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Federal

BOLIVAR Act

Source: Congress.gov  ·  1,231 words in original text
What This Bill Does
This bill stops the U.S. federal government from hiring contractors or buying goods and services from companies that do business with the Venezuelan government that the United States does not recognize as legitimate. The bill has some exceptions for humanitarian aid, national security needs, and other specific situations. ##
Who It Affects
* Federal government agencies that buy goods and services * Companies and businesses that do contracts with the federal government * Any person or organization (including corporations, partnerships, and other business entities) that does business with unrecognized Venezuelan government authorities * The Secretary of State, who makes decisions about which companies can get federal contracts * The Director of the Office of Management and Budget ##
Key Provisions
* Federal agencies cannot sign contracts with companies that knowingly do significant business with Venezuelan government authorities that the U.S. does not recognize as legitimate (Sec. 2(a)) * The rule does not apply to contracts needed for humanitarian assistance to Venezuelan people, disaster relief, life-saving aid, or evacuation of non-military personnel (Sec. 2(b)(1)) * The rule does not apply to contracts that support U.S. government activities in Venezuela or contracts with international organizations (Sec. 2(b)(2)) * The rule does not apply to companies with a valid license from the Office of Foreign Assets Control to operate in Venezuela (Sec. 2(c)) * The rule does not apply to contracts related to running and maintaining U.S. diplomatic offices in Venezuela (Sec. 2(d)) * The rule does not apply to intelligence activities authorized by the U.S. government (Sec. 2(e)) * The Secretary of State can waive this entire requirement if it is in the national interest of the United States (Sec. 2(f)) * The Secretary of State must notify Congress when contracts are approved under the humanitarian or national security exceptions (Sec. 2(b)(3)) ##
What Changes
If this bill becomes law, federal agencies will be prohibited from signing new contracts with companies that do business with the unrecognized Venezuelan government. Companies will need to choose between doing business with that Venezuelan government or doing business with the U.S. federal government. The Secretary of State will have the power to decide which companies meet the definition of "knowingly engages in significant business operations" with the unrecognized Venezuelan government. ##
Important Definitions
* **Business operations:** Engaging in commerce in any form, including buying, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, workers, products, services, personal property, real property, or any other apparatus of business or commerce (Sec. 2(g)(2)) * **Person:** A natural person, corporation, company, business group, partnership, society, trust, or any nongovernmental organization; any governmental entity or government agency; and any subsidiary, parent company, or related entity (Sec. 2(g)(5)) * **Executive agency:** Not specified in bill text * **Significant business operations:** Not specified in bill text ##
Effective Date
This law applies to contracts entered into during a three-year period that begins 180 days after the bill is enacted into law (Sec. 2(h)).
Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.