Amends the Iran and Libya Sanctions Act of 1996 to: (1) eliminate mandatory sanction provisions respecting Libya; (2) impose mandatory sanctions on a person or entity that aids Iran acquire or develop weapons of mass destruction or destabilizing types and numbers of conventional weapons; (3) revise multilateral regime reporting requirements, including provisions respecting sanctions on individuals aiding Iranian petroleum development; (4) enlarge the scope of sanctionable entities; and (5) eliminate the sunset provision.

Declares that U.S. policy should support: (1) efforts by the Iranian people to exercise self-determination over their form of government; and (2) an internationally-overseen referendum in Iran.

Authorizes the President to provide financial and political assistance to eligible foreign and domestic individuals and groups that support democracy and advocate nonproliferation in Iran. Directs the President to notify (which may be in classified form) the appropriate congressional committees not later than 15 days prior to designating an eligible opposition group.

Expresses the sense of Congress that: (1) the President should appoint a special assistant on Iranian matters; (2) U.S. representatives and officials in international fora should express support for democratic transition in Iran; (3) representatives of the Government of Iran should be denied access to U.S. Government buildings; (4) efforts to halt the Iranian nuclear weapons program should be intensified; and (5) U.S. officials and representatives should strongly support indigenous efforts in Iran calling for democratic elections.