[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 618 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 618

    To promote the strengthening of the private sector in Egypt and 
                                Tunisia.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2011

 Mr. Kerry (for himself, Mr. McCain, and Mr. Lieberman) introduced the 
 following bill; which was read twice and referred to the Committee on 
                           Foreign Relations

_______________________________________________________________________

                                 A BILL


 
    To promote the strengthening of the private sector in Egypt and 
                                Tunisia.

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

SECTION 1. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    In this Act, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on Foreign Relations of the Senate;
            (2) the Committee on Appropriations of the Senate;
            (3) the Committee on Foreign Affairs of the House of 
        Representatives; and
            (4) the Committee on Appropriations of the House of 
        Representatives.

                TITLE I--EGYPT-AMERICAN ENTERPRISE FUND

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Egyptian-American Enterprise Fund 
Act''.

SEC. 102. PURPOSE AND FINDINGS.

    (a) Purpose.--The purpose of this title is to support a transition 
to democracy in Egypt that is successful, lasting, and reflective of 
the aspirations of the Egyptian people for greater economic opportunity 
and political freedom through the creation of an Egyptian-American 
Enterprise Fund that will support economic prosperity through financial 
investment and technical assistance to small- and medium-sized 
enterprises.
    (b) Findings.--Congress makes the following findings:
            (1) The United States and Egypt have a strong, long-
        standing bilateral relationship.
            (2) Egypt--
                    (A) plays an important role in--
                            (i) global and regional politics; and
                            (ii) the broader Middle East and North 
                        Africa; and
                    (B) has been an intellectual, economic, and 
                cultural center of the Arab world for many years.
            (3) On January 25, 2011, demonstrations began throughout 
        Egypt in which thousands of protesters peacefully called for--
                    (A) a new government;
                    (B) free and fair elections;
                    (C) significant constitutional and political 
                reforms;
                    (D) greater economic opportunity; and
                    (E) an end to government corruption.
            (4) The demonstrators' perseverance in the face of violence 
        and intimidation--
                    (A) culminated in the February 11, 2011 resignation 
                of President Hosni Mubarak; and
                    (B) inspired democracy activists throughout the 
                region and around the world.
            (5) The United States has a strong interest in--
                    (A) an orderly and peaceful transition to democracy 
                in Egypt; and
                    (B) assisting the people of Egypt to form a 
                representative and democratic political and economic 
                system that respects universal values.
            (6) Egypt--
                    (A) has a well-developed civil society and 
                governing institutions; and
                    (B) was well-served by--
                            (i) the extraordinary determination shown 
                        by the people of Egypt in forcing President 
                        Mubarak to abdicate; and
                            (ii) the restraint demonstrated by the 
                        Egyptian military.
            (7) In 2010--
                    (A) the inflation rate in Egypt was approximately 
                11 percent; and
                    (B) Egypt's foreign debt was equal to 16 percent of 
                its $216,000,000,000 gross domestic product (GDP).
            (8) As a result of the dramatic events in Egypt in February 
        2011--
                    (A) Egypt's economy was brought to a near 
                standstill and continues to experience lingering 
                effects;
                    (B) widespread strikes slowed down Egypt's 
                manufacturing output and banks closed down for 
                intermittent periods; and
                    (C) the value of the Egyptian stock market fell by 
                16 percent in the 2 days before it was closed on 
                January 30, 2011.
            (9) According to analyst estimates, as a result of recent 
        events in Egypt--
                    (A) forecasted growth for Egypt's GDP has dropped 
                from 6 percent to between 3.1 and 3.5 percent;
                    (B) the amount of workers' remittances coming into 
                Egypt will likely decline;
                    (C) the amount of regional securities purchased by 
                foreign investors will likely decrease, which will 
                require fiscal deficits to be financed by domestic 
                banks and reduce the availability of credit for private 
                sector borrowers;
                    (D) heightened political uncertainty will likely 
                lead to a downturn in tourism, which accounts for 8.2 
                percent of Egypt's GDP and 7 percent of Egypt's direct 
                employment; and
                    (E) foreign direct investment (FDI) in Egypt is 
                predicted to decrease.
            (10) The most recent official estimates of the unemployment 
        rate in Egypt is 9.2 percent. Unofficial estimates of the 
        current unemployment rate in Egypt range between 15 and 20 
        percent. The unemployment rate for Egyptian youth is estimated 
        at 24.8 percent. Egyptian women, who are more affected by 
        spikes in unemployment, face an unemployment rate of nearly 25 
        percent compared to the 6.7 percent unemployment rate for 
        Egyptian men.
            (11) An estimated 61 percent of the population of Egypt is 
        younger than 30 years of age.
            (12) Private sector employment in Egypt increased from 
        11,000,000 to 15,100,000 between 1999 and 2007.
            (13) According to the International Finance Corporation's 
        2009 ``SME Banking Knowledge Guide''--
                    (A) the small and medium enterprise (SME) market in 
                Egypt was estimated at 160,000;
                    (B) of these firms, about 98 percent employed fewer 
                than 50 people;
                    (C) Egypt had an estimated 2,400,000 
                microenterprises; and
                    (D) 68 percent of the SMEs in Egypt have bank 
                accounts, but only 12 percent of those with bank 
                accounts had taken out loans.
            (14) A challenge for SMEs is that they are not always 
        considered a significant customer base for banks and services 
        don't meet the unique needs of this market segment.
            (15) According to the Government of Egypt's Small and 
        Medium Enterprise Development Unit, SMEs constitute nearly 75 
        percent of private sector employment.
            (16) According to the World Bank report entitled ``Access 
        to Finance and Economic Growth in Egypt''--
                    (A) even before the recent political events in 
                Egypt, private-sector credit to GDP in Egypt was modest 
                compared to other developing economies;
                    (B) private credit as a share of total credit has 
                been declining;
                    (C) the distribution of bank financing is uneven, 
                with most loans going to large and well-established 
                enterprises; and
                    (D) as a consequence, family-owned firms and SMEs, 
                which represent the majority of firms in Egypt, rely 
                heavily on the informal market.
            (17) To help foster and support the fledgling private 
        sector after the fall of the Berlin Wall, Congress, through 
        enactment of the Support for East European Democracy (SEED) Act 
        of 1989 (22 U.S.C. 5401 et seq.) and the FREEDOM Support Act 
        (22 U.S.C. 5801 et seq.), authorized nearly $1,200,000,000 for 
        the United States Agency for International Development (USAID) 
        to establish 10 new investment funds (collectively known as the 
        ``Enterprise Funds'') throughout Central and Eastern Europe and 
        the former Soviet Union.
            (18) The Enterprise Funds--
                    (A) channeled funding into more than 500 
                enterprises in 19 countries;
                    (B) leveraged an additional $5,000,000,000 in 
                private investment capital from outside the United 
                States Government;
                    (C) provided substantial development capital where 
                supply was limited;
                    (D) created or sustained more than 260,000 jobs 
                through investment and development activities;
                    (E) funded $74,000,000 in technical assistance to 
                strengthen the private sector; and
                    (F) are expected to recoup 137 percent of the 
                original USAID funding.
            (19) Enterprise funds established in partnership with 
        United States partners, such as Poland, Hungary, Albania, 
        Russia, and other European countries, have proven beneficial to 
        the economies of such countries.
            (20) Creating a similar fund in close partnership with the 
        people of Egypt would help sustain and expand reform efforts in 
        Egypt and empower Egyptian entrepreneurs with the resources 
        required to create urgently needed employment opportunities.
            (21) Establishing an enterprise fund for Egypt would--
                    (A) help reinforce financial institutions within 
                the country;
                    (B) provide debt and equity investment for 
                commercially viable SMEs; and
                    (C) make the investment environment more attractive 
                to domestic and international investors.

SEC. 103. PURPOSES OF EGYPTIAN-AMERICAN ENTERPRISE FUND.

    The purposes of the Egyptian-American Enterprise Fund are--
            (1) to promote the private sector in Egypt, 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 Egypt;
            (2) to promote policies and practices conducive to 
        strengthening the private sector in Egypt through measures 
        including loans, microloans, equity investments, insurance, 
        guarantees, grants, feasibility studies, technical assistance, 
        training for businesses receiving investment capital, and other 
        measures;
            (3) to promote good corporate governance and transparency 
        in Egypt, foster competition, catalyze productivity 
        improvements in existing businesses, and strengthen local 
        capital markets; and
            (4) to promote security through job creation in the private 
        sector in Egypt and to further the creation of a middle class 
        in Egypt.

SEC. 104. EGYPTIAN-AMERICAN ENTERPRISE FUND.

    (a) Establishment.--The President is authorized to establish or 
designate a private, nonprofit organization (to be known as the 
``Egyptian-American Enterprise Fund'') to receive funds and support 
made available under this title after determining that such 
organization has been established for the purposes specified in section 
103. The President should make such designation only after consultation 
with the leadership of each House of Congress.
    (b) Board of Directors.--
            (1) Appointment.--The Egyptian-American Enterprise Fund 
        shall be governed by a Board of Directors, which shall be 
        comprised of 4 private citizens of the United States and 3 
        private citizens of Egypt, appointed by the President of the 
        United States in consultation with the Government of Egypt.
            (2) Qualifications.--Members of the Board of Directors 
        shall be selected from among people who have had successful 
        business careers and demonstrated experience and expertise in 
        international and particularly emerging markets investment 
        activities, such as private equity or venture capital 
        investment, banking, finance, strategic business consulting, or 
        entrepreneurial business creation, and backgrounds in priority 
        business sectors of the Fund.
            (3) Additional usaid non-voting board member.--The 
        President shall appoint 1 official or employee of the United 
        States Agency for International Development as an additional 
        non-voting member of the Board.
            (4) Additional non-government non-voting board members.--
                    (A) Authority to appoint.--Upon the recommendation 
                of the Board of Directors, the President may appoint up 
                to 2 additional non-voting members to the Board of 
                Directors in addition to the members specified in 
                paragraphs (1) and (3), of which not more than 1 may be 
                a non-citizen of the United States.
                    (B) NGO community.--One of the additional nonvoting 
                Board members shall be from the nongovernmental 
                organization community, with significant prior 
                experience in development and an understanding of 
                development policy priorities for Egypt.
                    (C) Technical expertise.--One of the additional 
                non-voting Board members shall have extensive 
                demonstrated industry, sector, or technical experience 
                and expertise in a priority investment sector for the 
                Fund.
    (c) Grants.--
            (1) In general.--The President may use funds appropriated 
        by any Act, in this fiscal year or prior fiscal years, making 
        appropriations for the Department of State, foreign operations, 
        and related programs, including funds previously obligated, 
        that are otherwise available for such purposes, notwithstanding 
        any other provision of law--
                    (A) to carry out the purposes set forth in section 
                103 through the Egyptian-American Enterprise Fund; and
                    (B) to pay for the administrative expenses of the 
                Egyptian-American Enterprise Fund, which shall not 
                exceed 5 percent of the amounts made available for the 
                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 section 103.
            (3) Compliance requirements.--
                    (A) In general.--Grants may not be awarded to the 
                Egyptian-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 Egyptian-American Enterprise Fund shall state 
                that the Fund shall liquidate its assets and dissolve 
                not later than December 31, 2021, 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 
                Egyptian-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 
                Egyptian-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.
    (d) Notification.--
            (1) In general.--Not later than 15 days before designating 
        an organization to operate as the Egyptian-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 Egyptian-American 
                Enterprise Fund pursuant to subsection (a);
                    (B) the names and qualifications of the individuals 
                who will comprise the initial Board of Directors; and
                    (C) the procedures referred to in subsection 
                (c)(3)(C) that will apply to the Egyptian-American 
                Enterprise Fund for purposes of curtailing money-
                laundering and terrorist financing activities.
    (e) Public Disclosure.--Not later than 1 year after the entry into 
force of the initial grant agreement under this section, and annually 
thereafter, the Fund shall prepare and make available to the public on 
an Internet Web site administered by the Fund a report on the Fund's 
activities during the previous year, including--
            (1) a description of each investment or project supported 
        by the Fund, including each type of assistance provided in 
        accordance with section 103(2);
            (2) the amounts invested by the Fund in each company or 
        project;
            (3) the amounts of additional private investments made in 
        each company or project; and
            (4) the amounts of any profits or losses realized by the 
        Fund in connection with each such company or project.

SEC. 105. REPORTS.

    (a) Administrative Expenses.--Not later than 1 year after the date 
of the enactment of this Act, and annually thereafter until the Fund is 
dissolved, the Fund shall submit to the appropriate congressional 
committees a report detailing the administrative expenses of the Fund.
    (b) 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 achieving the stated goals of promoting 
private sector investment and employment in Egypt and identifying those 
institutional or regulatory constraints that inhibit a more effective 
application of Fund resources.

SEC. 106. OPERATION PROVISIONS.

    (a) 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 Egyptian-American Enterprise Fund in the same manner as 
such provisions apply to Enterprise Funds designated pursuant to 
subsection (d) of such section.
    (b) Reinvestment.--Returns on investments of the Egyptian-American 
Enterprise Fund and other payments to the Fund may be reinvested in 
projects carried out by the Fund without further appropriation by 
Congress.

SEC. 107. BEST PRACTICES AND PROCEDURES.

    To the maximum extent practicable, the Board of Directors of the 
Egyptian-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).

SEC. 108. EXPERIENCE OF OTHER ENTERPRISE FUNDS.

    In implementing this title, the President shall ensure that the 
Articles of Incorporation of the Egyptian-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.

              TITLE II--TUNISIAN-AMERICAN ENTERPRISE FUND

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Tunisian-American Enterprise Fund 
Act''.

SEC. 202. PURPOSE AND FINDINGS.

    (a) Purpose.--The purpose of this title is to support a transition 
to democracy in Tunisia that is successful, lasting, and reflective of 
the aspirations of the Tunisian people for greater economic opportunity 
and political freedom through the creation of a Tunisian-American 
Enterprise Fund that will support economic prosperity through financial 
investment and technical assistance to small- and medium-sized 
enterprises.
    (b) Findings.--Congress makes the following findings:
            (1) The United States and Tunisia have a strong, long-
        standing bilateral relationship.
            (2) Tunisia--
                    (A) plays an important strategic role in promoting 
                peace and security in North Africa, the broader Middle 
                East, and elsewhere; and
                    (B) has been, and continues to be, a regional 
                center for foreign investment and tourism.
            (3) On December 18, 2010, after the self-immolation of a 
        young street vendor, Mohamed Bouazizi, protests broke out in 
        Sidi Bouzid, Tunisia.
            (4) The protests, which quickly spread across Tunisia, 
        involved peaceful demonstrators calling for--
                    (A) a new government;
                    (B) free and fair elections;
                    (C) significant political reforms;
                    (D) greater economic opportunity; and
                    (E) an end to government corruption.
            (5) The protests culminated in the ouster of President Zine 
        el-Abidine Ben Ali on January 14, 2011, inspiring democracy 
        activists throughout the region and around the world.
            (6) The United States has a strong interest in--
                    (A) an orderly and peaceful transition to democracy 
                in Tunisia; and
                    (B) assisting the people of Tunisia to form a 
                representative and democratic political and economic 
                system that respects universal values.
            (7) Tunisia--
                    (A) has a well-educated and secular population that 
                displayed extraordinary determination in forcing 
                President Ben Ali to abdicate; and
                    (B) is well-positioned to make a successful 
                democratic transition.
            (8) In 2010--
                    (A) the inflation rate in Tunisia was approximately 
                4.4 percent;
                    (B) Tunisia's foreign debt was equal to 46 percent 
                of its $44,000,000,000 gross domestic product (GDP); 
                and
                    (C) according to The Peterson Institute of 
                Economics, Tunisia was the only country in the region 
                in which per capita incomes have gradually converged 
                with the industrial democracies of the Organization of 
                Economic Cooperation and Development (OECD).
            (9) According to the World Economic Forum's 2010-2011 
        Global Competitiveness Report--
                    (A) Tunisia ranks first in competitiveness among 
                African nations; and
                    (B) Tunisia's most problematic factor for doing 
                business is lack of access to financing.
            (10) According to the International Monetary Fund (IMF), 
        Tunisia had weathered the global economic crisis well, having 
        entered the crisis with strong fundamentals.
            (11) As a result of the dramatic events in Tunisia during 
        January 2011--
                    (A) Tunisia's economy was brought to a near 
                standstill and continues to feel lingering effects;
                    (B) Tunisia's debt rating was downgraded;
                    (C) tourism revenues, which are responsible for an 
                estimated 8.6 percent of direct contribution to 
                Tunisia's GDP, have dropped an estimated 40 percent 
                compared to the previous year;
                    (D) industrial output and investment activity in 
                Tunisia are experiencing significant short-term 
                reductions; and
                    (E) the value of the Tunisian stock market fell by 
                14 percent.
            (12) The Fitch Rating Agency concluded, ``Although the 
        transition to democracy could well improve confidence in the 
        long-term, political upheaval has worsened the short-term 
        outlook for the economy, public finances and financial 
        system''.
            (13) Analysts estimate that the recent events in Tunisia--
                    (A) will increase government deficits in Tunisia 
                for the next 2 years, due in part to new government 
                spending; and
                    (B) has shaken the Tunisian economy, although 
                Tunisia's medium-term growth outlook remains relatively 
                good.
            (14) According to IMF's Middle East and Central Asia 
        Department--
                    (A) Tunisia's tourism and foreign direct investment 
                (FDI) inflows will continue to decline, which will 
                negatively impact the rest of the Tunisian economy;
                    (B) recent events in Tunisia have illustrated the 
                need for more inclusive growth and better governance in 
                Tunisia; and
                    (C) it is important to recognize that the Tunisian 
                society has enduring strengths.
            (15) The World Bank estimates that Tunisian banks may face 
        stress as second round effects of the slowdown in businesses 
        and investment permeate.
            (16) Foreign direct investment, which is a crucial 
        component of Tunisia's economic health, created 24 percent of 
        the new jobs in 2009, according to Tunisia's Ministry of 
        Planning and International Cooperation.
            (17) According to the African Development Bank--
                    (A) Tunisia has pursued governance reforms in an 
                effort to increase FDI and boost local enterprises; and
                    (B) Small- and medium-sized enterprises in Tunisia 
                require support to access finance outside of the 
                traditional lines of credit because sources of finance 
                for enterprises in Tunisia are weak.
            (18) According to the most recent official estimates--
                    (A) the unemployment rate in Tunisia is 13 percent;
                    (B) the youth unemployment rate is 30.7 percent; 
                and
                    (C) 51 percent of the population of Tunisia is 
                younger than 30 years of age.
            (19) To help foster and support the fledgling private 
        sector after the fall of the Berlin Wall, Congress, through 
        enactment of the Support for East European Democracy (SEED) Act 
        of 1989 (22 U.S.C. 5401 et seq.) and the FREEDOM Support Act 
        (22 U.S.C. 5801 et seq.), authorized nearly $1,200,000,000 for 
        the United States Agency for International Development (USAID) 
        to establish 10 new investment funds (collectively known as the 
        ``Enterprise Funds'') throughout Central and Eastern Europe and 
        the former Soviet Union.
            (20) The Enterprise Funds--
                    (A) channeled funding into more than 500 
                enterprises in 19 countries;
                    (B) leveraged an additional $5,000,000,000 in 
                private investment capital from outside the United 
                States Government;
                    (C) provided substantial development capital where 
                supply was limited;
                    (D) created or sustained more than 260,000 jobs 
                through investment and development activities;
                    (E) funded $74,000,000 in technical assistance to 
                strengthen the private sector; and
                    (F) are expected to recoup 137 percent of the 
                original USAID funding.
            (21) Enterprise Funds established in partnership with 
        United States partners, such as Poland, Hungary, Albania, 
        Russia, and other European countries, have proven beneficial to 
        the economies of such countries.
            (22) Creating a similar fund in close partnership with the 
        people of Tunisia would--
                    (A) help sustain and expand reform efforts in 
                Tunisia;
                    (B) empower Tunisian entrepreneurs with the 
                resources required to create urgently needed employment 
                opportunities;
                    (C) help reinforce financial institutions within 
                the country;
                    (D) provide debt and equity investment for 
                commercially viable SMEs; and
                    (E) make the investment environment more attractive 
                to domestic and international investors.

SEC. 203. PURPOSES OF TUNISIAN-AMERICAN ENTERPRISE FUND.

    The purposes of the Tunisian-American Enterprise Fund are--
            (1) to promote the private sector in Tunisia, 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 Tunisia;
            (2) to promote policies and practices conducive to 
        strengthening the private sector in Tunisia through measures 
        including loans, microloans, equity investments, insurance, 
        guarantees, grants, feasibility studies, technical assistance, 
        training for businesses receiving investment capital, and other 
        measures;
            (3) to promote good corporate governance and transparency 
        in Tunisia, foster competition, catalyze productivity 
        improvements in existing businesses, and strengthen local 
        capital markets; and
            (4) to promote security through job creation in the private 
        sector in Tunisia and to further the creation of a middle class 
        in Tunisia.

SEC. 204. TUNISIAN-AMERICAN ENTERPRISE FUND.

    (a) Establishment.--The President is authorized to establish or 
designate a private, nonprofit organization (to be known as the 
``Tunisian-American Enterprise Fund'') to receive funds and support 
made available under this title after determining that such 
organization has been established for the purposes specified in section 
203. The President should make such designation only after consultation 
with the leadership of each House of Congress.
    (b) Board of Directors.--
            (1) Appointment.--The Tunisian-American Enterprise Fund 
        shall be governed by a Board of Directors, which shall be 
        comprised of 4 private citizens of the United States and 3 
        private citizens of Tunisia, appointed by the President of the 
        United States in consultation with the Government of Tunisia.
            (2) Qualifications.--Members of the Board of Directors 
        shall be selected from among people who have had successful 
        business careers and demonstrated experience and expertise in 
        international and particularly emerging markets investment 
        activities, such as private equity or venture capital 
        investment, banking, finance, strategic business consulting, or 
        entrepreneurial business creation, and backgrounds in priority 
        business sectors of the Fund.
            (3) Additional usaid non-voting board member.--The 
        President shall appoint 1 official or employee of the United 
        States Agency for International Development as an additional 
        non-voting member of the Board.
            (4) Additional non-government non-voting board members.--
                    (A) Authority to appoint.--Upon the recommendation 
                of the Board of Directors, the President may appoint up 
                to 2 additional non-voting members to the Board of 
                Directors in addition to the members specified in 
                paragraphs (1) and (3), of which not more than one may 
                be a non-citizen of the United States.
                    (B) NGO community.--One of the additional nonvoting 
                Board members shall be from the nongovernmental 
                organization community, with significant prior 
                experience in development and an understanding of 
                development policy priorities for Tunisia.
                    (C) Technical expertise.--One of the additional 
                non-voting Board members shall have extensive 
                demonstrated industry, sector, or technical experience 
                and expertise in a priority investment sector for the 
                Fund.
    (c) Grants.--
            (1) In general.--The President may use funds appropriated 
        by any Act, in this fiscal year or prior fiscal years, making 
        appropriations for the Department of State, foreign operations, 
        and related programs, including funds previously obligated, 
        that are otherwise available for such purposes, notwithstanding 
        any other provision of law--
                    (A) to carry out the purposes specified in section 
                203 through the Tunisian-American Enterprise Fund; and
                    (B) to pay for the administrative expenses of the 
                Tunisian-American Enterprise Fund, which shall not 
                exceed 5 percent of the funds made available for the 
                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 section 203.
            (3) Compliance requirements.--
                    (A) In general.--Grants may not be awarded to the 
                Tunisian-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 Tunisian-American Enterprise Fund shall state 
                that the Fund shall liquidate its assets and dissolve 
                not later than December 31, 2021, 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 
                Tunisian-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 
                Tunisian-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.
    (d) Notification.--
            (1) In general.--Not later than 15 days before designating 
        an organization to operate as the Tunisian-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 Tunisian-American 
                Enterprise Fund pursuant to subsection (a);
                    (B) the names and qualifications of the individuals 
                who will comprise the initial Board of Directors; and
                    (C) the procedures referred to in subsection 
                (c)(3)(C) that will apply to the Tunisian-American 
                Enterprise Fund for purposes of curtailing money-
                laundering and terrorist financing activities.
    (e) Public Disclosure.--Not later than 1 year after the entry into 
force of the initial grant agreement under this section, and annually 
thereafter, the Fund shall prepare and make available to the public on 
an Internet Web site administered by the Fund a report on the Fund's 
activities during the previous year, including--
            (1) a description of each investment or project supported 
        by the Fund, including each type of assistance provided in 
        accordance with section 203(2);
            (2) the amounts invested by the Fund in each company or 
        project;
            (3) the amounts of additional private investments made in 
        each company or project; and
            (4) the amounts of any profits or losses realized by the 
        Fund in connection with each such company or project.

SEC. 205. REPORTS.

    (a) Administrative Expenses.--Not later than 1 year after the date 
of the enactment of this Act, and annually thereafter until the Fund is 
dissolved, the Fund shall submit to the appropriate congressional 
committees a report detailing the administrative expenses of the Fund.
    (b) 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 achieving the stated goals of promoting 
private sector investment and employment in Tunisia and identifying 
those institutional or regulatory constraints that inhibit a more 
effective application of Fund resources.

SEC. 206. OPERATION PROVISIONS.

    (a) 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 Tunisian-American Enterprise Fund in the same manner as 
such provisions apply to Enterprise Funds designated pursuant to 
subsection (d) of such section.
    (b) Reinvestment.--Returns on investments of the Tunisian-American 
Enterprise Fund and other payments to the Fund may be reinvested in 
projects carried out by the Fund without further appropriation by 
Congress.

SEC. 207. BEST PRACTICES AND PROCEDURES.

    To the maximum extent practicable, the Board of Directors of the 
Tunisian-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).

SEC. 208. EXPERIENCE OF OTHER ENTERPRISE FUNDS.

    In implementing this title, the President shall ensure that the 
Articles of Incorporation of the Tunisian-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.
                                 <all>