To stop corporations from financing terrorism.

SA 1351. Mr. LAUTENBERG (for himself, Mr. Corzine, Mrs. Clinton, and
Mr. Feingold) proposed an amendment to the bill S. 1042, to authorize
appropriations for fiscal year 2006 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Forces, and for other
purposes; as follows:

At the end of the bill, add the following:

TITLE XXXIV--FINANCING OF TERRORISM

SEC. 3401. SHORT TITLE.

This title may be cited as the ``Stop Business with
Terrorists Act of 2005''.

SEC. 3402. DEFINITIONS.

In this title:
(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. 3403. 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 1 year 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 1 year 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
subsection (b) and shall publish notice of any change to that
list in a timely manner.

SEC. 3404. 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. 3405. 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

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in a transaction prohibited under section 3403(a) of this
title 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).
______