S.Amdt. 2900

SA 2900. Mr. LAUTENBERG submitted an amendment intended to be proposed to amendment SA 2166 submitted by Mr. Smith and intended to be proposed to the bill H.R. 1585, to authorize appropriations for fiscal year 2008 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes; which was ordered to lie on the table; as follows:

On page 20 of the amendment, after line 12, insert the following:

(m) Liability of Parent Companies for Violations of Sanctions by Foreign Entities.--

(1) Short title.--This subsection may be cited as the “Stop Business with Terrorists Act of 2007”.

(2) Definitions.--In this subsection:

(A) Entity.--The term “entity” means a partnership, association, trust, joint venture, corporation, or other organization.

(B) Parent company.--The term “parent company” means an entity that is a United States person and--

(i) the entity owns, directly or indirectly, more than 50 percent of the equity interest by vote or value in another entity;

(ii) board members or employees of the entity hold a majority of board seats of another entity; or

(iii) the entity otherwise controls or is able to control the actions, policies, or personnel decisions of another entity.

(C) United states person.--The term “United States person” means--

(i) a natural person who is a citizen of the United States or who owes permanent allegiance to the United States; and

(ii) 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 clause (i) own, directly or indirectly, more than 50 percent of the outstanding capital stock or other beneficial interest in such entity.

(3) Liability of parent companies.--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.

(4) Applicability.--Paragraph (3) shall not apply to a parent company of an entity on which the President imposed a penalty for a violation described in paragraph (3) 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.