II 

112TH CONGRESS 

2D SESSION S. 2152 

To promote United States policy objectives in Syria, including the departure 

from power of President Bashar Assad and his family, the effective 

transition to a democratic, free, and secure country, and the promotion 

of a prosperous future in Syria. 

IN THE SENATE OF THE UNITED STATES 

MARCH 2, 2012 

Mr. RUBIO introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To promote United States policy objectives in Syria, including the departure from power of President Bashar Assad 

and his family, the effective transition to a democratic, 

free, and secure country, and the promotion of a prosperous future in Syria. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Syria Democracy Transition Act of 2012’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


tkelley on DSK3SPTVN1PROD with BILLS
2 

•S 2152 IS

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Findings. 

Sec. 4. Statement of policy. 

TITLE I—ACCELERATING THE PACE OF REGIME TRANSITION 

Sec. 101. Imposition of sanctions on foreign financial institutions that conduct 

transactions with the Central Bank of Syria. 

Sec. 102. Exportation of petroleum, oil, and natural gas produced in Syria. 

Sec. 103. Prohibition on certain vessels landing in the United States; enhanced 

inspections. 

Sec. 104. Promotion of multilateral action at the United Nations. 

TITLE II—PROMOTING AN EFFECTIVE TRANSITION 

Sec. 201. Report on opposition groups. 

Sec. 202. Identification and disposition of weapons. 

Sec. 203. Transition funding and termination of sanctions. 

Sec. 204. Designating an official coordinator. 

TITLE III—CREATING A PROSPEROUS FUTURE 

Sec. 301. Syrian-American Enterprise Fund. 

Sec. 302. Additional measures to stimulate economic growth in Syria. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) ACCOUNT; CORRESPONDENT ACCOUNT; PAY4 ABLE-THROUGH ACCOUNT.—The terms ‘‘account’’, 

5 ‘‘correspondent account’’, and ‘‘payable-through ac6 count’’ have the meanings given those terms in sec7 tion 5318A of title 31, United States Code. 

8 (2) APPROPRIATE CONGRESSIONAL COMMIT9 TEES.—The term ‘‘appropriate congressional com10 mittees’’ means— 

11 (A) the Committee on Finance, the Com12 mittee on Banking, Housing, and Urban Af13 fairs, and the Committee on Foreign Relations 

14 of the Senate; and 


tkelley on DSK3SPTVN1PROD with BILLS
3 

•S 2152 IS

1 (B) the Committee on Ways and Means, 

2 the Committee on Financial Services, and the 

3 Committee on Foreign Affairs of the House of 

4 Representatives. 

5 (3) FOREIGN FINANCIAL INSTITUTION.—The 

6 term ‘‘foreign financial institution’’ has the meaning 

7 of that term as determined by the Secretary of the 

8 Treasury pursuant to section 104(i) of the Com9 prehensive Iran Sanctions, Accountability, and Di10 vestment Act of 2010 (22 U.S.C. 8513(i)). 

11 SEC. 3. FINDINGS. 

12 Congress makes the following findings: 

13 (1) On December 12, 2003, President George 

14 W. Bush signed the Syria Accountability and Leba15 nese Sovereignty Restoration Act of 2003 (Public 

16 Law 108–175; 22 U.S.C. 2151 note) in order to 

17 hold the Government of Syria accountable for its ac18 tions. 

19 (2) Current law in the United States prohibits 

20 the Government of Syria from receiving assistance 

21 from the United States because it has repeatedly 

22 provided support for acts of international terrorism, 

23 as determined by the Secretary of State for purposes 

24 of section 6(j)(1) of the Export Administration Act 

25 of 1979 (50 U.S.C. App. 2405(j)(1)) (as in effect 


tkelley on DSK3SPTVN1PROD with BILLS
4 

•S 2152 IS

1 pursuant to the International Emergency Economic 

2 Powers Act (50 U.S.C. 1701 et seq.)) and other re3 lated statutes. 

4 (3) In 2006, the Department of the Treasury 

5 issued a final ruling that imposes a special measure 

6 against the Commercial Bank of Syria, a quasi-gov7 ernment bank, as a financial institution of primary 

8 money laundering concern. 

9 (4) Since mass peaceful demonstrations started 

10 on March 15, 2011, the Government of Syria, led by 

11 President Bashar al-Assad, has responded by 

12 launching a violent crackdown, committing human 

13 rights abuses, and violating its international obliga14 tions, including the International Covenant on Civil 

15 and Political Rights, adopted December 16, 1966, 

16 and the United Nations Convention Against Torture 

17 and Other Cruel, Inhuman or Degrading Treatment 

18 or Punishment, done at New York December 10, 

19 1984. 

20 (5) On April 15, 2011, Christof Heyns, the 

21 United Nations Special Rapporteur on extrajudicial, 

22 summary, or arbitrary executions, stated that live 

23 ammunition has been used by the Government of 

24 Syria against demonstrators ‘‘in clear violation of 

25 international law’’. 


tkelley on DSK3SPTVN1PROD with BILLS
5 

•S 2152 IS

1 (6) On April 29, 2011, President Barack 

2 Obama issued additional sanctions with respect to 

3 Syria, stating that ‘‘the Government of Syria’s 

4 human rights abuses, including those related to the 

5 repression of the people of Syria, manifested most 

6 recently by the use of violence and torture against, 

7 and arbitrary arrests and detentions of, peaceful 

8 protestors by police, security forces, and other enti9 ties that have engaged in human rights abuses, con10 stitute an unusual and extraordinary threat to the 

11 national security, foreign policy, and economy of the 

12 United States’’. 

13 (7) On May 6, 2011, envoys of the 27 countries 

14 of the European Union agreed to impose sanctions 

15 on the Government of Syria for the human rights 

16 abuses it is perpetrating, including asset freezes and 

17 visa bans on 13 members of the Government of 

18 Syria and an arms embargo on the country. 

19 (8) On May 18, 2011, President Obama issued 

20 an executive order sanctioning senior officials of the 

21 Syrian Arab Republic and their supporters, specifi22 cally designating seven people: President Bashar al23 Assad, Vice President Farouk al-Shara, Prime Min24 ister Adel Safar, Minister of the Interior Mohammad 

25 Ibrahim al-Shaar, Minister of Defense Ali Habib 


tkelley on DSK3SPTVN1PROD with BILLS
6 

•S 2152 IS

1 Mahmoud, Head of Syrian Military Intelligence 

2 Abdul Fatah Qudsiya, and Director of Political Se3 curity Directorate Mohammed Dib Zaitoun. 

4 (9) On June 29, 2011, the Department of the 

5 Treasury sanctioned the chief and deputy chief of 

6 Iran’s national police and the head of the Syrian Air 

7 Force Intelligence for providing support to the Gov8 ernment of Syria in engaging in human rights 

9 abuses. 

10 (10) In July 2011, supporters of President 

11 Bashar al-Assad attacked the embassies of the 

12 United States and France, following demonstrations 

13 sanctioned by the Government of Syria outside the 

14 embassy of the United States. 

15 (11) On August 11, 2011, the Department of 

16 the Treasury’s Office of Foreign Asset Control 

17 named the Commercial Bank of Syria, a quasi-gov18 ernment bank, a Specially Designated National. 

19 With this designation, all property and assets of the 

20 bank in the United States or under control of 

21 United States persons, including overseas branches, 

22 were frozen. 

23 (12) On August 18, 2011, President Obama 

24 stated, ‘‘The future of Syria must be determined by 

25 its people, but President Bashar al-Assad is standVerDate Mar 15 2010 22:16 Mar 02, 2012 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2152.IS S2152

tkelley on DSK3SPTVN1PROD with BILLS
7 

•S 2152 IS

1 ing in their way. His calls for dialogue and reform 

2 have rung hollow while he is imprisoning, torturing 

3 and slaughtering his own people. We have consist4 ently said that President Assad must lead a demo5 cratic transition or get out of the way. He has not 

6 led. For the sake of the Syrian people, the time has 

7 come for President Assad to step aside.’’. 

8 (13) On November 12, 2011, the Arab League 

9 voted to suspend Syria from membership, based on 

10 continuing violence and inability to adhere to a 

11 League-brokered plan. 

12 (14) On November 15, 2011, King Abdullah of 

13 Jordan became the first Arab leader to openly urge 

14 Mr. Assad to step down, saying President Assad 

15 should ‘‘step down and make sure whoever comes be16 hind me has the ability to change the status quo 

17 that we’re seeing’’. 

18 (15) On November 28, 2011, a report from the 

19 United Nations-backed Independent International 

20 Commission of Inquiry on Syria concluded that ‘‘the 

21 substantial body of evidence gathered by the com22 mission indicates that these gross violations of 

23 human rights have been committed by Syrian mili24 tary and security forces since the beginning of the 

25 protests in March’’. 


tkelley on DSK3SPTVN1PROD with BILLS
8 

•S 2152 IS

1 (16) On January 17, 2012, President Obama 

2 made the following statement: ‘‘We will continue to 

3 consult very closely with Jordan to create the kind 

4 of international pressure and environment that en5 courage the current Syrian regime to step aside so 

6 that a more democratic process and transition can 

7 take place inside of Syria.’’. 

8 (17) On January 30, 2012, Secretary of State 

9 Hillary Clinton said that ‘‘the status quo is 

10 unsustainable; the longer the Assad regime con11 tinues its attacks on the Syrian people and stands 

12 in the way of a peaceful transition, the greater the 

13 concern that instability will escalate and spill over 

14 throughout the region’’. 

15 (18) On January 28, 2012, the League of Arab 

16 States decided to suspend its international moni17 toring mission due to escalating violence within 

18 Syria. 

19 (19) On February 4, 2012, the Russian Federa20 tion and People’s Republic of China vetoed a United 

21 Nations Security Council Resolution in support of 

22 the League of Arab States’ Plan of Action. 

23 (20) On February 13, 2012, the United Na24 tion’s High Commissioner for Human Rights said, 

25 ‘‘The failure of the Security Council to agree on firm 


tkelley on DSK3SPTVN1PROD with BILLS
9 

•S 2152 IS

1 collective action appears to have emboldened the 

2 Syrian government to plan an all-out assault in an 

3 effort to crush resistance with overwhelming force.’’. 

4 (21) As of February 13, 2012, the United Na5 tion estimates security forces of the Government of 

6 Syria have killed well above 5,400 people, with tens 

7 of thousands, including children, arrested and more 

8 than 18,000 reportedly still arbitrarily held in deten9 tion. Approximately 25,000 people have sought ref10 uge in other countries, and more than 70,000 are es11 timated to have been internally displaced. 

12 SEC. 4. STATEMENT OF POLICY. 

13 It is the policy of the United States— 

14 (1) to strongly condemn the ongoing, wide15 spread, and systemic violations of human rights con16 ducted by the authorities in Syria, including the use 

17 of force against civilians, torture, extrajudicial 

18 killings, arbitrary executions, sexual violence, and in19 terference with access to medical treatment; 

20 (2) to support the aspirations of the people of 

21 Syria for self-government based on democratic polit22 ical, civil, and religious rights; 

23 (3) to assure the departure from power of 

24 Bashar al-Assad and his family, and facilitate a 

25 peaceful transition to a representative and inclusive 


tkelley on DSK3SPTVN1PROD with BILLS
10 

•S 2152 IS

1 government that ensures freedom, justice, and pros2 perity for all the people of Syria; 

3 (4) to promote an effective transition to democ4 racy by identifying and supporting organizations in 

5 Syria that are representative of the Syrian people, 

6 make demonstrable commitments to protect human 

7 rights, and religious freedom, reject terrorism, co8 operate with international counterterrorism and non9 proliferation efforts, and abstain from destabilizing 

10 neighboring countries; 

11 (5) to identify weapons stockpiles and prevent 

12 the proliferation of conventional, biological, chemical, 

13 and other types of weapons in Syria; and 

14 (6) to mobilize international support for a post15 Assad democratic and inclusive Government of 

16 Syria. 

17 TITLE I—ACCELERATING THE 

18 PACE OF REGIME TRANSITION 

19 SEC. 101. IMPOSITION OF SANCTIONS ON FOREIGN FINAN20 CIAL INSTITUTIONS THAT CONDUCT TRANS21 ACTIONS WITH THE CENTRAL BANK OF 

22 SYRIA. 

23 (a) IN GENERAL.—Subject to subsections (b), (c), 

24 and (d), not later than 60 days after the date of the enact25 ment of this Act, the President shall— 


tkelley on DSK3SPTVN1PROD with BILLS
11 

•S 2152 IS

1 (1) prohibit the opening or maintaining in the 

2 United States of a correspondent account or a pay3 able-through account by a foreign financial institu4 tion that the President determines has knowingly 

5 conducted any financial transaction with the Central 

6 Bank of Syria; and 

7 (2) freeze and prohibit all transactions in all 

8 property and interests in property of each such for9 eign financial institution if such property and inter10 ests in property are in the United States or are in 

11 the possession or control of a United States person. 

12 (b) EXCEPTION FOR SALES OF FOOD, MEDICINE, 

13 AND MEDICAL DEVICES.—The President may not impose 

14 sanctions under subsection (a) on a foreign financial insti15 tution for engaging in a transaction with the Central Bank 

16 of Syria for the sale of food, medicine, or medical devices 

17 to Syria. 

18 (c) APPLICABILITY.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), subsection (a) applies with respect to fi21 nancial transactions commenced on or after the date 

22 of the enactment of this Act. 

23 (2) PETROLEUM TRANSACTIONS.—Subsection 

24 (a) applies with respect to financial transactions for 

25 the purchase of petroleum or petroleum products 


tkelley on DSK3SPTVN1PROD with BILLS
12 

•S 2152 IS

1 through the Central Bank of Syria commenced on or 

2 after the date that is 180 days after the date of the 

3 enactment of this Act. 

4 (d) WAIVER.— 

5 (1) IN GENERAL.—The President may waive 

6 the application of subsection (a) with respect to a 

7 foreign financial institution for a period of not more 

8 than 60 days, and may renew that waiver for addi9 tional periods of not more than 60 days, if the Presi10 dent determines and reports to the appropriate con11 gressional committees every 60 days that the waiver 

12 is necessary to the national security interest of the 

13 United States. 

14 (2) FORM.—A report submitted pursuant to 

15 paragraph (1) shall be submitted in unclassified 

16 form, but may contain a classified annex. 

17 SEC. 102. EXPORTATION OF PETROLEUM, OIL, AND NAT18 URAL GAS PRODUCED IN SYRIA. 

19 (a) SANCTIONS.— 

20 (1) IN GENERAL.—Except as provided in sub21 section (c), beginning 60 days after the date of the 

22 enactment of this Act, the President shall impose 

23 the sanctions described in section 6(a) of the Iran 

24 Sanctions Act of 1996 (Public Law 104–172; 50 

25 U.S.C. 1701 note) with respect to a person if the 


tkelley on DSK3SPTVN1PROD with BILLS
13 

•S 2152 IS

1 President determines that the person knowingly, on 

2 or after the date of the enactment of this Act, pro3 vides any service described in subsection (b) with re4 spect to the exportation of petroleum, oil, or lique5 fied natural gas to be refined or otherwise processed 

6 outside of Syria if— 

7 (A) the Government of Syria was directly 

8 and significantly involved in the development, 

9 extraction, production, transportation, or sale of 

10 such petroleum, oil, or liquefied natural gas in 

11 Syria; and 

12 (B)(i) the fair market value of such petro13 leum, oil, or liquefied natural gas is $1,000,000 

14 or more; or 

15 (ii) during a 12-month period, the aggre16 gate fair market value of such petroleum, oil, or 

17 liquefied natural gas is $5,000,000 or more. 

18 (2) SANCTIONED PERSONS.—The sanctions im19 posed on a person under paragraph (1) shall also be 

20 imposed on any person against which such sanctions 

21 may be imposed in accordance with section 5(c) of 

22 the Iran Sanctions Act of 1996 (Public Law 104– 

23 172; 50 U.S.C. 1701 note) as a result of the per24 son’s relationship with the sanctioned person. 


tkelley on DSK3SPTVN1PROD with BILLS
14 

•S 2152 IS

1 (b) SERVICES DESCRIBED.—The services described 

2 in this subsection are— 

3 (1) refining or otherwise processing petroleum, 

4 oil, or liquefied natural gas; 

5 (2) the provision of ships or shipping services; 

6 or 

7 (3) financing, brokering, underwriting, or pro8 viding insurance or reinsurance. 

9 (c) EXCEPTION FOR UNDERWRITERS AND INSUR10 ANCE PROVIDERS EXERCISING DUE DILIGENCE.—The 

11 President may not impose sanctions under this section 

12 with respect to a person on the basis of underwriting serv13 ices or insurance or reinsurance provided by the person 

14 if the President determines that the person has exercised 

15 due diligence in establishing and enforcing official policies, 

16 procedures, and controls to ensure that the person does 

17 not underwrite or enter into a contract to provide insur18 ance or reinsurance with respect to the exportation of pe19 troleum, oil, or liquefied natural gas in violation of sub20 section (a). 

21 SEC. 103. PROHIBITION ON CERTAIN VESSELS LANDING IN 

22 THE UNITED STATES; ENHANCED INSPEC23 TIONS. 

24 (a) PROHIBITION ON CERTAIN VESSELS LANDING IN

25 THE UNITED STATES.—A vessel may not knowingly land 


tkelley on DSK3SPTVN1PROD with BILLS
15 

•S 2152 IS

1 at any port in the United States to load or unload cargo 

2 or engage in the trade of goods or services if the vessel 

3 entered a port in Syria during the 180-day period pre4 ceding arrival of the vessel at the port in the United 

5 States. 

6 (b) ENFORCEMENT; ENHANCED INSPECTIONS.—Not 

7 later than 180 days after the date of the enactment of 

8 this Act, the Secretary of Homeland Security, in consulta9 tion with the Secretary of the Treasury and the Secretary 

10 of Commerce, shall prescribe regulations that— 

11 (1) require each vessel requesting to land at a 

12 port in the United States to certify that the vessel 

13 is not prohibited from landing at that port under 

14 subsection (a); 

15 (2) provide for, with respect to any vessel that 

16 provides a false certification under paragraph (1)— 

17 (A) the prohibition, for a period of 2 years, 

18 on that vessel landing at a port in the United 

19 States; or 

20 (B) the prosecution of the owner of that 

21 vessel under title 18, United States Code, if the 

22 penalty provided for under such title is greater 

23 than the penalty described in subparagraph (A); 

24 (3) provide a mechanism for identifying foreign 

25 ports at which vessels have landed during the preVerDate Mar 15 2010 22:16 Mar 02, 2012 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S2152.IS S2152

tkelley on DSK3SPTVN1PROD with BILLS
16 

•S 2152 IS

1 ceding 180-day period that have also landed at ports 

2 in Syria during that period; 

3 (4) require enhanced inspection of all vessels 

4 arriving at a port in the United States from a for5 eign port identified under paragraph (3); and 

6 (5) set forth procedures for inspecting each ves7 sel described in paragraph (4) that are sufficiently 

8 rigorous to establish whether the vessel was involved, 

9 during the 180-day period preceding the arrival of 

10 the vessel at the port in the United States, in any 

11 activity that would be subject to sanctions under this 

12 Act or any other provision of law. 

13 (c) NATIONAL SECURITY WAIVER.—The Secretary of 

14 Homeland Security, in consultation with the Secretary of 

15 the Treasury and the Secretary of Commerce, may waive 

16 the application of subsections (a) and (b) with respect to 

17 a vessel not earlier than 30 days after the Secretary of 

18 Homeland Security— 

19 (1) determines that the waiver is in the national 

20 security interests of the United States; and 

21 (2) submits to the appropriate congressional 

22 committees a report describing the reasons for the 

23 determination. 

24 (d) PORT DEFINED.—For purposes of this section, 

25 the term ‘‘port’’ means a seaport. 


tkelley on DSK3SPTVN1PROD with BILLS
17 

•S 2152 IS

1 SEC. 104. PROMOTION OF MULTILATERAL ACTION AT THE 

2 UNITED NATIONS. 

3 The President shall use the voice, vote, and influence 

4 of the United States at the United Nations Security Coun5 cil to urge the Security Council to adopt resolutions— 

6 (1) freezing the assets of, and imposing a travel 

7 ban on, all officials within the regime of Bashar 

8 Assad and all family members of Mr. Assad; 

9 (2) implementing a ban on passenger flights to 

10 and from Syria; and 

11 (3) restricting the shipment of goods to or from 

12 Syria, including the insurance of such shipments. 

13 TITLE II—PROMOTING AN 

14 EFFECTIVE TRANSITION 

15 SEC. 201. REPORT ON OPPOSITION GROUPS. 

16 (a) IN GENERAL.—Not later than 30 days after the 

17 date of the enactment of this Act, the President shall sub18 mit to the appropriate congressional committees a report 

19 on opposition groups in Syria. 

20 (b) CONTENT.—The report required under subsection 

21 (a) shall include— 

22 (1) an assessment of ties between these groups 

23 and any designated foreign terrorist organizations 

24 and individuals that pose a threat to the United 

25 States and its allies, and an assessment of the po26 tential of these groups to serve as part of a recogVerDate Mar 15 2010 22:16 Mar 02, 2012 Jkt 019200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S2152.IS S2152

tkelley on DSK3SPTVN1PROD with BILLS
18 

•S 2152 IS

1 nized transitional government, including the Syrian 

2 National Council (SNC), the National Coordination 

3 Commission of the Forces of Democratic Change 

4 (NCC), the Free Syrian Army, and the Free Officers 

5 Movement; and 

6 (2) an assessment of the military capacity of 

7 opposition forces in Syria, including organization, 

8 quality and quantity of armaments, and need for 

9 and capability of utilizing assistance. 

10 SEC. 202. IDENTIFICATION AND DISPOSITION OF WEAPONS. 

11 Not later than 30 days after the date of the enact12 ment of this Act, the President shall provide a briefing 

13 to the appropriate congressional committees on— 

14 (1) all known weapons stockpiles of the Govern15 ment of Syria, with particular focus on biological, 

16 chemical, radiological, and nuclear weapons and mis17 siles; and 

18 (2) a plan for the identification, recovery, and 

19 disposition of such weapons. 

20 SEC. 203. TRANSITION FUNDING AND TERMINATION OF 

21 SANCTIONS. 

22 (a) TERMINATION OF SANCTIONS.—The require23 ments under sections 101, 102, and 103 to impose sanc24 tions shall no longer have force or effect with respect to 


tkelley on DSK3SPTVN1PROD with BILLS
19 

•S 2152 IS

1 Syria if the President determines and certifies to the ap2 propriate congressional committees that— 

3 (1) President Bashar Assad has been removed 

4 from power in Syria; 

5 (2) a democratic transitional authority is in 

6 place in Syria; and 

7 (3) the Government of Syria has— 

8 (A) ended its campaign of violence against 

9 the people of Syria; 

10 (B) ceased support for international ter11 rorist groups and terrorist activities in Iraq, 

12 and has been removed from the Department of 

13 State list of state sponsors of terrorism under 

14 section 6 of the Export Administration Act (50 

15 U.S.C. App. 2405(j) (as continued in effect 

16 pursuant to the International Emergency Eco17 nomic Powers Act; 50 U.S.C. 1701 et seq.)), 

18 section 40 of the Arms Export Control Act (22 

19 U.S.C. 2780), and section 620A of the Foreign 

20 Assistance Act of 1961 (22 U.S.C. 2371); and 

21 (C) complied with Syria’s commitments 

22 under relevant multilateral proliferation control 

23 regimes. 

24 (b) ASSISTANCE TO SUPPORT DEMOCRATIC TRANSI25 TION.—Upon making the certification described in subVerDate Mar 15 2010 22:16 Mar 02, 2012 Jkt 019200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S2152.IS S2152

tkelley on DSK3SPTVN1PROD with BILLS
20 

•S 2152 IS

1 section (a), the President may establish a $50,000,000 

2 Syrian Stabilization Fund, to be drawn from amounts 

3 made available for Economic Support Fund assistance and 

4 Non-proliferation, Anti-terrorism, Demining, and Related 

5 programs assistance, to help support opposition groups 

6 and provide for the recovery, identification, and destruc7 tion of weapons in Syria. 

8 (c) NOTIFICATION REQUIREMENT.—Not later than 

9 30 days after making the certification described in sub10 section (a), the President shall submit to the appropriate 

11 congressional committees a report detailing the assets fro12 zen under section 101 and describing the criteria for re13 leasing such assets. 

14 SEC. 204. DESIGNATING AN OFFICIAL COORDINATOR. 

15 The President shall expand the role of the Depart16 ment of State’s Special Coordinator for Middle East Tran17 sitions to include Syria for purposes of assisting in pro18 viding the certification under section 203(a) and coordi19 nating transition efforts in Syria. 

20 TITLE III—CREATING A 

21 PROSPEROUS FUTURE 

22 SEC. 301. SYRIAN-AMERICAN ENTERPRISE FUND. 

23 (a) FINDINGS.—Congress makes the following find24 ings: 


tkelley on DSK3SPTVN1PROD with BILLS
21 

•S 2152 IS

1 (1) The Support for East European Democracy 

2 (SEED) Act of 1989 (22 U.S.C. 5401 et seq.) cre3 ated 10 Enterprise Funds with the expressed pur4 pose of transforming the entrenched command 

5 economies of the former Soviet Union to free mar6 kets through capital injections in new businesses. 

7 (2) These Enterprise Funds represented a new 

8 way of delivering economic assistance, placing pools 

9 of public capital into the hands of private investment 

10 professionals to finance entrepreneurs on a tradi11 tional business-to-business basis. 

12 (3) The first Fund created, the Polish-Amer13 ican Enterprise Fund, made 50 equity investments 

14 totaling $243,000,000, over 10,000 small business 

15 loans and 125,000 micro loans, and eventually cre16 ated a net asset base of $374,000,000. 

17 (4) Upon the closing of the Polish-American 

18 Enterprise Fund, for the first time in the history of 

19 United States foreign aid, a portion of the funds, 

20 $120,000,000, or half of the initial grant, was re21 turned to the United States taxpayer. The balance 

22 of the remaining assets, with the consent of Con23 gress and with the approval of the Government of 

24 Poland, was transferred to the Polish-American 

25 Freedom Foundation established by the Fund to 


tkelley on DSK3SPTVN1PROD with BILLS
22 

•S 2152 IS

1 further support the system transformation in Po2 land. 

3 (5) Subsequent funds included the following: 

4 (A) The Hungarian-American Enterprise 

5 Fund, capitalized at $63,000,000 with an even6 tual net asset base of $28,000,000. 

7 (B) The Czech and Slovak-American En8 terprise Fund, capitalized at $58,000,000 with 

9 an eventual net asset base of $6,000,000. 

10 (C) The Bulgarian-American Enterprise 

11 Fund, capitalized at $54,000,000 with an even12 tual net asset base of $404,000,000. 

13 (D) The Baltic-American Enterprise Fund, 

14 capitalized at $50,000,000 with an eventual net 

15 asset base of $62,000,000. 

16 (E) The Romanian-American Enterprise 

17 Fund, capitalized at $58,000,000 with an even18 tual net asset base of $150,000,000. 

19 (F) The Albanian-American Enterprise 

20 Fund, capitalized at $30,000,000 with an even21 tual net asset base of $171,000,000. 

22 (G) The Western New Independent States 

23 Enterprise Fund, capitalized at $139,000,000 

24 with an eventual net asset base of $90,000,000. 


tkelley on DSK3SPTVN1PROD with BILLS
23 

•S 2152 IS

1 (H) The Central Asian-American Enter2 prise Fund, capitalized at $105,000,000 with 

3 an eventual net asset base of $17,000,000. 

4 (I) The United States-Russia Investment 

5 Fund, capitalized at $307,000,000 with an 

6 eventual net asset base of $297,000,000. 

7 (6) Overall, the 10 funds received capital of 

8 $1,105,000,000, and created total net assets of 

9 $1,612,000,000, for a return on the initial invest10 ment of 144 percent. Six of these funds returned a 

11 portion of their public-sourced capital to the United 

12 States Treasury and established charitable legacy 

13 foundations, whose collective capital totals 

14 $652,000,000. These foundations allow for develop15 ment activities to continue long after the initial 

16 funds have been closed. 

17 (b) ESTABLISHMENT.—The President is authorized 

18 to designate a private, nonprofit organization (to be 

19 known as the ‘‘Syrian-American Enterprise Fund’’) to re20 ceive funds and support made available under this section 

21 after making the certification in section 203(a) and deter22 mining that such organization has been established for the 

23 purposes specified in subsection (c). The President should 

24 make such designation only after consultation with the 

25 leadership of each House of Congress. 


tkelley on DSK3SPTVN1PROD with BILLS
24 

•S 2152 IS

1 (c) PURPOSES.—The purposes of the Syrian-Amer2 ican Enterprise Fund are— 

3 (1) to help support sustainable, equitable, and 

4 broad-based economic growth that generates busi5 ness and job creation and improves the livelihoods of 

6 the people of Syria; 

7 (2) to promote the private sector and entrepre8 neurship in Syria, while considering the development 

9 impact of investments and profitability of those in10 vestments, particularly in small- and medium-sized 

11 enterprises, and joint ventures with participants 

12 from the United States and Syria; 

13 (3) to promote policies and practices conducive 

14 to strengthening the private sector in Syria through 

15 measures including loans, microloans, equity invest16 ments, insurance, guarantees, grants, feasibility 

17 studies, technical assistance, training for businesses 

18 receiving investment capital, and other measures; 

19 (4) to promote good corporate governance and 

20 transparency in Syria, foster competition, catalyze 

21 productivity improvements in existing businesses, 

22 and strengthen local capital markets; and 

23 (5) to promote security through the creation of 

24 viable private business, which support job creation in 


tkelley on DSK3SPTVN1PROD with BILLS
25 

•S 2152 IS

1 the private sector in Syria, and to further the cre2 ation of a middle class in Syria. 

3 (d) BOARD OF DIRECTORS.— 

4 (1) APPOINTMENT.—The Syrian-American En5 terprise Fund shall be governed by a Board of Di6 rectors, which shall be comprised of 6 private citi7 zens of the United States and 3 private citizens of 

8 Syria, appointed by the President of the United 

9 States. 

10 (2) QUALIFICATIONS.—Members of the Board 

11 of Directors shall be selected from among people 

12 who have had successful business careers in private 

13 equity, banking, or finance that is similar to the ex14 perience of individuals who previously served on the 

15 Board of Directors of a successful Enterprise Fund 

16 established by the United States Government on or 

17 after January 1, 1990. 

18 (e) GRANTS.— 

19 (1) IN GENERAL.—The President may use 

20 funds appropriated for the Department of State, for21 eign operations, and related programs, notwith22 standing any other provision of law to carry out the 

23 purposes specified in subsection (c) through the Syr24 ian-American Enterprise Fund. 


tkelley on DSK3SPTVN1PROD with BILLS
26 

•S 2152 IS

1 (2) ELIGIBLE PROGRAMS AND PROJECTS.— 

2 Grants awarded under this section may only be used 

3 for programs and projects that support the purposes 

4 set forth in subsection (c). 

5 (3) COMPLIANCE REQUIREMENTS.— 

6 (A) IN GENERAL.—Grants may not be 

7 awarded to the Syrian-American Enterprise 

8 Fund under this section unless the Fund agrees 

9 to comply with the requirements under this sec10 tion. 

11 (B) GRANT AGREEMENT.—The grant 

12 agreement between the United States Agency 

13 for International Development and the Syrian14 American Enterprise Fund shall state that the 

15 Fund shall end its reinvestment cycle not later 

16 than 15 years after the Fund commences oper17 ations, unless the Secretary of State, in con18 sultation with the Administrator of the United 

19 States Agency for International Development, 

20 and after consultation with the appropriate con21 gressional committees, determines that the 

22 Fund should be extended. 

23 (C) PREVENTION OF MONEY LAUNDERING

24 AND TERRORIST FINANCING.—The grant agree25 ment between the United States Agency for 


tkelley on DSK3SPTVN1PROD with BILLS
27 

•S 2152 IS

1 International Development and the Syrian2 American Enterprise Fund shall state that the 

3 Fund shall comply with procedures specified by 

4 the Secretary of State to ensure that grant 

5 funds are not provided by the Fund to or 

6 through any individual, private or government 

7 entity, or educational institution that advocates, 

8 plans, sponsors, engages in, or has engaged in, 

9 money laundering or terrorist activity or, with 

10 respect to a private entity or educational insti11 tution, that has as a principal officer of the en12 tity’s governing board or governing board of 

13 trustees any individual that has been deter14 mined to be involved in or advocating money 

15 laundering or terrorist activity or determined to 

16 be a member of a designated foreign terrorist 

17 organization. 

18 (D) DISPOSITION OF ASSETS.—The assets 

19 of the Syrian-American Enterprise Fund at the 

20 time the Fund is dissolved shall be returned to 

21 the General Fund of the United States Treas22 ury and used to reduce the debt of the United 

23 States. In the event the assets of the Fund ex24 ceed the total amount appropriated or otherwise 

25 made available to the Fund by the United 


tkelley on DSK3SPTVN1PROD with BILLS
28 

•S 2152 IS

1 States Government, any such excess funds may 

2 be contributed to a charitable foundation for ac3 tivities consistent with the purposes specified in 

4 subsection (c). 

5 (f) NOTIFICATION.— 

6 (1) IN GENERAL.—Not later than 15 days be7 fore designating an organization to operate as the 

8 Syrian-American Enterprise Fund pursuant to sub9 section (a), the President shall provide the informa10 tion described in paragraph (2) to the Chairman and 

11 Ranking Member of the appropriate congressional 

12 committees. 

13 (2) INFORMATION.—The information described 

14 in this paragraph is— 

15 (A) the identity of the organization to be 

16 designated to operate as the Syrian-American 

17 Enterprise Fund pursuant to subsection (b); 

18 (B) the names and qualifications of the in19 dividuals who will comprise the initial Board of 

20 Directors; and 

21 (C) the procedures referred to in sub22 section (e)(3)(C) that will apply to the Syrian23 American Enterprise Fund for purposes of cur24 tailing money-laundering and terrorist financing 

25 activities. 


tkelley on DSK3SPTVN1PROD with BILLS
29 

•S 2152 IS

1 (g) PUBLIC DISCLOSURE.— 

2 (1) ADMINISTRATIVE EXPENSES.—Not later 

3 than 1 year after the Fund commences operations, 

4 and annually thereafter until the Fund is dissolved, 

5 the Fund shall submit to the appropriate congres6 sional committees and make publicly available a re7 port detailing the administrative expenses of the 

8 Fund. 

9 (2) GAO REPORT.—Not later than 3 years 

10 after the date of the enactment of this Act, and 

11 every 3 years thereafter until the Fund is dissolved, 

12 the Comptroller General of the United States shall 

13 submit to the appropriate congressional committees 

14 a report assessing the activities of the Fund in— 

15 (A) achieving the stated goals of promoting 

16 private sector investment and employment in 

17 Syria; and 

18 (B) identifying those institutional or regu19 latory constraints that inhibit a more effective 

20 application of Fund resources. 

21 (h) OPERATION PROVISIONS.— 

22 (1) APPLICABLE PROVISIONS.—Subsections 

23 (d)(5), (g), (h), (i), (k), (l), (m), (n), (o), and (p) of 

24 section 201 of the Support for East European De25 mocracy (SEED) Act of 1989 (22 U.S.C. 5421) 


tkelley on DSK3SPTVN1PROD with BILLS
30 

•S 2152 IS

1 shall apply with respect to the Syrian-American En2 terprise Fund in the same manner as such provi3 sions apply to Enterprise Funds designated pursu4 ant to subsection (d) of such section. 

5 (2) REINVESTMENT.—Returns on investments 

6 of the Syrian-American Enterprise Fund and other 

7 payments to the Fund may be reinvested in projects 

8 carried out by the Fund without further appropria9 tion by Congress. 

10 (i) BEST PRACTICES AND PROCEDURES.—To the 

11 maximum extent practicable, the Board of Directors of the 

12 Syrian-American Enterprise Fund should adopt the best 

13 practices and procedures used by Enterprise Funds, in14 cluding those for which funding has been made available 

15 pursuant to section 201 of the Support for East European 

16 Democracy (SEED) Act of 1989 (22 U.S.C. 5421). 

17 (j) EXPERIENCE OF OTHER ENTERPRISE FUNDS.— 

18 In implementing this section, the President shall ensure 

19 that the Articles of Incorporation of the Syrian-American 

20 Enterprise Fund (including provisions specifying the re21 sponsibilities of the Board of Directors of the Fund), the 

22 terms of United States Government grant agreements 

23 with the Fund, and United States Government oversight 

24 of the Fund are, to the maximum extent practicable, con25 sistent with the Articles of Incorporation of, the terms of 


tkelley on DSK3SPTVN1PROD with BILLS
31 

•S 2152 IS

1 grant agreements with, and the oversight of the Enter2 prise Funds established pursuant to section 201 of the 

3 Support for East European Democracy (SEED) Act of 

4 1989 (22 U.S.C. 5421) and comparable provisions of law. 

5 (k) AUTHORIZATION OF APPROPRIATIONS.— 

6 (1) IN GENERAL.—There are authorized to be 

7 appropriated to the President $100,000,000, to be 

8 drawn from amounts made available for Economic 

9 Support Fund assistance, to provide funding for 

10 grants to the Syrian-American Enterprise Fund, 

11 which shall be used for the purposes specified in 

12 subsection (b). 

13 (2) AVAILABILITY OF FUNDS.—Amounts appro14 priated pursuant to paragraph (1) shall remain 

15 available until expended. 

16 SEC. 302. ADDITIONAL MEASURES TO STIMULATE ECO17 NOMIC GROWTH IN SYRIA. 

18 (a) REVIEW OF ELIGIBILITY OF SYRIA FOR THE

19 GENERALIZED SYSTEM OF PREFERENCES.—Not later 

20 than 90 days after the President makes the certification 

21 under section 203(a), the United States Trade Represent22 ative shall conduct a review of the eligibility of Syria to 

23 be designated as a beneficiary developing country under 

24 section 502 of the Trade Act of 1974 (19 U.S.C. 2462). 


tkelley on DSK3SPTVN1PROD with BILLS
32 

•S 2152 IS

1 (b) SENSE OF CONGRESS ON TRADE AND INVEST2 MENT AGREEMENT WITH SYRIA.—It is the sense of Con3 gress that the United States Trade Representative should, 

4 after the date the President makes the certification under 

5 section 203(a), initiate negotiations with the Government 

6 of Syria with respect to a trade and investment agreement 

7 between Syria and the United States. 

Æ 


tkelley on DSK3SPTVN1PROD with BILLS