[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1234 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1234

   To strengthen the liability of parent companies for violations of 
         sanctions by foreign entities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 26, 2007

Mr. Lautenberg (for himself and Mrs. Clinton) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To strengthen the liability of parent companies for violations of 
         sanctions by foreign entities, and for other purposes.

    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 
2007''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Entity.--The term ``entity'' means a partnership, 
        association, trust, joint venture, corporation, or other 
        organization.
            (2) Parent company.--The term ``parent company'' means an 
        entity that is a United States person and--
                    (A) the entity owns, directly or indirectly, more 
                than 50 percent of the equity interest by vote or value 
                in another entity;
                    (B) board members or employees of the entity hold a 
                majority of board seats of another entity; or
                    (C) the entity otherwise controls or is able to 
                control the actions, policies, or personnel decisions 
                of another entity.
            (3) United states person.--The term ``United States 
        person'' means--
                    (A) a natural person who is a citizen of the United 
                States or who owes permanent allegiance to the United 
                States; and
                    (B) an entity that is organized under the laws of 
                the United States, any State or territory thereof, or 
                the District of Columbia, if natural persons described 
                in subparagraph (A) own, directly or indirectly, more 
                than 50 percent of the outstanding capital stock or 
                other beneficial interest in such entity.

SEC. 3. LIABILITY OF PARENT COMPANIES FOR VIOLATIONS OF SANCTIONS BY 
              FOREIGN ENTITIES.

    (a) In General.--In any case in which an entity engages in an act 
outside the United States that, if committed in the United States or by 
a United States person, would violate the provisions of Executive Order 
12959 (50 U.S.C. 1701 note) or Executive Order 13059 (50 U.S.C. 1701 
note), or any other prohibition on transactions with respect to Iran 
imposed under the authority of the International Emergency Economic 
Powers Act (50 U.S.C. 1701 et seq.), the parent company of the entity 
shall be subject to the penalties for the act to the same extent as if 
the parent company had engaged in the act.
    (b) Applicability.--Subsection (a) shall not apply to a parent 
company of an entity on which the President imposed a penalty for a 
violation described in subsection (a) that was in effect on the date of 
the enactment of this Act if the parent company divests or terminates 
its business with such entity not later than 90 days after such date of 
enactment.
                                 <all>