The BOLIVAR Act would bar executive-branch agencies from contracting with any person that knowingly has significant business operations with authorities of the Government of Venezuela that are not recognized by the United States as the legitimate government. The prohibition requires the concurrence of the Secretary of State and includes several exceptions: humanitarian aid, disaster relief, noncombatant evacuations, national security interests, and contracts supporting U.S. government activities in Venezuela or with international organizations. There are also carve-outs for contracts with licenses from the Office of Foreign Assets Control (OFAC) and for U.S. diplomatic missions. The Secretary of State can grant a waiver if it serves U.S. national interests. The act defines key terms and applies to contracts entered during a three-year period from enactment. Sponsorship includes Senators Scott (FL), Cruz, and Blackburn, and the bill is introduced in the Senate. The goal is to limit funding or business ties with the Maduro regime by restricting procurement from entities with significant business links to Maduro's government, with specific exceptions to allow essential operations and humanitarian needs.
Key Points
- 1Prohibition: Heads of executive agencies may not enter into contracts for goods or services with persons that knowingly have significant business operations with Maduro regime authorities not recognized as legitimate by the U.S., with Secretary of State concurrence.
- 2Exceptions (subsection (b)):
- 3- Necessary for humanitarian aid, disaster relief, life-saving noncombatant evacuations, or national security interests.
- 4- Not required to apply to contracts that support U.S. government activities in Venezuela or contracts with international organizations.
- 5- A congressional notification requirement for contracts granted under an exception.
- 6Licenses and exemptions: OFAC-licensed actors are exempt from the prohibition; contracts related to operating U.S. diplomatic posts in Venezuela are exempt.
- 7Waiver: Secretary of State may waive the prohibition if doing so serves the national interest.
- 8Time limit: The restriction applies only to contracts entered into during the three-year period following enactment.
- 9Definitions: Clarifies terms for appropriate congressional committees, what constitutes “business operations,” who counts as an “executive agency,” who is part of the Government of Venezuela, and who is a “person” for purposes of the prohibition.