shall 
not exceed $100,000,000. Sums appropriated under this section shall 
remain available until expended.
    (b) Administrative Funds.--Of the funds made available by this Act, 
no more than 5 percent may be used by the Secretary for administrative 
expenses and program oversight.

SEC. 7. PROGRAM ASSESSMENTS AND REPORTS.

    (a) Reports of Eligible Entities.--Not later than March 15, 2008, 
and annually thereafter, each the eligible entity shall prepare and 
submit to the Secretary a written report regarding the assistance 
provided under this Act during the previous fiscal year.
    (b) Report Contents.--A report required under subsection (a) shall 
include the following:
            (1) The amount of obligations and expenditures for 
        assistance provided during the prior fiscal year.
            (2) A description of the programs and activities conducted 
        by the entity in furtherance of its economic development 
        strategy and the purposes of this Act.
            (3) An assessment of the effectiveness of the assistance 
        provided and progress made by the entity toward achieving its 
        economic development strategy and the purposes of this Act.
            (4) Other information the eligible entity considers 
        relevant considering the purposes of this Act.
    (c) Transmittal to Congress.--Not later than May 15, 2008, and 
annually thereafter, the Secretary shall transmit reports required 
under subsection (a), with such other information the Secretary 
considers relevant, to the Committee on Energy and Commerce and the 
Committee on Natural Resources in the House of Representatives, and the 
Committee on Indian Affairs, the Committee on Commerce, Science, and 
Transportation, and the Committee on Energy and Natural Resources in 
the Senate.

Summary: Native American Challenge Demonstration Project Act of 2007 - Directs the Secretary of Commerce to establish and implement the Native American Challenge Demonstration Project through which federal economic development assistance may be provided for certain Native American communities. Authorizes the Secretary to provide such assistance to eligible entities that enter into Native American Challenge Compacts with the United States pursuant to this Act.

Requires that Compacts establish a multi-year plan for achieving development objectives in furthering the purposes of this Act, including to adapt the lessons of foreign aid to underdeveloped economies to the provision of federal economic development assistance to similarly situated remote Native American communities.