Bill Summary
The Banning Operations and Leases with the Illegitimate Venezuelan Authoritarian Regime Act (BOLIVAR Act) is a piece of legislation aimed at prohibiting U.S. government contracts with individuals or entities that engage in significant business dealings with the Maduro regime in Venezuela, which is not recognized as the legitimate government by the United States.
Key provisions include:
1. **Prohibition on Contracts**: U.S. executive agencies are generally barred from entering contracts with those involved with the Maduro regime, as determined by the agency head in consultation with the Secretary of State.
2. **Exceptions**: There are specific exceptions allowing contracts for humanitarian assistance, disaster relief, noncombatant evacuations, national security interests, support for U.S. government activities, and operations related to U.S. diplomatic missions in Venezuela.
3. **Licenses and Waivers**: The prohibition does not apply to parties with valid licenses from the Office of Foreign Assets Control, and the Secretary of State can waive the prohibition if deemed in the national interest.
4. **Definitions**: The act also outlines key definitions, such as "business operations," "executive agency," and "person," ensuring clarity on whom the legislation applies to.
The act is intended to strengthen U.S. policy against the Maduro regime while still allowing for critical humanitarian and diplomatic activities. It is applicable for three years from the date of enactment.
Possible Impacts
The "Banning Operations and Leases with the Illegitimate Venezuelan Authoritarian Regime Act" (BOLIVAR Act) could affect people in various ways. Here are three examples:
1. **Impact on Businesses**: Companies that have existing contracts or business operations with entities tied to the Maduro regime may be forced to terminate these agreements or cease operations in Venezuela. This could lead to significant financial losses, layoffs, and reduced economic activity in sectors that rely on these businesses, affecting employees, suppliers, and local economies.
2. **Humanitarian Assistance**: While the legislation prohibits contracts with entities associated with the Maduro regime, it includes exceptions for humanitarian efforts. This means that organizations providing essential services, such as food aid or medical assistance to the Venezuelan population, may face challenges in securing necessary contracts or support due to the restrictions. However, if they can navigate the exceptions successfully, they may be able to continue their vital work, potentially impacting the well-being of individuals in crisis.
3. **Diplomatic and National Security Considerations**: The Act allows for exceptions based on national security interests and support for U.S. government activities. This could lead to increased funding and resources allocated to diplomatic missions and security operations in Venezuela, impacting U.S. foreign policy and the safety of American diplomats and citizens abroad. Additionally, it may shape the U.S.'s overall strategy in the region, influencing international relations and security dynamics.
Overall, the legislation could have far-reaching consequences for businesses, humanitarian organizations, and international relations, affecting both the U.S. and Venezuelan populations.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1221 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1221
To prohibit contracting with persons that have business operations with
the Maduro regime, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 1 (legislative day, March 31), 2025
Mr. Scott of Florida (for himself, Mr. Cruz, and Mrs. Blackburn)
introduced the following bill; which was read twice and referred to the
Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To prohibit contracting with persons that have business operations with
the Maduro regime, 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 ``Banning Operations and Leases with
the Illegitimate Venezuelan Authoritarian Regime Act'' or the ``BOLIVAR
Act''.
SEC. 2. PROHIBITION ON CONTRACTING WITH PERSONS THAT HAVE BUSINESS
OPERATIONS WITH THE MADURO REGIME.
(a) Prohibition.--Except as provided in subsections (b), (c), and
(d), the head of an executive agency may not enter into a contract for
the procurement of goods or services with any person that the head of
an executive agency determines, with the concurrence of the Secretary
of State, knowingly engages in significant business operations with an
authority of the Government of Venezuela that is not recognized as the
legitimate Government of Venezuela by the United States.
(b) Exceptions.--
(1) In general.--The prohibition under subsection (a) does
not apply to a contract that the Secretary of State
determines--
(A) is necessary--
(i) for purposes of providing humanitarian
assistance to the people of Venezuela;
(ii) for purposes of providing disaster
relief and other urgent life-saving measures;
or
(iii) to carry out noncombatant
evacuations; or
(B) is in the national security interests of the
United States.
(2) Support for united states government activities.--The
prohibition in subsection (a) shall not apply to contracts that
support United States Government activities in Venezuela,
including those necessary for the maintenance of United States
Government facilities in Venezuela, or to contracts with
international organizations.
(3) Notification requirement.--The Secretary of State shall
notify the appropriate congressional committees of any contract
entered into on the basis of an exception provided for under
paragraph (1).
(c) Office of Foreign Assets Control Licenses.--The prohibition in
subsection (a) does not apply to a person that has a valid license to
operate in Venezuela issued by the Office of Foreign Assets Control.
(d) American Diplomatic Mission in Venezuela.--The prohibition in
subsection (a) does not apply to contracts related to the operation and
maintenance of the United States Government's consular offices and
diplomatic posts in Venezuela.
(e) Waiver.--The Secretary of State may waive the requirements of
subsection (a) if the Secretary of State determines that to do so is in
the national interest of the United States.
(f) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee on
Homeland Security and Governmental Affairs and the Committee on
Foreign Relations of the Senate and the Committee on Homeland
Security and the Committee on Foreign Affairs of the House of
Representatives.
(2) Business operations.--The term ``business operations''
means engaging in commerce in any form, including acquiring,
developing, maintaining, owning, selling, possessing, leasing,
or operating equipment, facilities, personnel, products,
services, personal property, real property, or any other
apparatus of business or commerce.
(3) Executive agency.--The term ``executive agency'' has
the meaning given the term in section 133 of title 41, United
States Code.
(4) Government of venezuela.--(A) The term ``Government of
Venezuela'' includes the government of any political
subdivision of Venezuela, and any agency or instrumentality of
the Government of Venezuela.
(B) For purposes of subparagraph (A), the term ``agency or
instrumentality of the Government of Venezuela'' means an
agency or instrumentality of a foreign state as defined in
section 1603(b) of title 28, United States Code, with each
reference in such section to ``a foreign state'' deemed to be a
reference to ``Venezuela''.
(5) Person.--The term ``person'' means--
(A) a natural person, corporation, company,
business association, partnership, society, trust, or
any other nongovernmental entity, organization, or
group;
(B) any governmental entity or instrumentality of a
government; and
(C) any successor, subunit, parent entity, or
subsidiary of, or any entity under common ownership or
control with, any entity described in subparagraph (A)
or (B).
(g) Term of Applicability.--This section shall apply with respect
to any contract entered into during the three-year period beginning on
the date of the enactment of this Act.
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