[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 957 Referred in Senate (RFS)]

  1st Session
                                H. R. 957


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2007

                                Received

                             August 3, 2007

Read twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 AN ACT


 
   To amend the Iran Sanctions Act of 1996 to expand and clarify the 
            entities against which sanctions may be imposed.

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

SECTION 1. CLARIFICATION AND EXPANSION OF DEFINITIONS.

    (a) Person.--Section 14(13)(B) of the Iran Sanctions Act of 1996 
(50 U.S.C. 1701 note) is amended to read as follows:
                    ``(B)(i) a corporation, business association, 
                partnership, society, trust, financial institution, 
                insurer, underwriter, guarantor, and any other business 
                organization;
                    ``(ii) any foreign subsidiary of any entity 
                described in clause (i); and
                    ``(iii) any governmental entity operating as a 
                business enterprise, such as an export credit agency; 
                and''.
    (b) Petroleum Resources.--Section 14(14) of the Iran Sanctions Act 
of 1996 (50 U.S.C. 1701 note) is amended by inserting after 
``petroleum'' the second place it appears the following: ``, petroleum 
refining capacity, liquefied natural gas,''.
    (c) Construction.--The amendments made by this section shall not be 
construed to require the imposition of any measure under section 5 of 
the Iran Sanctions Act of 1996 against any natural person or other 
entity that is not specifically described in section 14(13) of that 
Act, as amended by this section.

SEC. 2. APPLICATION TO SUBSIDIARIES.

    (a) In General.--Except as provided in subsection (b), in any case 
in which an entity engages in an act outside the United States which, 
if committed in the United States or by a United States person, would 
violate Executive Order No. 12959 of May 6, 1995, Executive Order No. 
13059 of August 19, 1997, or any other prohibition on transactions with 
respect to Iran that is imposed under the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.) and if that entity was 
created or availed of for the purpose of engaging in such an act, the 
parent company of that entity shall be subject to the penalties for 
such violation to the same extent as if the parent company had engaged 
in that act.
    (b) Exception.--Subsection (a) shall not apply to any act carried 
out under a contract or other obligation of any entity if--
            (1) the contract or obligation existed on May 22, 2007, 
        unless such contract or obligation is extended in time in any 
        manner or expanded to cover additional activities beyond the 
        terms of the contract or other obligation as it existed on May 
        22, 2007; or
            (2) the parent company acquired that entity not knowing, 
        and not having reason to know, that such contract or other 
        obligation existed, unless such contract or other obligation is 
        extended in time in any manner or expanded to cover additional 
        activities beyond the terms of such contract or other 
        obligation as it existed at the time of such acquisition.
    (c) Construction.--Nothing in this section shall be construed as 
prohibiting the issuance of regulations, orders, directives, or 
licenses under the Executive orders described in subsection (a) or as 
being inconsistent with the authorities under the International 
Emergency Economic Powers Act.
    (d) Definitions.--In this section--
            (1) the term ``entity'' means a partnership, association, 
        trust, joint venture, corporation, or other organization;
            (2) an entity is a ``parent company'' of another entity if 
        it controls, directly or indirectly, that other entity and is a 
        United States person; and
            (3) the term ``United States person'' means any United 
        States citizen, any alien lawfully admitted for permanent 
        residence to the United States, any entity


                

        organized under the laws of the United States, or any person in 
        the United States.

            Passed the House of Representatives July 31, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.