[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2709 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2709

   To impose certain sanctions on foreign persons who transfer items 
    contributing to Iran's efforts to acquire, develop, or produce 
                          ballistic missiles.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 23, 1997

    Mr. Gilman (for himself, Mr. Gingrich, Mr. Boehner, Mr. Cox of 
 California, Mr. Solomon, Mr. Hyde, Ms. Ros-Lehtinen, Mr. Rohrabacher, 
Mr. King, Mr. Chabot, Mr. Fox of Pennsylvania, Mr. Weller, Mr. Saxton, 
   Mr. Nethercutt, Mr. Deutsch, Mr. Schumer, Mr. Gutierrez, and Mr. 
   Borski) introduced the following bill; which was referred to the 
                  Committee on International Relations

_______________________________________________________________________

                                 A BILL


 
   To impose certain sanctions on foreign persons who transfer items 
    contributing to Iran's efforts to acquire, develop, or produce 
                          ballistic missiles.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Missile Proliferation Sanctions 
Act of 1997''.

SEC. 2. REPORTS ON MISSILE PROLIFERATION TO IRAN.

    (a) Reports.--Except as provided in subsection (c), the President 
shall, at the times specified in subsection (b), submit to the 
Committee on International Relations of the House of Representatives 
and the Committee on Foreign Relations of the Senate a report 
identifying every foreign person with respect to whom there is credible 
information indicating that that person, on or after August 8, 1995--
            (1) transferred goods or technology, or provided technical 
        assistance or facilities, that contributed to Iran's efforts to 
        acquire, develop, or produce ballistic missiles; or
            (2) attempted to transfer goods or technology, or attempted 
        to provide technical assistance or facilities, that would have 
        contributed to Iran's efforts to acquire, develop, or produce 
        ballistic missiles.
    (b) Timing of Reports.--The reports under subsection (a) shall be 
submitted not later than 30 days after the date of the enactment of 
this Act, not later than 180 days after such date of enactment, not 
later than 1 year after such date of enactment, and not later than the 
end of each 1-year period thereafter.
    (c) Exceptions for Persons Previously Identified or Sanctioned or 
Subject to Waiver.--Any foreign person who--
            (1) was identified in a previous report submitted under 
        subsection (a) on account of a particular transfer, 
        transaction, or attempt,
            (2) has engaged in a transfer or transaction that was the 
        basis for the imposition of sanctions with respect to that 
        person under section 73 of the Arms Export Control Act or 
        section 1604 of the Iran-Iraq Arms Non-Proliferation Act of 
        1992, or
            (3) may have engaged in a transfer or transaction, or made 
        an attempt, that was the subject of a waiver under section 4,
is not required to be identified on account of that same transfer, 
transaction, or attempt in any report submitted thereafter under this 
section.

SEC. 3. IMPOSITION OF SANCTIONS.

    (a) Requirement To Impose Sanctions.--
            (1) Requirement to impose sanctions.--The sanctions 
        described in subsection (b) shall be imposed on--
                    (A) any person identified under subsection (a)(1) 
                of section 2 in a report submitted under that section, 
                and
                    (B) any person identified under subsection (a)(2) 
                of section 2 in a report submitted under that section, 
                if that person has been identified in that report or a 
                previous report as having made at least 1 other attempt 
                described in subsection (a)(2) of that section.
            (2) Effective date of sanctions.--The sanctions shall be 
        effective--
                    (A) 30 days after the report triggering the 
                sanction is submitted, if the report is submitted on or 
                before the date required by section 2(b);
                    (B) 30 days after the date required by section 2(b) 
                for submitting the report, if the report triggering the 
                sanction is submitted within 30 days after that date; 
                and
                    (C) on the date that the report triggering the 
                sanction is submitted, if that report is submitted more 
                than 30 days after the date required by section 2(b).
    (b) Description of Sanctions.--The sanctions referred to in 
subsection (a) that are to be imposed on a foreign person described in 
that subsection are the following:
            (1) Arms export sanction.--For a period of not less than 2 
        years, the United States Government shall not sell to that 
        person any item on the United States Munitions List as in 
        effect on August 8, 1995, and shall terminate sales to that 
        person of any defense articles, defense services, or design and 
        construction services under the Arms Export Control Act.
            (2) Dual use sanction.--For a period of not less than 2 
        years, the authorities of section 6 of the Export 
        Administration Act of 1979 shall be used to prohibit the export 
        of any goods or technology on the control list established 
        under section 5(c)(1) of that Act to that person.
            (3) United states assistance.--For a period of not less 
        than 2 years, the United States Government shall not provide 
        any assistance in the form of grants, loans, credits, 
        guarantees, or otherwise, to that person.

SEC. 4. WAIVER ON BASIS OF ADDITIONAL INFORMATION.

    (a) In General.--The President may waive the imposition of any 
sanction that would otherwise be required under section 3 on any 
foreign person 15 days after the President determines and reports to 
the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate 
that, on the basis of information provided by that person, or otherwise 
obtained by the President, the President is persuaded that the person 
did not, on or after August 8, 1995--
            (1) transfer goods or technology, or provide technical 
        assistance or facilities, that contributed to Iran's efforts to 
        acquire, develop, or produce ballistic missiles; or
            (2) attempt on more than one occasion to transfer goods or 
        technology, or to provide technical assistance or facilities, 
        that would have contributed to Iran's efforts to acquire, 
        develop, or produce ballistic missiles.
    (b) Written Justification.--The determination and report of the 
President under subsection (a) shall include a written justification 
describing in detail--
            (1) the credible information indicating that the person 
        transferred or attempted to transfer goods or technology, or 
        provided or attempted to provide technical assistance or 
        facilities to Iran;
            (2) the additional information which persuaded the 
        President that the person did not transfer or attempt to 
        transfer goods or technology, or provide or attempt to provide 
        technical assistance or facilities to Iran; and
            (3) the analysis of the information supporting the 
        President's conclusion.
    (c) Submission in Classified Form.--When the President considers it 
appropriate, the determination and report of the President under 
subsection (a) and the written justification under subsection (b), or 
appropriate parts thereof, may be submitted in classified form.

SEC. 5. WAIVER ON BASIS OF NATIONAL SECURITY.

    (a) In General.--The President may waive the imposition of any 
sanction that would otherwise be required under section 3 on any 
foreign person 15 days after the President determines and reports to 
the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate 
that such waiver is essential to the national security of the United 
States.
    (b) Written Justification.--The determination and report of the 
President under subsection (a) shall include a written justification 
describing in detail the facts and circumstances supporting the 
President's conclusion.
    (c) Submission in Classified Form.--When the President considers it 
appropriate, the written justification under subsection (b), or 
appropriate parts thereof, may be submitted in classified form.

SEC. 6. ADDITIONAL INFORMATION REGARDING ACTIONS BY GOVERNMENT OF 
              PRIMARY JURISDICTION.

    As part of each report submitted under section 2, the President 
shall include the following information with respect to each foreign 
person identified in that report:
            (1) A statement regarding whether the government of primary 
        jurisdiction over that person was aware of the activities that 
        were the basis for the identification of that person in the 
        report.
            (2) If the government of primary jurisdiction was not aware 
        of the activities that were the basis for the identification of 
        that person in the report, an explanation of the reasons why 
        the United States Government did not inform that government of 
        those activities.
            (3) If the government of primary jurisdiction was aware of 
        the activities that were the basis for the identification of 
        that person in the report, a description of the efforts, if 
        any, undertaken by that government to prevent those activities, 
        and an assessment of the effectiveness of those efforts, 
        including an explanation of why those efforts failed.
            (4) If the government of primary jurisdiction was aware of 
        the activities that were the basis for the identification of 
        that person in the report and failed to undertake effective 
        efforts to prevent those activities, a description of any 
        sanctions that have been imposed on that government by the 
        United States Government because of such failure.

SEC. 7. DEFINITIONS.

    For the purposes of this Act--
            (1) the terms ``foreign person'' and ``person'' mean--
                    (A) a natural person that is an alien;
                    (B) a corporation, business association, 
                partnership, society, trust, or any other 
                nongovernmental entity, organization, or group, that is 
                organized under the laws of a foreign country or has 
                its principal place of business in a foreign country;
                    (C) any foreign governmental entity operating as a 
                business enterprise; and
                    (D) any successor or subsidiary of any entity 
                described in subparagraph (B) or (C); and
            (2) the term ``government of primary jurisdiction'' means--
                    (A) in the case of a natural person, the foreign 
                government of the country of which the person is a 
                citizen or national;
                    (B) in the case of an entity described in 
                subparagraph (B) of paragraph (1) or any successor or 
                subsidiary of such entity, the foreign government of 
                the country in which the entity has its principal place 
                of business, or the foreign government under whose laws 
                that entity is organized; and
                    (C) in the case of a foreign governmental entity 
                described in subparagraph (C) of paragraph (1) or any 
                successor or subsidiary of such entity, the foreign 
                government of which that entity is a part.
                                 <all>