I 
111TH CONGRESS 
1ST SESSION H. R. 1367 
To strengthen the liability of parent companies for violations of sanctions 
by foreign entities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 5, 2009 
Mr. WEINER introduced the following bill; which was referred to the 
Committee on Foreign Affairs 
A BILL 
To strengthen the liability of parent companies for violations 
of sanctions by foreign entities, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop Business with 
Terrorists Act of 2009’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) ENTITY.—The term ‘‘entity’’ means a part-
nership, association, trust, joint venture, corpora-
tion, or other organization. 
VerDate Nov 24 2008 
02:07 Mar 07, 2009
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1367.IH
H1367
wwoods2 on PRODPC68 with BILLS
(2) PARENT
COMPANY.—The term ‘‘parent 
company’’ means an entity that is a United States 
person and— 
(A) the entity owns, directly or indirectly, 
more than 50 percent of the equity interest by 
vote or value in another entity; 
(B) board members or employees of the en-
tity hold a majority of board seats of another 
entity; or 
(C) the entity otherwise controls or is able 
to control the actions, policies, or personnel de-
cisions of another entity. 
(3) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) a natural person who is a citizen of the 
United States or who owes permanent alle-
giance to the United States; and 
(B) an entity that is organized under the 
laws of the United States, any State or terri-
tory thereof, or the District of Columbia, if nat-
ural persons described in subparagraph (A) 
own, directly or indirectly, more than 50 per-
cent of the outstanding capital stock or other 
beneficial interest in such entity. 
VerDate Nov 24 2008 
02:07 Mar 07, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1367.IH
H1367
wwoods2 on PRODPC68 with BILLS
SEC. 3. LIABILITY OF PARENT COMPANIES FOR VIOLA-
TIONS OF SANCTIONS BY FOREIGN ENTITIES. 
(a) IN GENERAL.—In any case in which an entity en-
gages in an act outside the United States that, if com-
mitted 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 Inter-
national 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. 
(b) APPLICABILITY.—Subsection (a) shall not apply 
to a parent company of an entity on which the President 
imposed a penalty for a violation described in subsection 
(a) that was in effect on the date of the enactment of this 
Act if the parent company divests or terminates its busi-
ness with such entity not later than 90 days after such 
date of enactment. 
Æ 
VerDate Nov 24 2008 
02:07 Mar 07, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6301
E:\BILLS\H1367.IH
H1367
wwoods2 on PRODPC68 with BILLS