[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2152 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 2152

  To promote United States policy objectives in Syria, including the 
  departure from power of President Bashar Assad and his family, the 
effective transition to a democratic, free, and secure country, and the 
               promotion of a prosperous future in Syria.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 2, 2012

   Mr. Rubio introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To promote United States policy objectives in Syria, including the 
  departure from power of President Bashar Assad and his family, the 
effective transition to a democratic, free, and secure country, and the 
               promotion of a prosperous future in Syria.

    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 ``Syria Democracy 
Transition Act of 2012''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Findings.
Sec. 4. Statement of policy.
          TITLE I--ACCELERATING THE PACE OF REGIME TRANSITION

Sec. 101. Imposition of sanctions on foreign financial institutions 
                            that conduct transactions with the Central 
                            Bank of Syria.
Sec. 102. Exportation of petroleum, oil, and natural gas produced in 
                            Syria.
Sec. 103. Prohibition on certain vessels landing in the United States; 
                            enhanced inspections.
Sec. 104. Promotion of multilateral action at the United Nations.
              TITLE II--PROMOTING AN EFFECTIVE TRANSITION

Sec. 201. Report on opposition groups.
Sec. 202. Identification and disposition of weapons.
Sec. 203. Transition funding and termination of sanctions.
Sec. 204. Designating an official coordinator.
                TITLE III--CREATING A PROSPEROUS FUTURE

Sec. 301. Syrian-American Enterprise Fund.
Sec. 302. Additional measures to stimulate economic growth in Syria.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Account; correspondent account; payable-through 
        account.--The terms ``account'', ``correspondent account'', and 
        ``payable-through account'' have the meanings given those terms 
        in section 5318A of title 31, United States Code.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Finance, the Committee on 
                Banking, Housing, and Urban Affairs, and the Committee 
                on Foreign Relations of the Senate; and
                    (B) the Committee on Ways and Means, the Committee 
                on Financial Services, and the Committee on Foreign 
                Affairs of the House of Representatives.
            (3) Foreign financial institution.--The term ``foreign 
        financial institution'' has the meaning of that term as 
        determined by the Secretary of the Treasury pursuant to section 
        104(i) of the Comprehensive Iran Sanctions, Accountability, and 
        Divestment Act of 2010 (22 U.S.C. 8513(i)).

SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) On December 12, 2003, President George W. Bush signed 
        the Syria Accountability and Lebanese Sovereignty Restoration 
        Act of 2003 (Public Law 108-175; 22 U.S.C. 2151 note) in order 
        to hold the Government of Syria accountable for its actions.
            (2) Current law in the United States prohibits the 
        Government of Syria from receiving assistance from the United 
        States because it has repeatedly provided support for acts of 
        international terrorism, as determined by the Secretary of 
        State for purposes of section 6(j)(1) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)) (as in 
        effect pursuant to the International Emergency Economic Powers 
        Act (50 U.S.C. 1701 et seq.)) and other related statutes.
            (3) In 2006, the Department of the Treasury issued a final 
        ruling that imposes a special measure against the Commercial 
        Bank of Syria, a quasi-government bank, as a financial 
        institution of primary money laundering concern.
            (4) Since mass peaceful demonstrations started on March 15, 
        2011, the Government of Syria, led by President Bashar al-
        Assad, has responded by launching a violent crackdown, 
        committing human rights abuses, and violating its international 
        obligations, including the International Covenant on Civil and 
        Political Rights, adopted December 16, 1966, and the United 
        Nations Convention Against Torture and Other Cruel, Inhuman or 
        Degrading Treatment or Punishment, done at New York December 
        10, 1984.
            (5) On April 15, 2011, Christof Heyns, the United Nations 
        Special Rapporteur on extrajudicial, summary, or arbitrary 
        executions, stated that live ammunition has been used by the 
        Government of Syria against demonstrators ``in clear violation 
        of international law''.
            (6) On April 29, 2011, President Barack Obama issued 
        additional sanctions with respect to Syria, stating that ``the 
        Government of Syria's human rights abuses, including those 
        related to the repression of the people of Syria, manifested 
        most recently by the use of violence and torture against, and 
        arbitrary arrests and detentions of, peaceful protestors by 
        police, security forces, and other entities that have engaged 
        in human rights abuses, constitute an unusual and extraordinary 
        threat to the national security, foreign policy, and economy of 
        the United States''.
            (7) On May 6, 2011, envoys of the 27 countries of the 
        European Union agreed to impose sanctions on the Government of 
        Syria for the human rights abuses it is perpetrating, including 
        asset freezes and visa bans on 13 members of the Government of 
        Syria and an arms embargo on the country.
            (8) On May 18, 2011, President Obama issued an executive 
        order sanctioning senior officials of the Syrian Arab Republic 
        and their supporters, specifically designating seven people: 
        President Bashar al-Assad, Vice President Farouk al-Shara, 
        Prime Minister Adel Safar, Minister of the Interior Mohammad 
        Ibrahim al-Shaar, Minister of Defense Ali Habib Mahmoud, Head 
        of Syrian Military Intelligence Abdul Fatah Qudsiya, and 
        Director of Political Security Directorate Mohammed Dib 
        Zaitoun.
            (9) On June 29, 2011, the Department of the Treasury 
        sanctioned the chief and deputy chief of Iran's national police 
        and the head of the Syrian Air Force Intelligence for providing 
        support to the Government of Syria in engaging in human rights 
        abuses.
            (10) In July 2011, supporters of President Bashar al-Assad 
        attacked the embassies of the United States and France, 
        following demonstrations sanctioned by the Government of Syria 
        outside the embassy of the United States.
            (11) On August 11, 2011, the Department of the Treasury's 
        Office of Foreign Asset Control named the Commercial Bank of 
        Syria, a quasi-government bank, a Specially Designated 
        National. With this designation, all property and assets of the 
        bank in the United States or under control of United States 
        persons, including overseas branches, were frozen.
            (12) On August 18, 2011, President Obama stated, ``The 
        future of Syria must be determined by its people, but President 
        Bashar al-Assad is standing in their way. His calls for 
        dialogue and reform have rung hollow while he is imprisoning, 
        torturing and slaughtering his own people. We have consistently 
        said that President Assad must lead a democratic transition or 
        get out of the way. He has not led. For the sake of the Syrian 
        people, the time has come for President Assad to step aside.''.
            (13) On November 12, 2011, the Arab League voted to suspend 
        Syria from membership, based on continuing violence and 
        inability to adhere to a League-brokered plan.
            (14) On November 15, 2011, King Abdullah of Jordan became 
        the first Arab leader to openly urge Mr. Assad to step down, 
        saying President Assad should ``step down and make sure whoever 
        comes behind me has the ability to change the status quo that 
        we're seeing''.
            (15) On November 28, 2011, a report from the United 
        Nations-backed Independent International Commission of Inquiry 
        on Syria concluded that ``the substantial body of evidence 
        gathered by the commission indicates that these gross 
        violations of human rights have been committed by Syrian 
        military and security forces since the beginning of the 
        protests in March''.
            (16) On January 17, 2012, President Obama made the 
        following statement: ``We will continue to consult very closely 
        with Jordan to create the kind of international pressure and 
        environment that encourage the current Syrian regime to step 
        aside so that a more democratic process and transition can take 
        place inside of Syria.''.
            (17) On January 30, 2012, Secretary of State Hillary 
        Clinton said that ``the status quo is unsustainable; the longer 
        the Assad regime continues its attacks on the Syrian people and 
        stands in the way of a peaceful transition, the greater the 
        concern that instability will escalate and spill over 
        throughout the region''.
            (18) On January 28, 2012, the League of Arab States decided 
        to suspend its international monitoring mission due to 
        escalating violence within Syria.
            (19) On February 4, 2012, the Russian Federation and 
        People's Republic of China vetoed a United Nations Security 
        Council Resolution in support of the League of Arab States' 
        Plan of Action.
            (20) On February 13, 2012, the United Nation's High 
        Commissioner for Human Rights said, ``The failure of the 
        Security Council to agree on firm collective action appears to 
        have emboldened the Syrian government to plan an all-out 
        assault in an effort to crush resistance with overwhelming 
        force.''.
            (21) As of February 13, 2012, the United Nation estimates 
        security forces of the Government of Syria have killed well 
        above 5,400 people, with tens of thousands, including children, 
        arrested and more than 18,000 reportedly still arbitrarily held 
        in detention. Approximately 25,000 people have sought refuge in 
        other countries, and more than 70,000 are estimated to have 
        been internally displaced.

SEC. 4. STATEMENT OF POLICY.

    It is the policy of the United States--
            (1) to strongly condemn the ongoing, widespread, and 
        systemic violations of human rights conducted by the 
        authorities in Syria, including the use of force against 
        civilians, torture, extrajudicial killings, arbitrary 
        executions, sexual violence, and interference with access to 
        medical treatment;
            (2) to support the aspirations of the people of Syria for 
        self-government based on democratic political, civil, and 
        religious rights;
            (3) to assure the departure from power of Bashar al-Assad 
        and his family, and facilitate a peaceful transition to a 
        representative and inclusive government that ensures freedom, 
        justice, and prosperity for all the people of Syria;
            (4) to promote an effective transition to democracy by 
        identifying and supporting organizations in Syria that are 
        representative of the Syrian people, make demonstrable 
        commitments to protect human rights, and religious freedom, 
        reject terrorism, cooperate with international counterterrorism 
        and nonproliferation efforts, and abstain from destabilizing 
        neighboring countries;
            (5) to identify weapons stockpiles and prevent the 
        proliferation of conventional, biological, chemical, and other 
        types of weapons in Syria; and
            (6) to mobilize international support for a post-Assad 
        democratic and inclusive Government of Syria.

          TITLE I--ACCELERATING THE PACE OF REGIME TRANSITION

SEC. 101. IMPOSITION OF SANCTIONS ON FOREIGN FINANCIAL INSTITUTIONS 
              THAT CONDUCT TRANSACTIONS WITH THE CENTRAL BANK OF SYRIA.

    (a) In General.--Subject to subsections (b), (c), and (d), not 
later than 60 days after the date of the enactment of this Act, the 
President shall--
            (1) prohibit the opening or maintaining in the United 
        States of a correspondent account or a payable-through account 
        by a foreign financial institution that the President 
        determines has knowingly conducted any financial transaction 
        with the Central Bank of Syria; and
            (2) freeze and prohibit all transactions in all property 
        and interests in property of each such foreign financial 
        institution if such property and interests in property are in 
        the United States or are in the possession or control of a 
        United States person.
    (b) Exception for Sales of Food, Medicine, and Medical Devices.--
The President may not impose sanctions under subsection (a) on a 
foreign financial institution for engaging in a transaction with the 
Central Bank of Syria for the sale of food, medicine, or medical 
devices to Syria.
    (c) Applicability.--
            (1) In general.--Except as provided in paragraph (2), 
        subsection (a) applies with respect to financial transactions 
        commenced on or after the date of the enactment of this Act.
            (2) Petroleum transactions.--Subsection (a) applies with 
        respect to financial transactions for the purchase of petroleum 
        or petroleum products through the Central Bank of Syria 
        commenced on or after the date that is 180 days after the date 
        of the enactment of this Act.
    (d) Waiver.--
            (1) In general.--The President may waive the application of 
        subsection (a) with respect to a foreign financial institution 
        for a period of not more than 60 days, and may renew that 
        waiver for additional periods of not more than 60 days, if the 
        President determines and reports to the appropriate 
        congressional committees every 60 days that the waiver is 
        necessary to the national security interest of the United 
        States.
            (2) Form.--A report submitted pursuant to paragraph (1) 
        shall be submitted in unclassified form, but may contain a 
        classified annex.

SEC. 102. EXPORTATION OF PETROLEUM, OIL, AND NATURAL GAS PRODUCED IN 
              SYRIA.

    (a) Sanctions.--
            (1) In general.--Except as provided in subsection (c), 
        beginning 60 days after the date of the enactment of this Act, 
        the President shall impose the sanctions described in section 
        6(a) of the Iran Sanctions Act of 1996 (Public Law 104-172; 50 
        U.S.C. 1701 note) with respect to a person if the President 
        determines that the person knowingly, on or after the date of 
        the enactment of this Act, provides any service described in 
        subsection (b) with respect to the exportation of petroleum, 
        oil, or liquefied natural gas to be refined or otherwise 
        processed outside of Syria if--
                    (A) the Government of Syria was directly and 
                significantly involved in the development, extraction, 
                production, transportation, or sale of such petroleum, 
                oil, or liquefied natural gas in Syria; and
                    (B)(i) the fair market value of such petroleum, 
                oil, or liquefied natural gas is $1,000,000 or more; or
                    (ii) during a 12-month period, the aggregate fair 
                market value of such petroleum, oil, or liquefied 
                natural gas is $5,000,000 or more.
            (2) Sanctioned persons.--The sanctions imposed on a person 
        under paragraph (1) shall also be imposed on any person against 
        which such sanctions may be imposed in accordance with section 
        5(c) of the Iran Sanctions Act of 1996 (Public Law 104-172; 50 
        U.S.C. 1701 note) as a result of the person's relationship with 
        the sanctioned person.
    (b) Services Described.--The services described in this subsection 
are--
            (1) refining or otherwise processing petroleum, oil, or 
        liquefied natural gas;
            (2) the provision of ships or shipping services; or
            (3) financing, brokering, underwriting, or providing 
        insurance or reinsurance.
    (c) Exception for Underwriters and Insurance Providers Exercising 
Due Diligence.--The President may not impose sanctions under this 
section with respect to a person on the basis of underwriting services 
or insurance or reinsurance provided by the person if the President 
determines that the person has exercised due diligence in establishing 
and enforcing official policies, procedures, and controls to ensure 
that the person does not underwrite or enter into a contract to provide 
insurance or reinsurance with respect to the exportation of petroleum, 
oil, or liquefied natural gas in violation of subsection (a).

SEC. 103. PROHIBITION ON CERTAIN VESSELS LANDING IN THE UNITED STATES; 
              ENHANCED INSPECTIONS.

    (a) Prohibition on Certain Vessels Landing in the United States.--A 
vessel may not knowingly land at any port in the United States to load 
or unload cargo or engage in the trade of goods or services if the 
vessel entered a port in Syria during the 180-day period preceding 
arrival of the vessel at the port in the United States.
    (b) Enforcement; Enhanced Inspections.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of Homeland 
Security, in consultation with the Secretary of the Treasury and the 
Secretary of Commerce, shall prescribe regulations that--
            (1) require each vessel requesting to land at a port in the 
        United States to certify that the vessel is not prohibited from 
        landing at that port under subsection (a);
            (2) provide for, with respect to any vessel that provides a 
        false certification under paragraph (1)--
                    (A) the prohibition, for a period of 2 years, on 
                that vessel landing at a port in the United States; or
                    (B) the prosecution of the owner of that vessel 
                under title 18, United States Code, if the penalty 
                provided for under such title is greater than the 
                penalty described in subparagraph (A);
            (3) provide a mechanism for identifying foreign ports at 
        which vessels have landed during the preceding 180-day period 
        that have also landed at ports in Syria during that period;
            (4) require enhanced inspection of all vessels arriving at 
        a port in the United States from a foreign port identified 
        under paragraph (3); and
            (5) set forth procedures for inspecting each vessel 
        described in paragraph (4) that are sufficiently rigorous to 
        establish whether the vessel was involved, during the 180-day 
        period preceding the arrival of the vessel at the port in the 
        United States, in any activity that would be subject to 
        sanctions under this Act or any other provision of law.
    (c) National Security Waiver.--The Secretary of Homeland Security, 
in consultation with the Secretary of the Treasury and the Secretary of 
Commerce, may waive the application of subsections (a) and (b) with 
respect to a vessel not earlier than 30 days after the Secretary of 
Homeland Security--
            (1) determines that the waiver is in the national security 
        interests of the United States; and
            (2) submits to the appropriate congressional committees a 
        report describing the reasons for the determination.
    (d) Port Defined.--For purposes of this section, the term ``port'' 
means a seaport.

SEC. 104. PROMOTION OF MULTILATERAL ACTION AT THE UNITED NATIONS.

    The President shall use the voice, vote, and influence of the 
United States at the United Nations Security Council to urge the 
Security Council to adopt resolutions--
            (1) freezing the assets of, and imposing a travel ban on, 
        all officials within the regime of Bashar Assad and all family 
        members of Mr. Assad;
            (2) implementing a ban on passenger flights to and from 
        Syria; and
            (3) restricting the shipment of goods to or from Syria, 
        including the insurance of such shipments.

              TITLE II--PROMOTING AN EFFECTIVE TRANSITION

SEC. 201. REPORT ON OPPOSITION GROUPS.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the President shall submit to the appropriate 
congressional committees a report on opposition groups in Syria.
    (b) Content.--The report required under subsection (a) shall 
include--
            (1) an assessment of ties between these groups and any 
        designated foreign terrorist organizations and individuals that 
        pose a threat to the United States and its allies, and an 
        assessment of the potential of these groups to serve as part of 
        a recognized transitional government, including the Syrian 
        National Council (SNC), the National Coordination Commission of 
        the Forces of Democratic Change (NCC), the Free Syrian Army, 
        and the Free Officers Movement; and
            (2) an assessment of the military capacity of opposition 
        forces in Syria, including organization, quality and quantity 
        of armaments, and need for and capability of utilizing 
        assistance.

SEC. 202. IDENTIFICATION AND DISPOSITION OF WEAPONS.

    Not later than 30 days after the date of the enactment of this Act, 
the President shall provide a briefing to the appropriate congressional 
committees on--
            (1) all known weapons stockpiles of the Government of 
        Syria, with particular focus on biological, chemical, 
        radiological, and nuclear weapons and missiles; and
            (2) a plan for the identification, recovery, and 
        disposition of such weapons.

SEC. 203. TRANSITION FUNDING AND TERMINATION OF SANCTIONS.

    (a) Termination of Sanctions.--The requirements under sections 101, 
102, and 103 to impose sanctions shall no longer have force or effect 
with respect to Syria if the President determines and certifies to the 
appropriate congressional committees that--
            (1) President Bashar Assad has been removed from power in 
        Syria;
            (2) a democratic transitional authority is in place in 
        Syria; and
            (3) the Government of Syria has--
                    (A) ended its campaign of violence against the 
                people of Syria;
                    (B) ceased support for international terrorist 
                groups and terrorist activities in Iraq, and has been 
                removed from the Department of State list of state 
                sponsors of terrorism under section 6 of the Export 
                Administration Act (50 U.S.C. App. 2405(j) (as 
                continued in effect pursuant to the International 
                Emergency Economic Powers Act; 50 U.S.C. 1701 et 
                seq.)), section 40 of the Arms Export Control Act (22 
                U.S.C. 2780), and section 620A of the Foreign 
                Assistance Act of 1961 (22 U.S.C. 2371); and
                    (C) complied with Syria's commitments under 
                relevant multilateral proliferation control regimes.
    (b) Assistance To Support Democratic Transition.--Upon making the 
certification described in subsection (a), the President may establish 
a $50,000,000 Syrian Stabilization Fund, to be drawn from amounts made 
available for Economic Support Fund assistance and Non-proliferation, 
Anti-terrorism, Demining, and Related programs assistance, to help 
support opposition groups and provide for the recovery, identification, 
and destruction of weapons in Syria.
    (c) Notification Requirement.--Not later than 30 days after making 
the certification described in subsection (a), the President shall 
submit to the appropriate congressional committees a report detailing 
the assets frozen under section 101 and describing the criteria for 
releasing such assets.

SEC. 204. DESIGNATING AN OFFICIAL COORDINATOR.

    The President shall expand the role of the Department of State's 
Special Coordinator for Middle East Transitions to include Syria for 
purposes of assisting in providing the certification under section 
203(a) and coordinating transition efforts in Syria.

                TITLE III--CREATING A PROSPEROUS FUTURE

SEC. 301. SYRIAN-AMERICAN ENTERPRISE FUND.

    (a) Findings.--Congress makes the following findings:
            (1) The Support for East European Democracy (SEED) Act of 
        1989 (22 U.S.C. 5401 et seq.) created 10 Enterprise Funds with 
        the expressed purpose of transforming the entrenched command 
        economies of the former Soviet Union to free markets through 
        capital injections in new businesses.
            (2) These Enterprise Funds represented a new way of 
        delivering economic assistance, placing pools of public capital 
        into the hands of private investment professionals to finance 
        entrepreneurs on a traditional business-to-business basis.
            (3) The first Fund created, the Polish-American Enterprise 
        Fund, made 50 equity investments totaling $243,000,000, over 
        10,000 small business loans and 125,000 micro loans, and 
        eventually created a net asset base of $374,000,000.
            (4) Upon the closing of the Polish-American Enterprise 
        Fund, for the first time in the history of United States 
        foreign aid, a portion of the funds, $120,000,000, or half of 
        the initial grant, was returned to the United States taxpayer. 
        The balance of the remaining assets, with the consent of 
        Congress and with the approval of the Government of Poland, was 
        transferred to the Polish-American Freedom Foundation 
        established by the Fund to further support the system 
        transformation in Poland.
            (5) Subsequent funds included the following:
                    (A) The Hungarian-American Enterprise Fund, 
                capitalized at $63,000,000 with an eventual net asset 
                base of $28,000,000.
                    (B) The Czech and Slovak-American Enterprise Fund, 
                capitalized at $58,000,000 with an eventual net asset 
                base of $6,000,000.
                    (C) The Bulgarian-American Enterprise Fund, 
                capitalized at $54,000,000 with an eventual net asset 
                base of $404,000,000.
                    (D) The Baltic-American Enterprise Fund, 
                capitalized at $50,000,000 with an eventual net asset 
                base of $62,000,000.
                    (E) The Romanian-American Enterprise Fund, 
                capitalized at $58,000,000 with an eventual net asset 
                base of $150,000,000.
                    (F) The Albanian-American Enterprise Fund, 
                capitalized at $30,000,000 with an eventual net asset 
                base of $171,000,000.
                    (G) The Western New Independent States Enterprise 
                Fund, capitalized at $139,000,000 with an eventual net 
                asset base of $90,000,000.
                    (H) The Central Asian-American Enterprise Fund, 
                capitalized at $105,000,000 with an eventual net asset 
                base of $17,000,000.
                    (I) The United States-Russia Investment Fund, 
                capitalized at $307,000,000 with an eventual net asset 
                base of $297,000,000.
            (6) Overall, the 10 funds received capital of 
        $1,105,000,000, and created total net assets of $1,612,000,000, 
        for a return on the initial investment of 144 percent. Six of 
        these funds returned a portion of their public-sourced capital 
        to the United States Treasury and established charitable legacy 
        foundations, whose collective capital totals $652,000,000. 
        These foundations allow for development activities to continue 
        long after the initial funds have been closed.
    (b) Establishment.--The President is authorized to designate a 
private, nonprofit organization (to be known as the ``Syrian-American 
Enterprise Fund'') to receive funds and support made available under 
this section after making the certification in section 203(a) and 
determining that such organization has been established for the 
purposes specified in subsection (c). The President should make such 
designation only after consultation with the leadership of each House 
of Congress.
    (c) Purposes.--The purposes of the Syrian-American Enterprise Fund 
are--
            (1) to help support sustainable, equitable, and broad-based 
        economic growth that generates business and job creation and 
        improves the livelihoods of the people of Syria;
            (2) to promote the private sector and entrepreneurship in 
        Syria, while considering the development impact of investments 
        and profitability of those investments, particularly in small- 
        and medium-sized enterprises, and joint ventures with 
        participants from the United States and Syria;
            (3) to promote policies and practices conducive to 
        strengthening the private sector in Syria through measures 
        including loans, microloans, equity investments, insurance, 
        guarantees, grants, feasibility studies, technical assistance, 
        training for businesses receiving investment capital, and other 
        measures;
            (4) to promote good corporate governance and transparency 
        in Syria, foster competition, catalyze productivity 
        improvements in existing businesses, and strengthen local 
        capital markets; and
            (5) to promote security through the creation of viable 
        private business, which support job creation in the private 
        sector in Syria, and to further the creation of a middle class 
        in Syria.
    (d) Board of Directors.--
            (1) Appointment.--The Syrian-American Enterprise Fund shall 
        be governed by a Board of Directors, which shall be comprised 
        of 6 private citizens of the United States and 3 private 
        citizens of Syria, appointed by the President of the United 
        States.
            (2) Qualifications.--Members of the Board of Directors 
        shall be selected from among people who have had successful 
        business careers in private equity, banking, or finance that is 
        similar to the experience of individuals who previously served 
        on the Board of Directors of a successful Enterprise Fund 
        established by the United States Government on or after January 
        1, 1990.
    (e) Grants.--
            (1) In general.--The President may use funds appropriated 
        for the Department of State, foreign operations, and related 
        programs, notwithstanding any other provision of law to carry 
        out the purposes specified in subsection (c) through the 
        Syrian-American Enterprise Fund.
            (2) Eligible programs and projects.--Grants awarded under 
        this section may only be used for programs and projects that 
        support the purposes set forth in subsection (c).
            (3) Compliance requirements.--
                    (A) In general.--Grants may not be awarded to the 
                Syrian-American Enterprise Fund under this section 
                unless the Fund agrees to comply with the requirements 
                under this section.
                    (B) Grant agreement.--The grant agreement between 
                the United States Agency for International Development 
                and the Syrian-American Enterprise Fund shall state 
                that the Fund shall end its reinvestment cycle not 
                later than 15 years after the Fund commences 
                operations, unless the Secretary of State, in 
                consultation with the Administrator of the United 
                States Agency for International Development, and after 
                consultation with the appropriate congressional 
                committees, determines that the Fund should be 
                extended.
                    (C) Prevention of money laundering and terrorist 
                financing.--The grant agreement between the United 
                States Agency for International Development and the 
                Syrian-American Enterprise Fund shall state that the 
                Fund shall comply with procedures specified by the 
                Secretary of State to ensure that grant funds are not 
                provided by the Fund to or through any individual, 
                private or government entity, or educational 
                institution that advocates, plans, sponsors, engages 
                in, or has engaged in, money laundering or terrorist 
                activity or, with respect to a private entity or 
                educational institution, that has as a principal 
                officer of the entity's governing board or governing 
                board of trustees any individual that has been 
                determined to be involved in or advocating money 
                laundering or terrorist activity or determined to be a 
                member of a designated foreign terrorist organization.
                    (D) Disposition of assets.--The assets of the 
                Syrian-American Enterprise Fund at the time the Fund is 
                dissolved shall be returned to the General Fund of the 
                United States Treasury and used to reduce the debt of 
                the United States. In the event the assets of the Fund 
                exceed the total amount appropriated or otherwise made 
                available to the Fund by the United States Government, 
                any such excess funds may be contributed to a 
                charitable foundation for activities consistent with 
                the purposes specified in subsection (c).
    (f) Notification.--
            (1) In general.--Not later than 15 days before designating 
        an organization to operate as the Syrian-American Enterprise 
        Fund pursuant to subsection (a), the President shall provide 
        the information described in paragraph (2) to the Chairman and 
        Ranking Member of the appropriate congressional committees.
            (2) Information.--The information described in this 
        paragraph is--
                    (A) the identity of the organization to be 
                designated to operate as the Syrian-American Enterprise 
                Fund pursuant to subsection (b);
                    (B) the names and qualifications of the individuals 
                who will comprise the initial Board of Directors; and
                    (C) the procedures referred to in subsection 
                (e)(3)(C) that will apply to the Syrian-American 
                Enterprise Fund for purposes of curtailing money-
                laundering and terrorist financing activities.
    (g) Public Disclosure.--
            (1) Administrative expenses.--Not later than 1 year after 
        the Fund commences operations, and annually thereafter until 
        the Fund is dissolved, the Fund shall submit to the appropriate 
        congressional committees and make publicly available a report 
        detailing the administrative expenses of the Fund.
            (2) GAO report.--Not later than 3 years after the date of 
        the enactment of this Act, and every 3 years thereafter until 
        the Fund is dissolved, the Comptroller General of the United 
        States shall submit to the appropriate congressional committees 
        a report assessing the activities of the Fund in--
                    (A) achieving the stated goals of promoting private 
                sector investment and employment in Syria; and
                    (B) identifying those institutional or regulatory 
                constraints that inhibit a more effective application 
                of Fund resources.
    (h) Operation Provisions.--
            (1) Applicable provisions.--Subsections (d)(5), (g), (h), 
        (i), (k), (l), (m), (n), (o), and (p) of section 201 of the 
        Support for East European Democracy (SEED) Act of 1989 (22 
        U.S.C. 5421) shall apply with respect to the Syrian-American 
        Enterprise Fund in the same manner as such provisions apply to 
        Enterprise Funds designated pursuant to subsection (d) of such 
        section.
            (2) Reinvestment.--Returns on investments of the Syrian-
        American Enterprise Fund and other payments to the Fund may be 
        reinvested in projects carried out by the Fund without further 
        appropriation by Congress.
    (i) Best Practices and Procedures.--To the maximum extent 
practicable, the Board of Directors of the Syrian-American Enterprise 
Fund should adopt the best practices and procedures used by Enterprise 
Funds, including those for which funding has been made available 
pursuant to section 201 of the Support for East European Democracy 
(SEED) Act of 1989 (22 U.S.C. 5421).
    (j) Experience of Other Enterprise Funds.--In implementing this 
section, the President shall ensure that the Articles of Incorporation 
of the Syrian-American Enterprise Fund (including provisions specifying 
the responsibilities of the Board of Directors of the Fund), the terms 
of United States Government grant agreements with the Fund, and United 
States Government oversight of the Fund are, to the maximum extent 
practicable, consistent with the Articles of Incorporation of, the 
terms of grant agreements with, and the oversight of the Enterprise 
Funds established pursuant to section 201 of the Support for East 
European Democracy (SEED) Act of 1989 (22 U.S.C. 5421) and comparable 
provisions of law.
    (k) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the President $100,000,000, to be drawn from amounts made 
        available for Economic Support Fund assistance, to provide 
        funding for grants to the Syrian-American Enterprise Fund, 
        which shall be used for the purposes specified in subsection 
        (b).
            (2) Availability of funds.--Amounts appropriated pursuant 
        to paragraph (1) shall remain available until expended.

SEC. 302. ADDITIONAL MEASURES TO STIMULATE ECONOMIC GROWTH IN SYRIA.

    (a) Review of Eligibility of Syria for the Generalized System of 
Preferences.--Not later than 90 days after the President makes the 
certification under section 203(a), the United States Trade 
Representative shall conduct a review of the eligibility of Syria to be 
designated as a beneficiary developing country under section 502 of the 
Trade Act of 1974 (19 U.S.C. 2462).
    (b) Sense of Congress on Trade and Investment Agreement With 
Syria.--It is the sense of Congress that the United States Trade 
Representative should, after the date the President makes the 
certification under section 203(a), initiate negotiations with the 
Government of Syria with respect to a trade and investment agreement 
between Syria and the United States.
                                 <all>