S. 1221: Banning Operations and Leases with the Illegitimate Venezuelan Authoritarian Regime Act

This bill, known as the "Banning Operations and Leases with the Illegitimate Venezuelan Authoritarian Regime Act" (or BOLIVAR Act), aims to restrict U.S. government contracts from being awarded to businesses that engage in significant operations with the Venezuelan government led by President Nicolás Maduro, which is not recognized as legitimate by the United States.

Key Provisions

Prohibition on Contracting

The bill stipulates that heads of executive agencies are prohibited from entering into contracts for the procurement of goods or services with any person that is determined to be knowingly conducting significant business operations with the Maduro regime. This applies unless specific exceptions are invoked.

Exceptions to the Prohibition

There are several exceptions where the prohibition does not apply:

• Humanitarian and Urgent Services: Contracts that are necessary for humanitarian assistance, disaster relief, urgent life-saving measures, or noncombatant evacuations are exempt.
• Support for U.S. Government Activities: Contracts that support U.S. government functions in Venezuela, including maintenance of government facilities, are also exempt.
• Licenses from the Office of Foreign Assets Control: If a business has a valid license to operate in Venezuela issued by this office, they are not subject to the prohibition.
• U.S. Diplomatic Operations: Contracts related to the operation and maintenance of U.S. consular offices and diplomatic posts in Venezuela are exempt.

Waiver Authority

The Secretary of State has the authority to waive the contracting restrictions if deemed beneficial to U.S. national interests.

Notification Requirements

Whenever a contract is entered into under one of the exceptions, the Secretary of State must notify the appropriate congressional committees.

Definitions of Terms

The bill provides definitions for terms such as:

• "Business operations": Engaging in commerce in various forms, such as owning or operating equipment and services.
• "Person": This encompasses individuals, corporations, partnerships, and other entities and organizations.
• "Government of Venezuela": Includes any subdivisions or agencies related to the Venezuelan government.

Duration of Applicability

The provisions of this bill will be applicable for three years from the date it is enacted.

Relevant Companies

• PDVSA - Petróleos de Venezuela, S.A. is the state-owned oil and natural gas company in Venezuela and would be directly impacted by U.S. restrictions on contracting.
• Cervical Ventures - Potential exposure to Venezuelan markets may be limited, but a ban could affect any dealings tied to Venezuelan operations.