A bill to stop corporations from financing terrorism.

Summary: Stop Business With Terrorists Act of 2005 - States that, in the case of a person subject to the jurisdiction of the United States that is prohibited from engaging in a transaction with a foreign person, such prohibition shall also apply to: (1) each subsidiary or affiliate of the person so prohibited; and (2) any other entity that is controlled in fact by that person. Prohibits such a person from controlling in fact any foreign person who is engaged in such a transaction whether or not the foreign person is subject to the jurisdiction of the United States. Defines as a person subject to the jurisdiction of the United States: (1) a citizen or resident of the United States; (2) a person actually within the United States; (3) a corporation, partnership, or other organization or entity organized under the laws of the United States or any state, territory, or possession thereof; (4) a corporation, partnership, or other organization owned or controlled in fact by a person or entity described in (1) or (3).

Makes the prohibition applicable in any case in which: (1) the President takes action under the International Emergency Economic Powers Act or the Trading With the Enemy Act 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. Allows a subject person 90 days to divest or terminate the prohibited business with the foreign person. Requires the President to publish a list of foreign persons under sanction.

Requires the Director of the Office of Foreign Assets Control to notify Congress if any sanction is imposed by such Office as a result of an investigation.

Expresses the sense of 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.

SECTION 1. SHORT TITLE.

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

SEC. 2. DEFINITIONS.

    In this Act:
            (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. 3. 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 90 days 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 90 days 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 section 3(b) and shall publish notice of 
any change to that list in a timely manner.

SEC. 4. 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. 5. 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 in a transaction prohibited 
                under section 3(a) of this Act 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).