1.Short title; table of contents
(a)This Act may be cited as the
Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2008
.
(b)The table of contents for this Act is as
follows:
Sec. 1. Short title;
table of contents.
TITLE I—Sanctions
Sec. 101. Definitions.
Sec. 102. Clarification and expansion of
definitions.
Sec. 103. Economic sanctions relating to Iran.
Sec. 104. Liability
of parent companies for violations of sanctions by foreign
subsidiaries.
Sec. 105. Increased
capacity for efforts to combat unlawful or terrorist financing.
Sec. 106. Reporting requirements.
Sec. 107. Sense of Congress regarding the imposition of
sanctions on the Central Bank of Iran.
TITLE II—Divestment from certain companies that invest in
Iran
Sec. 201. Definitions.
Sec. 202. Authority of State and local governments to divest
from certain companies that invest in Iran.
Sec. 203. Safe harbor
for changes of investment policies by asset managers.
Sec. 204. Sense of Congress regarding certain ERISA plan
investments.
TITLE III—Prevention of transshipment, reexportation, or
diversion of sensitive items to Iran
Sec. 301. Definitions.
Sec. 302. Identification of locations of concern with respect
to transshipment, reexportation, or diversion of certain items to
Iran.
Sec. 303. Destinations of Possible Diversion Concern and
Destinations of Diversion Concern.
Sec. 304. Report on expanding diversion concern system to
countries other than Iran.
TITLE IV—Effective date; sunset
Sec. 401. Effective date; sunset.
<enum>I</enum><header display-inline="yes-display-inline">Sanctions</header>
<section commented="no" display-inline="no-display-inline" id="IDe8ae145097db4f2b9c9c3397a3518f51" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID051a558c30e64aa3802aff556148c718"><enum>(1)</enum><header display-inline="yes-display-inline">Agricultural commodity</header><text display-inline="yes-display-inline">The term <term>agricultural
commodity</term> has the meaning given that term in section 102 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5602).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id64434DD4188A4DA59880A60DF185702E"><enum>(2)</enum><header display-inline="yes-display-inline">Appropriate congressional
committees</header><text display-inline="yes-display-inline">The term
<term>appropriate congressional committees</term> has the meaning given that
term in section 14(2) of the Iran Sanctions Act of 1996 (Public Law 104–172; 50
U.S.C. 1701 note).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID22996d652bd3439fa4654ecb2c75e437"><enum>(3)</enum><header display-inline="yes-display-inline">Executive agency</header><text display-inline="yes-display-inline">The term <term>executive agency</term> has
the meaning given that term in section 4 of the Office of Federal Procurement
Policy Act (41 U.S.C. 403).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1207C13FBC31429F8D9222452A601CA0"><enum>(4)</enum><header display-inline="yes-display-inline">Family member</header><text display-inline="yes-display-inline">The term <term>family member</term> means,
with respect to an individual, the spouse, children, grandchildren, or parents
of the individual.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id35EAC2D998C849878E02B06361AB8EE3"><enum>(5)</enum><header display-inline="yes-display-inline">Information and informational
materials</header><text display-inline="yes-display-inline">The term
<term>information and informational materials</term>—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id4F338ECFB73B421C9EAC67160202C86E"><enum>(A)</enum><text display-inline="yes-display-inline">means information and informational
materials described in section 203(b)(3) of the International Emergency
Economic Powers Act (50 U.S.C. 1702(b)(3)); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2CA79FBD4B1942A9850F3F196E983ACC"><enum>(B)</enum><text display-inline="yes-display-inline">does not include information or
informational materials—</text>
<clause commented="no" display-inline="no-display-inline" id="id4E9745264FE94295BC5F3B59683A1C3D"><enum>(i)</enum><text display-inline="yes-display-inline">the exportation of which is otherwise
controlled—</text>
<subclause commented="no" display-inline="no-display-inline" id="id924E43DD2F4542749548988362B1B114"><enum>(I)</enum><text display-inline="yes-display-inline">under section 5 of the Export
Administration Act of 1979 (50 U.S.C. App. 2404) (as in effect pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.));
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idD71E917C86314E80951F5DD6337D8200"><enum>(II)</enum><text display-inline="yes-display-inline">under section 6 of that Act (50 U.S.C. App.
2405), to the extent that such controls promote the nonproliferation or
antiterrorism policies of the United States; or</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="idA4192551E3CF49ED813825B2F838242E"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to which acts are prohibited
by chapter 37 of title 18, United States Code.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id294735AFA6954D01AD0ECD85DA0FB55A"><enum>(6)</enum><header display-inline="yes-display-inline">Investment</header><text display-inline="yes-display-inline">The term <term>investment</term> has the
meaning given that term in section 14(9) of the Iran Sanctions Act of 1996
(Public Law 104–172; 50 U.S.C. 1701 note).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id98FA76AD879E47AF8C8835200C1509B8"><enum>(7)</enum><header display-inline="yes-display-inline">Iranian diplomats and representatives of
other government and military or quasi-governmental institutions of
Iran</header><text display-inline="yes-display-inline">The term <term>Iranian
diplomats and representatives of other government and military or
quasi-governmental institutions of Iran</term> has the meaning given that term
in section 14(11) of the Iran Sanctions Act of 1996 (Public Law 104–172; 50
U.S.C. 1701 note).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDf8c5260fc884481ea510e6bcdd6f3381"><enum>(8)</enum><header display-inline="yes-display-inline">Medical
device</header><text display-inline="yes-display-inline">The term <term>medical
device</term> has the meaning given the term <term>device</term> in section 201
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb8df3022c03a4db48e3c7a2724e102c7"><enum>(9)</enum><header display-inline="yes-display-inline">Medicine</header><text display-inline="yes-display-inline">The term <term>medicine</term> has the
meaning given the term <term>drug</term> in section 201 of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 321).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="idB697819BC5744A01B1E642B51D62E082" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Clarification and expansion of
definitions</header>
<subsection commented="no" display-inline="no-display-inline" id="id8674A74D87B145A6A28EEFF93777F322"><enum>(a)</enum><header display-inline="yes-display-inline">Person</header><text display-inline="yes-display-inline">Section 14(13)(B) of the Iran Sanctions Act
of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idF58D0EA1025D4CA3A9EF045FA89E9060"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>financial institution,
insurer, underwriter, guarantor, and any other business organization, including
any foreign subsidiary, parent, or affiliate of the foregoing,</quote> after
<quote>trust,</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFF6EEFE0DF40489D974066F7524043D4"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>, such as an export
credit agency</quote> before the semicolon.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC8AF5860BAF94ECEB341425D4828A18E"><enum>(b)</enum><header display-inline="yes-display-inline">Petroleum resources</header><text display-inline="yes-display-inline">Section 14(14) of the Iran Sanctions Act of
1996 (Public Law 104–172; 50 U.S.C. 1701 note) is amended by striking
<quote>petroleum and natural gas resources</quote> and inserting
<quote>petroleum, petroleum by-products, oil or liquefied natural gas, oil or
liquefied natural gas tankers, and products used to construct or maintain
pipelines used to transport oil or liquefied natural gas</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID77bb0b3685aa455f89764be278bca74d" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Economic sanctions relating to
Iran</header>
<subsection commented="no" display-inline="no-display-inline" id="idE2A377DE70484B90B10AEF91B477D30B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
and in addition to any other sanction in effect, beginning on the date that is
15 days after the effective date of this Act, the economic sanctions described
in subsection (b) shall apply with respect to Iran.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id6068C473A8CB4A8C8E982277E9BE0D48"><enum>(b)</enum><header display-inline="yes-display-inline">Sanctions</header><text display-inline="yes-display-inline">The sanctions described in this subsection
are the following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="idF7AFE25AB7664196B98343E2BC596B6D"><enum>(1)</enum><header display-inline="yes-display-inline">Prohibition on imports</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idC34FD95061C646BB9BC4CB08B9EB6551"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), no
article that is the growth, product, or manufacture of Iran may be imported
directly or indirectly into the United States.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB5DDEEBD7BEA49BCA312F4E91D296C87"><enum>(B)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">The prohibition in subparagraph (A) does
not apply to imports from Iran of information and informational
materials.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6B4B4E5ECDB24FDB87641DC2AEABC536"><enum>(2)</enum><header display-inline="yes-display-inline">Prohibition on exports</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idAF731DD4759F4DE2BE5CDC78C02631BF"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), no
article that is the growth, product, or manufacture of the United States may be
exported directly or indirectly to Iran.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF3138B2932D24813890C5B364C8D8724"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">The prohibition in subparagraph (A) does
not apply to exports to Iran of—</text>
<clause commented="no" display-inline="no-display-inline" id="id859DE3A4E9BD46B687D65DAED3D966DD"><enum>(i)</enum><text display-inline="yes-display-inline">agricultural commodities, food, medicine,
or medical devices;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id4DC23019DEEE41B9AB2FE5BFF19C050C"><enum>(ii)</enum><text display-inline="yes-display-inline">articles exported to Iran to provide
humanitarian assistance to the people of Iran;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7F7DBCA6DF884723B0D9793D35DCE152"><enum>(iii)</enum><text display-inline="yes-display-inline">information or informational materials;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id490A46FC5E1F4F06AA56795720BFF53D"><enum>(iv)</enum><text display-inline="yes-display-inline">goods, services, or technologies necessary
to ensure the safe operation of commercial passenger aircraft produced in the
United States if the exportation of such goods, services, or technologies is
approved by the Secretary of the Treasury, in consultation with the Secretary
of Commerce, pursuant to regulations for licensing the exportation of such
goods, services, or technologies, if appropriate.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id75F718829B8B471EA6293B12C816BCFE"><enum>(3)</enum><header display-inline="yes-display-inline">Freezing assets</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idC3586A0D34564ECAA75128382FC61B6E"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">At such time as the United States has
access to the names of persons in Iran, including Iranian diplomats and
representatives of other government and military or quasi-governmental
institutions of Iran, that are determined to be subject to sanctions imposed
under the authority of the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.) or any other provision of law relating to the imposition
of sanctions with respect to Iran, the President shall take such action as may
be necessary to freeze immediately the funds and other assets belonging to
anyone so named and any family members or associates of those so named to whom
assets or property of those so named were transferred on or after January 1,
2008. The action described in the preceding sentence includes requiring any
United States financial institution that holds funds and assets of a person so
named to report promptly to the Office of Foreign Assets Control information
regarding such funds and assets.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC66A944ED5E64E2A8CCA40876741ADBA"><enum>(B)</enum><header display-inline="yes-display-inline">Asset reporting requirement</header><text display-inline="yes-display-inline">Not later than 14 days after a decision is
made to freeze the property or assets of any person under this paragraph, the
President shall report the name of such person to the appropriate congressional
committees.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0bf964382c8e4bd78ee6bc515a941044"><enum>(4)</enum><header display-inline="yes-display-inline">United States Government
contracts</header><text display-inline="yes-display-inline">The head of an
executive agency may not procure, or enter into a contract for the procurement
of, any goods or services from a person that meets the criteria for the
imposition of sanctions under section 5(a) of the Iran Sanctions Act of 1996
(Public Law 104–172; 50 U.S.C. 1701 note).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id33CCBCCAF66F447A875176B143AE9E9C"><enum>(c)</enum><header display-inline="yes-display-inline">Waiver</header><text display-inline="yes-display-inline">The President may waive the application of
the sanctions described in subsection (b) if the President—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id20CD9629C4E0471483A6CE382EC0591B"><enum>(1)</enum><text display-inline="yes-display-inline">determines that such a waiver is in the
national interest of the United States; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id13C418F36509469183D75FC369807DF1"><enum>(2)</enum><text display-inline="yes-display-inline">submits to the appropriate congressional
committees a report describing the reasons for the determination.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H4C72645ED4AE4EB19394DE00D79F473E" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">Liability of parent companies for
violations of sanctions by foreign subsidiaries</header>
<subsection commented="no" display-inline="no-display-inline" id="id05565E7A4C764C2588A5217D799AC0C3"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID3ce3f9e8adbe48608367961984213740"><enum>(1)</enum><header display-inline="yes-display-inline">Entity</header><text display-inline="yes-display-inline">The term <term>entity</term> means a
partnership, association, trust, joint venture, corporation, or other
organization.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFA3EB66184D94F81B26311E60508E098"><enum>(2)</enum><header display-inline="yes-display-inline">Own
or control</header><text display-inline="yes-display-inline">The term <term>own
or control</term> means, with respect to an entity—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD682A236881A4B4DB06E4E7D47C49E9A"><enum>(A)</enum><text display-inline="yes-display-inline">to hold more than 50 percent of the equity
interest by vote or value in the entity;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID5a6aa8b2c46e4277a199bdeb433e4318"><enum>(B)</enum><text display-inline="yes-display-inline">to hold a majority of seats on the board of
directors of the entity; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDecde52a4d250440eb8e0d8194269014a"><enum>(C)</enum><text display-inline="yes-display-inline">to otherwise control the actions, policies,
or personnel decisions of the entity.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9A8BA05D3C464141B7562C2A1C77C3DC"><enum>(3)</enum><header display-inline="yes-display-inline">Subsidiary</header><text display-inline="yes-display-inline">The term <term>subsidiary</term> means an
entity that is owned or controlled, directly or indirectly, by a United States
person.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id245125080875426F920E78F80DE76584"><enum>(4)</enum><header display-inline="yes-display-inline">United States person</header><text display-inline="yes-display-inline">The term <term>United States person</term>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID8780825009e64343b95149fd5ec3627b"><enum>(A)</enum><text display-inline="yes-display-inline">a natural person who is a citizen,
resident, or national of the United States; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0022e584f7de4fb09541a7568a09a60a"><enum>(B)</enum><text display-inline="yes-display-inline">an entity that is organized under the laws
of the United States, any State or territory thereof, or the District of
Columbia, if natural persons described in subparagraph (A) own or control the
entity.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID445ea9d20cb14e868a2206de4b62ff53"><enum>(b)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A United States person shall be subject to
a penalty for a violation of the provisions of Executive Order 12959 (50 U.S.C.
1701 note) or Executive Order 13059 (50 U.S.C. 1701 note), or any other
prohibition on transactions with respect to Iran imposed under the authority of
the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.),
if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id5B07451ED0A048DB8DE133CB9C3993DE"><enum>(1)</enum><text display-inline="yes-display-inline">the President determines that the United
States person establishes or maintains a subsidiary outside of the United
States for the purpose of circumventing such provisions; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7FAF873CAD784325ADDDFA73C841ADC5"><enum>(2)</enum><text display-inline="yes-display-inline">that subsidiary engages in an act that, if
committed in the United States or by a United States person, would violate such
provisions.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id8D6DDE94D8DC413A82A7934AFAC240AE"><enum>(c)</enum><header display-inline="yes-display-inline">Waiver</header><text display-inline="yes-display-inline">The President may waive the application of
subsection (b) if the President—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idDD2ABC34D2C84A34B1E0FB73BF8AB4B5"><enum>(1)</enum><text display-inline="yes-display-inline">determines that such a waiver is in the
national interest of the United States; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2420F791ADDC4E62A692BB842383EE08"><enum>(2)</enum><text display-inline="yes-display-inline">submits to the appropriate congressional
committees a report describing the reasons for the determination.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id62851E433E604829A3A8B32D5A4E6BE6"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="idB02E9A625ACA4661B8D5F15D3C0983EC"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (b) shall take effect on the
date of the enactment of this Act and apply with respect to acts described in
subsection (b)(2) that are—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id313A28E3DB2E4024BC089556F5CE5BA4"><enum>(A)</enum><text display-inline="yes-display-inline">commenced on or after the date of the
enactment of this Act; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB96879A663924C6282563EDA430CFEC2"><enum>(B)</enum><text display-inline="yes-display-inline">except as provided in paragraph (2),
commenced before such date of enactment, if such acts continue on or after such
date of enactment.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id26FB39583E984A27926B31CF09A82160"><enum>(2)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">Subsection (b) shall not apply with respect
to an act described in paragraph (1)(B) by a subsidiary owned or controlled by
a United States person if the United States person divests or terminates its
business with the subsidiary not later than 90 days after such date of
enactment.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HB7E7DAEA7FCE4E2E88B0DAD188C07415" section-type="subsequent-section"><enum>105.</enum><header display-inline="yes-display-inline">Increased capacity for efforts to combat
unlawful or terrorist financing</header>
<subsection commented="no" display-inline="no-display-inline" id="H79D7F312953D4F44899F4E8D39BFBD36"><enum>(a)</enum><header display-inline="yes-display-inline">Finding</header><text display-inline="yes-display-inline">Congress finds that the work of the Office
of Terrorism and Financial Intelligence of the Department of the Treasury,
which includes the Office of Foreign Assets Control and the Financial Crimes
Enforcement Network, is critical to ensuring that the international financial
system is not used for purposes of supporting terrorism and developing weapons
of mass destruction.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H983E79C14D93424CBC256581C3DCEC82"><enum>(b)</enum><header display-inline="yes-display-inline">Authorization of appropriations for Office
of Terrorism and Financial Intelligence</header><text display-inline="yes-display-inline">There is authorized to be appropriated to
the Secretary of the Treasury for the Office of Terrorism and Financial
Intelligence—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id89F058A812414786B5CD90FF55D18FA3"><enum>(1)</enum><text display-inline="yes-display-inline">$61,712,000 for fiscal year 2009;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF5BA25310070484B86C59C1DD495AB75"><enum>(2)</enum><text display-inline="yes-display-inline">such sums as may be necessary for each of
the fiscal years 2010 and 2011.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8E1B64930C54498BA3C022D6FF5C3D9"><enum>(c)</enum><header display-inline="yes-display-inline">Authorization of appropriations for the
Financial Crimes Enforcement Network</header><text display-inline="yes-display-inline">Section 310(d)(1) of title 31, United
States Code, is amended by striking <quote>such sums as may be necessary for
fiscal years 2002, 2003, 2004, and 2005</quote> and inserting
<quote>$91,335,000 for fiscal year 2009 and such sums as may be necessary for
each of the fiscal years 2010 and 2011</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id88E5097AB84E41F8A056521A2785E650" section-type="subsequent-section"><enum>106.</enum><header display-inline="yes-display-inline">Reporting requirements</header>
<subsection commented="no" display-inline="no-display-inline" id="ID5809dbf9854d465abe56cd389eda3456"><enum>(a)</enum><header display-inline="yes-display-inline">Foreign investment in Iran</header>
<paragraph commented="no" display-inline="no-display-inline" id="id1A3D1666D00B41B6BEC85FFFAB931F36"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
the enactment of this Act, the President shall submit to the appropriate
congressional committees a report on—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id8561BE11D301496F9C7855E4EA39C8BB"><enum>(A)</enum><text display-inline="yes-display-inline">any foreign investments of $20,000,000 or
more made in Iran’s energy sector on or after January 1, 2008, and before the
date on which the President submits the report; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0E8C0CB0D863455DB721363EEBD27A9A"><enum>(B)</enum><text display-inline="yes-display-inline">the determination of the President on
whether each such investment qualifies as a sanctionable offense under section
5(a) of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701
note).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC21F6F1129F5408486615BEFBF2EA908"><enum>(2)</enum><header display-inline="yes-display-inline">Subsequent reports</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of this Act, and every 180 days thereafter, the President shall
submit to the appropriate congressional committees a report on—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idE872B967391F48ECA959C52099CAA3AA"><enum>(A)</enum><text display-inline="yes-display-inline">any foreign investments of $20,000,000 or
more made in Iran’s energy sector during the 180-day period preceding the
submission of the report; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1FDBEDE5DA58487783741CBE2EAA308F"><enum>(B)</enum><text display-inline="yes-display-inline">the determination of the President on
whether each such investment qualifies as a sanctionable offense under section
5(a) of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701
note).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id7741E2602FD44A3EA5F5ED12BF12A3F0"><enum>(b)</enum><header display-inline="yes-display-inline">Form of reports</header><text display-inline="yes-display-inline">The reports required under subsection (a)
shall be submitted in unclassified form, but may contain a classified
annex.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id7AF3403C491F4BD9A2B5A018AB350DE6" section-type="subsequent-section"><enum>107.</enum><header display-inline="yes-display-inline">Sense of Congress regarding the imposition
of sanctions on the Central Bank of Iran</header><text display-inline="no-display-inline">Congress urges the President, in the
strongest terms, to consider immediately using the authority of the President
to impose sanctions on the Central Bank of Iran and any other Iranian bank
engaged in proliferation activities or support of terrorist groups.</text>
</section><enum>II</enum><header display-inline="yes-display-inline">Divestment from certain companies that
invest in Iran</header>
<section commented="no" display-inline="no-display-inline" id="id89CB09A9ECAE4C48AF80ED9D8BA16362" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id06C4878E69284AE996673A59AF63341C"><enum>(1)</enum><header display-inline="yes-display-inline">Energy sector</header><text display-inline="yes-display-inline">The term <term>energy sector</term> refers
to activities to develop petroleum or natural gas resources or nuclear
power.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id886CF603BBF94D6695A567BA6DE9CEB6"><enum>(2)</enum><header display-inline="yes-display-inline">Financial institution</header><text display-inline="yes-display-inline">The term <term>financial institution</term>
has the meaning given that term in section 14(5) of the Iran Sanctions Act of
1996 (Public Law 104–172; 50 U.S.C. 1701 note).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id86D1AD82ED2945ECB262C84C0C88EC68"><enum>(3)</enum><header display-inline="yes-display-inline">Iran</header><text display-inline="yes-display-inline">The term <term>Iran</term> includes any
agency or instrumentality of Iran.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6AD8737C0E344FCAB0D4DB2C8D30135F"><enum>(4)</enum><header display-inline="yes-display-inline">Person</header><text display-inline="yes-display-inline">The term <term>person</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id7937534E57E14F75B2BC1862CE3DB25E"><enum>(A)</enum><text display-inline="yes-display-inline">a natural person, corporation, company,
business association, partnership, society, trust, or any other nongovernmental
entity, organization, or group;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id00C39B2E2E4B4D8B859ECA1A70B8768A"><enum>(B)</enum><text display-inline="yes-display-inline">any governmental entity or instrumentality
of a government, including a multilateral development institution (as defined
in section 1701(c)(3) of the International Financial Institutions Act (22
U.S.C. 262r(c)(3))); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id262809DCC28D4B018D34C549E028DAE2"><enum>(C)</enum><text display-inline="yes-display-inline">any successor, subunit, parent company, or
subsidiary of any entity described in subparagraph (A) or (B).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0CC3F25ECA7B49128F6C5A029FFE8CE1"><enum>(5)</enum><header display-inline="yes-display-inline">State</header><text display-inline="yes-display-inline">The term <term>State</term> means each of
the several States, the District of Columbia, the Commonwealth of Puerto Rico,
the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1BBD012A41494EAEA9F7498DB5C77BEA"><enum>(6)</enum><header display-inline="yes-display-inline">State or local government</header><text display-inline="yes-display-inline">The term <term>State or local
government</term> includes—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idF804E56AE5934575BCE45002BE969625"><enum>(A)</enum><text display-inline="yes-display-inline">any State and any agency or instrumentality
thereof;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCF50CE6715F441329BEC64F1A3C6BF49"><enum>(B)</enum><text display-inline="yes-display-inline">any local government within a State, and
any agency or instrumentality thereof;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE1616B159773491A8640C79236CE863D"><enum>(C)</enum><text display-inline="yes-display-inline">any other governmental instrumentality;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id46FEDD6D6D304D6798864B675AC2F6A3"><enum>(D)</enum><text display-inline="yes-display-inline">any public institution of higher education
within the meaning of the Higher Education Act of 1965 (20 U.S.C. 1001 et
seq.).</text>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="idB943A32073144D03B36D21A167DD917D" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Authority of State and local governments to
divest from certain companies that invest in Iran</header>
<subsection commented="no" display-inline="no-display-inline" id="H283EC5FA7809434C8E325326FADD1000"><enum>(a)</enum><header display-inline="yes-display-inline">Sense of Congress</header><text display-inline="yes-display-inline">It is the sense of Congress that the United
States Government should support the decision of any State or local government
to divest from, or to prohibit the investment of assets of the State or local
government in, a person that the State or local government determines poses a
financial or reputational risk.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id28BF8A2EA3644D9D88AAF6765AC37A7C"><enum>(b)</enum><header display-inline="yes-display-inline">Authority To divest</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
a State or local government may adopt and enforce measures that meet the
requirements of subsection (d) to divest the assets of the State or local
government from, or prohibit investment of the assets of the State or local
government in, any person that the State or local government determines, using
credible information available to the public, engages in investment activities
in Iran described in subsection (c).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3956801AB364406392AF5F09A4ABAB22"><enum>(c)</enum><header display-inline="yes-display-inline">Investment activities
described</header><text display-inline="yes-display-inline">A person engages in
investment activities in Iran described in this subsection if the
person—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id4FBF822CA24B4BA59F6122F2AC780E2B"><enum>(1)</enum><text display-inline="yes-display-inline">has an investment of $20,000,000 or
more—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id288565C429E146358BF6E1AD47EBF6E0"><enum>(A)</enum><text display-inline="yes-display-inline">in the energy sector of Iran; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id698F66EC7D2741A2990AAE9CAD3463DD"><enum>(B)</enum><text display-inline="yes-display-inline">in a person that provides oil or liquified
natural gas tankers, or products used to construct or maintain pipelines used
to transport oil or liquified natural gas, for the energy sector in Iran;
or</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id320C0ACEC1204C7B9ADD5051CB90BB45"><enum>(2)</enum><text display-inline="yes-display-inline">is a financial institution that extends
$20,000,000 or more in credit to another person, for 45 days or more, if that
person will use the credit to invest in the energy sector in Iran.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idDDB54C7A9CC94841B516B744835FD4A3"><enum>(d)</enum><header display-inline="yes-display-inline">Requirements</header><text display-inline="yes-display-inline">Any measure taken by a State or local
government under subsection (b) shall meet the following requirements:</text>
<paragraph commented="no" display-inline="no-display-inline" id="idA9F83AEA4B3643089E6DC6DAC6102FD2"><enum>(1)</enum><header display-inline="yes-display-inline">Notice</header><text display-inline="yes-display-inline">The State or local government shall provide
written notice to each person to which a measure is to be applied.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1BD3FAED578843B6A5D6BA26A06319D4"><enum>(2)</enum><header display-inline="yes-display-inline">Timing</header><text display-inline="yes-display-inline">The measure shall apply to a person not
earlier than the date that is 90 days after the date on which written notice is
provided to the person under paragraph (1).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id70A144B6E7E941C2A019174805015F0E"><enum>(3)</enum><header display-inline="yes-display-inline">Opportunity for hearing</header><text display-inline="yes-display-inline">The State or local government shall provide
an opportunity to comment in writing to each person to which a measure is to be
applied. If the person demonstrates to the State or local government that the
person does not engage in investment activities in Iran described in subsection
(c), the measure shall not apply to the person.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id98FCC71CD7B447978DA7732816B1F90C"><enum>(4)</enum><header display-inline="yes-display-inline">Sense of Congress on avoiding erroneous
targeting</header><text display-inline="yes-display-inline">It is the sense of
Congress that a State or local government should not adopt a measure under
subsection (b) with respect to a person unless the State or local government
has made every effort to avoid erroneously targeting the person and has
verified that the person engages in investment activities in Iran described in
subsection (c).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA6D9BCF5A59E4FB2AD9687DB24557B40"><enum>(e)</enum><header display-inline="yes-display-inline">Notice to Department of
Justice</header><text display-inline="yes-display-inline">Not later than 30
days after adopting a measure pursuant to subsection (b), a State or local
government shall submit written notice to the Attorney General describing the
measure.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8DC4D347645C49ADAFBD3C6BD00FE4D"><enum>(f)</enum><header display-inline="yes-display-inline">Nonpreemption</header><text display-inline="yes-display-inline">A measure of a State or local government
authorized under subsection (b) is not preempted by any Federal law or
regulation.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3D802D8407134271BB4D6C47E288C7F8"><enum>(g)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA5B946846475471AA7A9572D9EF80377"><enum>(1)</enum><header display-inline="yes-display-inline">Investment</header><text display-inline="yes-display-inline">The <term>investment</term> of assets, with
respect to a State or local government, includes—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H35C697D70C0A4F82A900C3C9B4238E69"><enum>(A)</enum><text display-inline="yes-display-inline">a commitment or contribution of
assets;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0642808FCDB8407DA3D0C314AE7FDB07"><enum>(B)</enum><text display-inline="yes-display-inline">a loan or other extension of credit;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5288A61E1A134D03B2E1D8E7C0531862"><enum>(C)</enum><text display-inline="yes-display-inline">the entry into or renewal of a contract for
goods or services.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCCCAB7ABC78A4DADAD5BC000C8A7318C"><enum>(2)</enum><header display-inline="yes-display-inline">Assets</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idC78E4C68F95E41E38E67ADA2BD5632A9"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), the
term <term>assets</term> refers to public monies and includes any pension,
retirement, annuity, or endowment fund, or similar instrument, that is
controlled by a State or local government.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5948B1D49602474EACC48EDA82193186"><enum>(B)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">The term <term>assets</term> does not
include employee benefit plans covered by title I of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1001 et seq.).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEE1D4B3D504E42B4B669E2BCEAD57098"><enum>(h)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="id917B3EC7E00743BA8886393C46CFD5D5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), this
section applies to measures adopted by a State or local government before, on,
or after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id52C93A61AF43452BADBB247411601B46"><enum>(2)</enum><header display-inline="yes-display-inline">Notice requirements</header><text display-inline="yes-display-inline">Subsections (d) and (e) apply to measures
adopted by a State or local government on or after the date of the enactment of
this Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H099AD48AE1424F969DAAC386AE675E66" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Safe harbor for changes of investment
policies by asset managers</header>
<subsection commented="no" display-inline="no-display-inline" id="id605AB73A73B74E8CA7B341DA80BCD426"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 13(c)(1) of the Investment Company
Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-13">15
U.S.C. 80a–13</external-xref>(c)(1)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA81810C705E749BEAED6E4995D61116" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idA73533A740A245E28186680E5A28F23E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of
Federal or State law, no person may bring any civil, criminal, or
administrative action against any registered investment company, or any
employee, officer, director, or investment adviser thereof, based solely upon
the investment company divesting from, or avoiding investing in, securities
issued by persons that the investment company determines, using credible
information available to the public—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id443D18684B6C4E5DACAB4DFBBD495553"><enum>(A)</enum><text display-inline="yes-display-inline">conduct or have direct investments in
business operations in Sudan described in section 3(d) of the Sudan
Accountability and Divestment Act of 2007 (50 U.S.C. 1701 note); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id98C611D2442644BF832E8BEEE8DE6C2A"><enum>(B)</enum><text display-inline="yes-display-inline">engage in investment activities in Iran
described in section 202(c) of the <short-title>Comprehensive Iran Sanctions, Accountability, and
Divestment Act of
2008</short-title>.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id4029C6C5EFDA44F5BCED199B91FC4F37"><enum>(b)</enum><header display-inline="yes-display-inline">SEC regulations</header><text display-inline="yes-display-inline">Not later than 120 days after the date of
the enactment of this Act, the Securities and Exchange Commission shall issue
any revisions the Commission determines to be necessary to the regulations
requiring disclosure by each registered investment company that divests itself
of securities in accordance with section 13(c) of the Investment Company Act of
1940 to include divestments of securities in accordance with paragraph (1)(B)
of such section, as added by subsection (a).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id71F9E6A3054549879D780A0D0157B66D" section-type="subsequent-section"><enum>204.</enum><header display-inline="yes-display-inline">Sense of Congress regarding certain ERISA
plan investments</header><text display-inline="no-display-inline">It is the
sense of Congress that a fiduciary of an employee benefit plan, as defined in
section 3(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1002(3)), may divest plan assets from, or avoid investing plan assets in, any
person the fiduciary determines engages in investment activities in Iran
described in section 202(c) of this Act, without breaching the
responsibilities, obligations, or duties imposed upon the fiduciary by section
404 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104),
if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id64F2E017E9FC4ADBB3788DC157B2E4C1"><enum>(1)</enum><text display-inline="yes-display-inline">the fiduciary makes such determination
using credible information that is available to the public; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id044C42BAA3EE42909D69BD6E16624627"><enum>(2)</enum><text display-inline="yes-display-inline">such divestment or avoidance of investment
is conducted in accordance with section 2509.94–1 of title 29, Code of Federal
Regulations (as in effect on the day before the date of the enactment of this
Act).</text>
</paragraph></section><enum>III</enum><header display-inline="yes-display-inline">Prevention of transshipment, reexportation,
or diversion of sensitive items to Iran</header>
<section commented="no" display-inline="no-display-inline" id="ID45f936c196304e91b3e94f31b18daf6f" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id8C4508FB632B44F28294D9E464C44D04"><enum>(1)</enum><header display-inline="yes-display-inline">Appropriate congressional
committees</header><text display-inline="yes-display-inline">The term
<term>appropriate congressional committees</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id73881D877BC1459EA1AD534237D23810"><enum>(A)</enum><text display-inline="yes-display-inline">the Committee on Banking, Housing, and
Urban Affairs, the Committee on Foreign Relations, and the Select Committee on
Intelligence of the Senate; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7D2410B0C1804D4EB2F51607C225D4DE"><enum>(B)</enum><text display-inline="yes-display-inline">the Committee on Financial Services, the
Committee on Foreign Affairs, and the Permanent Select Committee on
Intelligence of the House of Representatives.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id80790229C2EA430C871303FA565E63E2"><enum>(2)</enum><header display-inline="yes-display-inline">End-user</header><text display-inline="yes-display-inline">The term <term>end-user</term> means an
end-user as that term is used in the Export Administration Regulations.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0A1BF0AA90904238B4B0C926BA581E9B"><enum>(3)</enum><header display-inline="yes-display-inline">Entity owned or controlled by the
Government of Iran</header><text display-inline="yes-display-inline">The term
<term>entity owned or controlled by the Government of Iran</term>
includes—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id17F4C36942E14521A2A1812BE652EBF3"><enum>(A)</enum><text display-inline="yes-display-inline">any corporation, partnership, association,
or other entity in which the Government of Iran owns a majority or controlling
interest; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id205E5C077287484A9F5763AE828C6D5F"><enum>(B)</enum><text display-inline="yes-display-inline">any entity that is otherwise controlled by
the Government of Iran.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE693566AFCC34ED8BD2FF0A86B9E684F"><enum>(4)</enum><header display-inline="yes-display-inline">Export Administration
Regulations</header><text display-inline="yes-display-inline">The term
<term>Export Administration Regulations</term> means subchapter C of chapter
VII of title 15, Code of Federal Regulations.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2E250D2D57E4492A9728AD6348AD1C50"><enum>(5)</enum><header display-inline="yes-display-inline">Government</header><text display-inline="yes-display-inline">The term <term>government</term> includes
any agency or instrumentality of a government.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1FF7F44B3031485DA2DB79861993DD51"><enum>(6)</enum><header display-inline="yes-display-inline">Iran</header><text display-inline="yes-display-inline">The term <term>Iran</term> includes any
agency or instrumentality of Iran.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCB6EFD9D9AB04549A94A8DD52EEAAF11"><enum>(7)</enum><header display-inline="yes-display-inline">State sponsor of terrorism</header><text display-inline="yes-display-inline">The term <term>state sponsor of
terrorism</term> means any country the government of which the Secretary of
State has determined has repeatedly provided support for acts of international
terrorism pursuant to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFCD717FCBF914A218B13DF89FB4B29D6"><enum>(A)</enum><text display-inline="yes-display-inline">section 6(j)(1)(A) of the Export
Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)) (or any successor
thereto);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3D909A053F5841CD87C88A2C65C2949E"><enum>(B)</enum><text display-inline="yes-display-inline">section 40(d) of the Arms Export Control
Act (22 U.S.C. 2780(d)); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0D83228123594333B20592A369D00008"><enum>(C)</enum><text display-inline="yes-display-inline">section 620A(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2371(a)).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id179DFF3ABFDD408BA0FACB6626061A87"><enum>(8)</enum><header display-inline="yes-display-inline">Transshipment, reexportation, or
diversion</header><text display-inline="yes-display-inline">The term
<term>transshipment, reexportation, or diversion</term> means the exportation,
directly or indirectly, of items that originated in the United States to an
end-user whose identity cannot be verified or to an entity owned or controlled
by the Government of Iran in violation of the laws or regulations of the United
States by any means, including by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id446364D0B6C2443BAC81033BF80C8BEE"><enum>(A)</enum><text display-inline="yes-display-inline">shipping such items through 1 or more
foreign countries; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id965B65921B60486B9646773C778FCFEF"><enum>(B)</enum><text display-inline="yes-display-inline">by using false information regarding the
country of origin of such items.</text>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="id2B431BD713174A88BD480709430EE424" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">Identification of locations of concern with
respect to transshipment, reexportation, or diversion of certain items to
Iran</header><text display-inline="no-display-inline">Not later than 180 days
after the date of the enactment of this Act, and annually thereafter, the
Director of National Intelligence shall submit to the Secretary of Commerce,
the Secretary of State, the Secretary of the Treasury, and the appropriate
congressional committees a report that identifies all countries that the
Director determines are of concern with respect to transshipment,
reexportation, or diversion of items subject to the provisions of the Export
Administration Regulations to an entity owned or controlled by the Government
of Iran.</text>
</section><section commented="no" display-inline="no-display-inline" id="id3EFCE9777D96437F833CB90FC2615901" section-type="subsequent-section"><enum>303.</enum><header display-inline="yes-display-inline">Destinations of Possible Diversion Concern
and Destinations of Diversion Concern</header>
<subsection commented="no" display-inline="no-display-inline" id="idE284643D14314FA5B9C3CC151DDBB346"><enum>(a)</enum><header display-inline="yes-display-inline">Destinations of Possible Diversion
Concern</header>
<paragraph commented="no" display-inline="no-display-inline" id="id3377758BF2C040EB8ECC067A743A8BBE"><enum>(1)</enum><header display-inline="yes-display-inline">Designation</header><text display-inline="yes-display-inline">The Secretary of Commerce shall designate a
country as a Destination of Possible Diversion Concern if the Secretary, in
consultation with the Secretary of State and the Secretary of the Treasury,
determines that such designation is appropriate to carry out activities to
strengthen the export control systems of that country based on criteria that
include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id20FCD6DE97044BF38CE3E306F8089B1E"><enum>(A)</enum><text display-inline="yes-display-inline">the volume of items that originated in the
United States that are transported through the country to end-users whose
identities cannot be verified;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0C3B24CBF2534FECB316C479BCD6FD18"><enum>(B)</enum><text display-inline="yes-display-inline">the inadequacy of the export and reexport
controls of the country;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCB35C8B7844141C294AD4940AAEA0EFF"><enum>(C)</enum><text display-inline="yes-display-inline">the unwillingness or demonstrated inability
of the government of the country to control diversion activities; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6DB8CD0BA58D4A3A88C464121088390C"><enum>(D)</enum><text display-inline="yes-display-inline">the unwillingness or inability of the
government of the country to cooperate with the United States in interdiction
efforts.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD052EF73006D490B9C9AB20B8AA42A60"><enum>(2)</enum><header display-inline="yes-display-inline">Strengthening export control systems of
Destinations of Possible Diversion Concern</header><text display-inline="yes-display-inline">If the Secretary of Commerce designates a
country as a Destination of Possible Diversion Concern under paragraph (1), the
United States shall initiate government-to-government activities described in
paragraph (3) to strengthen the export control systems of the country.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFD2EF3CE680C4536B7F56509C131706C"><enum>(3)</enum><header display-inline="yes-display-inline">Government-to-government activities
described</header><text display-inline="yes-display-inline">The
government-to-government activities described in this paragraph include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id8BBF6864107B4C6DBF3757C949BF31B2"><enum>(A)</enum><text display-inline="yes-display-inline">cooperation by agencies and departments of
the United States with counterpart agencies and departments in a country
designated as a Destination of Possible Diversion Concern under paragraph (1)
to—</text>
<clause commented="no" display-inline="no-display-inline" id="id0DA6A3C03E4B4CDD83D5209651F9D62C"><enum>(i)</enum><text display-inline="yes-display-inline">develop or strengthen export control
systems in the country;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5E03ECECB0264B50A8C88B69F683B8E3"><enum>(ii)</enum><text display-inline="yes-display-inline">strengthen cooperation and facilitate
enforcement of export control systems in the country; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idC7EB6012CF164C309166CC680BC95F63"><enum>(iii)</enum><text display-inline="yes-display-inline">promote information and data exchanges
among agencies of the country and with the United States; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6A8D178335D04E96B88EBBA00C332E7F"><enum>(B)</enum><text display-inline="yes-display-inline">efforts by the Office of International
Programs of the Department of Commerce to strengthen the export control systems
of the country to—</text>
<clause commented="no" display-inline="no-display-inline" id="id2F18E60DBAB4441881B9EB01EB91D667"><enum>(i)</enum><text display-inline="yes-display-inline">facilitate legitimate trade in
high-technology goods; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id4E269548F81A4D5CB94059A827456894"><enum>(ii)</enum><text display-inline="yes-display-inline">prevent terrorists and state sponsors of
terrorism, including Iran, from obtaining nuclear, biological, and chemical
weapons, defense technologies, components for improvised explosive devices, and
other defense items.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID0c5b78fae3c14071b555705d843ea108"><enum>(b)</enum><header display-inline="yes-display-inline">Destinations of Diversion Concern</header>
<paragraph commented="no" display-inline="no-display-inline" id="id94F13550FBC849FE8C5EF697F0D04756"><enum>(1)</enum><header display-inline="yes-display-inline">Designation</header><text display-inline="yes-display-inline">The Secretary of Commerce shall designate a
country as a Destination of Diversion Concern if the Secretary, in consultation
with the Secretary of State and the Secretary of the Treasury,
determines—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idA0353E99C7794781B89FEDA939EE50D5"><enum>(A)</enum><text display-inline="yes-display-inline">that the government of the country is
directly involved in transshipment, reexportation, or diversion of items that
originated in the United States to end-users whose identities cannot be
verified or to entities owned or controlled by the Government of Iran;
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id02A37B51EF4D4D6A88176ACCC228BCB2"><enum>(B)</enum><text display-inline="yes-display-inline">12 months after the Secretary of Commerce
designates the country as a Destination of Possible Diversion Concern under
subsection (a)(1), that the country has failed—</text>
<clause commented="no" display-inline="no-display-inline" id="idE75CF579FF3B46F8B53BE6D0317C2868"><enum>(i)</enum><text display-inline="yes-display-inline">to cooperate with the
government-to-government activities initiated by the United States under
subsection (a)(2); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id1F28C4EE67F044B7954E8B23E05156D2"><enum>(ii)</enum><text display-inline="yes-display-inline">based on the criteria described in
subsection (a)(1), to adequately strengthen the export control systems of the
country.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF5265A3ACD9F47288D325ED721FB6C8C"><enum>(2)</enum><header display-inline="yes-display-inline">Licensing controls with respect to
Destinations of Diversion Concern</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idEB6DA12040DC4B44AFD0BDEE94582C98"><enum>(A)</enum><header display-inline="yes-display-inline">Report on suspect items</header>
<clause commented="no" display-inline="no-display-inline" id="id16990F34135D4B259C0954B755954571"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 45 days after the date of
the enactment of this Act, the Secretary of Commerce, in consultation with the
Director of National Intelligence, the Secretary of State, and the Secretary of
the Treasury, shall submit to the appropriate congressional committees a report
containing a list of items that, if the items were transshipped, reexported, or
diverted to Iran, could contribute to—</text>
<subclause commented="no" display-inline="no-display-inline" id="id707D75719B4446FB858B37A7C11305A5"><enum>(I)</enum><text display-inline="yes-display-inline">Iran obtaining nuclear, biological, or
chemical weapons, defense technologies, components for improvised explosive
devices, or other defense items; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id7840EEB8801F42C78036B2C9E56D5623"><enum>(II)</enum><text display-inline="yes-display-inline">support by Iran for acts of international
terrorism.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id0D731EB27F5F40419CA37120FBFC64FD"><enum>(ii)</enum><header display-inline="yes-display-inline">Considerations for list</header><text display-inline="yes-display-inline">In developing the list required under
clause (i), the Secretary of Commerce shall consider—</text>
<subclause commented="no" display-inline="no-display-inline" id="id9B41EFFEA27048BABC42192AF43D24A1"><enum>(I)</enum><text display-inline="yes-display-inline">the items subject to licensing requirements
under section 742.8 of title 15, Code of Federal Regulations (or any
corresponding similar regulation or ruling) and other existing licensing
requirements; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idD7D9919BBB9D450CB91F88E400695FCD"><enum>(II)</enum><text display-inline="yes-display-inline">the items added to the list of items for
which a license is required for exportation to North Korea by the final rule of
the Bureau of Export Administration of the Department of Commerce issued on
June 19, 2000 (65 Fed. Reg. 38148; relating to export restrictions on North
Korea).</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE1BF11B5B9CB44D9B7F28B5C302A2587"><enum>(B)</enum><header display-inline="yes-display-inline">Licensing requirement</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
the enactment of this Act, the Secretary of Commerce shall require a license to
export an item on the list required under subparagraph (A)(i) to a country
designated as a Destination of Diversion Concern.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCE8E6DFDD54B4B9DB63DB02527849D24"><enum>(3)</enum><header display-inline="yes-display-inline">Waiver</header><text display-inline="yes-display-inline">The President may waive the imposition of
the licensing requirement under paragraph (2)(B) with respect to a country
designated as a Destination of Diversion Concern if the President—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id77D54B7041374439AD1A0CB687EF4EE4"><enum>(A)</enum><text display-inline="yes-display-inline">determines that such a waiver is in the
national interest of the United States; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id11E4E0B522EE4C7188E09259174B408E"><enum>(B)</enum><text display-inline="yes-display-inline">submits to the appropriate congressional
committees a report describing the reasons for the determination.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id59D5C8F818E14B9189355F663A50A4D7"><enum>(c)</enum><header display-inline="yes-display-inline">Termination of designation</header><text display-inline="yes-display-inline">The designation of a country as a
Destination of Possible Diversion Concern or a Destination of Diversion Concern
shall terminate on the date on which the Secretary of Commerce determines,
based on the criteria described in subparagraphs (A) through (D) of subsection
(a)(1), and certifies to Congress and the President that the country has
adequately strengthened the export control systems of the country to prevent
transshipment, reexportation, and diversion of items through the country to
end-users whose identities cannot be verified or to entities owned or
controlled by the Government of Iran.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id141120016E214A7D94FB4B9DB258DEE9"><enum>(d)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated such sums as may be necessary to carry out this
section.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idF7AEE74F6E624190A3B327F53ACBE534" section-type="subsequent-section"><enum>304.</enum><header display-inline="yes-display-inline">Report on expanding diversion concern
system to countries other than Iran</header><text display-inline="no-display-inline">Not later than 180 days after the date of
the enactment of this Act, the Director of National Intelligence, in
consultation with the Secretary of Commerce, the Secretary of State, and the
Secretary of the Treasury, shall submit to the appropriate congressional
committees a report that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id86FEF3F6DA3C455C9A4FD12855B9DADA"><enum>(1)</enum><text display-inline="yes-display-inline">identifies any country that the Director
determines may be transshipping, reexporting, or diverting items subject to the
provisions of the Export Administration Regulations to another country if such
other country—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idA79B6B1E2A0D48A9B3336F1C605D4BE6"><enum>(A)</enum><text display-inline="yes-display-inline">is seeking to obtain nuclear, biological,
or chemical weapons, defense technologies, components for improvised explosive
devices, or other defense items; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id02A72E644B71409FA397DD2A3717FECE"><enum>(B)</enum><text display-inline="yes-display-inline">provides support for acts of international
terrorism; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3660CCC7BA694F6FB85EB2D5970F9755"><enum>(2)</enum><text display-inline="yes-display-inline">assesses the feasability and advisability
of expanding the system established under section 303 for designating countries
as Destinations of Possible Diversion Concern and Destinations of Diversion
Concern to include countries identified under paragraph (1).</text>
</paragraph></section><enum>IV</enum><header display-inline="yes-display-inline">Effective date; sunset</header>
<section commented="no" display-inline="no-display-inline" id="id4B5E2C441B8F4268B1E06861504E1EFF" section-type="subsequent-section"><enum>401.</enum><header display-inline="yes-display-inline">Effective date; sunset</header>
<subsection commented="no" display-inline="no-display-inline" id="idFC3B216D84B44351911C62DAE8BD8EE6"><enum>(a)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">Except as provided in
sections 202 and 303(b)(2)(A), the provisions of, and amendments made by, this
Act shall take effect on the date that is 120 days after the date of the
enactment of this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id1B3536ADCD0E45C8A7B0532000652A65"><enum>(b)</enum><header display-inline="yes-display-inline">Sunset</header><text display-inline="yes-display-inline">The provisions of this Act shall terminate
on the date that is 30 days after the date on which the President certifies to
Congress that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB44C20943E204F73B99FDAFECAB9C05B"><enum>(1)</enum><text display-inline="yes-display-inline">the Government of Iran has ceased providing
support for acts of international terrorism and no longer satisfies the
requirements for designation as a state sponsor of terrorism under—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idAFE02293425149AEB8D2BA030C7EACA9"><enum>(A)</enum><text display-inline="yes-display-inline">section 6(j)(1)(A) of the Export
Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)) (or any successor
thereto);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id36B7E9A515284A7588B0BFE8A45B9AF9"><enum>(B)</enum><text display-inline="yes-display-inline">section 40(d) of the Arms Export Control
Act (22 U.S.C. 2780(d)); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9538BDE4EC9F438A9F7943D9EE697CB7"><enum>(C)</enum><text display-inline="yes-display-inline">section 620A(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2371(a)); and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4A76C1EBD6214F61A79D385983FF4EF5"><enum>(2)</enum><text display-inline="yes-display-inline">Iran has ceased the pursuit, acquisition,
and development of nuclear, biological, and chemical weapons and ballistic
missiles and ballistic missile launch technology.</text>
</paragraph></subsection></section>
August 1, 2008
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