Proposed Legislative Changes

MCC appreciates the congressional support it has received to improve aspects of the partner country selection process to make the eligibility pool more stable. As part of MCC’s continuous efforts to efficiently and effectively pursue its mission, the FY 2015 budget proposes the legislative changes described below.

  • Authority for the Board to extend the duration of a compact from up to five years to up to six years due to exceptional circumstances. MCC’s experience shows that providing a limited ability to extend a compact for up to one year under well‐defined, justified circumstances would be consistent with good development practice and the effective stewardship of U.S. taxpayer funds. MCC believes that having this authority, which would be exercised by the Board only in exceptional circumstances and well after implementation has started, could enhance the impact and sustainability of our investments in select cases. The ability to grant limited, short‐term extensions to MCC’s five‐year compact term under select circumstances would be very useful in completing civil works and other programs that experience unforeseeable delays.
  • Authority for nongovernmental MCC Board members to serve until a successor is appointed. MCC’s Board of Directors consists of nine members, five from the USG and four nongovernmental members, with at least one nongovernmental member required for a quorum. To promote continuity and ensure the presence of a quorum, MCC is seeking a legislative change to allow nongovernmental members to remain on the Board for one year after their term expires or until, in the case of members serving their first terms, they have been confirmed for a second term, or their successor has been confirmed. This approach is widely used by other USG boards, and its need was highlighted in December 2010 when MCC’s Board could not achieve a quorum to select compact-eligible countries for FY 2011 because the terms of its nongovernmental Board members had expired before a new member had been confirmed.
  • Deletion of the provision for an interim Chief Executive Officer (CEO). A presidential memorandum, dated May 21, 2012, designates an order of succession for MCC officials to act as CEO and is sufficient to provide leadership during the vacancy of the office of CEO.