Stop Business With Terrorists Act of 2005 - States that, in the case of a person subject to the jurisdiction of the United States that is prohibited from engaging in a transaction with a foreign person, such prohibition shall also apply to: (1) each subsidiary or affiliate of the person so prohibited; and (2) any other entity that is controlled in fact by that person. Prohibits such a person from controlling in fact any foreign person who is engaged in such a transaction whether or not the foreign person is subject to the jurisdiction of the United States. Defines as a person subject to the jurisdiction of the United States: (1) a citizen or resident of the United States; (2) a person actually within the United States; (3) a corporation, partnership, or other organization or entity organized under the laws of the United States or any state, territory, or possession thereof; (4) a corporation, partnership, or other organization owned or controlled in fact by a person or entity described in (1) or (3).
Makes the prohibition applicable in any case in which: (1) the President takes action under the International Emergency Economic Powers Act or the Trading With the Enemy Act to prohibit a person subject to the jurisdiction of the United States from engaging in a transaction with a foreign person; or (2) the Secretary of State has determined that the government of a country that has jurisdiction over a foreign person has repeatedly provided support for acts of international terrorism. Allows a subject person 90 days to divest or terminate the prohibited business with the foreign person. Requires the President to publish a list of foreign persons under sanction.
Requires the Director of the Office of Foreign Assets Control to notify Congress if any sanction is imposed by such Office as a result of an investigation.
Expresses the sense of Congress that investors and the public should be informed of activities engaged in by a person that may threaten the national security, foreign policy, or economy of the United States.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1428 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 1428
To stop corporations from financing terrorism.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 20, 2005
Mr. Lautenberg (for himself, Mr. Corzine, Mrs. Clinton, and Mr.
Feingold) introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To stop corporations from financing terrorism.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Business With Terrorists Act of
2005''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Control in fact.--The term ``control in fact'', with
respect to a corporation or other legal entity, includes--
(A) in the case of--
(i) a corporation, ownership or control (by
vote or value) of at least 50 percent of the
capital structure of the corporation; and
(ii) any other kind of legal entity,
ownership or control of interests representing
at least 50 percent of the capital structure of
the entity; or
(B) control of the day-to-day operations of a
corporation or entity.
(2) Person subject to the jurisdiction of the united
states.--The term ``person subject to the jurisdiction of the
United States'' means--
(A) an individual, wherever located, who is a
citizen or resident of the United States;
(B) a person actually within the United States;
(C) a corporation, partnership, association, or
other organization or entity organized under the laws
of the United States, or of any State, territory,
possession, or district of the United States;
(D) a corporation, partnership, association, or
other organization, wherever organized or doing
business, that is owned or controlled in fact by a
person or entity described in subparagraph (A) or (C);
and
(E) a successor, subunit, or subsidiary of an
entity described in subparagraph (C) or (D).
(3) Foreign person.--The term ``foreign person'' means--
(A) an individual who is an alien;
(B) a corporation, partnership, association, or any
other organization or entity that is organized under
the laws of a foreign country or has its principal
place of business in a foreign country;
(C) a foreign governmental entity operating as a
business enterprise; and
(D) a successor, subunit, or subsidiary of an
entity described in subparagraph (B) or (C).
SEC. 3. CLARIFICATION OF SANCTIONS.
(a) Prohibitions on Engaging in Transactions With Foreign
Persons.--
(1) In general.--In the case of a person subject to the
jurisdiction of the United States that is prohibited as
described in subsection (b) from engaging in a transaction with
a foreign person, that prohibition shall also apply to--
(A) each subsidiary and affiliate, wherever
organized or doing business, of the person prohibited
from engaging in such a transaction; and
(B) any other entity, wherever organized or doing
business, that is controlled in fact by that person.
(2) Prohibition on control.--A person subject to the
jurisdiction of the United States that is prohibited as
described in subsection (b) from engaging in a transaction with
a foreign person shall also be prohibited from controlling in
fact any foreign person that is engaged in such a transaction
whether or not that foreign person is subject to the
jurisdiction of the United States.
(b) IEEPA Sanctions.--Subsection (a) applies in any case in which--
(1) the President takes action under the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) or the
Trading with the Enemy Act (50 U.S.C. App.) to prohibit a
person subject to the jurisdiction of the United States from
engaging in a transaction with a foreign person; or
(2) the Secretary of State has determined that the
government of a country that has jurisdiction over a foreign
person has repeatedly provided support for acts of
international terrorism under section 6(j) of the Export
Administration Act of 1979 (as in effect pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.)), or any other provision of law, and because of that
determination a person subject to the jurisdiction of the
United States is prohibited from engaging in transactions with
that foreign person.
(c) Cessation of Applicability by Divestiture or Termination of
Business.--
(1) In general.--In any case in which the President has
taken action described in subsection (b) and such action is in
effect on the date of enactment of this Act, the provisions of
this section shall not apply to a person subject of the
jurisdiction of the United States if such person divests or
terminates its business with the government or person
identified by such action within 90 days after the date of
enactment of this Act.
(2) Actions after date of enactment.--In any case in which
the President takes action described in subsection (b) on or
after the date of enactment of this Act, the provisions of this
section shall not apply to a person subject to the jurisdiction
of the United States if such person divests or terminates its
business with the government or person identified by such
action within 90 days after the date of such action.
(d) Publication in Federal Register.--Not later than 90 days after
the date of enactment of this Act, the President shall publish in the
Federal Register a list of persons with respect to whom there is in
effect a sanction described in section 3(b) and shall publish notice of
any change to that list in a timely manner.
SEC. 4. NOTIFICATION OF CONGRESS OF TERMINATION OF INVESTIGATION BY
OFFICE OF FOREIGN ASSETS CONTROL.
(a) Requirement for Notification.--The Office of Federal
Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by adding at
the end the following new section:
``SEC. 42. NOTIFICATION OF CONGRESS OF TERMINATION OF INVESTIGATION BY
OFFICE OF FOREIGN ASSETS CONTROL.
``The Director of the Office of Foreign Assets Control shall notify
Congress upon the termination of any investigation by the Office of
Foreign Assets Control of the Department of the Treasury if any
sanction is imposed by the Director of such office as a result of the
investigation.''.
(b) Clerical Amendment.--The table of contents in subsection (b) of
such Act is amended by adding at the end the following new item:
``Sec. 42. Notification of Congress of termination of
investigation by Office of Foreign Assets
Control.''.
SEC. 5. ANNUAL REPORTING.
(a) Sense of Congress.--It is the sense of the Congress that
investors and the public should be informed of activities engaged in by
a person that may threaten the national security, foreign policy, or
economy of the United States, so that investors and the public can use
the information in their investment decisions.
(b) Regulations.--
(1) In general.--Not later than 120 days after the date of
enactment of this Act, the Securities and Exchange Commission
shall issue regulations that require any person subject to the
annual reporting requirements of section 13 of the Securities
Exchange Act of 1934 (15 U.S.C. 78m) to disclose in that
person's annual reports--
(A) any ownership stake of at least 10 percent (or
less if the Commission deems appropriate) in a foreign
person that is engaging in a transaction prohibited
under section 3(a) of this Act or that would be
prohibited if such person were a person subject to the
jurisdiction of the United States; and
(B) the nature and value of any such transaction.
(2) Person described.--A person described in this section
is an issuer of securities, as that term is defined in section
3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c), that
is subject to the jurisdiction of the United Sates and to the
annual reporting requirements of section 13 of the Securities
Exchange Act of 1934 (15 U.S.C. 78m).
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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