110 HR 6178 IH: STOP Act of
U.S. House of Representatives
2008-06-04
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; Table of
contents
(a)This Act may be cited as the or
Security through Termination Of Proliferation Act of
2008
or the STOP Act of
2008
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; Table of contents.
Title I—Codification of sanctions against Iran, North Korea, and
Syria
Sec. 101. Codification of sanctions against Iran.
Sec. 102. Codification of sanctions against North
Korea.
Sec. 103. Codification of sanctions against Syria.
Title II—Amendments to the Iran, North Korea, and Syria
Nonproliferation Act
Sec. 201. Transshipment of certain goods, services, or
technology.
Sec. 202. Restrictions on nuclear cooperation.
Sec. 203. Exclusion of senior officials.
Title III—Amendments to the Iran Sanctions Act of 1996 and
related provisions
Sec. 301. Exclusion from the United States of senior officials
of foreign persons who have aided proliferation relating to Iran.
Sec. 302. Denial of tax benefits for taxpayers engaged in
business activity with Iran prohibited by United States law.
Sec. 303. Income tax of foreign corporations engaged in
business activity with Iran prohibited by United States law.
Sec. 304. Compensation for Former United States Hostages in
Iran Fund.
Title IV—Definitions
Sec. 401. Definitions.
<enum>I</enum><header>Codification of
sanctions against Iran, North Korea, and Syria</header>
<section id="H21AFED4B65914D3B8CE41C34C1E56865"><enum>101.</enum><header>Codification of
sanctions against Iran</header><text display-inline="no-display-inline">United
States sanctions, controls, and regulations with respect to Iran imposed
pursuant to Executive Order No. 12957, sections 1(b) through (1)(g) and
sections (2) through (6) of Executive Order No. 12959, and sections 2 and 3 of
Executive Order No. 13059 (relating to exports and certain other transactions
with Iran) as in effect on January 1, 2008, shall remain in effect until the
President certifies to the appropriate congressional committees that the
Government of Iran has verifiably dismantled its weapons of mass destruction
programs.</text>
</section><section id="H7D6238ED3161435E835CD6B113612540"><enum>102.</enum><header>Codification of
sanctions against North Korea</header><text display-inline="no-display-inline">United States sanctions, controls, and
regulations with respect to North Korea imposed by reason of a determination of
the Secretary of State that the Government of North Korea, for purposes of
section 6(j) of the Export Administration Act of 1979 (as continued in effect
pursuant to the International Emergency Economic Powers Act), section 40 of the
Arms Export Control Act, section 620A of the Foreign Assistance Act of 1961, or
other provision of law, is a government that has repeatedly provided support
for acts of international terrorism, shall remain in effect and may not be
lifted pursuant to such provisions of law until the President certifies to
appropriate congressional committees that the Government of North Korea has
verifiably dismantled its weapons of mass destruction programs.</text>
</section><section id="HE75A71CBA00F453393AAF6F5FEFD57B"><enum>103.</enum><header>Codification of
sanctions against Syria</header><text display-inline="no-display-inline">Restrictions against the Government of
Syria, and on persons by reason of their direction of, or contribution to,
activities of the Government of Syria, that were imposed pursuant to the
International Emergency Economic Powers Act, the Syria Accountability and
Lebanese Sovereignty Act of 2003, the Iran, North Korea, and Syria
Nonproliferation Act, or any similar provision of law, as in effect on the date
of the enactment of this Act, including the restrictions imposed under
Executive Order 12938 (as amended by Executive Order 13094), Executive Order
13338, Executive Order 13399, Executive Order 13460, and any similar Executive
Order, shall remain in effect and may not be lifted pursuant to such provisions
of law until the President certifies to the appropriate congressional
committees that the Government of Syria has verifiably dismantled its weapons
of mass destruction programs.</text>
</section><enum>II</enum><header>Amendments to the
Iran, North Korea, and Syria Nonproliferation Act</header>
<section id="H57A1410628304D2EB568E8B55EDAC349"><enum>201.</enum><header>Transshipment
of certain goods, services, or technology</header><text display-inline="no-display-inline">The Iran, North Korea, and Syria
Nonproliferation Act (<external-xref legal-doc="public-law" parsable-cite="pl/106/178">Public Law 106–178</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/50/1701">50 U.S.C. 1701</external-xref> note) is
amended—</text>
<paragraph id="H5B28E8B79F5D48F4B896DB614F91CF2E"><enum>(1)</enum><text>in section
2—</text>
<subparagraph id="HFDAA482DB4524ED59985B81B833EAF00"><enum>(A)</enum><text>in subsection (a),
in the matter preceding paragraph (1)—</text>
<clause id="H4C1FB3AF7828403A93D798805C685B15"><enum>(i)</enum><text>by
striking <quote>or</quote> after <quote>Syria</quote>; and</text>
</clause><clause id="HBB2EC667A5BD41F091B6426EB805F75"><enum>(ii)</enum><text>by
inserting after <quote>North Korea</quote> the following: <quote>, on or after
January 1, 1999, permitted, hosted or otherwise facilitated a transshipment (as
such term is defined in section 5) that may have enabled a foreign person to
transfer (as such term is defined in section 7) to or acquire from Iran, on or
after January 1, 2005, permitted, hosted or otherwise facilitated a
transshipment that may have enabled a foreign person to transfer to or acquire
from Syria, or on or after January 1, 2006, permitted, hosted or otherwise
facilitated a transshipment that may have enabled a person to transfer to or
acquire from North Korea</quote>; and</text>
</clause></subparagraph><subparagraph id="HC1753A255F4A4BA2AE4F8404E84D1442"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (e), by inserting <quote>, or
whose transfer via transshipment was permitted, hosted or facilitated,</quote>
after <quote>transferred</quote>; and</text>
</subparagraph></paragraph><paragraph id="HD6283EFD5B7F4A188BAF17D65CC0929E"><enum>(2)</enum><text>in section
5—</text>
<subparagraph id="HF5F4D1DF71F94F4F8E1FF3B0ED7BE1C2"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H43C2441D782448D5B0A38283959A464"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting <quote>, or
did not permit, host, or otherwise facilitate transshipment (as such term is
defined in section 5) that may have enabled a foreign person to transfer to or
acquire from,</quote> before <quote>Iran</quote>;</text>
</clause><clause id="H5DA253E634584C579D5E9B48C5FB51D"><enum>(ii)</enum><text>in
paragraph (3), by striking <quote>or</quote> at the end;</text>
</clause><clause id="HB1CDB0C4DAC44D70AA2637427B6D2C58"><enum>(iii)</enum><text>in
paragraph (4), by striking the period at the end and inserting <quote>;
or</quote>; and</text>
</clause><clause id="HBA121AB76A9F44AC8C90DF0DEB34294"><enum>(iv)</enum><text>by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HF53D65C655F442C6ADC381EC4F3B5CB" style="OLC">
<paragraph id="HC56D79CE5FEF4C6CA9AABA64CF83C326"><enum>(5)</enum><text display-inline="yes-display-inline">in the case of a foreign person who
permitted, hosted or otherwise facilitated transshipment that may have enabled
a foreign person to transfer to or acquire from, Iran, North Korea, or Syria,
as the case may be, the goods, services, or technology the apparent transfer of
which caused that person to be identified in a report submitted pursuant to
section 2(a), the government with primary jurisdiction over the foreign person
has made and continues to make clear, specific efforts to stop and deter the
permitting, hosting, or other facilitating of transshipments that may enable
such transfers or acquisitions.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H5EF9E8EDFFE24559847B8915FFCC7B69"><enum>(B)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H32E63ECC043943C4ABE360D8453A8A6" style="OLC">
<subsection id="H462F967DC9744B2CA1FA51C4F04F3BC"><enum>(g)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="HB9688E47DCB84C7E91FEABDBDDA8B751"><enum>(1)</enum><header>Goods, services,
or technology</header><text display-inline="yes-display-inline">The term
<term>goods, services, or technology</term> includes—</text>
<subparagraph id="HED95B1DE3A6D47BBABFDCE5E3F42AE8D"><enum>(A)</enum><text>any defense
articles or defense services on the United States Munitions List under section
38 of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2778">22 U.S.C. 2778</external-xref>) for which special export
controls are warranted under such Act (22 U.S.C. 2751 3 et seq.);</text>
</subparagraph><subparagraph id="H65D59F1E83C04FADBACFC3FE6561A02B"><enum>(B)</enum><text>any item
identified on the Commerce Control List maintained under part 774 of title 15,
Code of Federal Regulations; and</text>
</subparagraph><subparagraph id="HA87088CA422E4B6D99AC4C5C7160D9D4"><enum>(C)</enum><text>other sensitive
United States goods, including intellectual property and services that would
contribute to the abilities of Iran, North Korea, and Syria to further their
conventional and unconventional military capabilities.</text>
</subparagraph></paragraph><paragraph id="H647219769F124AAEAB70E21BB7023548"><enum>(2)</enum><header>Transshipment</header><text display-inline="yes-display-inline">In this section, the term
<term>transshipment</term> means the export from one country to another that
passes through a third country, in which cargo is off-loaded and there is some
change to
conveyance.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section id="H78966BF1E8A94E579B1DEC1D72981CA"><enum>202.</enum><header>Restrictions on
nuclear cooperation</header><text display-inline="no-display-inline">The Iran,
North Korea, and Syria Nonproliferation Act is further amended—</text>
<paragraph id="H2A0F503F489F44B3B7EE322BA64DEDC"><enum>(1)</enum><text>by
redesignating section 7 as section 9; and</text>
</paragraph><paragraph id="HCFA4E41CD83E4667BA00E1C4CD2A2B0"><enum>(2)</enum><text>by
inserting after section 6 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H3089FF71BF46464DBB7270CE4EF10000" style="OLC">
<section id="H1926547755BD42A3A5E620C91190EFC"><enum>7.</enum><header>Restrictions on
nuclear cooperation with countries aiding proliferation by Iran, North Korea,
or Syria</header>
<subsection id="H9B3CF7D6C2144865AF972C535E03A336"><enum>(a)</enum><header>In
general</header>
<paragraph id="H5E3DF302C69B4261B7962FBB2D9859B6"><enum>(1)</enum><header>Restrictions</header><text>Notwithstanding
any other provision of law—</text>
<subparagraph id="HBBC4BFA9AA72431185FC56118E51E7DD"><enum>(A)</enum><text>no agreement for
cooperation between the United States and the government of any country that is
assisting the nuclear program of Iran, North Korea, or Syria or transferring
advanced conventional weapons or missiles to Iran, North Korea, or Syria may be
submitted to the President or to Congress pursuant to section 123 of the Atomic
Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2153">42 U.S.C. 2153</external-xref>);</text>
</subparagraph><subparagraph id="HB50980067B0E452AA4899916DC006227"><enum>(B)</enum><text>no such agreement
may enter into force with such country;</text>
</subparagraph><subparagraph id="H437EC5C4773B42A8A7006F8E6CA4E941"><enum>(C)</enum><text>no license may be
issued for export directly or indirectly to such country of any nuclear
material, facilities, components, or other goods, services, or technology that
would be subject to such agreement; and</text>
</subparagraph><subparagraph id="HE45C53A2C64B41DA9F23828CEEE5DCA"><enum>(D)</enum><text>no approval may be
given for the transfer or retransfer directly or indirectly to such country of
any nuclear material, facilities, components, or other goods, services, or
technology that would be subject to such agreement, until the President makes
the determination and report under paragraph (2).</text>
</subparagraph></paragraph><paragraph id="H6810FAB2360945C7B8BE48A0B1F55377"><enum>(2)</enum><header>Determination
and report</header><text>The determination and report referred to in paragraph
(1)(D) are a determination and report by the President, submitted to the
Committee on Foreign Affairs of the House of Representatives and the Committee
on Foreign Relations of the Senate, that—</text>
<subparagraph id="HF644FC5C4AE444A2807E9559EBED9456"><enum>(A)</enum><text>Iran, North Korea,
or Syria have ceased their efforts to design, develop, or acquire a nuclear
explosive device or related materials or technology; or</text>
</subparagraph><subparagraph id="HF488A09C6D77423491CE88DA94753D98"><enum>(B)</enum><text>the government of
the country that is assisting the nuclear programs of Iran, North Korea, or
Syria or transferring advanced conventional weapons or missiles to Iran, North
Korea, or Syria—</text>
<clause commented="no" id="H87199AF4A43946B1A2952284DB1FDDC2"><enum>(i)</enum><text>has suspended all
nuclear assistance to Iran, North Korea, or Syria and all transfers of advanced
conventional weapons and missiles to Iran, North Korea, or Syria; and</text>
</clause><clause id="HCC30D6B541C649C48FCEAB6BAAC06027"><enum>(ii)</enum><text>is committed to
maintaining that suspension until Iran, North Korea, or Syria have implemented
measures that would permit the President to make the determination described in
subparagraph (A).</text>
</clause></subparagraph></paragraph></subsection><subsection id="H2EDEF5F4FEB74933A61FAA902B660029"><enum>(b)</enum><header>Rules of
construction</header><text>The restrictions described in subsection
(a)(1)—</text>
<paragraph id="H3A92BF19BBCF432F9CB2052F9D5BD4CA"><enum>(1)</enum><text>shall apply in
addition to all other applicable procedures, requirements, and restrictions
described in the Atomic Energy Act of 1954 and other applicable Acts;
and</text>
</paragraph><paragraph id="H51A058A8CF7C41A0856E3963EFBED7"><enum>(2)</enum><text>shall not be
construed as affecting the validity of an agreement for cooperation between the
United States and the government of a country that is in effect on the date of
the enactment of this Act.</text>
</paragraph></subsection><subsection id="H3B376A4ECDBB4AD9B8004B951DC56204"><enum>(c)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H29048AABED6242D6BA8E92889E7E3951"><enum>(1)</enum><header>Agreement for
cooperation</header><text>The term <term>agreement for cooperation</term> has
the meaning given that term in section 11 b. of the Atomic Energy Act of 1954
(<external-xref legal-doc="usc" parsable-cite="usc/42/2014">42 U.S.C. 2014(b)</external-xref>).</text>
</paragraph><paragraph id="H2B629DDEDCDA478D99A5F06394C8006D"><enum>(2)</enum><header>Assisting the
nuclear program of Iran, North Korea, or Syria</header><text>The term
<term>assisting the nuclear program of Iran, North Korea, or Syria</term> means
the intentional transfer to Iran, North Korea, or Syria by a government, or by
a person subject to the jurisdiction of a government with the knowledge and
acquiescence of that government, of goods, services, or technology listed on
the Nuclear Suppliers Group Guidelines for the Export of Nuclear Material,
Equipment and Technology (published by the International Atomic Energy Agency
as Information Circular INFCIRC/254/Rev. 3/Part 1, and subsequent revisions),
or the Nuclear Suppliers Group Guidelines for Transfers of Nuclear-Related
Dual-Use Equipment, Material, and Related Technology (published by the
International Atomic Energy Agency as Information Circular INFCIR/254/Rev.
3/Part 2, and subsequent revisions).</text>
</paragraph><paragraph id="H3719C098B51A49EB87843C8D84C41EE"><enum>(3)</enum><header>Country that is
assisting the nuclear programs of Iran, North Korea, or Syria, or transferring
advanced conventional weapons or missiles to Iran, North Korea, or
Syria</header><text>The term <term>country that is assisting the nuclear
program of Iran, North Korea, or Syria, or transferring advanced conventional
weapons or missiles to Iran, North Korea, or Syria</term> means—</text>
<subparagraph id="H83A47F1F22864D62968847D7955B89BA"><enum>(A)</enum><text>the Russian
Federation; and</text>
</subparagraph><subparagraph id="H9AB060F21FE548EDB9EF841E648EBD4C"><enum>(B)</enum><text>any other country
determined by the President to be assisting the nuclear program of Iran, North
Korea, or Syria, or transferring advanced conventional weapons or missiles to
Iran, North Korea, or Syria.</text>
</subparagraph></paragraph><paragraph commented="no" id="H1D24749E45094A5B961091A54F494645"><enum>(4)</enum><header>Transfer</header><text display-inline="yes-display-inline">The term <term>transfer</term> means the
conveyance of technological or intellectual property, or the conversion of
intellectual or technological advances into marketable goods, services, or
articles of value, developed and generated in one place, to another through
illegal or illicit means to a country, the government of which the Secretary of
State has determined, for purposes of section 6(j)(1)(A) of the Export
Administration Act of 1979 (as in effect pursuant to the International
Emergency Economic Powers Act; <external-xref legal-doc="usc" parsable-cite="usc/50/1701">50 U.S.C. 1701 et seq.</external-xref>), section 40(d) of the
Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2780">22 U.S.C. 2780(d)</external-xref>), and section 620A of the Foreign
Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2371">22 U.S.C. 2371</external-xref>), is a government that has repeatedly
provided support for acts of international terrorism.</text>
</paragraph><paragraph id="H946EFFFFC15941409C39BAF376B9D0AC"><enum>(5)</enum><header>Transferring
advanced conventional weapons or missiles to Iran, North Korea, or
Syria</header><text>The term <term>transferring advanced conventional weapons
or missiles to Iran, North Korea, or Syria</term> means the intentional
transfer to Iran, North Korea, or Syria by a government, or by a person subject
to the jurisdiction of a government with the knowledge and acquiescence of that
government, of goods, services, or technology listed on—</text>
<subparagraph id="HEC8B1A363722458E99122408F8B7FD07"><enum>(A)</enum><text>the Wassenaar
Arrangement list of Dual Use Goods and Technologies and Munitions list of July
12, 1996, and subsequent revisions; or</text>
</subparagraph><subparagraph id="H74D0B06A2B9947FA0000D810CC3600A"><enum>(B)</enum><text>the Missile
Technology Control Regime Equipment and Technology Annex of June 11, 1996, and
subsequent revisions.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H19F472D95211473081D8B5ADE2CF3056"><enum>(d)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to expense
paid or incurred on or after January 1,
2008.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H9BF5A3D8549C40D90059F8D6C39C9399"><enum>203.</enum><header>Exclusion of
senior officials</header><text display-inline="no-display-inline">The Iran,
North Korea, and Syria Nonproliferation Act is further amended by inserting
after section (7), as added by section 202 of this Act, the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H86B887620FBE4BD8A71ED9D0BDBCF969" style="OLC">
<section id="H058DDDF0A0A14536AD2D665B80298D81"><enum>8.</enum><header>Exclusion from
the United States of senior officials of foreign persons who have aided
proliferation relating to Iran, North Korea, or Syria</header>
<subsection id="H1F797B687BF64712B74793BA2BB43954"><enum>(a)</enum><header>Grounds for
exclusion</header><text>Except as provided in subsection (b), the Secretary of
State shall deny a visa to, and the Secretary of Homeland Security shall
exclude from the United States, any alien whom the Secretary of State
determines is an alien who, on or after the date of the enactment of this Act
is a—</text>
<paragraph id="H709D333F4C86454787C7C9E18881A81B"><enum>(1)</enum><text>corporate officer,
principal, or shareholder with a controlling interest of a foreign person
identified in a report submitted pursuant to section 2(a);</text>
</paragraph><paragraph id="HD0D09177EC61409F99FDC15210CB4FA8"><enum>(2)</enum><text>corporate officer,
principal, or shareholder with a controlling interest of a successor entity to,
or a parent or subsidiary of, a foreign person identified in such a
report;</text>
</paragraph><paragraph id="H289AB00878E541B4AF2EF4A066CA8071"><enum>(3)</enum><text>corporate officer,
principal, or shareholder with a controlling interest of an affiliate of a
foreign person identified in such a report, if such affiliate engaged in the
activities referred to in such report, and if such affiliate is controlled in
fact by the foreign person identified in such report;</text>
</paragraph><paragraph id="H7B67804D67994D1B836F00470996F2F0"><enum>(4)</enum><text>spouse, minor
child, or agent of a person excludable under paragraph (1), (2), or (3);</text>
</paragraph><paragraph id="H8AE0B484D10B4EB48DE81F5705B65EEB"><enum>(5)</enum><text>senior official of
a foreign government identified in such a report;</text>
</paragraph><paragraph id="H17652A8962AD40DDA24E6F50AA97EEC9"><enum>(6)</enum><text>senior official of
a foreign government with primary jurisdiction over a foreign person identified
in such a report; or</text>
</paragraph><paragraph id="H372313154195433587053F4136EB0942"><enum>(7)</enum><text>spouse, minor
child, or agent of a person excludable under paragraph (5) or (6).</text>
</paragraph></subsection><subsection id="H64E7CD236EBF4AC79E63CAA2CA29CB73"><enum>(b)</enum><header>Exception</header><text>The
President may waive the sanctions described in subsection (a) with respect to a
person specified in paragraph (5), (6), or (7) if the President determines and
certifies in writing to the Committee on Foreign Affairs and the Committee on
Appropriations of the House of Representatives and the Committee on Foreign
Relations and the Committee on Appropriations of the Senate, on a case by case
basis, that the foreign government with primary jurisdiction over such person
has made and continues to make clear, specific efforts to stop and deter the
transfer (as such term is defined in section 7) or retransfer of, or the
permitting, hosting, or other facilitating of transshipments (as such term is
defined in section 5) that may enable the transfer or retransfer of, goods or
technology that contribute to the efforts by Iran, North Korea, or Syria, as
the case may be, to acquire or develop advanced conventional weapons, or to
acquire, develop, produce, or stockpile biological, chemical, radiological, or
nuclear weapons or long-range ballistic missiles.</text>
</subsection><subsection commented="no" id="H03DA3CF67A4A4E1A96001E328C8DB668"><enum>(c)</enum><header>Advanced
conventional weapons defined</header><text>In this section, the term
<term>advanced conventional weapons</term> means goods, services, or technology
listed on—</text>
<paragraph commented="no" id="HCEF7932C118D4B2A9FA4DAC53D1C235F"><enum>(1)</enum><text>the Wassenaar
Arrangement list of Dual Use Goods and Technologies and Munitions list of July
12, 1996, and subsequent revisions; or</text>
</paragraph><paragraph commented="no" id="HBB6F24A3CCFD477A9F4678A862B7D852"><enum>(2)</enum><text>the Missile
Technology Control Regime Equipment and Technology Annex of June 11, 1996, and
subsequent
revisions.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>III</enum><header>Amendments to
the Iran Sanctions Act of 1996 and related provisions</header>
<section id="HF4702DDA8D6245E7A5CCF252C5407F8"><enum>301.</enum><header>Exclusion from
the United States of senior officials of foreign persons who have aided
proliferation relating to Iran</header><text display-inline="no-display-inline">The Iran Sanctions Act of 1996 (Public Law
104–172; <external-xref legal-doc="usc" parsable-cite="usc/50/1701">50 U.S.C. 1701</external-xref> note) is amended—</text>
<paragraph id="H6EB264DFD89240AEBBEC3200BCCC77D"><enum>(1)</enum><text display-inline="yes-display-inline">in section 5(b), in the matter preceding
paragraph (1), by inserting <quote>, or permitted, hosted, or otherwise
facilitated transshipment that may have enabled a person to export, transfer,
or otherwise provide to Iran,</quote> after <quote>or otherwise provided to
Iran</quote>;</text>
</paragraph><paragraph id="HF281EAA59B08457D93359EBA8F7518ED"><enum>(2)</enum><text>by redesignating
sections (7) through (14) as sections (8) through (15), respectively;
and</text>
</paragraph><paragraph id="H92570A50FE5C4292980573B3F55C78F0"><enum>(3)</enum><text>by inserting after
section (6) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H15F036C292274F249D87CAD87F2F2ED0" style="OLC">
<section id="HCE94EF0B33384B9487008517A8A076F6"><enum>7.</enum><header>Exclusion from
the United States of senior officials of foreign persons who have aided
proliferation relating to Iran</header>
<subsection id="H9B7912BD1B7949ABB9B495E6AC4FD1A8"><enum>(a)</enum><header>Grounds for
exclusion</header><text>Except as provided in subsection (b), the Secretary of
State shall deny a visa to, and the Secretary of State shall exclude from the
United States, any alien whom the Secretary of State determines is an alien
who, on or after the date of the enactment of this Act is a—</text>
<paragraph id="H1EEB5B3E914A407B9FFD519C095992C9"><enum>(1)</enum><text>corporate officer,
principal, or shareholder with a controlling interest of a person against whom
sanctions have been imposed pursuant to section 5;</text>
</paragraph><paragraph id="H399C1E69385144298242D7C620A53088"><enum>(2)</enum><text>corporate officer,
principal, or shareholder with a controlling interest of a successor entity to
or a parent or subsidiary of such a person;</text>
</paragraph><paragraph id="H7FB61403A56F48329F884B32E50207F9"><enum>(3)</enum><text>corporate officer,
principal, or shareholder with a controlling interest of an affiliate of such a
sanctioned person, if such affiliate engaged in a sanctionable activity
described in subsection (a) or (b) of section 5, and if such affiliate is
controlled in fact by such a person;</text>
</paragraph><paragraph id="HCF3F47205F3B46A5BFA70057D8AAB19"><enum>(4)</enum><text>spouse, minor
child, or agent of a person excludable under paragraph (1), (2), or (3);</text>
</paragraph><paragraph id="H780A6E37DD574072B4068DF817EA65D"><enum>(5)</enum><text>senior official of
a foreign government that is identified as a person against whom sanctions have
been imposed pursuant to section 5;</text>
</paragraph><paragraph id="HB0C05578685E43C6810100F6AFC6AEF1"><enum>(6)</enum><text>senior official of
a foreign government with primary jurisdiction over such a person; or</text>
</paragraph><paragraph id="HC3D02C96FF1241DD9E3EEEDFFAD4C8C6"><enum>(7)</enum><text>spouse, minor
child, or agent of a person excludable under paragraph (5) or (6).</text>
</paragraph></subsection><subsection id="HC6C8E846F5C744EFB7B6D9CA2681E7D6"><enum>(b)</enum><header>Exception</header><text>The
President may waive the sanctions described in subsection (a) with respect to a
person specified in paragraph (5), (6), or (7) if the President determines and
certifies in writing to the appropriate congressional committees, on a case by
case basis, that the foreign government with primary jurisdiction over such a
person against whom sanctions have been imposed pursuant to section 5 has made
and continues to make clear, specific efforts to stop and deter a sanctionable
activity described in subsection (a) or (b) of section
5.</text>
</subsection></section><after-quoted-block>; and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0C23B04FDB6D4B3D89B93C00D0C455E4"><enum>(4)</enum><text>in section 15, as
redesignated pursuant to paragraph (2) of this section—</text>
<subparagraph id="H128E2AFD53494B79B302A74700A412A0"><enum>(A)</enum><text>by redesignating
paragraphs (15) and (16) as paragraphs (17) and (18), respectively; and</text>
</subparagraph><subparagraph id="HED2CA7D4899D4CB18146A266E24E37CD"><enum>(B)</enum><text>by inserting after
paragraph (14) the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HFF55AB8F984F4573A5E5053CF6F88882" style="OLC">
<paragraph commented="no" id="H0DD142F02F25415FA67E8BED40B08947"><enum>(14)</enum><header>Transfer</header><text display-inline="yes-display-inline">The term <term>transfer</term> means the
conveyance of technological or intellectual property, or the conversion of
intellectual or technological advances into marketable goods, services, or
articles of value, developed and generated in one place, to another through
illegal or illicit means to a country, the government of which the Secretary of
State has determined, for purposes of section 6(j)(1)(A) of the Export
Administration Act of 1979 (as in effect pursuant to the International
Emergency Economic Powers Act; <external-xref legal-doc="usc" parsable-cite="usc/50/1701">50 U.S.C. 1701 et seq.</external-xref>), section 40(d) of the
Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2780">22 U.S.C. 2780(d)</external-xref>), and section 620A of the Foreign
Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2371">22 U.S.C. 2371</external-xref>), is a government that has repeatedly
provided support for acts of international terrorism.</text>
</paragraph><paragraph id="HCD18F38CDECB43BD8948E75BC49BDC77"><enum>(15)</enum><header>Transshipment</header><text display-inline="yes-display-inline">The term <term>transshipment</term> means
the export from one country to another that passes through a third country, in
which cargo is off-loaded and there is some change to
conveyance.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section id="H7D46ABDE6CD04E18829199C6E3E6C1EC" section-type="subsequent-section"><enum>302.</enum><header>Denial of tax
benefits for taxpayers engaged in business activity with Iran prohibited by
United States law</header>
<subsection id="H5FEE62A302324B1FB4E66FBF82A2C147"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 901 of the
Internal Revenue Code of 1986 (relating to taxes of foreign countries and of
possessions of United States) is amended by redesignating subsection (m) as
subsection (n) and by inserting after subsection (l) the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H16C031A31D7F4FB9BF5076EACEDADF3F" style="OLC">
<subsection id="HCFFA881C8D604DF0AB6E1EAFB52F3335"><enum>(m)</enum><header>Taxpayers
engaged in business activity with Iran prohibited by United States law</header>
<paragraph id="H95F41457EBCC4924898032B994AE18A2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of this part, in the case of a taxpayer which is a member of an
expanded affiliated group any member of which, on any day during the taxable
year, engaged in business activity with Iran which is prohibited by United
States law, no credit shall be allowed under subsection (a) to the taxpayer for
any income, war profits, or excess profits taxes paid or accrued (or deemed
paid under section 902 or 960) to any country if such taxes are with respect to
income attributable to a period any part of which occurs during such taxable
year.</text>
</paragraph><paragraph id="HED86CFBCAD4A4AADAB333E6E00CDCADC"><enum>(2)</enum><header>Business
activity</header><text display-inline="yes-display-inline">For purposes of
paragraph (1)—</text>
<subparagraph id="H4A887D4E24D849B99138CDAF0DA45C2"><enum>(A)</enum><header>In
general</header><text>The term <term>business activity</term> means any of the
following:</text>
<clause id="H726D728355E447DE86B6262D5C79E4FC"><enum>(i)</enum><text>An
entity described in subparagraph (D) that—</text>
<subclause id="H3AD0A1EFA7124A7EA238F1F59DC75015"><enum>(I)</enum><text>has in effect a
contract that includes the responsibility for the development of petroleum
resources, petroleum refining capacity, or liquefied natural gas located in
Iran or (as the case may be), or</text>
</subclause><subclause id="H7C56774E289B44F9A35C0697FF5F1000"><enum>(II)</enum><text display-inline="yes-display-inline">has in effect a contract providing for the
general supervision and guarantee of another person’s performance of a contract
described in subclause (I).</text>
</subclause></clause><clause id="H05D2AA38DF064108ADD1C867F5181853"><enum>(ii)</enum><text>The purchase of a
share of ownership, including an equity interest, in the development described
in clause (i).</text>
</clause><clause id="H58C26D609CDC4BCA98C8F175CA345C83"><enum>(iii)</enum><text>Having in effect
a contract providing for the participation in royalties, earnings, or profits
in the development described in clause (i), without regard to the form of the
participation.</text>
</clause></subparagraph><subparagraph id="HD9802702D3A743E881B25C784F006578"><enum>(B)</enum><header>Goods, services,
and technology</header><text>The term <term>business activity</term> includes
the entry into, performance, or financing of a contract to sell or purchase
goods, services, or technology.</text>
</subparagraph><subparagraph id="HDCCC5B01585F4EE6A597738E46C252E5"><enum>(C)</enum><header>Special
rule</header><text>For purposes of this paragraph, an amendment or other
modification that is made, on or the date of the enactment of this subsection
to an agreement or contract shall be treated as the entry of an agreement or
contract.</text>
</subparagraph><subparagraph id="H1FBFE71AE8554F3AB549C46CC3AA9289"><enum>(D)</enum><header>Entities
described</header><text>For purposes of subparagraph (A), an entity described
in this subparagraph is—</text>
<clause id="H8D1C00E42C9D4E5A0000DBA94C9BA700"><enum>(i)</enum><text>a
natural person,</text>
</clause><clause id="H89A45E30B0E3442B9C85014904156376"><enum>(ii)</enum><text>a
corporation, business association, partnership, society, trust, financial
institution, insurer, underwriter, guarantor, and any other business
organization,</text>
</clause><clause id="H97CBD785358842CF91E73953E331E92E"><enum>(iii)</enum><text>any foreign
subsidiary of any entity described in clause (ii),</text>
</clause><clause id="HC99AFC437EC941340065EFD703C505E7"><enum>(iv)</enum><text>any governmental
entity operating as a business enterprise, such as an export credit agency, and</text>
</clause><clause id="H9A292BB794C642EA98898172B0BB6338"><enum>(v)</enum><text>any successor to
any entity described in clause (ii), (iii), or (iv).</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="HFA228DAD089145A8B9894F215B04E6D"><enum>(3)</enum><header>Taxes allowed as
a deduction, etc</header><text display-inline="yes-display-inline">Sections 275
and 78 shall not apply to any tax which is not allowable as a credit under
subsection (a) by reason of this subsection.</text>
</paragraph><paragraph id="H9790FF7F8C004DE3BA2F2552101DC3C9"><enum>(4)</enum><header>Expanded
affiliated group</header><text display-inline="yes-display-inline">For purposes
of paragraph (1), the term <term>expanded affiliated group</term> means an
affiliated group (as defined in subsection (a) of section 1504 (without regard
to subsections (b)(2), (b)(4), and (c) thereof)); except that section 1504(a)
shall be applied by substituting <quote>more than 50 percent</quote> for
<quote>at least 80 percent</quote> each place it appears.</text>
</paragraph><paragraph id="HFD6931A63F0B43E68DBDAF833DAF25D5"><enum>(5)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the purposes of
this subsection, including regulations which impose appropriate reporting
requirements.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H37DBADECB4D64E46837D89FF67DDD2DD"><enum>(b)</enum><header>Income included
as subpart F income</header><text>Subsection (a) of section 952 is amended by
striking <quote>and</quote> at the end of paragraph (4), by striking the period
at the end of paragraph (5) and inserting <quote>, and</quote>, and by
inserting after paragraph (5) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H73BDAB9BEA6C4ADBA56F3CEEE90000A0" style="OLC">
<paragraph id="H7E820B21A4414915AE4DC7FB00085300"><enum>(6)</enum><text display-inline="yes-display-inline">all income of such corporation derived from
all foreign countries during any period during which section 901(m) applies to
such
corporation.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H57CC63E5099F4531A4A3061655C2C486"><enum>(c)</enum><header>Reporting</header>
<paragraph id="H04FD07BB92FF4C819EA77BD034009176"><enum>(1)</enum><header>In
general</header><text>Part II of subchapter B of chapter 68 of the Internal
Revenue Code of 1986 (relating to failure to comply with certain information
reporting requirements) is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="HBACCF66171674B3F8C68C900E7544300" style="OLC">
<section id="H5E3100C6EA634C609381F87DDF7489F4"><enum>6726.</enum><header>Failure to
report information under section
901<enum-in-header>(m)</enum-in-header></header>
<subsection id="H0A4C5110C6CB43599EAD6B0180B963F0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of each
failure described in subsection (c) by any person, such person shall pay a
penalty of $100,000 for each day in the noncompliance period with respect to
which the failure relates.</text>
</subsection><subsection id="H327FE8AE428B4AB7B713E737917EE779"><enum>(b)</enum><header>Noncompliance
period</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>noncompliance period</term> means, with respect to any
failure, the period—</text>
<paragraph id="H8AE9E78BC604426F8F7653E8156B4C5F"><enum>(1)</enum><text>beginning on the
date such failure first occurs; and</text>
</paragraph><paragraph id="HEB5C4FADCF9243B5B427FD6B596DD444"><enum>(2)</enum><text>ending on the date
such failure is corrected.</text>
</paragraph></subsection><subsection id="HEF82545C4E4D4ED8A16B55B88788AC41"><enum>(c)</enum><header>Failures subject
to penalty</header><text display-inline="yes-display-inline">For purposes of
subsection (a), the failure described in this subsection is a failure to comply
with any requirement contained in the regulations prescribed under section
901(m).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA0EB056880494B709DB88546AD24F00"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections for part II of subchapter B of
chapter 68 of such Code is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="H5E979F98BB0F4F2499B6EE48A37EFAD8" style="OLC">
<toc container-level="quoted-block-container" idref="HBACCF66171674B3F8C68C900E7544300" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H5E3100C6EA634C609381F87DDF7489F4" level="section">Sec. 6726. Failure to report information under section
901<enum-in-header>(m)</enum-in-header>.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HB4E54413F29C4E09AAF177BC36C7F4F6"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="H97F728B27E884C8788FB51F9FFB6F7AC"><enum>303.</enum><header>Income tax of
foreign corporations engaged in business activity with Iran prohibited by
United States law</header>
<subsection id="HFC8C2E874B9D49E480BACB3965212800"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart B of part II
of subchapter N of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to
foreign corporations) is amended by inserting after section 884 the following
new section:</text>
<quoted-block display-inline="no-display-inline" id="H2380C0B75594477EA8A7F7F2A6757C6E" style="OLC">
<section id="H8063E3E97E4A43F79B3346F1148CDCAF"><enum>884A.</enum><header>Income tax of
foreign corporations engaged in business activity with Iran prohibited by
United States law</header><text display-inline="no-display-inline">In the case
of a foreign corporation which is engaged in business activity with Iran
prohibited by United States law—</text>
<paragraph id="HCAD21C2FEE894473A44912F23DE035DA"><enum>(1)</enum><text>in respect of tax
on income—</text>
<subparagraph id="H932D0AA0CCC0408AA0E3A4700948B212"><enum>(A)</enum><text>section 881(a)
shall be applied by substituting <quote>45 percent</quote> for <quote>30
percent</quote>;</text>
</subparagraph><subparagraph id="HE6D9A7005DB9417791AA019724BD3193"><enum>(B)</enum><text>subsections (b),
(c), (d) and (e) of section 881 shall not apply;</text>
</subparagraph><subparagraph id="HC523E0090B6A4E26B3106639BAC1D274"><enum>(C)</enum><text>tax imposed
pursuant to section 882 shall be imposed at a rate of 45 percent;</text>
</subparagraph><subparagraph id="HE7F6A8A46B3B4646B1D5F2C04BE81E9D"><enum>(D)</enum><text>section 883 shall
not apply; and</text>
</subparagraph><subparagraph id="H80E18E59D6AE46BBA7D674E9E31ECA24"><enum>(E)</enum><text display-inline="yes-display-inline">section 884(a) shall be applied by
substituting <quote>45 percent</quote> for <quote>30 percent</quote>;
and</text>
</subparagraph></paragraph><paragraph id="HBE74D92AA25046F193A2550830C01578"><enum>(2)</enum><text>in respect of
withholding—</text>
<subparagraph id="HC64E46227D0D4936AFE9F35605B4D4E"><enum>(A)</enum><text>section 1442(a)
shall be applied by substituting <quote>45 percent</quote> for <quote>30
percent</quote>; and</text>
</subparagraph><subparagraph id="HA92B44EF44EA40749E33A8FFD6004B8F"><enum>(B)</enum><text>section 1442(c)
shall not
apply.</text>
</subparagraph></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H221A3282E1E245D797D6A0605DEE03C"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part II of
subchapter N of chapter 1 of such Code is amended by inserting after the item
relating to section 884 the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HB94A2094177548C6BCDFD3FDE6876792" style="OLC">
<toc container-level="quoted-block-container" idref="H2380C0B75594477EA8A7F7F2A6757C6E" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H8063E3E97E4A43F79B3346F1148CDCAF" level="section">Sec. 884A. Income tax of foreign corporations engaged in
business activity with Iran prohibited by United States
law.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H87F1459BAE9D42BC993C5C6138B562C3"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="H5630D72516A24A9B8713C398CCBEAC28"><enum>304.</enum><header>Compensation
for Former United States Hostages in Iran Fund</header>
<subsection id="H2A08849DB61A481EA3461D16AB87BDCC"><enum>(a)</enum><header>Creation of
Fund</header><text display-inline="yes-display-inline">There is established a
fund to be known as the <quote>Compensation for Former United States Hostages
in Iran Fund</quote> (in this section referred to as the <quote>Fund</quote>),
consisting of such amounts as may be appropriated to the Fund as provided by
this section.</text>
</subsection><subsection id="H85705CBD3CCD4B7A8BF05616C49CE3E8"><enum>(b)</enum><header>Transfers to
Fund</header><text>There are hereby appropriated to the Fund amounts equivalent
to the taxes received in the Treasury by reason of the amendments made by
sections 302 and 303 of this Act.</text>
</subsection><subsection id="HC4CF0A7A20E84010B5492249F067A302"><enum>(c)</enum><header>Expenditures
from Fund</header><text display-inline="yes-display-inline">Amounts in the Fund
shall be available, as provided by appropriation Acts, for making expenditures
to pay claims to the United States citizens held hostage in Iran, and to
members of the families of such United States citizens, who are identified as
plaintiffs or class members in Case Number 1:00CV03110 (EGS) or Case Number
1:00CV00716 (HHK) in the United States District Court for the District of
Columbia.</text>
</subsection></section><enum>IV</enum><header>Definitions</header>
<section id="H8CAC4009BD1A4ABF805058619EE3C5D"><enum>401.</enum><header>Definitions</header><text display-inline="no-display-inline">In this Act:</text>
<paragraph id="H9D6399D797F74D2781F48ECEFD56BDB"><enum>(1)</enum><header>Appropriate
congressional committees</header><text>The term <term>appropriate congressional
committees</term> means—</text>
<subparagraph id="H8853F614A1704808B201D4A8507DA0A1"><enum>(A)</enum><text>the Committee on
Foreign Affairs and the Committee on Appropriations of the House of
Representatives; and</text>
</subparagraph><subparagraph id="HAAAEC70F8BCE4B9392CC3C039EFA2BDB"><enum>(B)</enum><text>the Committee on
Foreign Relations and the Committee on Appropriations of the Senate.</text>
</subparagraph></paragraph><paragraph id="HA74BB9EBB0B5402C95C6448A59F26DF"><enum>(2)</enum><header>Government of
Syria</header><text>The term <term>Government of Syria</term> includes any
agency or instrumentality of the Government of Syria, including any entity that
is controlled by the Government of Syria.</text>
</paragraph><paragraph id="HB91079179D3A4CE79274252EC2E82465"><enum>(3)</enum><header>Government of
Iran</header><text>The term <term>Government of Iran</term> includes any agency
or instrumentality of the Government of Iran, including any entity that is
controlled by the Government of Iran.</text>
</paragraph><paragraph id="H9FD7D1BF7E94430D9F1CE1D6800F0BF"><enum>(4)</enum><header>Government of
North Korea</header><text>The term <term>Government of North Korea</term>
includes any agency or instrumentality of the Government of North Korea,
including any entity that is controlled by the Government of North
Korea.</text>
</paragraph><paragraph id="H5F0B2984CB5A4BA1BEFB3152A891F608"><enum>(5)</enum><header>Weapons of mass
destruction programs</header><text>The term <term>weapons of mass destruction
programs</term> means—</text>
<subparagraph id="H8BAC4E06AB5C435DBA65ABCC5E9582F3"><enum>(A)</enum><text>and chemical
weapons, biological weapons, radiological or nuclear procurement and
development programs and efforts;</text>
</subparagraph><subparagraph id="H5305AAF3FCC74165918E89FBCFB6C703"><enum>(B)</enum><text>ballistic missile
procurement and development programs and efforts; and</text>
</subparagraph><subparagraph id="HCBFE3F8ADA1644ADB4984752692C00A7"><enum>(C)</enum><text>other actions in
violation of the Waasenaar Arrangement on Export Controls for Conventional Arms
and Dual-Use Goods and Technologies, the Missile Technology Control Regime, the
Australia Group, the Nuclear Suppliers’ Group, the Zangger Committee, and any
other international agreement or arrangement to which the United States is a
party that restricts the export of chemical, biological, nuclear, and other
weapons and their delivery systems, and effectively restricts the export of
dual use components of such weapons and their delivery systems.</text>
</subparagraph></paragraph></section>