[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.
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