DE HB442

Secretary of State cannot certify or register any limited liability company formed by individuals, organizations, or governments listed on OFAC's Specially Designated Nationals list or sanctioned nations when federal law would be violated.

Registered agents must verify the stated purpose of LLC applications and compare them against 12 specified federal laws restricting foreign investment in sensitive industries including defense, energy, communications, mining, and aircraft.

Registered agents cannot file LLC formation or registration applications if clients appear to be using Delaware LLCs to evade enforcement of federal laws listed in the bill.

Foreign clients presumed to be threats by federal law or OFAC may request clearance from the Committee on Foreign Investments in the United States, which if obtained allows the Secretary of State to waive restrictions.

Effective October 1, 2016.