,,ii #aadth ,,congress #ast ,session ,s4 #bcjg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,november #ai1 #bjae ,mrs4 ,shaheen 7for herself and ,mr4 ,wicker7 introduced the following bill2 which was read twice and referred to the ,committee on ,foreign ,relations ,a ,,bill ,to promote the strengthening of the private sector in ,bosnia and ,herzegovina4 #a4 ,short title ,this ,act may be cited as the ,bosnia and ,herzegovina-,american ,enterprise ,fund ,act4 #b4 ,purpose and findings 7a7 ,purpose ,the purpose of this ,act is to support economic opportunity and political progress in ,bosnia and ,herzegovina through the creation of an enterprise fund that will provide financial investment and technical assistance to small and medium-sized enterprises4 7b7 ,findings ,congress makes the following findings3 7#a7 ,the ,united ,states has a strong interest in ensuring the gains in stability and reconciliation made since the end of the ,bosnian ,war in #aiie are not overtaken by difficult economic conditions4 7#b7 ,in #bjad1 protests broke out across ,bosnia and ,herzegovina as a result of widespread frustration among the populace regarding the economy1 which is currently experiencing an unemployment rate of more than #dj percent4 7#c7 7,a7 ,a crucial element for economic progress in ,bosnia and ,herzegovina is robust growth among small and medium-sized enterprises 7,s,m,es71 which have struggled to access necessary financing4 7,b7 ,although the private sector credit-to-,,gdp ratio in ,bosnia and ,herzegovina grew from #be percent in #bjja to over #fe percent in #bjjh1 it has failed to grow in the #g years since1 and is significantly less than the average for advanced economies4 7,c7 ,bank lending1 which grew similarly rapidly before #bjjh1 has grown barely more than #a percent per year since then4 7,d7 ,international financial institutions and foreign-owned private investment funds active in ,bosnia and ,herzegovina have provided growth finance for larger companies and infrastructure project financing1 but have not substantially invested in ,s,m,es4 7#d7 7,a7 ,bosnia and ,herzegovina's demographic1 income and geographic characteristics are promising for ,,sme growth4 7,b7 ,bosnia and ,herzegovina is a market of almost #d1jjj1jjj people1 whose per capita income has grown by almost #ej percent in less than a decade1 and substantial growth remains in order to achieve income parity with its ,balkan neighbor economies4 7,c7 ,bosnia and ,herzegovina currently imports almost #aj1jjj1jjj1jjj of goods per year1 a substantial portion of which could be substituted for by domestic ,,sme production4 7#e7 ,to help foster and support the fledgling private sector in ,central and ,eastern ,europe after the fall of the ,berlin ,wall1 ,congress1 through enactment of the ,support for ,east ,european ,democracy 7,,seed7 ,act of #aihi 7#bb ,u4,s4,c4 #edja et seq47 and the ,,freedom ,support ,act 7#bb ,u4,s4,c4 #ehja et seq471 authorized nearly #a1bjj1jjj1jjj for the ,united ,states ,agency for ,international ,development 7,,usaid7 to establish #aj new investment funds 7collectively known as the ,enterprise ,funds7 to both support economic development objectives and realize substantial financial returns4 7#f7 ,the ,enterprise ,funds-- 7,a7 channeled approximately #aj1jjj1jjj1jjj of public and private funding into more than #ejj enterprises in #ai countries2 7,b7 leveraged #f1ijj1jjj1jjj in private investment capital from outside the ,united ,states ,government2 7,c7 provided substantial development capital where supply was limited2 7,d7 created or sustained more than #cjj1jjj jobs through investment and development activities2 7,e7 funded #hj1jjj1jjj in technical assistance to strengthen the private sector2 and 7,f7 are expected to recoup #agg percent of the original ,,usaid funding4 7#g7 ,enterprise funds established in partnership with ,united ,states partners1 such as ,poland1 ,hungary1 ,albania1 ,russia1 and other ,european countries1 have proven beneficial to the economies of such countries4 7#h7 ,creating a similar fund in close partnership with the people of ,bosnia and ,herzegovina would help sustain and expand economic reform efforts in ,bosnia and ,herzegovina and empower entrepreneurs to create urgently needed employment opportunities4 7#i7 ,establishing an enterprise fund for ,bosnia and ,herzegovina would-- 7,a7 help improve financial institutions within the country2 7,b7 provide debt1 equity1 and other investment vehicles for commercially viable ,s,m,es2 and 7,c7 make the investment environment more attractive to domestic and international investors4 #c4 ,purposes of ,bosnia and ,herzegovina-,american ,enterprise ,fund ,the purposes of the ,bosnia and ,herzegovina-,american ,enterprise ,fund are-- 7#a7 to promote the private sector in ,bosnia and ,herzegovina1 while considering the development impact of investments and profitability of those investments1 particularly in small and medium-sized enterprises1 and joint ventures with participants from the ,united ,states and ,bosnia and ,herzegovina2 7#b7 to promote policies and practices conducive to strengthening the private sector in ,bosnia and ,herzegovina through measures including loans1 microloans1 equity investments1 insurance1 guarantees1 grants1 feasibility studies1 technical assistance1 training for businesses receiving investment capital1 and other measures2 7#c7 to promote good corporate governance and transparency in ,bosnia and ,herzegovina1 foster competition1 catalyze productivity improvements in existing businesses1 and strengthen local capital markets2 and 7#d7 to promote security through job creation in the private sector in ,bosnia and ,herzegovina and to further the creation of a middle class in ,bosnia and ,herzegovina4 #d4 ,bosnia and ,herzegovina-,american ,enterprise ,fund 7a7 ,designation ,the ,president is authorized to designate a private1 nonprofit organization 7to be known as the ,bosnia and ,herzegovina-,american ,enterprise ,fund7 to receive funds and support made available under this ,act after determining that such organization has been designated for the purposes specified in section #c4 ,the ,president should make such designation only after consultation with the leadership of each ,house of ,congress4 7b7 ,board of directors 7#a7 ,appointment ,the ,bosnia and ,herzegovina-,american ,enterprise ,fund shall be governed by a ,board of ,directors1 which shall be comprised of #f private citizens of the ,united ,states appointed by the ,president of the ,united ,states in consultation with the ,administrator of the ,united ,states ,agency for ,international ,development4 ,the ,board is authorized to appoint up to #c additional members who are citizens of ,bosnia and ,herzegovina if agreed to unanimously by all members of the ,board4 7#b7 ,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 activities1 such as private equity or venture capital investment1 banking1 finance1 strategic business consulting1 or entrepreneurial business creation1 and backgrounds in priority business sectors of the ,fund4 7#c7 ,united states government liaison to the board ,the ,president shall appoint the ,united ,states ,ambassador to ,bosnia and ,herzegovina1 or the ,ambassador's designee1 as a liaison to the ,board4 7#d7 ,non-government liaisons to the board 7,a7 ,authority to appoint ,upon the recommendation of the ,board of ,directors1 the ,president may appoint up to #b additional liaisons to the ,board of ,directors in addition to the members specified in paragraphs 7#a7 and 7#c71 of which not more than #a may be a non-citizen of the ,united ,states4 7,b7 ,,ngo community ,one of the additional liaisons to the ,board should be from the nongovernmental organization community1 with significant prior experience in development and an understanding of development policy priorities for ,bosnia and ,herzegovina4 7,c7 ,technical expertise ,one of the additional liaisons to the ,board should have extensive demonstrated industry1 sector1 or technical experience and expertise in a priority investment sector for the ,fund4 7c7 ,grants 7#a7 ,in general ,there is authorized to be appropriated for the ,department of ,state for fiscal year #bjaf #cj1jjj1jjj-- 7,a7 to carry out the purposes set forth in section #c through the ,bosnia and ,herzegovina-,american ,enterprise ,fund2 and 7,b7 to pay for the administrative expenses of the ,bosnia and ,herzegovina-,american ,enterprise ,fund4 7#b7 ,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 #c4 7#c7 ,compliance requirements 7,a7 ,in general ,grants may not be awarded to the ,bosnia and ,herzegovina-,american ,enterprise ,fund under this section unless the ,fund agrees to comply with the requirements under this section4 7,b7 ,grant agreement ,the grant agreement between the ,united ,states ,agency for ,international ,development and the ,bosnia and ,herzegovina-,american ,enterprise ,fund shall state that the ,fund shall end its reinvestment cycle not later than ,december #ca1 #bjcj1 unless the ,secretary of ,state1 in consultation with the ,administrator of the ,united ,states ,agency for ,international ,development1 and after consultation with the appropriate congressional committees1 determines that the ,fund should be extended4 7,c7 ,prevention of money laundering and terrorist financing ,the grant agreement between the ,united ,states ,agency for ,international ,development and the ,bosnia and ,herzegovina-,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 individual1 private or government entity1 or educational institution that advocates1 plans1 sponsors1 engages in1 or has engaged in1 money laundering or terrorist activity or1 with respect to a private entity or educational institution1 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 organization4 7,d7 ,disposition of assets ,the assets of the ,bosnia and ,herzegovina-,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 a manner agreed upon by ,,usaid and the ,board of ,directors for the ,fund1 except for those assets used to designate a legacy foundation which is appropriately resourced to the needs of ,bosnia and ,herzegovina4 7d7 ,notification 7#a7 ,in general ,not later than #ae days before designating an organization to operate as the ,bosnia and ,herzegovina-,american ,enterprise ,fund pursuant to subsection 7a71 the ,president shall provide the information described in paragraph 7#b7 to the ,chairman and ,ranking ,member of the appropriate congressional committees4 7#b7 ,information ,the information described in this paragraph is-- 7,a7 the identity of the organization to be designated to operate as the ,bosnia and ,herzegovina-,american ,enterprise ,fund pursuant to subsection 7a72 7,b7 the name and qualifications of the individual who will serve as ,chairman of the ,board of ,directors2 and 7,c7 the amount of the grant intended to fund the ,bosnia and ,herzegovina-,american ,enterprise ,fund over the lifetime of the fund4 7e7 ,public disclosure ,not later than #a year after the entry into force of the initial grant agreement under this section1 and annually thereafter1 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 year1 including-- 7#a7 a description of each investment or project supported by the ,fund1 including each type of assistance provided in accordance with section #c7b72 7#b7 the amounts invested by the ,fund in each company or project2 7#c7 the amounts of additional private investments made in each company or project2 and 7#d7 the amounts of any profits or losses realized by the ,fund in connection with each such company or project4 #e4 ,reports 7a7 ,administrative expenses ,not later than #a year after the date of the enactment of this ,act1 and annually thereafter until the ,fund is dissolved1 the ,fund shall submit to the appropriate congressional committees a report detailing the administrative expenses of the ,fund1 including any employee incentive compensation arrangements implemented by the ,fund which are not considered to be industry standard4 7b7 ,,gao report ,not later than #c years after the date of the enactment of this ,act1 and every #c years thereafter until the ,fund is dissolved1 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 ,bosnia and ,herzegovina and identifying those institutional or regulatory constraints that inhibit a more effective application of ,fund resources4 7c7 ,,usaid reports ,not later than ,july #a1 #bjbb1 and ,july #a1 #bjcj1 the ,administrator of the ,united ,states ,agency for ,international ,development shall submit a report to the appropriate congressional committees assessing the performance of the ,bosnia and ,herzegovina-,american ,enterprise ,fund with respect to the purposes set forth in section #c4 7d7 ,appropriate congressional committees defined ,in this section1 the term appropriate congressional committees means-- 7#a7 the ,committee on ,foreign ,relations and the ,committee on ,appropriations of the ,senate2 and 7#b7 the ,committee on ,foreign ,affairs and the ,committee on ,appropriations of the ,house of ,representatives4 #f4 ,operation provisions 7a7 ,applicable provisions ,subsections 7d77#e71 7g71 7h71 7i71 7k71 7l71 7m71 7n71 7o71 and 7p7 of section #bja of the ,support for ,east ,european ,democracy 7,,seed7 ,act of #aihi 7#bb ,u4,s4,c4 #edba7 shall apply with respect to the ,bosnia and ,herzegovina-,american ,enterprise ,fund in the same manner as such provisions apply to ,enterprise ,funds designated pursuant to subsection 7d7 of such section4 7b7 ,reinvestment ,returns on investments of the ,bosnia and ,herzegovina-,american ,enterprise ,fund and other payments to the ,fund may be reinvested in projects carried out by the ,fund without further appropriation by ,congress4 #g4 ,best practices and procedures ,to the maximum extent practicable1 the ,board of ,directors of the ,bosnia and ,herzegovina-,american ,enterprise ,fund should adopt the best practices and procedures used by ,enterprise ,funds1 including those for which funding has been made available pursuant to section #bja of the ,support for ,east ,european ,democracy 7,,seed7 ,act of #aihi 7#bb ,u4,s4,c4 #edba74 #h4 ,experience of other enterprise funds ,in implementing this ,act1 the ,president shall ensure that the ,articles of ,incorporation of the ,bosnia and ,herzegovina-,american ,enterprise ,fund 7including provisions specifying the responsibilities of the ,board of ,directors of the ,fund71 the terms of ,united ,states ,government grant agreements with the ,fund1 and ,united ,states ,government oversight of the ,fund are1 to the maximum extent practicable1 consistent with the ,articles of ,incorporation of1 the terms of grant agreements with1 and the oversight of the ,enterprise ,funds designated pursuant to section #bja of the ,support for ,east ,european ,democracy 7,,seed7 ,act of #aihi 7#bb ,u4,s4,c4 #edba7 and comparable provisions of law4