II 110th CONGRESS 1st Session S. 876 IN THE SENATE OF THE UNITED STATES March 14, 2007 Mr. Martinez introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To exclude from admission to the United States aliens who have made investments contributing to the enhancement of the ability of Cuba to develop its petroleum resources, and for other purposes.

1.

Statement of policy

It shall be the policy of the United States to— (1)undertake the necessary measures to deny the Cuban regime the financial resources to engage in activities that threaten— (A)United States national security, its interests and its allies; (B)the environment and natural resources of the submerged lands of Cuba’s northern coast and Florida’s unique maritime environment; and (C)that prolong the dictatorship that oppresses the Cuban people; and (2)deter foreign investments that would enhance the ability of the Cuban regime to develop its petroleum resources.

2.

Exclusion of certain aliens

(a)

In general

The Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6021 et seq.) is amended by inserting after section 401 the following:

402.

Exclusion from the United States of aliens who contribute to the ability of Cuba to develop petroleum resources off of Cuba's northern coast

(a)

In general

The Secretary of State shall deny a visa to, and the Secretary of Homeland Security shall exclude from the United States, any alien who the Secretary of State determines is a person who— (1)is an officer or principal of an entity, or a shareholder who owns a controlling interest in an entity, that, on or after May 2, 2006, makes an investment that equals or exceeds $1,000,000 (or any combination of investments that in the aggregate equals or exceeds $1,000,000 in any 12-month period), that contributes to the enhancement of Cuba’s ability to develop petroleum resources of the submerged lands of Cuba’s northern coast; or (2)is a spouse, minor child, or agent of a person described in paragraph (1). (b)

Waiver

The Secretary of State may waive the application of subsection (a) if the Secretary certifies and reports to the appropriate congressional committees, on a case-by-case basis, that the admission to the United States of a person described in subsection (a)— (1)is necessary for critical medical reasons or for purposes of litigation of an action under title III; or (2)is appropriate if the requirements of sections 203, 204, and 205 have been satisfied. (c)

Definitions

In this section: (1)

Develop

The term develop, with respect to petroleum resources, means the exploration for, or the extraction, refining, or transportation by pipeline or other means of, petroleum resources. (2)

Investment

The term investment means any of the following activities if such activity is undertaken pursuant to an agreement, or pursuant to the exercise of rights under such an agreement, that is entered into with the Government of Cuba (or any agency or instrumentality thereof) or a nongovernmental entity in Cuba, on or after May 2, 2006: (A)The entry into a contract that includes responsibility for the development of petroleum resources of the submerged lands of Cuba’s northern coast, or the entry into a contract providing for the general supervision and guarantee of another person’s performance of such a contract. (B)The purchase of a share of ownership, including an equity interest, in that development. (C)The entry into a contract providing for the participation in royalties, earnings, or profits in that development, without regard to the form of the participation. (D)The entry into, performance, or financing of a contract to sell or purchase goods, services, or technology related to that development. (3)

Petroleum resources

The term petroleum resources includes petroleum and natural gas resources.

. (b)

Effective date

The amendment made by this section applies to aliens seeking admission to the United States on or after the date of the enactment of this Act.

3.

Imposition of sanctions

(a)

In general

The President shall impose two or more of the sanctions described in subsection (b) if the President determines that a person has, on or after May 2, 2006, made an investment that equals or exceeds $1,000,000 (or any combination of investments that in the aggregate equals or exceeds $1,000,000 in any 12-month period) that contributes to the enhancement of Cuba’s ability to develop petroleum resources of the submerged lands of Cuba’s northern coast. (b)

Sanctions described

The sanctions to be imposed on a sanctioned person under this section are as follows: (1)

Export-Import Bank assistance for exports to sanctioned persons

The President may direct the Export-Import Bank of the United States not to give approval to the issuance of any guarantee, insurance, extension of credit, or participation in the extension of credit in connection with the export of any goods or services to any sanctioned person. (2)

Export sanction

The President may order the United States Government not to issue any specific license and not to grant any other specific permission or authority to export any goods or technology to a sanctioned person under— (A)the Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.); (B)the Arms Export Control Act (22 U.S.C. 2751 et seq.); (C)the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.); or (D)any other statute that requires the prior review and approval of the United States Government as a condition for the export or reexport of goods or services. (3)

Loans from United States financial institutions

The United States Government may prohibit any United States financial institution from making loans or providing credits to any sanctioned person totaling more than $10,000,000 in any 12-month period unless such person is engaged in activities to relieve human suffering and the loans or credits are provided for such activities. (4)

Prohibitions on financial institutions

(A)

In general

The following prohibitions may be imposed against a sanctioned person that is a financial institution: (i)

Prohibition on designation as primary dealer

Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, such financial institution as a primary dealer in United States Government debt instruments. (ii)

Prohibition on service as a repository of government funds

Such financial institution may not serve as agent of the United States Government or serve as repository for United States Government funds. (B)

Treatment of sanctions

The imposition of either sanction under clause (i) or (ii) of subparagraph (A) shall be treated as one sanction for purposes of this section, and the imposition of both such sanctions shall be treated as two sanctions for purposes of this section. (5)

Procurement sanction

The United States Government may not procure, or enter into any contract for the procurement of, any goods or services from a sanctioned person. (c)

Person defined

In this section, the term person includes a foreign subsidiary of a person referred to in subsection (a).