[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1228 Reported in Senate (RS)]





                                                       Calendar No. 280

104th CONGRESS

  1st Session

                                S. 1228

                          [Report No. 104-187]

_______________________________________________________________________

                                 A BILL

 To impose sanctions on foreign persons exporting petroleum products, 
              natural gas, or related technology to Iran.

_______________________________________________________________________

                           December 15, 1995

        Reported with an amendment and an amendment to the title





                                                       Calendar No. 280
104th CONGRESS
  1st Session
                                S. 1228

                          [Report No. 104-187]

 To impose sanctions on foreign persons exporting petroleum products, 
              natural gas, or related technology to Iran.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            September 8 (legislative day, September 5), 1995

Mr. D'Amato (for himself, Mr. Inouye, Mr. Pressler, Mr. Faircloth, Mr. 
Kohl, Ms. Snowe, Mr. Kyl, Mr. Domenici, Mr. Helms, Mr. Smith, Mr. Mack, 
  Mr. Hatch, Mr. Grassley, Mr. Cochran, Mr. Stevens, Mr. DeWine, Mr. 
Warner, Mr. Brown, Mr. Shelby, Mr. Dole, Mr. Campbell, Mr. Inhofe, Mr. 
   Santorum, Mr. Gramm, Mr. Bennett, Mr. Coverdell, Mr. Thomas, Mr. 
 Kempthorne, Mr. McConnell, Mr. Lieberman, Mr. Burns, Mr. Conrad, Mr. 
 Reid, Mr. Gregg, Mr. Harkin, Mrs. Feinstein, Mr. Abraham, Mr. Heflin, 
Mr. Levin, Mrs. Boxer, Mr. Murkowski, Mr. Cohen, Ms. Moseley-Braun, and 
 Mrs. Murray) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

                           December 15, 1995

  Reported by Mr. D'Amato, with an amendment and an amendment to the 
                                 title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To impose sanctions on foreign persons exporting petroleum products, 
              natural gas, or related technology to Iran.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Iran Foreign Oil Sanctions 
Act of 1995''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    The Congress makes the following findings:</DELETED>
        <DELETED>    (1) The efforts of the Government of Iran to 
        acquire weapons of mass destruction and the means to deliver 
        them endanger potentially the national security and foreign 
        policy interests of the United States and those countries with 
        which it shares common strategic and foreign policy 
        objectives.</DELETED>
        <DELETED>    (2) The objective of preventing the proliferation 
        of weapons of mass destruction through existing multilateral 
        and bilateral initiatives requires additional efforts to deny 
        Iran the financial means to sustain its nuclear, chemical, 
        biological, and missile weapons programs.</DELETED>

<DELETED>SEC. 3. DECLARATION OF POLICY.</DELETED>

<DELETED>    The Congress declares that it is the policy of the United 
States to deny Iran the ability to fund the development and acquisition 
of weapons of mass destruction and the means to deliver them by 
preventing Iran from acquiring equipment that would enhance Iran's 
ability to extract, refine, process, store, or transport petroleum, 
petroleum products, or natural gas.</DELETED>

<DELETED>SEC. 4. IMPOSITION OF SANCTIONS ON FOREIGN PERSONS EXPORTING 
              PETROLEUM PRODUCTS, NATURAL GAS, OR RELATED TECHNOLOGY TO 
              IRAN.</DELETED>

<DELETED>    (a) In General.--The President shall impose the mandatory 
sanctions in section 5(1) and may impose one or more of the 
discretionary sanctions described in section 5(2), if the President 
determines that a foreign person subject to this section has, with 
requisite knowledge, on or after the date of enactment of this Act, 
exported, transferred, or released to Iran, its nationals, or entities 
controlled by Iran or its nationals any goods or technology identified 
on the List of Petroleum and Natural Gas-Related Goods and Technology 
established by section 9 (hereafter in this Act referred to as the 
``List'')--</DELETED>
        <DELETED>    (1) through the export from the United States of 
        any goods or technology identified in the List that is subject 
        to the jurisdiction of the United States, or</DELETED>
        <DELETED>    (2) through the export from any other country or 
        territory of any goods or technology identified in the List 
        that would be, if they were United States goods or technology, 
        subject to the jurisdiction of the United States and subject to 
        the restrictions set forth in this section.</DELETED>
<DELETED>    (b) Persons Against Which the Sanctions Are To Be 
Imposed.--The sanctions described in subsection (a) shall be imposed 
on--</DELETED>
        <DELETED>    (1) the foreign person with respect to whom the 
        President makes the determination described in that 
        subsection;</DELETED>
        <DELETED>    (2) any successor entity to that foreign 
        person;</DELETED>
        <DELETED>    (3) any foreign person that is a parent or 
        subsidiary of that person if that parent or subsidiary with 
        requisite knowledge engaged in the activities which were the 
        basis of that determination; and</DELETED>
        <DELETED>    (4) any foreign person that is an affiliate of 
        that person if that affiliate with requisite knowledge engaged 
        in the activities which were the basis of that determination 
        and if that affiliate is controlled in fact by that 
        person.</DELETED>

<DELETED>SEC. 5. DESCRIPTION OF SANCTIONS.</DELETED>

<DELETED>    The sanctions to be imposed on a foreign person under 
section 4(a) are as follows:</DELETED>
        <DELETED>    (1) Mandatory sanctions.--</DELETED>
                <DELETED>    (A) Procurement sanction.--The United 
                States Government shall not procure, or enter into any 
                contract for the procurement of, any goods or services 
                from such sanctioned foreign person or any parent, 
                subsidiary, affiliate, or successor entity thereof, as 
                described in section 4(b).</DELETED>
                <DELETED>    (B) Export sanction.--(i) The United 
                States Government shall not issue any license or grant 
                any other permission or authority to export any goods 
                or technology to a sanctioned foreign person under--
                </DELETED>
                        <DELETED>    (I) the Export Administration Act 
                        of 1979;</DELETED>
                        <DELETED>    (II) the Arms Export Control 
                        Act;</DELETED>
                        <DELETED>    (III) the Atomic Energy Act of 
                        1954; or</DELETED>
                        <DELETED>    (IV) any other statute that 
                        requires the prior review and approval of the 
                        United States Government as a condition for the 
                        exportation of goods and services, or their re-
                        export, to any foreign person designated by the 
                        President as violating this section.</DELETED>
                <DELETED>    (ii) Sanctioned foreign persons shall be 
                included within the Table of Denial Orders for general 
                and validated export licenses for a period of not less 
                than three years.</DELETED>
                <DELETED>    (C) Denial of entry of persons into the 
                united states.--Sanctioned natural persons, and senior 
                executive officers of sanctioned foreign persons that 
                are corporations or partnerships, shall be ineligible 
                to receive visas and shall be excluded from admission 
                into the United States.</DELETED>
        <DELETED>    (2) Discretionary sanctions.--</DELETED>
                <DELETED>    (A) Investment in the united states 
                authority to review certain mergers, acquisitions, and 
                takeovers.--The President may exercise his authority 
                under section 721(d) of the Defense Production Act of 
                1950 to investigate and prohibit mergers, acquisitions, 
                takeovers, and other similar investments in the United 
                States by persons engaged in interstate commerce--
                </DELETED>
                        <DELETED>    (i) if such actions involve 
                        foreign persons sanctioned under section 4(a); 
                        and</DELETED>
                        <DELETED>    (ii) if the President finds, in 
                        addition to the requirements of section 721(e) 
                        of such Act, that the participation of foreign 
                        persons, sanctioned by the President under 
                        section 4(a), in activities to assist, directly 
                        or indirectly, Iran to increase the revenue 
                        available to that government by extracting 
                        petroleum, natural gas, or other activities 
                        related to these product sectors threatens to 
                        impair the national security and foreign policy 
                        interests of the United States.</DELETED>
                <DELETED>    (B) Import sanction.--(i) The importation 
                into the United States of products produced by any 
                sanctioned foreign person, including any parent, 
                subsidiary, affiliate, or successor entity thereof, may 
                be prohibited.</DELETED>
                <DELETED>    (ii) Clause (i) includes application to--
                </DELETED>
                        <DELETED>    (I) the entry of any ``finished 
                        product'' or ``component part'', whether 
                        shipped directly by the manufacturer, or by 
                        another entity; and</DELETED>
                        <DELETED>    (II) the contracting for the 
                        provision of services in the United States or 
                        abroad by United States persons and by foreign 
                        persons in the United States.</DELETED>
                <DELETED>    (C) Prohibition against export-import bank 
                assistance for exports to foreign persons.--The Export-
                Import Bank of the United States may not guarantee, 
                insure, extend credit, or participate in the extension 
                of credit in connection with the export of any goods or 
                services to any foreign person that has been made 
                subject to the sanctions pursuant to section 
                4(a).</DELETED>
                <DELETED>    (D) Loans from united states financial 
                institutions.--The United States Government may 
                prohibit any United States financial institution from 
                making any loan or providing any credit to any foreign 
                person sanctioned under section 4(a) unless such 
                foreign person is engaged in activities to relieve 
                human suffering, within the meaning of section 
                203(b)(2) of the International Emergency Economic 
                Powers Act.</DELETED>
                <DELETED>    (E) Prohibitions on foreign financial 
                institutions.--The following prohibitions may be 
                imposed against foreign financial institutions 
                sanctioned under section 4(a):</DELETED>
                        <DELETED>    (i) Designation as primary 
                        dealer.--Neither the Board of Governors of the 
                        Federal Reserve System nor the Federal Reserve 
                        Bank of New York may designate, or permit the 
                        continuation of any prior designation of, such 
                        financial institution as a primary dealer in 
                        United States Government debt 
                        instruments.</DELETED>
                        <DELETED>    (ii) Government funds.--Such 
                        financial institution shall not serve as agent 
                        of the United States Government or serve as 
                        repository for United States Government 
                        funds.</DELETED>
                        <DELETED>    (iii) Restrictions on 
                        operations.--Such financial institutions shall 
                        not, directly or indirectly--</DELETED>
                                <DELETED>    (I) commence any line of 
                                business in the United States in which 
                                it was not engaged as of the date of 
                                the determination by the President 
under section 4(a); or</DELETED>
                                <DELETED>    (II) conduct business from 
                                any location in the United States at 
                                which it did not conduct business as of 
                                the date of the determination by the 
                                President under section 4(a).</DELETED>

<DELETED>SEC. 6. WAIVER AUTHORITY REGARDING SANCTIONS AGAINST 
              IRAN.</DELETED>

<DELETED>    The sanctions of section 5 shall not apply if the 
President determines and certifies to the appropriate congressional 
committees that Iran--</DELETED>
        <DELETED>    (1) has substantially improved its adherence to 
        internationally recognized standards of human rights;</DELETED>
        <DELETED>    (2) has ceased its efforts to design, develop, 
        manufacture, or acquire--</DELETED>
                <DELETED>    (A) a nuclear explosive device or related 
                materials and technology;</DELETED>
                <DELETED>    (B) chemical and biological 
                weapons;</DELETED>
                <DELETED>    (C) missiles and missile launch 
                technology; or</DELETED>
                <DELETED>    (D) any missile or other delivery system 
                capable of reaching the territory of a country the 
                government of which shares strategic interests with the 
                United States and is engaged in defense cooperation, 
                including the acquisition of items identified in the 
                United States Munitions List, with the United States; 
                and</DELETED>
        <DELETED>    (3) has ceased all forms of support for 
        international terrorism.</DELETED>

<DELETED>SEC. 7. WAIVER OF SANCTIONS AGAINST FOREIGN PERSONS.</DELETED>

<DELETED>    (a) Consultations.--If the President makes a determination 
described in section 4(a) with respect to foreign persons, the Congress 
urges the President, to initiate consultations immediately with the 
foreign government with primary jurisdiction over that foreign person 
with respect to the imposition of the sanctions pursuant to this 
section.</DELETED>
        <DELETED>    (1) Actions by government of jurisdiction.--In 
        order to pursue such consultations with that government, the 
        President may delay imposition of the sanctions pursuant to 
        this section within 90 days. Following such consultations, the 
        President shall immediately impose sanctions unless the 
        President determines and certifies to the Congress that the 
        government has taken specific and effective actions, including 
        the imposition of appropriate penalties, to terminate the 
        involvement of the foreign person in the activities that 
        resulted in the imposition of sanctions against the foreign 
        person.</DELETED>
        <DELETED>    (2) Additional delay in imposition of sanctions.--
        The President may delay the imposition of sanctions for up to 
        an additional 45 days if the President determines and certifies 
        to the Congress that the government with primary jurisdiction 
        over the foreign person is in the process of taking the actions 
        described in paragraph (1).</DELETED>
        <DELETED>    (3) Report to congress.--Not later than 45 days 
        after making a determination under section 4(a), the President 
        shall submit to the Committee on Banking, Housing and Urban 
        Affairs of the Senate and the Committee on International 
        Relations of the House of Representatives a report on the 
        status of consultations with the appropriate foreign government 
        under this subsection, and the basis for any determination 
        under paragraph (2) that such government has taken specific 
        corrective actions.</DELETED>
<DELETED>    (b) Assurances From Foreign Persons.--The President may 
terminate the sanctions against a foreign person, subject to a 
determination under section 4(a), if the foreign person provides 
assurances to the Secretary that the actions that resulted in the 
determination to impose sanctions have been terminated and have 
provided specific assurances that it will neither directly nor 
indirectly, or through any other person, including subsidiaries and 
affiliates, direct or participate in any activity to provide to Iran 
goods or technology on the List.</DELETED>
<DELETED>    (c) Exceptions.--The President shall not be required to 
apply or maintain the sanctions under section 4(a)--</DELETED>
        <DELETED>    (1) in the case of procurement of defense articles 
        or defense services--</DELETED>
                <DELETED>    (A) under existing contracts or 
                subcontracts, including the exercise of options for 
                production quantities to satisfy requirements essential 
                to the national security of the United 
                States;</DELETED>
                <DELETED>    (B) if the President determines in writing 
                that the person or other entity to which the sanction 
                would otherwise be applied is a sole source supplier of 
                the defense articles or services, that the defense 
                articles or services are essential, and that 
                alternative sources are not readily or reasonably 
                available; or</DELETED>
                <DELETED>    (C) if the President determines in writing 
                that such articles or services are essential to the 
                national security under defense coproduction 
                agreements;</DELETED>
        <DELETED>    (2) to products or services provided under 
        contracts entered into before the date on which the President 
        publishes his intention to impose the sanction;</DELETED>
        <DELETED>    (3) to--</DELETED>
                <DELETED>    (A) spare parts which are essential to 
                United States products or production;</DELETED>
                <DELETED>    (B) component parts, but not finished 
                products, essential to United States products or 
                production; or</DELETED>
                <DELETED>    (C) routine servicing and maintenance of 
                products, to the extent that alternative sources are 
                not readily or reasonably available;</DELETED>
        <DELETED>    (4) to information and technology essential to 
        United States products or production; or</DELETED>
        <DELETED>    (5) to medicines, medical supplies, or other 
        humanitarian items.</DELETED>
<DELETED>    (d) Presidential National Security Waiver.--(1) The 
President may waive the requirement in section 4(a) to impose a 
sanction or sanctions on a foreign person in section 4(b), for goods 
and technology that are not subject to the jurisdiction of the United 
States, 15 days after the President determines and so reports to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on International Relations of the House of Representatives 
that it is essential to the national interest of the United States to 
exercise such waiver authority.</DELETED>
<DELETED>    (2) Any such report shall provide a specific and detailed 
rationale for such determination, including--</DELETED>
        <DELETED>    (A) a description of the conduct, including the 
        identification of the goods and technology involved in the 
        violation, that resulted in the determination of a violation or 
        violations;</DELETED>
        <DELETED>    (B) an explanation of the efforts to secure the 
        cooperation of the government with primary jurisdiction of the 
        foreign person to terminate or penalize the activities that 
        resulted in the determination of a violation;</DELETED>
        <DELETED>    (C) an estimate as to the significance of the 
        goods and technology exported to Iran on that country's ability 
        to extract, refine, process, store, or transport petroleum, 
        petroleum products, or natural gas; and</DELETED>
        <DELETED>    (D) a statement as to the response of the United 
        States in the event that such foreign person engages in other 
        activities that under this section would constitute an 
        additional violation.</DELETED>

<DELETED>SEC. 8. TERMINATION OF SANCTIONS.</DELETED>

<DELETED>    (a) Duration of Sanctions.--The sanctions imposed pursuant 
to this section shall apply for a period of not less than 12 months 
following the determination by the President under section 4(a) and 
shall cease to apply thereafter only if the President determines and 
certifies to the Congress that reliable information indicates that the 
foreign person with respect to which the determination was made under 
section 4(a) has ceased to aid or abet Iran, or any individual, group, 
or entity owned or controlled by Iran, to acquire goods and technology 
on the List.</DELETED>
<DELETED>    (b) Waiver.--</DELETED>
        <DELETED>    (1) Criterion for waiver.--the President may waive 
        the continued application of any sanction imposed on any 
        foreign person pursuant to this section, after the end of the 
        12-month period beginning on the date on which that sanction 
        was imposed on that person, if the President determines and 
        certifies to the Congress that the continued imposition of the 
        sanction would have a serious adverse effect on United States 
        national security.</DELETED>
        <DELETED>    (2) Notification of and report to congress.--If 
        the President decides to exercise the waiver authority provided 
        in paragraph (1), the President shall so notify the Congress 
        not less than 30 days before the waiver takes effect. Such 
        notification shall include a report fully articulating the 
        rationale and circumstances which led the President to exercise 
        the waiver authority.</DELETED>

<DELETED>SEC. 9. GOODS AND TECHNOLOGY SUBJECT TO EXPORT CONTROL 
              RESTRICTIONS.</DELETED>

<DELETED>    (a) Control List.--(1) For purposes of the determinations 
to be made pursuant to section 4(a), the President, in consultation 
with the Secretary of State and the Secretary of Energy, and the heads 
of other appropriate departments and agencies, shall establish and 
maintain the List of Petroleum and Natural Gas-Related Goods and 
Technology, consisting of goods or technology (including software and 
technical data) that the President determines materially contribute to 
the extraction, refining, production, storage, or transportation of 
petroleum, petroleum products, or natural gas and the products thereof 
in or by Iran, including goods and technology that are required for the 
development, production, or use (including the repair, maintenance, or 
operation of equipment) for the petroleum and natural gas activities 
described in this subsection.</DELETED>
<DELETED>    (2) The President within 60 days of the date of enactment 
of this Act shall cause the List to be published in the Federal 
Register, together with any regulations necessary thereto. Thereafter, 
any revisions to the List or amendments to the regulations shall be 
published in the same manner.</DELETED>
<DELETED>    (3) Not less than 30 days in advance of the publication of 
the List, it shall be provided to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and to the Committee on International 
Relations of the House of Representatives. The President shall consult 
with such Committees regarding the content of the List and shall 
respond to questions regarding the basis for the inclusion on, or 
exclusion from, the List of specified goods and technologies.</DELETED>
<DELETED>    (4) The President may delegate the functions of this 
subsection to the Secretary of Commerce.</DELETED>
<DELETED>    (b) Statutory Construction.--Nothing in this section 
prevents the inclusion on the List of any goods or technology that may 
be produced in and traded internationally by companies in countries 
with which the United States cooperates in controlling the export of 
goods and technology to prevent the proliferation of weapons of mass 
destruction and the means to deliver them, or in any other 
country.</DELETED>

<DELETED>SEC. 10. REPORT REQUIRED.</DELETED>

<DELETED>    Beginning 60 days after the date of enactment of this Act, 
and every 90 days thereafter, the President shall transmit to the 
appropriate congressional committees a report describing--</DELETED>
        <DELETED>    (1) the nuclear and other military capabilities of 
        Iran; and</DELETED>
        <DELETED>    (2) the support, if any, provided by Iran for acts 
        of international terrorism.</DELETED>

<DELETED>SEC. 11. DEFINITIONS.</DELETED>

<DELETED>    As used in this Act:</DELETED>
        <DELETED>    (1) Act of international terrorism.--The term 
        ``act of international terrorism'' means an act--</DELETED>
                <DELETED>    (A) which is violent or dangerous to human 
                life and that is a violation of the criminal laws of 
                the United States or of any State or that would be a 
                criminal violation if committed within the jurisdiction 
                of the United States or any State; and</DELETED>
                <DELETED>    (B) which appears to be intended--
                </DELETED>
                        <DELETED>    (i) to intimidate or coerce a 
                        civilian population;</DELETED>
                        <DELETED>    (ii) to influence the policy of a 
                        government by intimidation or coercion; 
                        or</DELETED>
                        <DELETED>    (iii) to affect the conduct of a 
                        government by assassination or 
                        kidnapping.</DELETED>
        <DELETED>    (2) Appropriate congressional committees.--The 
        term ``appropriate congressional committees'' means the 
        Committees on Banking, Housing and Urban Affairs and Foreign 
        Relations of the Senate and the Committees on Banking and 
        Financial Services and International Relations of the House of 
        Representatives.</DELETED>
        <DELETED>    (3) Component parts.--The term ``component parts'' 
        has the meaning given the term in section 11A(e)(1) of the 
        Export Administration Act of 1979 (50 U.S.C. App. 
        2410a(e)(1)).</DELETED>
        <DELETED>    (4) Financial institution.--The term ``financial 
        institution'' includes--</DELETED>
                <DELETED>    (A) a depository institution (as defined 
                in section 3(c)(1) of the Federal Deposit Insurance 
                Act), including a branch or agency of a foreign bank 
                (as defined in section 1(b)(7) of the International 
                Banking Act of 1978);</DELETED>
                <DELETED>    (B) a credit union;</DELETED>
                <DELETED>    (C) a securities firm, including a broker 
                or dealer;</DELETED>
                <DELETED>    (D) an insurance company, including an 
                agency or underwriter;</DELETED>
                <DELETED>    (E) any other company that provides 
                financial services; or</DELETED>
                <DELETED>    (F) any subsidiary of such financial 
                institution.</DELETED>
        <DELETED>    (5) Finished products.--The term ``finished 
        products'' has the meaning given the term in section 11A(e)(2) 
        of the Export Administration Act of 1979 (50 U.S.C. App. 
        2410a(e)(2)).</DELETED>
        <DELETED>    (6) Foreign person.--The term ``foreign person'' 
        means--</DELETED>
                <DELETED>    (A) an individual who is not a United 
                States national or an alien admitted for permanent 
                residence to the United States; or</DELETED>
                <DELETED>    (B) a corporation, partnership, or other 
                nongovernment entity which is not a United States 
                national.</DELETED>
        <DELETED>    (7) Iran.--The term ``Iran'' includes any agency 
        or instrumentality of Iran.</DELETED>
        <DELETED>    (8) Nuclear explosive device.--The term ``nuclear 
        explosive device'' means any device, whether assembled or 
        disassembled, that is designed to produce an instantaneous 
        release of an amount of nuclear energy from special nuclear 
        material that is greater than the amount of energy that would 
        be released from the detonation of one pound of trinitrotoluene 
        (TNT).</DELETED>
        <DELETED>    (9) Person.--The term ``person'' means a natural 
        person as well as a corporation, business association, 
        partnership, society, trust, any other nongovernmental entity, 
        organization, or group, and any governmental entity, operating 
        as a business enterprise, and any successor of any such entity 
        in the case of countries where it may be impossible to identify 
        a specific government entity referred to in paragraph (2), the 
        term ``person'' means--</DELETED>
                <DELETED>    (A) all activities of that government 
                relating to the development or production of any 
                missile equipment or technology; and</DELETED>
                <DELETED>    (B) all activities of that government 
                affecting the development or production of aircraft, 
                electronics, and space systems or equipment.</DELETED>
        <DELETED>    (10) Petroleum products.--As used in this section, 
        the term ``petroleum products'' means crude oil, residual fuel 
        oil, or any refined petroleum product.</DELETED>
        <DELETED>    (11) Requisite knowledge.--For purposes of this 
        subsection, the term ``requisite knowledge'' means situations 
        in which a person ``knows'', as ``knowing'' is defined in 
        section 104 of the Foreign Corrupt Practices Act of 1977 (15 
        U.S.C. 78dd-2).</DELETED>
        <DELETED>    (12) Senior executive officers.--The term ``senior 
        executive officers'' includes officers of sanctioned foreign 
        persons, or their designees, who are in a position to direct 
        the conduct or implement the policies that resulted in the 
        determination by the President to impose sanctions against the 
        foreign person.</DELETED>
        <DELETED>    (13) United states or state.--The term ``United 
        States'' or ``State'' means the several States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the Commonwealth of 
        the Northern Mariana Islands, American Samoa, Guam, the United 
        States Virgin Islands, and any other territory or possession of 
        the United States.</DELETED>
        <DELETED>    (14) United states national.--The term ``United 
        States national'' means--</DELETED>
                <DELETED>    (A) a natural person who is a citizen of 
                the United States or who owes permanent allegiance to 
                the United States;</DELETED>
                <DELETED>    (B) a corporation or other legal entity 
                which is organized under the laws of the United States, 
                any State or territory thereof, or the District of 
                Columbia, if natural persons who are nationals of the 
                United States own, directly or indirectly, more than 50 
                percent of the outstanding capital stock or other 
                beneficial interest in such legal entity; and</DELETED>
                <DELETED>    (C) any foreign subsidiary of a 
                corporation or other legal entity described in 
                subparagraph (B).</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Oil Sanctions Act of 1995''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) The efforts of the Government of Iran to acquire 
        weapons of mass destruction and the means to deliver them and 
        its support of international terrorism endanger the national 
        security and foreign policy interests of the United States and 
        those countries with which it shares common strategic and 
        foreign policy objectives.
            (2) The objective of preventing the proliferation of 
        weapons of mass destruction and international terrorism through 
        existing multilateral and bilateral initiatives requires 
        additional efforts to deny Iran the financial means to sustain 
        its nuclear, chemical, biological, and missile weapons 
        programs.

SEC. 3. DECLARATION OF POLICY.

    The Congress declares that it is the policy of the United States to 
deny Iran the ability to support international terrorism and to fund 
the development and acquisition of weapons of mass destruction and the 
means to deliver them by limiting the development of petroleum 
resources in Iran.

SEC. 4. IMPOSITION OF SANCTIONS.

    (a) In General.--Except as provided in subsection (d), the 
President shall impose one or more of the sanctions described in 
section 5 on a person subject to this section (in this Act referred to 
as a ``sanctioned person''), if the President determines that the 
person has, with actual knowledge, on or after the date of enactment of 
this Act, made an investment of more than $40,000,000 (or any 
combination of investments of at least $10,000,000 each, which in the 
aggregate exceeds $40,000,000 in any 12-month period), that 
significantly and materially contributed to the development of 
petroleum resources in Iran.
    (b) Persons Against Which the Sanctions Are To Be Imposed.--The 
sanctions described in subsection (a) shall be imposed on any person 
the President determines--
            (1) has carried out the activities described in subsection 
        (a);
            (2) is a successor entity to that person;
            (3) is a person that is a parent or subsidiary of that 
        person if that parent or subsidiary with actual knowledge 
        engaged in the activities which were the basis of that 
        determination; and
            (4) is a person that is an affiliate of that person if that 
        affiliate with actual knowledge engaged in the activities which 
        were the basis of that determination and if that affiliate is 
        controlled in fact by that person.
    (c) Publication in Federal Register.--The President shall cause to 
be published in the Federal Register a current list of persons that are 
subject to sanctions under subsection (a). The President shall remove 
or add the names of persons to the list published under this subsection 
as may be necessary.
    (d) Exceptions.--The President shall not be required to apply or 
maintain the sanctions under subsection (a)--
            (1) to products or services provided under contracts 
        entered into before the date on which the President publishes 
        his intention to impose the sanction; or
            (2) to medicines, medical supplies, or other humanitarian 
        items.

SEC. 5. DESCRIPTION OF SANCTIONS.

    The sanctions to be imposed on a person under section 4(a) are as 
follows:
            (1) Export-import bank assistance for exports to sanctioned 
        persons.--The President may direct the Export-Import Bank of 
        the United States not to guarantee, insure, extend credit, or 
        participate in the extension of credit in connection with the 
        export of any goods or services to any sanctioned person.
            (2) Export sanction.--The President may order the United 
        States Government not to issue any specific license and not to 
        grant any other specific permission or authority to export any 
        goods or technology to a sanctioned person under--
                    (A) the Export Administration Act of 1979;
                    (B) the Arms Export Control Act;
                    (C) the Atomic Energy Act of 1954; or
                    (D) any other statute that requires the prior 
                review and approval of the United States Government as 
                a condition for the exportation of goods and services, 
                or their re-export, to any person designated by the 
                President under section 4(a).
            (3) Loans from united states financial institutions.--The 
        United States Government may prohibit any United States 
        financial institution from making any loan or providing any 
        credit to any sanctioned person in an amount exceeding 
        $10,000,000 in any 12-month period (or two or more loans of 
        more than $5,000,000 each in such period) unless such person is 
        engaged in activities to relieve human suffering within the 
        meaning of section 203(b)(2) of the International Emergency 
        Economic Powers Act.
            (4) Prohibitions on financial institutions.--The following 
        prohibitions may be imposed against financial institutions 
        sanctioned under section 4(a):
                    (A) Designation as primary dealer.--Neither the 
                Board of Governors of the Federal Reserve System nor 
                the Federal Reserve Bank of New York may designate, or 
                permit the continuation of any prior designation of, 
                such financial institution as a primary dealer in 
                United States Government debt instruments.
                    (B) Government funds.--Such financial institution 
                shall not serve as agent of the United States 
                Government or serve as repository for United States 
                Government funds.

SEC. 6. ADVISORY OPINIONS.

    The Secretary of State may, upon the request of any person, issue 
an advisory opinion, to that person as to whether a proposed activity 
by that person would subject that person to sanctions under this Act. 
Any person who relies in good faith on such an advisory opinion which 
states that the proposed activity would not subject a person to such 
sanctions, and any person who thereafter engages in such activity, may 
not be made subject to such sanctions on account of such activity.

SEC. 7. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.

    (a) Delay of Sanctions.--
            (1) Consultations.--If the President makes a determination 
        described in section 4(a) with respect to a foreign person, the 
        Congress urges the President to initiate consultations 
        immediately with the government with primary jurisdiction over 
        that foreign person with respect to the imposition of sanctions 
        pursuant to this Act.
            (2) Actions by government of jurisdiction.--In order to 
        pursue such consultations with that government, the President 
        may delay imposition of sanctions pursuant to this Act for up 
        to 90 days. Following such consultations, the President shall 
        immediately impose a sanction or sanctions unless the President 
        determines and certifies to the Congress that the government 
        has taken specific and effective actions, including, as 
        appropriate, the imposition of appropriate penalties, to 
        terminate the involvement of the foreign person in the 
        activities that resulted in the determination by the President 
        pursuant to section 4(a) concerning such person.
            (3) Additional delay in imposition of sanctions.--The 
        President may delay the imposition of sanctions for up to an 
        additional 90 days if the President determines and certifies to 
        the Congress that the government with primary jurisdiction over 
        the foreign person is in the process of taking the actions 
        described in paragraph (2).
            (4) Report to congress.--Not later than 90 days after 
        making a determination under section 4(a), the President shall 
        submit to the Committee on Banking, Housing and Urban Affairs 
        of the Senate and the Committee on International Relations of 
        the House of Representatives a report which shall include 
        information on the status of consultations with the appropriate 
        foreign government under this subsection, and the basis for any 
        determination under paragraph (3).
    (b) Duration of Sanctions..--The requirement to impose sanctions 
pursuant to section 4(a) shall remain in effect until the President 
determines that the sanctioned person is no longer engaging in the 
activity that led to the imposition of sanctions.
    (c) Presidential Waiver.--(1) The President may waive the 
requirement in section 4(a) to impose a sanction or sanctions on a 
person in section 4(b), and may waive the continued imposition of a 
sanction or sanctions under subsection (b) of this section, 15 days 
after the President determines and so reports to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
International Relations of the House of Representatives that it is 
important to the national interest of the United States to exercise 
such waiver authority.
    (2) Any such report shall provide a specific and detailed rationale 
for such determination, including--
            (A) a description of the conduct that resulted in the 
        determination;
            (B) in the case of a foreign person, an explanation of the 
        efforts to secure the cooperation of the government with 
        primary jurisdiction of the sanctioned person to terminate or, 
        as appropriate, penalize the activities that resulted in the 
        determination;
            (C) an estimate as to the significance of the investment to 
        Iran's ability to develop its petroleum resources; and
            (D) a statement as to the response of the United States in 
        the event that such person engages in other activities that 
        would be subject to section 4(a).

SEC. 8. TERMINATION OF SANCTIONS.

    The sanctions requirement of section 4 shall no longer have force 
or effect if the President determines and certifies to the appropriate 
congressional committees that Iran--
            (1) has ceased its efforts to design, develop, manufacture, 
        or acquire--
                    (A) a nuclear explosive device or related materials 
                and technology;
                    (B) chemical and biological weapons; or
                    (C) ballistic missiles and ballistic missile launch 
                technology; and
            (2) has been removed from the list of state sponsors of 
        international terrorism under section 6(j) of the Export 
        Administration Act of 1979.

SEC. 9. REPORT REQUIRED.

    The President shall ensure the continued transmittal to Congress of 
reports describing--
            (1) the nuclear and other military capabilities of Iran, as 
        required by section 601(a) of the Nuclear Non-Proliferation Act 
        of 1978 and section 1607 of the National Defense Authorization 
        Act, Fiscal Year 1993; and
            (2) the support provided by Iran for acts of international 
        terrorism, as part of the Department of State's annual report 
        on international terrorism.

SEC. 10. DEFINITIONS.

    As used in this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committees 
        on Banking, Housing and Urban Affairs and Foreign Relations of 
        the Senate and the Committees on Banking and Financial Services 
        and International Relations of the House of Representatives.
            (2) Financial institution.--The term ``financial 
        institution'' includes--
                    (A) a depository institution (as defined in section 
                3(c)(1) of the Federal Deposit Insurance Act), 
                including a branch or agency of a foreign bank (as 
                defined in section 1(b)(7) of the International Banking 
                Act of 1978);
                    (B) a credit union;
                    (C) a securities firm, including a broker or 
                dealer;
                    (D) an insurance company, including an agency or 
                underwriter;
                    (E) any other company that provides financial 
                services; or
                    (F) any subsidiary of such financial institution.
            (3) Investment.--The term ``investment'' means--
                    (A) the entry into a contract that includes 
                responsibility for the development of petroleum 
                resources located in Iran, or the entry into a contract 
                providing for the general supervision and guarantee of 
                another person's performance of such a contract;
                    (B) the purchase of a share of ownership in that 
                development; or
                    (C) the entry into a contract providing for 
                participation in royalties, earnings, or profits in 
                that development, without regard to the form of the 
                participation.
            (4) Person.--The term ``person'' means a natural person as 
        well as a corporation, business association, partnership, 
        society, trust, any other nongovernmental entity, organization, 
        or group, and any governmental entity operating as a business 
        enterprise, and any successor of any such entity.
            (5) Petroleum resources.--The term ``petroleum resources'' 
        includes petroleum and natural gas resources.
    Amend the title so as to read: ``A bill to deter investment in the 
development of Iran's petroleum resources.''.
S 1228 RS----2
S 1228 RS----3