,,ii #aaeth ,,congress #ast ,session ,s4 #hfd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #f 7legislative day1 ,april #d71 #bjag,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 development goals and the strengthening of the private sector in ,bosnia and ,herzegovina4 #a4 ,short title ,this ,act may be cited as the ,balkan ,economic ,partnership ,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 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 7a7 ,in general ,the purpose of the ,bosnia and ,herzegovina-,american ,enterprise ,fund is to promote more widely shared prosperity through private sector development and the policies and practices conducive thereto in ,bosnia and ,herzegovina1 including through loans1 microloans1 equity investments1 insurance1 guarantees1 grants1 feasibility studies1 technical assistance1 capacity building of investees and other relevant organizations1 joint ventures1 and other measures4 7b7 ,promotion of private sector development ,the ,bosnia and ,herzegovina-,american ,enterprise ,fund shall promote private sector development through-- 7#a7 the initiation and expansion of employment and profitability of private enterprises1 particularly small and medium-sized enterprises2 7#b7 the modeling1 promotion1 and dissemination of sound corporate governance and law-abiding ,western business practices2 7#c7 the promotion of policy reforms to improve the business enabling environment and facilitate foreign and domestic investment2 and 7#d7 the demonstration that private sector investment can be undertaken profitably4 #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 made available under this ,act for the purposes specified in section #c4 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 #g 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 elect 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 7,a7 ,business experience ,four 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,b7 ,development experience ,three members of the ,board of ,directors shall be selected from among people with significant prior experience in development and an expert understanding of development priorities for ,bosnia and ,herzegovina4 7#c7 ,united ,states ,government liaisons to the board ,the ,president shall appoint the ,united ,states ,ambassador to ,bosnia and ,herzegovina1 or the ,ambassador's designee1 as well as the ,assistant ,administrator of the ,united ,states ,agency for ,international ,development for ,europe and ,eurasia1 or the ,assistant ,administrator's designee1 as liaisons to the board4 7c7 ,grants 7#a7 ,in general ,there is authorized to be appropriated for the ,department of ,state for fiscal year #bjah #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 ,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 #bjcc1 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 ,states4 7,e7 ,authorization of legacy foundation ,in the event the assets of the ,fund at the end of the reinvestment cycle specified in subparagraph 7,b7 exceed the total amount appropriated or otherwise made available to the ,fund by the ,united ,states ,government1 the ,secretary of ,state1 in consultation with the ,administrator of the ,united ,states ,agency for ,international ,development1 is authorized to direct any such excess funds to a foundation for activities consistent with the purposes specified in section #c4 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 #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 costs incurred by private firms hired to aid in the management of the fund4 7b7 ,,gao report 7#a7 ,initial report ,not later than #c years after the date of the enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to the appropriate congressional committees a report that examines-- 7,a7 the status of the ,fund's investments2 7,b7 the ,fund's progress in establishing key management structures to support its mission and operations2 and 7,c7 the extent to which the ,fund has complied with requirements in the grant agreements4 7#b7 ,updates ,the ,comptroller ,general shall1 for the duration of the ,fund and at the request of the appropriate congressional committees1 provide an updated report on the ,fund and any successor organization4 7c7 ,independent reports ,not later than ,july #a1 #bjbb1 and ,july #a1 #bjcj1 the ,administrator of the ,united ,states ,agency for ,international ,development shall commission a report1 to be completed by an independent1 third-party organization1 evaluating the performance of the ,bosnia and ,herzegovina-,american ,enterprise ,fund with respect to the purposes set forth in section #c4 ,the report shall be made available to the appropriate congressional committees4 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 by the ,fund and used to fund noninvestment projects 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