[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2194 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
March 11, 2010.
Resolved, That the bill from the House of Representatives (H.R.
2194) entitled ``An Act to amend the Iran Sanctions Act of 1996 to
enhance United States diplomatic efforts with respect to Iran by
expanding economic sanctions against Iran.'', do pass with the
following
AMENDMENT:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2009''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Sense of Congress regarding illicit nuclear activities
and violations of human rights in
Iran.
TITLE I--SANCTIONS
Sec. 101. Definitions.
Sec. 102. Expansion of sanctions under the Iran Sanctions Act
of 1996.
Sec. 103. Economic sanctions relating to Iran.
Sec. 104. Liability of parent companies for violations of
sanctions by foreign subsidiaries.
Sec. 105. Prohibition on procurement contracts with persons
that export sensitive technology to
Iran.
Sec. 106. Increased capacity for efforts to combat unlawful or
terrorist financing.
Sec. 107. Reporting requirements.
Sec. 108. Sense of Congress regarding the imposition of
sanctions on the Central Bank of
Iran.
Sec. 109. Policy of the United States regarding Iran's
Revolutionary Guard Corps and its
affiliates.
Sec. 110. Policy of the United States with respect to Iran and
Hezbollah.
Sec. 111. Sense of Congress regarding the imposition of
multilateral sanctions with respect
to 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.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The illicit nuclear activities of the Government of
Iran and its support for international terrorism represent
threats to the security of the United States, its strong ally
Israel, and other allies of the United States around the world.
(2) The United States and other responsible countries have
a vital interest in working together to prevent the Government
of Iran from acquiring a nuclear weapons capability.
(3) The International Atomic Energy Agency has repeatedly
called attention to Iran's illicit nuclear activities and, as a
result, the United Nations Security Council has adopted a range
of sanctions designed to encourage the Government of Iran to
cease those activities and comply with its obligations under
the Treaty on Non-Proliferation of Nuclear Weapons, done at
Washington, London, and Moscow July 1, 1968, and entered into
force March 5, 1970 (commonly known as the ``Nuclear Non-
Proliferation Treaty'').
(4) The serious and urgent nature of the threat from Iran
demands that the United States work together with its allies to
prevent Iran from acquiring a nuclear weapons capability.
(5) The United States and its major European allies,
including the United Kingdom, France, and Germany, have
advocated that sanctions be strengthened should international
diplomatic efforts fail to achieve verifiable suspension of
Iran's uranium enrichment program and an end to its illicit
nuclear activities.
(6) There is an increasing interest by States, local
governments, educational institutions, and private institutions
to seek to disassociate themselves from companies that conduct
business activities in the energy sector of Iran, since such
business activities may directly or indirectly support the
efforts of the Government of Iran to achieve a nuclear weapons
capability.
(7) Black market proliferation networks continue to
flourish in the Middle East, allowing countries like Iran to
gain access to sensitive dual-use technologies.
(8) The Government of Iran continues to engage in serious,
systematic, and ongoing violations of human rights and
religious freedom, including illegitimate prolonged detention,
torture, and executions. Such violations have increased in the
aftermath of the presidential election in Iran on June 12,
2009.
SEC. 3. SENSE OF CONGRESS REGARDING ILLICIT NUCLEAR ACTIVITIES AND
VIOLATIONS OF HUMAN RIGHTS IN IRAN.
It is the sense of Congress that--
(1) international diplomatic efforts to address Iran's
illicit nuclear efforts and support for international terrorism
are more likely to be effective if the President is empowered
with the explicit authority to impose additional sanctions on
the Government of Iran;
(2) additional measures should be adopted by the United
States to prevent the diversion and transshipment of sensitive
dual-use technologies to Iran;
(3) the concerns of the United States regarding Iran are
strictly the result of the actions of the Government of Iran;
(4) the people of the United States--
(A) have a long history of friendship and exchange
with the people of Iran;
(B) regret that developments in recent decades have
created impediments to that friendship;
(C) hold the people of Iran, their culture, and
their ancient and rich history in the highest esteem;
and
(D) remain deeply concerned about continuing human
rights abuses in Iran;
(5) the President should--
(A) continue to press the Government of Iran to
respect the internationally recognized human rights and
religious freedoms of its citizens;
(B) identify the officials of the Government of
Iran that are responsible for continuing and severe
violations of human rights and religious freedom in
Iran; and
(C) take appropriate measures to respond to such
violations, including by--
(i) prohibiting officials the President
identifies as being responsible for such
violations from entry into the United States;
and
(ii) freezing the assets of those
officials; and
(6) additional funding should be provided to the Secretary
of State to document, collect, and disseminate information
about human rights abuses in Iran, including serious abuses
that have taken place since the presidential election in Iran
conducted on June 12, 2009.
TITLE I--SANCTIONS
SEC. 101. DEFINITIONS.
In this title:
(1) Agricultural commodity.--The term ``agricultural
commodity'' has the meaning given that term in section 102 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' 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).
(3) Executive agency.--The term ``executive agency'' has
the meaning given that term in section 4 of the Office of
Federal Procurement Policy Act (41 U.S.C. 403).
(4) Family member.--The term ``family member'' means, with
respect to an individual, the spouse, children, grandchildren,
or parents of the individual.
(5) Information and informational materials.--The term
``information and informational materials'' includes
publications, films, posters, phonograph records, photographs,
microfilms, microfiche, tapes, compact disks, CD ROMs,
artworks, and news wire feeds.
(6) Investment.--The term ``investment'' 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).
(7) Iranian diplomats and representatives of other
government and military or quasi-governmental institutions of
iran.--The term ``Iranian diplomats and representatives of
other government and military or quasi-governmental
institutions of Iran'' 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).
(8) Medical device.--The term ``medical device'' has the
meaning given the term ``device'' in section 201 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321).
(9) Medicine.--The term ``medicine'' has the meaning given
the term ``drug'' in section 201 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321).
SEC. 102. EXPANSION OF SANCTIONS UNDER THE IRAN SANCTIONS ACT OF 1996.
(a) In General.--Section 5 of the Iran Sanctions Act of 1996
(Public Law 104-172; 50 U.S.C. 1701 note) is amended by striking
subsection (a) and inserting the following:
``(a) Sanctions With Respect to the Development of Petroleum
Resources of Iran, Production of Refined Petroleum Products in Iran,
and Exportation of Refined Petroleum Products to Iran.--
``(1) Development of petroleum resources of iran.--
``(A) In general.--Except as provided in subsection
(f), the President shall impose 2 or more of the
sanctions described in paragraphs (1) through (6) of
section 6(a) with respect to a person if the President
determines that the person, with actual knowledge, on
or after the effective date of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2009--
``(i) makes an investment described in
subparagraph (B) of $20,000,000 or more; or
``(ii) makes a combination of investments
described in subparagraph (B) in a 12-month
period if each such investment is at least
$5,000,000 and such investments equal or exceed
$20,000,000 in the aggregate.
``(B) Investment described.--An investment
described in this subparagraph is an investment that
directly and significantly contributes to the
enhancement of Iran's ability to develop petroleum
resources.
``(2) Production of refined petroleum products.--
``(A) In general.--Except as provided in subsection
(f), the President shall impose the sanctions described
in section 6(b) (in addition to any other sanctions
imposed under this subsection) with respect to a person
if the President determines that the person, with
actual knowledge, on or after the effective date of the
Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2009, sells, leases, or provides to
Iran any goods, services, technology, information, or
support described in subparagraph (B)--
``(i) any of which has a fair market value
of $200,000 or more; or
``(ii) that, during a 12-month period, have
an aggregate fair market value of $1,000,000 or
more.
``(B) Goods, services, technology, information, or
support described.--Goods, services, technology,
information, or support described in this subparagraph
are goods, services, technology, information, or
support that could directly and significantly
facilitate the maintenance or expansion of Iran's
domestic production of refined petroleum products,
including any assistance with respect to construction,
modernization, or repair of petroleum refineries.
``(3) Exportation of refined petroleum products to iran.--
``(A) In general.--Except as provided in subsection
(f), the President shall impose the sanctions described
in section 6(b) (in addition to any other sanctions
imposed under this subsection) with respect to a person
if the President determines that the person, with
actual knowledge, on or after the effective date of the
Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2009--
``(i) provides Iran with refined petroleum
products--
``(I) that have a fair market value
of $200,000 or more; or
``(II) that, during a 12-month
period, have an aggregate fair market
value of $1,000,000 or more; or
``(ii) sells, leases, or provides to Iran
any goods, services, technology, information,
or support described in subparagraph (B)--
``(I) any of which has a fair
market value of $200,000 or more; or
``(II) that, during a 12-month
period, have an aggregate fair market
value of $1,000,000 or more.
``(B) Goods, services, technology, information, or
support described.--Goods, services, technology,
information, or support described in this subparagraph
are goods, services, technology, or support that could
directly and significantly contribute to the
enhancement of Iran's ability to import refined
petroleum products, including--
``(i) underwriting or otherwise providing
insurance or reinsurance for the sale, lease,
or provision of such goods, services,
technology, information, or support;
``(ii) financing or brokering such sale,
lease, or provision; or
``(iii) providing ships or shipping
services to deliver refined petroleum products
to Iran.''.
(b) Description of Sanctions.--Section 6 of such Act is amended--
(1) by striking ``The sanctions to be imposed on a
sanctioned person under section 5 are as follows:'' and
inserting the following:
``(a) In General.--The sanctions to be imposed on a sanctioned
person under subsections (a)(1) and (b) of section 5 are as follows:'';
and
(2) by adding at the end the following:
``(b) Additional Sanctions.--The sanctions to be imposed on a
sanctioned person under paragraphs (2) and (3) of section 5(a) are as
follows:
``(1) Foreign exchange.--The President shall, pursuant to
such regulations as the President may prescribe, prohibit any
transactions in foreign exchange by the sanctioned person.
``(2) Banking transactions.--The President shall, pursuant
to such regulations as the President may prescribe, prohibit
any transfers of credit or payments between, by, through, or to
any financial institution, to the extent that such transfers or
payments involve any interest of the sanctioned person.
``(3) Property transactions.--The President shall, pursuant
to such regulations as the President may prescribe and subject
to the jurisdiction of the United States, prohibit any person
from--
``(A) acquiring, holding, withholding, using,
transferring, withdrawing, transporting, importing, or
exporting any property with respect to which the
sanctioned person has any interest;
``(B) dealing in or exercising any right, power, or
privilege with respect to such property; or
``(C) conducting any transactions involving such
property.''.
(c) Report Relating to Presidential Waiver.--Section 9(c)(2) of
such Act is amended by striking subparagraph (C) and inserting the
following:
``(C) an estimate of the significance of the
conduct of the person in contributing to the ability of
Iran to, as the case may be--
``(i) develop petroleum resources, produce
refined petroleum products, or import refined
petroleum products; or
``(ii) acquire or develop--
``(I) chemical, biological, or
nuclear weapons or related
technologies; or
``(II) destabilizing numbers and
types of advanced conventional weapons;
and''.
(d) Clarification and Expansion of Definitions.--Section 14 of such
Act is amended--
(1) in paragraph (13)(B)--
(A) by inserting ``financial institution, insurer,
underwriter, guarantor, and any other business
organization, including any foreign subsidiary, parent,
or affiliate thereof,'' after ``trust,''; and
(B) by inserting ``, such as an export credit
agency'' before the semicolon at the end;
(2) in paragraph (14), by striking ``petroleum and natural
gas resources'' and inserting ``petroleum, refined petroleum
products, oil or liquefied natural gas, natural gas resources,
oil or liquefied natural gas tankers, and products used to
construct or maintain pipelines used to transport oil or
liquefied natural gas'';
(3) by redesignating paragraphs (15) and (16) as paragraphs
(16) and (17), respectively; and
(4) by inserting after paragraph (14) the following:
``(15) Refined petroleum products.--The term `refined
petroleum products' means diesel, gasoline, jet fuel (including
naphtha-type and kerosene-type jet fuel), and aviation
gasoline.''.
(e) Conforming Amendment.--Section 4 of such Act is amended--
(1) in subsection (b)(2), by striking ``(in addition to
that provided in subsection (d))'';
(2) by striking subsection (d); and
(3) by redesignating subsections (e) and (f) as subsections
(d) and (e), respectively.
SEC. 103. ECONOMIC SANCTIONS RELATING TO IRAN.
(a) In General.--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.
(b) Sanctions.--The sanctions described in this subsection are the
following:
(1) Prohibition on imports.--
(A) In general.--Except as provided in subparagraph
(B), no article of Iranian origin may be imported
directly or indirectly into the United States.
(B) Exception.--The prohibition in subparagraph (A)
does not apply to imports from Iran of information and
informational materials.
(2) Prohibition on exports.--
(A) In general.--Except as provided in subparagraph
(B), no article of United States origin may be exported
directly or indirectly to Iran.
(B) Exceptions.--The prohibition in subparagraph
(A) does not apply to exports to Iran of--
(i) agricultural commodities, food,
medicine, or medical devices;
(ii) articles exported to Iran to provide
humanitarian assistance to the people of Iran;
(iii) except as provided in subparagraph
(C), information or informational materials;
(iv) 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 promulgated by the Secretary of the
Treasury regarding the exportation of such
goods, services, or technologies, if
appropriate; or
(v) goods, services, or technologies that--
(I) are provided to the
International Atomic Energy Agency and
are necessary to support activities of
that Agency in Iran;
(II) are necessary to support
activities, including the activities of
nongovernmental organizations, relating
to promoting democracy in Iran; or
(III) the President determines to
be necessary to the national interest
of the United States.
(C) Special rule with respect to information and
informational materials.--Notwithstanding subparagraph
(B)(iii), information and informational materials of
United States origin may not be exported directly or
indirectly to Iran--
(i) if the exportation of such information
or informational materials is otherwise
controlled--
(I) 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
(II) 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
(ii) if such information or informational
materials are information or informational
materials with respect to which acts are
prohibited by chapter 37 of title 18, United
States Code.
(3) Freezing assets.--
(A) In general.--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 (including Iran's Revolutionary
Guard Corps and its affiliates), that satisfy the
criteria for designation with respect to the imposition
of sanctions under the authority of the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)
or are otherwise subject to sanctions under any other
provision of law, the President shall take such action
as may be necessary to freeze, as soon as possible, 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, 2009. 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.
(B) Asset reporting requirement.--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. Such a report may
contain a classified annex.
(4) United states government contracts.--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 of the Iran Sanctions Act of 1996 (Public Law 104-
172; 50 U.S.C. 1701 note).
(c) Waiver.--The President may waive the application of the
sanctions described in subsection (b) if the President--
(1) determines that such a waiver is in the national
interest of the United States; and
(2) submits to the appropriate congressional committees a
report describing the reasons for the determination.
SEC. 104. LIABILITY OF PARENT COMPANIES FOR VIOLATIONS OF SANCTIONS BY
FOREIGN SUBSIDIARIES.
(a) Definitions.--In this section:
(1) Entity.--The term ``entity'' means a partnership,
association, trust, joint venture, corporation, or other
organization.
(2) Own or control.--The term ``own or control'' means,
with respect to an entity--
(A) to hold more than 50 percent of the equity
interest by vote or value in the entity;
(B) to hold a majority of seats on the board of
directors of the entity; or
(C) to otherwise control the actions, policies, or
personnel decisions of the entity.
(3) Subsidiary.--The term ``subsidiary'' means an entity
that is owned or controlled, directly or indirectly, by a
United States person.
(4) United states person.--The term ``United States
person'' means--
(A) a natural person who is a citizen, resident, or
national of the United States; and
(B) 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.
(b) In General.--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--
(1) the President determines, pursuant to such regulations
as the President may prescribe, that the United States person
establishes or maintains a subsidiary outside of the United
States for the purpose of circumventing such provisions; and
(2) that subsidiary engages in an act that, if committed in
the United States or by a United States person, would violate
such provisions.
(c) Waiver.--The President may waive the application of subsection
(b) if the President--
(1) determines that such a waiver is in the national
interest of the United States; and
(2) submits to the appropriate congressional committees a
report describing the reasons for the determination.
(d) Effective Date.--
(1) In general.--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--
(A) commenced on or after the date of the enactment
of this Act; or
(B) except as provided in paragraph (2), commenced
before such date of enactment, if such acts continue on
or after such date of enactment.
(2) Exception.--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 the date of the enactment of this
Act.
SEC. 105. PROHIBITION ON PROCUREMENT CONTRACTS WITH PERSONS THAT EXPORT
SENSITIVE TECHNOLOGY TO IRAN.
(a) In General.--Notwithstanding any other provision of law, and
pursuant to such regulations as the President may prescribe, the head
of an executive agency may not enter into or renew a contract for the
procurement of goods or services with a person that exports sensitive
technology to Iran.
(b) Waiver.--The President may waive the application of the
prohibition under subsection (a) if the President--
(1) determines that such a waiver is in the national
interest of the United States; and
(2) submits to Congress a report describing the reasons for
the determination.
(c) Sensitive Technology Defined.--The term ``sensitive
technology'' means hardware, software, telecommunications equipment, or
any other technology that the President determines is to be used
specifically--
(1) to restrict the free flow of unbiased information in
Iran; or
(2) to disrupt, monitor, or otherwise restrict speech of
the people of Iran.
SEC. 106. INCREASED CAPACITY FOR EFFORTS TO COMBAT UNLAWFUL OR
TERRORIST FINANCING.
(a) Finding.--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.
(b) Authorization of Appropriations for Office of Terrorism and
Financial Intelligence.--There are authorized to be appropriated to the
Secretary of the Treasury for the Office of Terrorism and Financial
Intelligence--
(1) $64,611,000 for fiscal year 2010; and
(2) such sums as may be necessary for each of the fiscal
years 2011 and 2012.
(c) Authorization of Appropriations for the Financial Crimes
Enforcement Network.--Section 310(d)(1) of title 31, United States
Code, is amended by striking ``such sums as may be necessary for fiscal
years 2002, 2003, 2004, and 2005'' and inserting ``$104,260,000 for
fiscal year 2010 and such sums as may be necessary for each of the
fiscal years 2011 and 2012''.
SEC. 107. REPORTING REQUIREMENTS.
(a) Report on Investment and Activities That May Be Sanctionable
Under Iran Sanctions Act of 1996.--
(1) In general.--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 containing--
(A) a description of--
(i) any foreign investments of $20,000,000
or more that contribute directly and
significantly to the enhancement of Iran's
ability to develop petroleum resources made
during the period described in paragraph (2);
(ii) any sale, lease, or provision to Iran
during the period described in paragraph (2) of
any goods, services, technology, information,
or support that would facilitate the
maintenance or expansion of Iran's domestic
production of refined petroleum products; and
(iii) any refined petroleum products
provided to Iran during the period described in
paragraph (2) and any other activity that could
contribute directly and significantly to the
enhancement of Iran's ability to import refined
petroleum products during that period;
(B) with respect to each investment or other
activity described in subparagraph (A), an
identification of--
(i) the date or dates of the investment or
activity;
(ii) the steps taken by the United States
to respond to the investment or activity;
(iii) the name and United States
domiciliary of any person that participated or
invested in or facilitated the investment or
activity; and
(iv) any Federal Government contracts to
which any person referred to in clause (iii)
are parties; and
(C) the determination of the President with respect
to whether each such investment or activity 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).
(2) Period described.--The period described in this
paragraph is the period beginning on January 1, 2009, and
ending on the date on which the President submits the report
under paragraph (1).
(b) Subsequent Reports.--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 an updated
version of the report required under subsection (a) that contains the
information required under that subsection for the 180-day period
preceding the submission of the updated report.
(c) Form of Reports; Publication.--A report submitted under
subsection (a) or (b) shall be submitted in unclassified form, but may
contain a classified annex. The unclassified portion of the report
shall be published in the Federal Register.
SEC. 108. SENSE OF CONGRESS REGARDING THE IMPOSITION OF SANCTIONS ON
THE CENTRAL BANK OF IRAN.
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.
SEC. 109. POLICY OF THE UNITED STATES REGARDING IRAN'S REVOLUTIONARY
GUARD CORPS AND ITS AFFILIATES.
It is the sense of Congress that the United States should--
(1) continue to target Iran's Revolutionary Guard Corps
persistently with economic sanctions for its support for
terrorism, its role in proliferation, and its oppressive
activities against the people of Iran; and
(2) impose sanctions, including travel restrictions,
sanctions authorized pursuant to this Act, and the full range
of sanctions available to the President under the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), on--
(A) any foreign individual or entity that is an
agent, alias, front, instrumentality, official, or
affiliate of Iran's Revolutionary Guard Corps and is
designated for the imposition of sanctions by the
President;
(B) any individual or entity who--
(i) has provided material support to Iran's
Revolutionary Guard Corps or any of its
affiliates designated for the imposition of
sanctions by the President; or
(ii) has conducted any financial or
commercial transaction with Iran's
Revolutionary Guard Corps or any of its
affiliates so designated; and
(C) any foreign government found--
(i) to be providing material support to
Iran's Revolutionary Guard Corps or any of its
affiliates designated for the imposition of
sanctions by the President; or
(ii) to have conducted any commercial
transaction or financial transaction with
Iran's Revolutionary Guard Corps or any of its
affiliates so designated.
SEC. 110. POLICY OF THE UNITED STATES WITH RESPECT TO IRAN AND
HEZBOLLAH.
It is the sense of Congress that the United States should--
(1) continue to counter support received by Hezbollah from
the Government of Iran and other foreign governments in
response to Hezbollah's terrorist activities and the threat
Hezbollah poses to Israel, the democratic sovereignty of
Lebanon, and the national security interests of the United
States;
(2) impose the full range of sanctions available to the
President under the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.) on Hezbollah, its designated
affiliates and supporters, and persons providing Hezbollah with
commercial, financial, or other services;
(3) urge the European Union, individual countries in
Europe, and other countries to classify Hezbollah as a
terrorist organization to facilitate the disruption of
Hezbollah's operations; and
(4) renew international efforts to disarm Hezbollah and
disband its militias in Lebanon, as called for by United
Nations Security Council Resolutions 1559 (2004) and 1701
(2006).
SEC. 111. SENSE OF CONGRESS REGARDING THE IMPOSITION OF MULTILATERAL
SANCTIONS WITH RESPECT TO IRAN.
It is the sense of Congress that--
(1) in general, multilateral sanctions are more effective
than unilateral sanctions at achieving desired results from
countries such as Iran;
(2) the President should continue to work with allies of
the United States to impose such sanctions as may be necessary
to prevent the Government of Iran from acquiring a nuclear
weapons capability; and
(3) the United States should continue to consult with the 5
permanent members of the United Nations Security Council and
Germany (commonly referred to as the ``P5-plus-1'') and other
interested countries regarding imposing new sanctions with
respect to Iran in the event that diplomatic efforts to prevent
Iran from acquiring a nuclear weapons capability fail.
TITLE II--DIVESTMENT FROM CERTAIN COMPANIES THAT INVEST IN IRAN
SEC. 201. DEFINITIONS.
In this title:
(1) Energy sector.--The term ``energy sector'' refers to
activities to develop petroleum or natural gas resources or
nuclear power.
(2) Financial institution.--The term ``financial
institution'' 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).
(3) Iran.--The term ``Iran'' includes any agency or
instrumentality of Iran.
(4) Person.--The term ``person'' means--
(A) a natural person, corporation, company,
business association, partnership, society, trust, or
any other nongovernmental entity, organization, or
group;
(B) 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
(C) any successor, subunit, parent company, or
subsidiary of any entity described in subparagraph (A)
or (B).
(5) State.--The term ``State'' 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.
(6) State or local government.--The term ``State or local
government'' includes--
(A) any State and any agency or instrumentality
thereof;
(B) any local government within a State, and any
agency or instrumentality thereof;
(C) any other governmental instrumentality; and
(D) any public institution of higher education
within the meaning of the Higher Education Act of 1965
(20 U.S.C. 1001 et seq.).
SEC. 202. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST FROM
CERTAIN COMPANIES THAT INVEST IN IRAN.
(a) Sense of Congress.--It is the sense of Congress that the United
States Government should support the decision of any State or local
government that for moral, prudential, or reputational reasons divests
from, or prohibits the investment of assets of the State or local
government in, a person that engages in investment activities in the
energy sector of Iran, as long as that country is subject to economic
sanctions imposed by the United States.
(b) Authority To Divest.--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).
(c) Investment Activities Described.--A person engages in
investment activities in Iran described in this subsection if the
person--
(1) has an investment of $20,000,000 or more in the energy
sector of Iran, including 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
(2) 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.
(d) Requirements.--Any measure taken by a State or local government
under subsection (b) shall meet the following requirements:
(1) Notice.--The State or local government shall provide
written notice to each person to which a measure is to be
applied.
(2) Timing.--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).
(3) Opportunity for hearing.--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.
(4) Sense of congress on avoiding erroneous targeting.--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).
(e) Notice to Department of Justice.--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.
(f) Nonpreemption.--A measure of a State or local government
authorized under subsection (b) is not preempted by any Federal law or
regulation.
(g) Definitions.--In this section:
(1) Investment.--The ``investment'' of assets, with respect
to a State or local government, includes--
(A) a commitment or contribution of assets;
(B) a loan or other extension of credit; and
(C) the entry into or renewal of a contract for
goods or services.
(2) Assets.--
(A) In general.--Except as provided in subparagraph
(B), the term ``assets'' 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.
(B) Exception.--The term ``assets'' 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.).
(h) Effective Date.--
(1) In general.--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.
(2) Notice requirements.--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.
SEC. 203. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY ASSET
MANAGERS.
(a) In General.--Section 13(c)(1) of the Investment Company Act of
1940 (15 U.S.C. 80a-13(c)(1)) is amended to read as follows:
``(1) In general.--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--
``(A) 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
``(B) engage in investment activities in Iran
described in section 202(c) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of
2009.''.
(b) SEC Regulations.--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).
SEC. 204. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN INVESTMENTS.
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--
(1) the fiduciary makes such determination using credible
information that is available to the public; and
(2) such divestment or avoidance of investment is conducted
in accordance with section 2509.08-1 of title 29, Code of
Federal Regulations (as in effect on the day before the date of
the enactment of this Act).
TITLE III--PREVENTION OF TRANSSHIPMENT, REEXPORTATION, OR DIVERSION OF
SENSITIVE ITEMS TO IRAN
SEC. 301. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban
Affairs, the Committee on Foreign Relations, and the
Select Committee on Intelligence of the Senate; and
(B) the Committee on Financial Services, the
Committee on Foreign Affairs, and the Permanent Select
Committee on Intelligence of the House of
Representatives.
(2) End-user.--The term ``end-user'' means an end-user as
that term is used in the Export Administration Regulations.
(3) Export administration regulations.--The term ``Export
Administration Regulations'' means subchapter C of chapter VII
of title 15, Code of Federal Regulations.
(4) Government.--The term ``government'' includes any
agency or instrumentality of a government.
(5) Iran.--The term ``Iran'' includes any agency or
instrumentality of Iran.
(6) State sponsor of terrorism.--The term ``state sponsor
of terrorism'' means any country the government of which the
Secretary of State has determined has repeatedly provided
support for acts of international terrorism pursuant to--
(A) 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);
(B) section 40(d) of the Arms Export Control Act
(22 U.S.C. 2780(d)); or
(C) section 620A(a) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2371(a)).
(7) Transshipment, reexportation, or diversion.--The term
``transshipment, reexportation, or diversion'' 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 in Iran in violation of the laws or
regulations of the United States by any means, including by--
(A) shipping such items through 1 or more foreign
countries; or
(B) by using false information regarding the
country of origin of such items.
SEC. 302. IDENTIFICATION OF LOCATIONS OF CONCERN WITH RESPECT TO
TRANSSHIPMENT, REEXPORTATION, OR DIVERSION OF CERTAIN
ITEMS TO IRAN.
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 in Iran.
SEC. 303. DESTINATIONS OF POSSIBLE DIVERSION CONCERN AND DESTINATIONS
OF DIVERSION CONCERN.
(a) Destinations of Possible Diversion Concern.--
(1) Designation.--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--
(A) the volume of items that originated in the
United States that are transported through the country
to end-users whose identities cannot be verified;
(B) the inadequacy of the export and reexport
controls of the country;
(C) the unwillingness or demonstrated inability of
the government of the country to control diversion
activities; and
(D) the unwillingness or inability of the
government of the country to cooperate with the United
States in interdiction efforts.
(2) Strengthening export control systems of destinations of
possible diversion concern.--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.
(3) Government-to-government activities described.--The
government-to-government activities described in this paragraph
include--
(A) 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--
(i) develop or strengthen export control
systems in the country;
(ii) strengthen cooperation and facilitate
enforcement of export control systems in the
country; and
(iii) promote information and data
exchanges among agencies of the country and
with the United States; and
(B) efforts by the Office of International Programs
of the Department of Commerce to strengthen the export
control systems of the country to--
(i) facilitate legitimate trade in high-
technology goods; and
(ii) 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.
(b) Destinations of Diversion Concern.--
(1) Designation.--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--
(A) that the government of the country allows
substantial transshipment, reexportation, or diversion
of items that originated in the United States to end-
users whose identities cannot be verified or to
entities in Iran; or
(B) 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--
(i) to cooperate with the government-to-
government activities initiated by the United
States under subsection (a)(2); or
(ii) based on the criteria described in
subsection (a)(1), to adequately strengthen the
export control systems of the country.
(2) Licensing controls with respect to destinations of
diversion concern.--
(A) Report on suspect items.--
(i) In general.--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--
(I) Iran obtaining nuclear,
biological, or chemical weapons,
defense technologies, components for
improvised explosive devices, or other
defense items; or
(II) support by Iran for acts of
international terrorism.
(ii) Considerations for list.--In
developing the list required under clause (i),
the Secretary of Commerce shall consider--
(I) 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
(II) 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).
(B) Licensing requirement.--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.
(C) Waiver.--The President may waive the imposition
of the licensing requirement under subparagraph (B)
with respect to a country designated as a Destination
of Diversion Concern if the President--
(i) determines that such a waiver is in the
national interest of the United States; and
(ii) submits to the appropriate
congressional committees a report describing
the reasons for the determination.
(c) Termination of Designation.--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 in Iran.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
SEC. 304. REPORT ON EXPANDING DIVERSION CONCERN SYSTEM TO COUNTRIES
OTHER THAN IRAN.
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--
(1) 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--
(A) is seeking to obtain nuclear, biological, or
chemical weapons, defense technologies, components for
improvised explosive devices, or other defense items;
or
(B) provides support for acts of international
terrorism; and
(2) 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).
TITLE IV--EFFECTIVE DATE; SUNSET
SEC. 401. EFFECTIVE DATE; SUNSET.
(a) Effective Date.--Except as provided in sections 104, 202, and
303(b)(2), 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.
(b) Sunset.--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--
(1) 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--
(A) 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);
(B) section 40(d) of the Arms Export Control Act
(22 U.S.C. 2780(d)); or
(C) section 620A(a) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2371(a)); and
(2) Iran has ceased the pursuit, acquisition, and
development of nuclear, biological, and chemical weapons and
ballistic missiles and ballistic missile launch technology.
Attest:
Secretary.
111th CONGRESS
2d Session
H.R. 2194
_______________________________________________________________________
AMENDMENT