[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2194 Enrolled Bill (ENR)]

        H.R.2194

                      One Hundred Eleventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the fifth day of January, two thousand and ten


                                 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
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 2010''.
    (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 the need to impose additional 
          sanctions with respect to 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. Mandatory sanctions with respect to financial institutions 
          that engage in certain transactions.
Sec. 105. Imposition of sanctions on certain persons who are responsible 
          for or complicit in human rights abuses committed against 
          citizens of Iran or their family members after the June 12, 
          2009, elections in Iran.
Sec. 106. Prohibition on procurement contracts with persons that export 
          sensitive technology to Iran.
Sec. 107. Harmonization of criminal penalties for violations of 
          sanctions.
Sec. 108. Authority to implement United Nations Security Council 
          resolutions imposing sanctions with respect to Iran.
Sec. 109. Increased capacity for efforts to combat unlawful or terrorist 
          financing.
Sec. 110. Reports on investments in the energy sector of Iran.
Sec. 111. Reports on certain activities of foreign export credit 
          agencies and of the Export-Import Bank of the United States.
Sec. 112. Sense of Congress regarding Iran's Revolutionary Guard Corps 
          and its affiliates.
Sec. 113. Sense of Congress regarding Iran and Hezbollah.
Sec. 114. Sense of Congress regarding the imposition of multilateral 
          sanctions with respect to Iran.
Sec. 115. Report on providing compensation for victims of international 
          terrorism.

     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.
Sec. 205. Technical corrections to Sudan Accountability and Divestment 
          Act of 2007.

   TITLE III--PREVENTION OF DIVERSION OF CERTAIN GOODS, SERVICES, AND 
                          TECHNOLOGIES TO IRAN

Sec. 301. Definitions.
Sec. 302. Identification of countries of concern with respect to the 
          diversion of certain goods, services, and technologies to or 
          through Iran.
Sec. 303. Destinations of Diversion Concern.
Sec. 304. Report on expanding diversion concern system to address the 
          diversion of United States origin goods, services, and 
          technologies to certain countries other than Iran.
Sec. 305. Enforcement authority.

                      TITLE IV--GENERAL PROVISIONS

Sec. 401. General provisions.
Sec. 402. Determination of budgetary effects.
SEC. 2. FINDINGS.
    Congress makes the following findings:
        (1) The illicit nuclear activities of the Government of Iran, 
    combined with its development of unconventional weapons and 
    ballistic missiles and its support for international terrorism, 
    represent a threat 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 suspend 
    those activities and comply with its obligations under the Treaty 
    on the 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 do 
    everything possible--diplomatically, politically, and 
    economically--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 nuclear weapons program and other illicit 
    nuclear activities.
        (6) The Government of Iran continues to engage in serious, 
    systematic, and ongoing violations of human rights, including 
    suppression of freedom of expression and religious freedom, 
    illegitimately prolonged detention, torture, and executions. Such 
    violations have increased in the aftermath of the fraudulent 
    presidential election in Iran on June 12, 2009.
        (7) The Government of Iran has been unresponsive to President 
    Obama's unprecedented and serious efforts at engagement, revealing 
    that the Government of Iran is not interested in a diplomatic 
    resolution, as made clear, for example, by the following:
            (A) Iran's apparent rejection of the Tehran Research 
        Reactor plan, generously offered by the United States and its 
        partners, of potentially great benefit to the people of Iran, 
        and endorsed by Iran's own negotiators in October 2009.
            (B) Iran's ongoing clandestine nuclear program, as 
        evidenced by its work on the secret uranium enrichment facility 
        at Qom, its subsequent refusal to cooperate fully with 
        inspectors from the International Atomic Energy Agency, and its 
        announcement that it would build 10 new uranium enrichment 
        facilities.
            (C) Iran's official notification to the International 
        Atomic Energy Agency that it would enrich uranium to the 20 
        percent level, followed soon thereafter by its providing to 
        that Agency a laboratory result showing that Iran had indeed 
        enriched some uranium to 19.8 percent.
            (D) A February 18, 2010, report by the International Atomic 
        Energy Agency expressing ``concerns about the possible 
        existence in Iran of past or current undisclosed activities 
        related to the development of a nuclear payload for a missile. 
        These alleged activities consist of a number of projects and 
        sub-projects, covering nuclear and missile related aspects, run 
        by military-related organizations.''.
            (E) A May 31, 2010, report by the International Atomic 
        Energy Agency expressing continuing strong concerns about 
        Iran's lack of cooperation with the Agency's verification 
        efforts and Iran's ongoing enrichment activities, which are 
        contrary to the longstanding demands of the Agency and the 
        United Nations Security Council.
            (F) Iran's announcement in April 2010 that it had developed 
        a new, faster generation of centrifuges for enriching uranium.
            (G) Iran's ongoing arms exports to, and support for, 
        terrorists in direct contravention of United Nations Security 
        Council resolutions.
            (H) Iran's July 31, 2009, arrest of 3 young citizens of the 
        United States on spying charges.
        (8) There is an increasing interest by State governments, local 
    governments, educational institutions, and private institutions, 
    business firms, and other investors 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.
        (9) Black market proliferation networks continue to flourish in 
    the Middle East, allowing countries like Iran to gain access to 
    sensitive dual-use technologies.
        (10) Economic sanctions imposed pursuant to the provisions of 
    this Act, the Iran Sanctions Act of 1996, as amended by this Act, 
    and the International Emergency Economic Powers Act (50 U.S.C. 1701 
    et seq.), and other authorities available to the United States to 
    impose economic sanctions to prevent Iran from developing nuclear 
    weapons, are necessary to protect the essential security interests 
    of the United States.
SEC. 3. SENSE OF CONGRESS REGARDING THE NEED TO IMPOSE ADDITIONAL 
SANCTIONS WITH RESPECT TO 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 strong additional sanctions are imposed 
    on the Government of Iran;
        (2) the concerns of the United States regarding Iran are 
    strictly the result of the actions of the Government of Iran;
        (3) the revelation in September 2009 that Iran is developing a 
    secret uranium enrichment site on a base of Iran's Revolutionary 
    Guard Corps near Qom, which appears to have no civilian 
    application, highlights the urgency that Iran--
            (A) disclose the full nature of its nuclear program, 
        including any other secret locations; and
            (B) provide the International Atomic Energy Agency 
        unfettered access to its facilities pursuant to Iran's legal 
        obligations under the Treaty on the 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'') and Iran's safeguards 
        agreement with the International Atomic Energy Agency;
        (4) because of the involvement of Iran's Revolutionary Guard 
    Corps in Iran's nuclear program, international terrorism, and 
    domestic human rights abuses, the President should impose the full 
    range of applicable sanctions on--
            (A) any individual or entity that is an agent, alias, 
        front, instrumentality, representative, official, or affiliate 
        of Iran's Revolutionary Guard Corps; and
            (B) any individual or entity that has conducted any 
        commercial transaction or financial transaction with an 
        individual or entity described in subparagraph (A);
        (5) additional measures should be adopted by the United States 
    to prevent the diversion of sensitive dual-use technologies to 
    Iran;
        (6) the President should--
            (A) continue to urge 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 and 
        other individuals who 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 and other individuals the 
            President identifies as being responsible for such 
            violations from entry into the United States; and
                (ii) freezing the assets of the officials and other 
            individuals described in clause (i);
        (7) 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 on June 12, 2009;
        (8) with respect to nongovernmental organizations based in the 
    United States--
            (A) many of such organizations are essential to promoting 
        human rights and humanitarian goals around the world;
            (B) it is in the national interest of the United States to 
        allow responsible nongovernmental organizations based in the 
        United States to establish and carry out operations in Iran to 
        promote civil society and foster humanitarian goodwill among 
        the people of Iran; and
            (C) the United States should ensure that the organizations 
        described in subparagraph (B) are not unnecessarily hindered 
        from working in Iran to provide humanitarian, human rights, and 
        people-to-people assistance, as appropriate, to the people of 
        Iran;
        (9) the United States should not issue a license pursuant to an 
    agreement for cooperation (as defined in section 11 b. of the 
    Atomic Energy Act of 1954 (42 U.S.C. 2014(b))) for the export of 
    nuclear material, facilities, components, or other goods, services, 
    or technology that are or would be subject to such an agreement to 
    a country that is providing similar nuclear material, facilities, 
    components, or other goods, services, or technology to another 
    country that is not in full compliance with its obligations under 
    the Nuclear Non-Proliferation Treaty, including its obligations 
    under the safeguards agreement between that country and the 
    International Atomic Energy Agency, unless the President determines 
    that the provision of such similar nuclear material, facilities, 
    components, or other goods, services, or technology to such other 
    country does not undermine the nonproliferation policies and 
    objectives of the United States; and
        (10) the people of the United States--
            (A) have feelings of friendship for the people of Iran;
            (B) regret that developments in recent decades have created 
        impediments to that friendship; and
            (C) hold the people of Iran, their culture, and their 
        ancient and rich history in the highest esteem.

                           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 of the Iran Sanctions Act of 1996 (Public Law 
    104-172; 50 U.S.C. 1701 note), as amended by section 102 of this 
    Act.
        (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, a spouse, child, parent, sibling, 
    grandchild, or grandparent of the individual.
        (5) Iranian diplomats and representatives of other government 
    and military or quasi-governmental institutions of iran.--The term 
    ``Iranian diplomat or representative of another government or 
    military or quasi-governmental institution of Iran'' means any of 
    the Iranian diplomats and representatives of other government and 
    military or quasi-governmental institutions of Iran (as that term 
    is defined in section 14 of the Iran Sanctions Act of 1996 (Public 
    Law 104-172; 50 U.S.C. 1701 note)).
        (6) Knowingly.--The term ``knowingly'', with respect to 
    conduct, a circumstance, or a result, means that a person has 
    actual knowledge, or should have known, of the conduct, the 
    circumstance, or the result.
        (7) 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).
        (8) 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).
        (9) State.--The term ``State'' means each of the several 
    States, the District of Columbia, the Commonwealth of Puerto Rico, 
    the Commonwealth of the Northern Mariana Islands, American Samoa, 
    Guam, the United States Virgin Islands, and any other territory or 
    possession of the United States.
        (10) United states person.--The term ``United States person'' 
    means--
            (A) a natural person who is a citizen or resident of the 
        United States or a national of the United States (as defined in 
        section 101(a) of the Immigration and Nationality Act (8 U.S.C. 
        1101(a)); and
            (B) an entity that is organized under the laws of the 
        United States or any State.
    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--
        (1) 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 3 or more of the sanctions described 
        in section 6(a) with respect to a person if the President 
        determines that the person knowingly, on or after the date of 
        the enactment of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010--
                ``(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 of 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 3 or more of the sanctions described 
        in section 6(a) with respect to a person if the President 
        determines that the person knowingly, on or after the date of 
        the enactment of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010, sells, leases, or 
        provides to Iran goods, services, technology, information, or 
        support described in subparagraph (B)--
                ``(i) any of which has a fair market value of 
            $1,000,000 or more; or
                ``(ii) that, during a 12-month period, have an 
            aggregate fair market value of $5,000,000 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 direct and significant assistance with respect to the 
        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 3 or more of the sanctions described 
        in section 6(a) with respect to a person if the President 
        determines that the person knowingly, on or after the date of 
        the enactment of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010--
                ``(i) sells or provides to Iran refined petroleum 
            products--

                    ``(I) that have a fair market value of $1,000,000 
                or more; or
                    ``(II) that, during a 12-month period, have an 
                aggregate fair market value of $5,000,000 or more; or

                ``(ii) sells, leases, or provides to Iran goods, 
            services, technology, information, or support described in 
            subparagraph (B)--

                    ``(I) any of which has a fair market value of 
                $1,000,000 or more; or
                    ``(II) that, during a 12-month period, have an 
                aggregate fair market value of $5,000,000 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 contribute to the enhancement of Iran's ability 
        to import refined petroleum products, including--
                ``(i) except as provided in subparagraph (C), 
            underwriting or entering into a contract to provide 
            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.
            ``(C) Exception for underwriters and insurance providers 
        exercising due diligence.--The President may not impose 
        sanctions under this paragraph with respect to a person that 
        provides underwriting services or insurance or reinsurance if 
        the President determines that the person has exercised due 
        diligence in establishing and enforcing official policies, 
        procedures, and controls to ensure that the person does not 
        underwrite or enter into a contract to provide insurance or 
        reinsurance for the sale, lease, or provision of goods, 
        services, technology, information, or support described in 
        subparagraph (B).'';
        (2) in subsection (b)--
            (A) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and moving such 
        subparagraphs, as so redesignated, 2 ems to the right;
            (B) by striking ``The President shall impose'' and 
        inserting the following:
        ``(1) In general.--The President shall impose''; and
            (C) in paragraph (1), as redesignated by subparagraph (B) 
        of this paragraph, by striking ``two or more'' and all that 
        follows through ``of this Act'' and inserting ``3 or more of 
        the sanctions described in section 6(a) if the President 
        determines that a person has, on or after the date of the 
        enactment of the Comprehensive Iran Sanctions, Accountability, 
        and Divestment Act of 2010''; and
            (D) by adding at the end the following:
        ``(2) Additional mandatory sanctions relating to transfer of 
    nuclear technology.--
            ``(A) In general.--Except as provided in subparagraphs (B) 
        and (C), in any case in which a person is subject to sanctions 
        under paragraph (1) because of an activity described in that 
        paragraph that relates to the acquisition or development of 
        nuclear weapons or related technology or of missiles or 
        advanced conventional weapons that are designed or modified to 
        deliver a nuclear weapon, no license may be issued for the 
        export, and no approval may be given for the transfer or 
        retransfer, directly or indirectly, to the country the 
        government of which has primary jurisdiction over the person, 
        of any nuclear material, facilities, components, or other 
        goods, services, or technology that are or would be subject to 
        an agreement for cooperation between the United States and that 
        government.
            ``(B) Exception.--The sanctions described in subparagraph 
        (A) shall not apply with respect to a country the government of 
        which has primary jurisdiction over a person that engages in an 
        activity described in that subparagraph if the President 
        determines and notifies the appropriate congressional 
        committees that the government of the country--
                ``(i) does not know or have reason to know about the 
            activity; or
                ``(ii) has taken, or is taking, all reasonable steps 
            necessary to prevent a recurrence of the activity and to 
            penalize the person for the activity.
            ``(C) Individual approval.--Notwithstanding subparagraph 
        (A), the President may, on a case-by-case basis, approve the 
        issuance of a license for the export, or approve the transfer 
        or retransfer, of any nuclear material, facilities, components, 
        or other goods, services, or technology that are or would be 
        subject to an agreement for cooperation, to a person in a 
        country to which subparagraph (A) applies (other than a person 
        that is subject to the sanctions under paragraph (1)) if the 
        President--
                ``(i) determines that such approval is vital to the 
            national security interests of the United States; and
                ``(ii) not later than 15 days before issuing such 
            license or approving such transfer or retransfer, submits 
            to the Committee on Foreign Affairs of the House of 
            Representatives and the Committee on Foreign Relations of 
            the Senate the justification for approving such license, 
            transfer, or retransfer.
            ``(D) Construction.--The restrictions in subparagraph (A) 
        shall apply in addition to all other applicable procedures, 
        requirements, and restrictions contained in the Atomic Energy 
        Act of 1954 and other related laws.
            ``(E) Definition.--In this paragraph, the term `agreement 
        for cooperation' has the meaning given that term in section 11 
        b. of the Atomic Energy Act of 1954 (42 U.S.C. 2014(b)).
            ``(F) Applicability.--The sanctions under subparagraph (A) 
        shall apply only in a case in which a person is subject to 
        sanctions under paragraph (1) because of an activity described 
        in that paragraph in which the person engages on or after the 
        date of the enactment of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010.'';
        (3) in subsection (c)--
            (A) by striking ``(b)'' each place it appears and inserting 
        ``(b)(1)''; and
            (B) by striking paragraph (2) and inserting the following:
        ``(2) any person that--
            ``(A) is a successor entity to the person referred to in 
        paragraph (1);
            ``(B) owns or controls the person referred to in paragraph 
        (1), if the person that owns or controls the person referred to 
        in paragraph (1) had actual knowledge or should have known that 
        the person referred to in paragraph (1) engaged in the 
        activities referred to in that paragraph; or
            ``(C) is owned or controlled by, or under common ownership 
        or control with, the person referred to in paragraph (1), if 
        the person owned or controlled by, or under common ownership or 
        control with (as the case may be), the person referred to in 
        paragraph (1) knowingly engaged in the activities referred to 
        in that paragraph.''; and
        (4) in subsection (f)--
            (A) in the matter preceding paragraph (1), by striking 
        ``(b)'' and inserting ``(b)(1)''; and
            (B) in paragraph (2), by striking ``section 301(b)(1) of 
        that Act (19 U.S.C. 2511(b)(1))'' and inserting ``section 
        301(b) of that Act (19 U.S.C. 2511(b))''.
    (b) Description of Sanctions.--Section 6 of such Act is amended--
        (1) by striking ``The sanctions to be imposed'' and inserting 
    the following:
    ``(a) In General.--The sanctions to be imposed'';
        (2) in subsection (a), as redesignated by paragraph (1)--
            (A) by redesignating paragraph (6) as paragraph (9); and
            (B) by inserting after paragraph (5) the following:
        ``(6) Foreign exchange.--The President may, pursuant to such 
    regulations as the President may prescribe, prohibit any 
    transactions in foreign exchange that are subject to the 
    jurisdiction of the United States and in which the sanctioned 
    person has any interest.
        ``(7) Banking transactions.--The President may, pursuant to 
    such regulations as the President may prescribe, prohibit any 
    transfers of credit or payments between financial institutions or 
    by, through, or to any financial institution, to the extent that 
    such transfers or payments are subject to the jurisdiction of the 
    United States and involve any interest of the sanctioned person.
        ``(8) Property transactions.--The President may, pursuant to 
    such regulations as the President may prescribe, prohibit any 
    person from--
            ``(A) acquiring, holding, withholding, using, transferring, 
        withdrawing, transporting, importing, or exporting any property 
        that is subject to the jurisdiction of the United States and 
        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 transaction involving such 
        property.''; and
        (3) by adding at the end the following:
    ``(b) Additional Measure Relating to Government Contracts.--
        ``(1) Modification of federal acquisition regulation.--Not 
    later than 90 days after the date of the enactment of the 
    Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
    2010, the Federal Acquisition Regulation issued pursuant to section 
    25 of the Office of Federal Procurement Policy Act (41 U.S.C. 421) 
    shall be revised to require a certification from each person that 
    is a prospective contractor that the person, and any person owned 
    or controlled by the person, does not engage in any activity for 
    which sanctions may be imposed under section 5.
        ``(2) Remedies.--
            ``(A) In general.--If the head of an executive agency 
        determines that a person has submitted a false certification 
        under paragraph (1) on or after the date on which the revision 
        of the Federal Acquisition Regulation required by this 
        subsection becomes effective, the head of that executive agency 
        shall terminate a contract with such person or debar or suspend 
        such person from eligibility for Federal contracts for a period 
        of not more than 3 years. Any such debarment or suspension 
        shall be subject to the procedures that apply to debarment and 
        suspension under the Federal Acquisition Regulation under 
        subpart 9.4 of part 9 of title 48, Code of Federal Regulations.
            ``(B) Inclusion on list of parties excluded from federal 
        procurement and nonprocurement programs.--The Administrator of 
        General Services shall include on the List of Parties Excluded 
        from Federal Procurement and Nonprocurement Programs maintained 
        by the Administrator under part 9 of the Federal Acquisition 
        Regulation issued pursuant to section 25 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 421) each person that 
        is debarred, suspended, or proposed for debarment or suspension 
        by the head of an executive agency on the basis of a 
        determination of a false certification under subparagraph (A).
        ``(3) Clarification regarding certain products.--The remedies 
    set forth in paragraph (2) shall not apply with respect to the 
    procurement of eligible products, as defined in section 308(4) of 
    the Trade Agreements Act of 1974 (19 U.S.C. 2518(4)), of any 
    foreign country or instrumentality designated under section 301(b) 
    of that Act (19 U.S.C. 2511(b)).
        ``(4) Rule of construction.--This subsection shall not be 
    construed to limit the use of other remedies available to the head 
    of an executive agency or any other official of the Federal 
    Government on the basis of a determination of a false certification 
    under paragraph (1).
        ``(5) Waivers.--The President may on a case-by-case basis waive 
    the requirement that a person make a certification under paragraph 
    (1) if the President determines and certifies in writing to the 
    appropriate congressional committees, the Committee on Armed 
    Services of the Senate, and the Committee on Armed Services of the 
    House of Representatives, that it is in the national interest of 
    the United States to do so.
        ``(6) Executive agency defined.--In this subsection, 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).
        ``(7) Applicability.--The revisions to the Federal Acquisition 
    Regulation required under paragraph (1) shall apply with respect to 
    contracts for which solicitations are issued on or after the date 
    that is 90 days after the date of the enactment of the 
    Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
    2010.''.
    (c) Presidential Waiver.--Section 9 of such Act is amended--
        (1) in subsection (a), by striking ``5(b)'' each place it 
    appears and inserting ``5(b)(1)''; and
        (2) in subsection (c)--
            (A) by striking ``section 5(a) or (b)'' each place it 
        appears and inserting ``section 5(a) or 5(b)(1)'';
            (B) in paragraph (1), by striking ``important to the 
        national interest'' and inserting ``necessary to the national 
        interest''; and
            (C) in paragraph (2), 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) Reports on Global Trade Relating to Iran.--Section 10 of such 
Act is amended by adding at the end the following:
    ``(d) Reports on Global Trade Relating to Iran.--Not later than 90 
days after the date of the enactment of the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010, and annually 
thereafter, the President shall submit to the appropriate congressional 
committees a report, with respect to the most recent 12-month period 
for which data are available, on the dollar value amount of trade, 
including in the energy sector, between Iran and each country 
maintaining membership in the Group of 20 Finance Ministers and Central 
Bank Governors.''.
    (e) Extension of Iran Sanctions Act of 1996.--Section 13(b) of such 
Act is amended by striking ``December 31, 2011'' and inserting 
``December 31, 2016''.
    (f) Clarification and Expansion of Definitions.--Section 14 of such 
Act is amended--
        (1) in paragraph (2), by striking ``the Committee on Banking 
    and Financial Services, and the Committee on International 
    Relations'' and inserting ``the Committee on Financial Services, 
    and the Committee on Foreign Affairs'';
        (2) in paragraph (9), in the flush text following subparagraph 
    (C), by striking ``The term `investment' does not include'' and all 
    that follows through ``technology.'';
        (3) by redesignating paragraphs (12), (13), (14), (15), and 
    (16) as paragraphs (13), (14), (15), (17), and (18), respectively;
        (4) by inserting after paragraph (11) the following:
        ``(12) Knowingly.--The term `knowingly', with respect to 
    conduct, a circumstance, or a result, means that a person has 
    actual knowledge, or should have known, of the conduct, the 
    circumstance, or the result.'';
        (5) in paragraph (14), as redesignated by paragraph (3) of this 
    subsection--
            (A) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively, and moving such 
        clauses, as so redesignated, 2 ems to the right;
            (B) by striking ``The term `person' means--'' and inserting 
        the following:
            ``(A) In general.--The term `person' means--'';
            (C) in subparagraph (A), as redesignated by this 
        paragraph--
                (i) in clause (ii), by inserting ``financial 
            institution, insurer, underwriter, guarantor, and any other 
            business organization,'' after ``trust,''; and
                (ii) in clause (iii), by striking ``subparagraph (B)'' 
            and inserting ``clause (ii)''; and
            (D) by adding at the end the following:
            ``(B) Application to governmental entities.--The term 
        `person' does not include a government or governmental entity 
        that is not operating as a business enterprise.'';
        (6) in paragraph (15), as redesignated by paragraph (3) of this 
    subsection, 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''; and
        (7) by inserting after paragraph (15), as so redesignated, the 
    following:
        ``(16) Refined petroleum products.--The term `refined petroleum 
    products' means diesel, gasoline, jet fuel (including naphtha-type 
    and kerosene-type jet fuel), and aviation gasoline.''.
    (g) Waiver for Certain Persons in Certain Countries; Mandatory 
Investigations and Reporting; Conforming Amendments.--Section 4 of such 
Act is amended--
        (1) in subsection (b)(2), by striking ``(in addition to that 
    provided in subsection (d))'';
        (2) in subsection (c)--
            (A) in paragraph (1)--
                (i) by striking ``The President may'' and inserting the 
            following:
            ``(A) General waiver.--The President may''; and
                (ii) by adding at the end the following:
            ``(B) Waiver with respect to persons in countries that 
        cooperate in multilateral efforts with respect to iran.--The 
        President may, on a case by case basis, waive for a period of 
        not more than 12 months the application of section 5(a) with 
        respect to a person if the President, at least 30 days before 
        the waiver is to take effect--
                ``(i) certifies to the appropriate congressional 
            committees that--

                    ``(I) the government with primary jurisdiction over 
                the person is closely cooperating with the United 
                States in multilateral efforts to prevent Iran from--

                        ``(aa) acquiring or developing chemical, 
                    biological, or nuclear weapons or related 
                    technologies; or
                        ``(bb) acquiring or developing destabilizing 
                    numbers and types of advanced conventional weapons; 
                    and

                    ``(II) such a waiver is vital to the national 
                security interests of the United States; and

                ``(ii) submits to the appropriate congressional 
            committees a report identifying--

                    ``(I) the person with respect to which the 
                President waives the application of sanctions; and
                    ``(II) the actions taken by the government 
                described in clause (i)(I) to cooperate in multilateral 
                efforts described in that clause.''; and

            (B) by striking paragraph (2) and inserting the following:
        ``(2) Subsequent renewal of waiver.--At the conclusion of the 
    period of a waiver under subparagraph (A) or (B) of paragraph (1), 
    the President may renew the waiver--
            ``(A) if the President determines, in accordance with 
        subparagraph (A) or (B) of that paragraph (as the case may be), 
        that the waiver is appropriate; and
            ``(B)(i) in the case of a waiver under subparagraph (A) of 
        paragraph (1), for subsequent periods of not more than six 
        months each; and
            ``(ii) in the case of a waiver under subparagraph (B) of 
        paragraph (1), for subsequent periods of not more than 12 
        months each.'';
        (3) by striking subsection (d);
        (4) by redesignating subsections (e) and (f) as subsections (d) 
    and (e), respectively; and
        (5) in subsection (e), as redesignated by paragraph (4) of this 
    subsection--
            (A) in paragraph (1)--
                (i) by striking ``should initiate'' and inserting 
            ``shall initiate''; and
                (ii) by striking ``investment activity in Iran as'' and 
            inserting ``an activity'';
            (B) in paragraph (2)--
                (i) by striking ``should determine'' and inserting 
            ``shall (unless paragraph (3) applies) determine''; and
                (ii) by striking ``investment activity in Iran as'' and 
            inserting ``an activity''; and
            (C) by adding at the end the following:
        ``(3) Special rule.--The President need not initiate an 
    investigation, and may terminate an investigation, under this 
    subsection if the President certifies in writing to the appropriate 
    congressional committees that--
            ``(A) the person whose activity was the basis for the 
        investigation is no longer engaging in the activity or has 
        taken significant verifiable steps toward stopping the 
        activity; and
            ``(B) the President has received reliable assurances that 
        the person will not knowingly engage in an activity described 
        in section 5(a) in the future.''.
    (h) Effective Date.--
        (1) In general.--The amendments made by this section shall--
            (A) take effect on the date of the enactment of this Act; 
        and
            (B) except as provided in this subsection or section 
        6(b)(7) of the Iran Sanctions Act of 1996, as amended by 
        subsection (b) of this section, apply with respect to an 
        investment or activity described in subsection (a) or (b) of 
        section 5 of the Iran Sanctions Act of 1996, as amended by this 
        section, that is commenced on or after such date of enactment.
        (2) Applicability to ongoing investments prohibited under prior 
    law.--A person that makes an investment described in section 5(a) 
    of the Iran Sanctions Act of 1996, as in effect on the day before 
    the date of the enactment of this Act, that is commenced before 
    such date of enactment and continues on or after such date of 
    enactment, shall, except as provided in paragraph (4), be subject 
    to the provisions of the Iran Sanctions Act of 1996, as in effect 
    on the day before such date of enactment.
        (3) Applicability to ongoing activities relating to chemical, 
    biological, or nuclear weapons or related technologies.--A person 
    that, before the date of the enactment of this Act, commenced an 
    activity described in section 5(b) of the Iran Sanctions Act of 
    1996, as in effect on the day before such date of enactment, and 
    continues the activity on or after such date of enactment, shall be 
    subject to the provisions of the Iran Sanctions Act of 1996, as 
    amended by this Act.
        (4) Applicability of mandatory investigations to investments.--
    The amendments made by subsection (g)(5) of this section shall 
    apply on and after the date of the enactment of this Act--
            (A) with respect to an investment described in section 
        5(a)(1) of the Iran Sanctions Act of 1996, as amended by 
        subsection (a) of this section, that is commenced on or after 
        such date of enactment; and
            (B) with respect to an investment described in section 5(a) 
        of the Iran Sanctions Act of 1996, as in effect on the day 
        before the date of the enactment of this Act, that is commenced 
        before such date of enactment and continues on or after such 
        date of enactment.
        (5) Applicability of mandatory investigations to activities 
    relating to petroleum.--
            (A) In general.--Except as provided in subparagraph (B), 
        the amendments made by subsection (g)(5) of this section shall 
        apply on and after the date that is 1 year after the date of 
        the enactment of this Act with respect to an activity described 
        in paragraph (2) or (3) of section 5(a) of the Iran Sanctions 
        Act of 1996, as amended by subsection (a) of this section, that 
        is commenced on or after the date that is 1 year after the date 
        of the enactment of this Act or the date on which the President 
        fails to submit a certification that is required under 
        subparagraph (B) (whichever is applicable).
            (B) Special rule for delay of effective date.--
                (i) Reporting requirement.--Not later than 30 days 
            before the date that is 1 year after the date of the 
            enactment of this Act, the President shall submit to the 
            appropriate congressional committees a report describing--

                    (I) the diplomatic and other efforts of the 
                President--

                        (aa) to dissuade foreign persons from engaging 
                    in activities described in paragraph (2) or (3) of 
                    section 5(a) of the Iran Sanctions Act of 1996, as 
                    amended by subsection (a) of this section; and
                        (bb) to encourage other governments to dissuade 
                    persons over which those governments have 
                    jurisdiction from engaging in such activities;

                    (II) the successes and failures of the efforts 
                described in subclause (I); and
                    (III) each investigation under section 4(e) of the 
                Iran Sanctions Act of 1996, as amended by subsection 
                (g)(5) of this section and as in effect pursuant to 
                subparagraph (C) of this paragraph, or any other review 
                of an activity described in paragraph (2) or (3) of 
                section 5(a) of the Iran Sanctions Act of 1996, as 
                amended by subsection (a) of this section, that is 
                initiated or ongoing during the period beginning on the 
                date of the enactment of this Act and ending on the 
                date on which the President is required to submit the 
                report.

                (ii) Certification.--If the President submits to the 
            appropriate congressional committees, with the report 
            required by clause (i), a certification that there was a 
            substantial reduction in activities described in paragraphs 
            (2) and (3) of section 5(a) of the Iran Sanctions Act of 
            1996, as amended by subsection (a) of this section, during 
            the period described in clause (i)(III), the effective date 
            provided for in subparagraph (A) shall be delayed for a 
            180-day period beginning after the date provided for in 
            that subparagraph.
                (iii) Subsequent reports and delays.--The effective 
            date provided for in subparagraph (A) shall be delayed for 
            additional 180-day periods occurring after the end of the 
            180-day period provided for under clause (ii), if, not 
            later than 30 days before the 180-day period preceding such 
            additional 180-day period expires, the President submits to 
            the appropriate congressional committees--

                    (I) a report containing the matters required in the 
                report under clause (i) for the period beginning on the 
                date on which the preceding report was required to be 
                submitted under clause (i) or this clause (as the case 
                may be) and ending on the date on which the President 
                is required to submit the most recent report under this 
                clause; and
                    (II) a certification that, during the period 
                described in subclause (I), there was (as compared to 
                the period for which the preceding report was submitted 
                under this subparagraph) a progressive reduction in 
                activities described in paragraphs (2) and (3) of 
                section 5(a) of the Iran Sanctions Act of 1996, as 
                amended by subsection (a) of this section.

                (iv) Consequence of failure to certify.--If the 
            President does not make a certification at a time required 
            by this subparagraph--

                    (I) the amendments made by subsection (g)(5) of 
                this section shall apply on and after the date on which 
                the certification was required to be submitted by this 
                subparagraph, with respect to an activity described in 
                paragraph (2) or (3) of section 5(a) of the Iran 
                Sanctions Act of 1996, as amended by subsection (a) of 
                this section, that--

                        (aa) is referenced in the most recent report 
                    required to be submitted under this subparagraph; 
                    or
                        (bb) is commenced on or after the date on which 
                    such most recent report is required to be 
                    submitted; and

                    (II) not later than 45 days after the date on which 
                the certification was required to be submitted by this 
                subparagraph, the President shall make a determination 
                under paragraph (2) or (3) of section 5(a) of the Iran 
                Sanctions Act of 1996 (as the case may be), as amended 
                by subsection (a) of this section, with respect to 
                relevant activities described in subclause (I)(aa).

            (C) Applicability of permissive investigations.--During the 
        1-year period beginning on the date of the enactment of this 
        Act and during any 180-day period during which the effective 
        date provided for in subparagraph (A) is delayed pursuant to 
        subparagraph (B), section 4(e) of the Iran Sanctions Act of 
        1996, as amended by subsection (g)(5) of this section, shall be 
        applied, with respect to an activity described in paragraph (2) 
        or (3) of section 5(a) of the Iran Sanctions Act of 1996, as 
        amended by subsection (a) of this section, by substituting 
        ``should'' for ``shall'' each place it appears.
        (6) Waiver authority.--The amendments made by subsection (c) 
    shall not be construed to affect any exercise of the authority 
    under section 9(c) of the Iran Sanctions Act of 1996, as in effect 
    on the day before the date of the enactment of this Act.
    SEC. 103. ECONOMIC SANCTIONS RELATING TO IRAN.
    (a) In General.--Notwithstanding section 101 of the Iran Freedom 
Support Act (Public Law 109-293; 120 Stat. 1344), and in addition to 
any other sanction in effect, beginning on the date that is 90 days 
after the date of the enactment 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 
        good or service of Iranian origin may be imported directly or 
        indirectly into the United States.
            (B) Exceptions.--The exceptions provided for in section 
        203(b) of the International Emergency Economic Powers Act (50 
        U.S.C. 1702(b)), including the exception for information and 
        informational materials, shall apply to the prohibition in 
        subparagraph (A) of this paragraph to the same extent that such 
        exceptions apply to the authority provided under section 203(a) 
        of that Act.
        (2) Prohibition on exports.--
            (A) In general.--Except as provided in subparagraph (B), no 
        good, service, or technology of United States origin may be 
        exported to Iran from the United States or by a United States 
        person, wherever located.
            (B) Exceptions.--
                (i) Personal communications; articles to relieve human 
            suffering; information and informational materials; 
            transactions incident to travel.--The exceptions provided 
            for in section 203(b) of the International Emergency 
            Economic Powers Act (50 U.S.C. 1702(b)), including the 
            exception for information and informational materials, 
            shall apply to the prohibition in subparagraph (A) of this 
            paragraph to the same extent that such exceptions apply to 
            the authority provided under section 203(a) of that Act.
                (ii) Food; medicine; humanitarian assistance.--The 
            prohibition in subparagraph (A) shall not apply to the 
            exportation of--

                    (I) agricultural commodities, food, medicine, or 
                medical devices; or
                    (II) articles exported to Iran to provide 
                humanitarian assistance to the people of Iran.

                (iii) Internet communications.--The prohibition in 
            subparagraph (A) shall not apply to the exportation of--

                    (I) services incident to the exchange of personal 
                communications over the Internet or software necessary 
                to enable such services, as provided for in section 
                560.540 of title 31, Code of Federal Regulations (or 
                any corresponding similar regulation or ruling);
                    (II) hardware necessary to enable such services; or
                    (III) hardware, software, or technology necessary 
                for access to the Internet.

                (iv)  Goods, services, or technologies necessary to 
            ensure the safe operation of commercial aircraft.--The 
            prohibition in subparagraph (A) shall not apply to the 
            exportation of goods, services, or technologies necessary 
            to ensure the safe operation of commercial aircraft 
            produced in the United States or commercial aircraft into 
            which aircraft components produced in the United States are 
            incorporated, 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 issued by the Secretary of the 
            Treasury regarding the exportation of such goods, services, 
            or technologies, if appropriate.
                (v) Goods, services, or technologies exported to 
            support international organizations.--The prohibition in 
            subparagraph (A) shall not apply to the exportation of 
            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; or
                    (II) are necessary to support activities, including 
                the activities of nongovernmental organizations, 
                relating to promoting democracy in Iran.

                (vi) Exports in the national interest.--The prohibition 
            in subparagraph (A) shall not apply to the exportation of 
            goods, services, or technologies if the President 
            determines the exportation of such goods, services, or 
            technologies to be in the national interest of the United 
            States.
        (3) Freezing assets.--
            (A) In general.--At such time as the President determines 
        that a person in Iran, including an Iranian diplomat or 
        representative of another government or military or quasi-
        governmental institution of Iran (including Iran's 
        Revolutionary Guard Corps and its affiliates), satisfies 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.), the President 
        shall take such action as may be necessary to freeze, as soon 
        as possible--
                (i) the funds and other assets belonging to that 
            person; and
                (ii) any funds or other assets that person transfers, 
            on or after the date on which the President determines the 
            person satisfies such criteria, to any family member or 
            associate acting for or on behalf of the person.
            (B) Reports to the office of foreign assets control.--The 
        action described in subparagraph (A) includes requiring any 
        United States financial institution that holds funds or assets 
        of a person described in that subparagraph or funds or assets 
        that person transfers to a family member or associate described 
        in that subparagraph to report promptly to the Office of 
        Foreign Assets Control information regarding such funds and 
        assets.
            (C) Reports to congress.--Not later than 14 days after a 
        decision is made to freeze the funds or assets of any person 
        under subparagraph (A), the President shall report the name of 
        the person to the appropriate congressional committees. Such a 
        report may contain a classified annex.
            (D) Termination.--The President shall release assets or 
        funds frozen under subparagraph (A) if the person to which the 
        assets or funds belong or the person that transfers the assets 
        or funds as described in subparagraph (A)(ii) (as the case may 
        be) no longer satisfies 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.).
            (E) United states financial institution defined.--In this 
        paragraph, the term ``United States financial institution'' 
        means a financial institution (as defined in section 14 of the 
        Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 
        note)) that is a United States person.
    (c) Penalties.--The penalties provided for in subsections (b) and 
(c) of section 206 of the International Emergency Economic Powers Act 
(50 U.S.C. 1705) shall apply to a person that violates, attempts to 
violate, conspires to violate, or causes a violation of this section or 
regulations prescribed under this section to the same extent that such 
penalties apply to a person that commits an unlawful act described in 
section 206(a) of that Act.
    (d) Regulatory Authority.--
        (1) In general.--The President shall prescribe regulations to 
    carry out this section, which may include regulatory exceptions to 
    the sanctions described in subsection (b).
        (2) Applicability of certain regulations.--No exception to the 
    prohibition under subsection (b)(1) may be made for the commercial 
    importation of an Iranian origin good described in section 
    560.534(a) of title 31, Code of Federal Regulations (as in effect 
    on the day before the date of the enactment of this Act), unless 
    the President--
            (A) prescribes a regulation providing for such an exception 
        on or after the date of the enactment of this Act; and
            (B) submits to the appropriate congressional committees--
                (i) a certification in writing that the exception is in 
            the national interest of the United States; and
                (ii) a report describing the reasons for the exception.
    SEC. 104. MANDATORY SANCTIONS WITH RESPECT TO FINANCIAL 
      INSTITUTIONS THAT ENGAGE IN CERTAIN TRANSACTIONS.
    (a) Findings.--Congress makes the following findings:
        (1) The Financial Action Task Force is an intergovernmental 
    body whose purpose is to develop and promote national and 
    international policies to combat money laundering and terrorist 
    financing.
        (2) Thirty-three countries, plus the European Commission and 
    the Cooperation Council for the Arab States of the Gulf, belong to 
    the Financial Action Task Force. The member countries of the 
    Financial Action Task Force include the United States, Canada, most 
    countries in western Europe, Russia, the People's Republic of 
    China, Japan, South Korea, Argentina, and Brazil.
        (3) In 2008 the Financial Action Task Force extended its 
    mandate to include addressing ``new and emerging threats such as 
    proliferation financing'', meaning the financing of the 
    proliferation of weapons of mass destruction, and published 
    ``guidance papers'' for members to assist them in implementing 
    various United Nations Security Council resolutions dealing with 
    weapons of mass destruction, including United Nations Security 
    Council Resolutions 1737 (2006) and 1803 (2008), which deal 
    specifically with proliferation by Iran.
        (4) The Financial Action Task Force has repeatedly called on 
    members--
            (A) to advise financial institutions in their jurisdictions 
        to give special attention to business relationships and 
        transactions with Iran, including Iranian companies and 
        financial institutions;
            (B) to apply effective countermeasures to protect their 
        financial sectors from risks relating to money laundering and 
        financing of terrorism that emanate from Iran;
            (C) to protect against correspondent relationships being 
        used by Iran and Iranian companies and financial institutions 
        to bypass or evade countermeasures and risk-mitigation 
        practices; and
            (D) to take into account risks relating to money laundering 
        and financing of terrorism when considering requests by Iranian 
        financial institutions to open branches and subsidiaries in 
        their jurisdictions.
        (5) At a February 2010 meeting of the Financial Action Task 
    Force, the Task Force called on members to apply countermeasures 
    ``to protect the international financial system from the ongoing 
    and substantial money laundering and terrorist financing (ML/TF) 
    risks'' emanating from Iran.
    (b) Sense of Congress Regarding the Imposition of Sanctions on the 
Central Bank of Iran.--Congress--
        (1) acknowledges the efforts of the United Nations Security 
    Council to impose limitations on transactions involving Iranian 
    financial institutions, including the Central Bank of Iran; and
        (2) 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 
    financial institution engaged in proliferation activities or 
    support of terrorist groups.
    (c) Prohibitions and Conditions With Respect to Certain Accounts 
Held by Foreign Financial Institutions.--
        (1) In general.--Not later than 90 days after the date of the 
    enactment of this Act, the Secretary of the Treasury shall 
    prescribe regulations to prohibit, or impose strict conditions on, 
    the opening or maintaining in the United States of a correspondent 
    account or a payable-through account by a foreign financial 
    institution that the Secretary finds knowingly engages in an 
    activity described in paragraph (2).
        (2) Activities described.--A foreign financial institution 
    engages in an activity described in this paragraph if the foreign 
    financial institution--
            (A) facilitates the efforts of the Government of Iran 
        (including efforts of Iran's Revolutionary Guard Corps or any 
        of its agents or affiliates)--
                (i) to acquire or develop weapons of mass destruction 
            or delivery systems for weapons of mass destruction; or
                (ii) to provide support for organizations designated as 
            foreign terrorist organizations under section 219(a) of the 
            Immigration and Nationality Act (8 U.S.C. 1189(a)) or 
            support for acts of international terrorism (as defined in 
            section 14 of the Iran Sanctions Act of 1996 (Public Law 
            104-172; 50 U.S.C. 1701 note));
            (B) facilitates the activities of a person subject to 
        financial sanctions pursuant to United Nations Security Council 
        Resolution 1737 (2006), 1747 (2007), 1803 (2008), or 1929 
        (2010), or any other resolution that is agreed to by the 
        Security Council and imposes sanctions with respect to Iran;
            (C) engages in money laundering to carry out an activity 
        described in subparagraph (A) or (B);
            (D) facilitates efforts by the Central Bank of Iran or any 
        other Iranian financial institution to carry out an activity 
        described in subparagraph (A) or (B); or
            (E) facilitates a significant transaction or transactions 
        or provides significant financial services for--
                (i) Iran's Revolutionary Guard Corps or any of its 
            agents or affiliates whose property or interests in 
            property are blocked pursuant to the International 
            Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or
                (ii) a financial institution whose property or 
            interests in property are blocked pursuant to that Act in 
            connection with--

                    (I) Iran's proliferation of weapons of mass 
                destruction or delivery systems for weapons of mass 
                destruction; or
                    (II) Iran's support for international terrorism.

        (3) Penalties.--The penalties provided for in subsections (b) 
    and (c) of section 206 of the International Emergency Economic 
    Powers Act (50 U.S.C. 1705) shall apply to a person that violates, 
    attempts to violate, conspires to violate, or causes a violation of 
    regulations prescribed under paragraph (1) of this subsection to 
    the same extent that such penalties apply to a person that commits 
    an unlawful act described in section 206(a) of that Act.
    (d) Penalties for Domestic Financial Institutions for Actions of 
Persons Owned or Controlled by Such Financial Institutions.--
        (1) In general.--Not later than 90 days after the date of the 
    enactment of this Act, the Secretary of the Treasury shall 
    prescribe regulations to prohibit any person owned or controlled by 
    a domestic financial institution from knowingly engaging in a 
    transaction or transactions with or benefitting Iran's 
    Revolutionary Guard Corps or any of its agents or affiliates whose 
    property or interests in property are blocked pursuant to the 
    International Emergency Economic Powers Act (50 U.S.C. 1701 et 
    seq.).
        (2) Penalties.--The penalties provided for in section 206(b) of 
    the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) 
    shall apply to a domestic financial institution to the same extent 
    that such penalties apply to a person that commits an unlawful act 
    described in section 206(a) of that Act if--
            (A) a person owned or controlled by the domestic financial 
        institution violates, attempts to violate, conspires to 
        violate, or causes a violation of regulations prescribed under 
        paragraph (1) of this subsection; and
            (B) the domestic financial institution knew or should have 
        known that the person violated, attempted to violate, conspired 
        to violate, or caused a violation of such regulations.
    (e) Requirements for Financial Institutions Maintaining Accounts 
for Foreign Financial Institutions.--
        (1) In general.--The Secretary of the Treasury shall prescribe 
    regulations to require a domestic financial institution maintaining 
    a correspondent account or payable-through account in the United 
    States for a foreign financial institution to do one or more of the 
    following:
            (A) Perform an audit of activities described in subsection 
        (c)(2) that may be carried out by the foreign financial 
        institution.
            (B) Report to the Department of the Treasury with respect 
        to transactions or other financial services provided with 
        respect to any such activity.
            (C) Certify, to the best of the knowledge of the domestic 
        financial institution, that the foreign financial institution 
        is not knowingly engaging in any such activity.
            (D) Establish due diligence policies, procedures, and 
        controls, such as the due diligence policies, procedures, and 
        controls described in section 5318(i) of title 31, United 
        States Code, reasonably designed to detect whether the 
        Secretary of the Treasury has found the foreign financial 
        institution to knowingly engage in any such activity.
        (2) Penalties.--The penalties provided for in sections 5321(a) 
    and 5322 of title 31, United States Code, shall apply to a person 
    that violates a regulation prescribed under paragraph (1) of this 
    subsection, in the same manner and to the same extent as such 
    penalties would apply to any person that is otherwise subject to 
    such section 5321(a) or 5322.
    (f) Waiver.--The Secretary of the Treasury may waive the 
application of a prohibition or condition imposed with respect to a 
foreign financial institution pursuant to subsection (c) or the 
imposition of a penalty under subsection (d) with respect to a domestic 
financial institution on and after the date that is 30 days after the 
Secretary--
        (1) determines that such a waiver is necessary to the national 
    interest of the United States; and
        (2) submits to the appropriate congressional committees a 
    report describing the reasons for the determination.
    (g) Procedures for Judicial Review of Classified Information.--
        (1) In general.--If a finding under subsection (c)(1), a 
    prohibition, condition, or penalty imposed as a result of any such 
    finding, or a penalty imposed under subsection (d), is based on 
    classified information (as defined in section 1(a) of the 
    Classified Information Procedures Act (18 U.S.C. App.)) and a court 
    reviews the finding or the imposition of the prohibition, 
    condition, or penalty, the Secretary of the Treasury may submit 
    such information to the court ex parte and in camera.
        (2) Rule of construction.--Nothing in this subsection shall be 
    construed to confer or imply any right to judicial review of any 
    finding under subsection (c)(1), any prohibition, condition, or 
    penalty imposed as a result of any such finding, or any penalty 
    imposed under subsection (d).
    (h) Consultations in Implementation of Regulations.--In 
implementing this section and the regulations prescribed under this 
section, the Secretary of the Treasury--
        (1) shall consult with the Secretary of State; and
        (2) may, in the sole discretion of the Secretary of the 
    Treasury, consult with such other agencies and departments and such 
    other interested parties as the Secretary considers appropriate.
    (i) Definitions.--
        (1) In general.--In this section:
            (A) Account; correspondent account; payable-through 
        account.--The terms ``account'', ``correspondent account'', and 
        ``payable-through account'' have the meanings given those terms 
        in section 5318A of title 31, United States Code.
            (B) Agent.--The term ``agent'' includes an entity 
        established by a person for purposes of conducting transactions 
        on behalf of the person in order to conceal the identity of the 
        person.
            (C) Financial institution.--The term ``financial 
        institution'' means a financial institution specified in 
        subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), 
        (M), or (Y) of section 5312(a)(2) of title 31, United States 
        Code.
            (D) Foreign financial institution; domestic financial 
        institution.--The terms ``foreign financial institution'' and 
        ``domestic financial institution'' shall have the meanings of 
        those terms as determined by the Secretary of the Treasury.
            (E) Money laundering.--The term ``money laundering'' means 
        the movement of illicit cash or cash equivalent proceeds into, 
        out of, or through a country, or into, out of, or through a 
        financial institution.
        (2) Other definitions.--The Secretary of the Treasury may 
    further define the terms used in this section in the regulations 
    prescribed under this section.
    SEC. 105. IMPOSITION OF SANCTIONS ON CERTAIN PERSONS WHO ARE 
      RESPONSIBLE FOR OR COMPLICIT IN HUMAN RIGHTS ABUSES COMMITTED 
      AGAINST CITIZENS OF IRAN OR THEIR FAMILY MEMBERS AFTER THE JUNE 
      12, 2009, ELECTIONS IN IRAN.
    (a) In General.--The President shall impose sanctions described in 
subsection (c) with respect to each person on the list required by 
subsection (b).
    (b) List of Persons Who Are Responsible for or Complicit in Certain 
Human Rights Abuses.--
        (1) In general.--Not later than 90 days after the date of the 
    enactment of this Act, the President shall submit to the 
    appropriate congressional committees a list of persons who are 
    officials of the Government of Iran or persons acting on behalf of 
    that Government (including members of paramilitary organizations 
    such as Ansar-e-Hezbollah and Basij-e Mostaz'afin), that the 
    President determines, based on credible evidence, are responsible 
    for or complicit in, or responsible for ordering, controlling, or 
    otherwise directing, the commission of serious human rights abuses 
    against citizens of Iran or their family members on or after June 
    12, 2009, regardless of whether such abuses occurred in Iran.
        (2) Updates of list.--The President shall submit to the 
    appropriate congressional committees an updated list under 
    paragraph (1)--
            (A) not later than 270 days after the date of the enactment 
        of this Act and every 180 days thereafter; and
            (B) as new information becomes available.
        (3) Form of report; public availability.--
            (A) Form.--The list required by paragraph (1) shall be 
        submitted in unclassified form but may contain a classified 
        annex.
            (B) Public availability.--The unclassified portion of the 
        list required by paragraph (1) shall be made available to the 
        public and posted on the websites of the Department of the 
        Treasury and the Department of State.
        (4) Consideration of data from other countries and 
    nongovernmental organizations.--In preparing the list required by 
    paragraph (1), the President shall consider credible data already 
    obtained by other countries and nongovernmental organizations, 
    including organizations in Iran, that monitor the human rights 
    abuses of the Government of Iran.
    (c) Sanctions Described.--The sanctions described in this 
subsection are ineligibility for a visa to enter the United States and 
sanctions pursuant to the International Emergency Economic Powers Act 
(50 U.S.C. 1701 et seq.), including blocking of property and 
restrictions or prohibitions on financial transactions and the 
exportation and importation of property, subject to such regulations as 
the President may prescribe, including regulatory exceptions to permit 
the United States to comply with the Agreement between the United 
Nations and the United States of America regarding the Headquarters of 
the United Nations, signed June 26, 1947, and entered into force 
November 21, 1947, and other applicable international obligations.
    (d) Termination of Sanctions.--The provisions of this section shall 
terminate on the date on which the President determines and certifies 
to the appropriate congressional committees that the Government of Iran 
has--
        (1) unconditionally released all political prisoners, including 
    the citizens of Iran detained in the aftermath of the June 12, 
    2009, presidential election in Iran;
        (2) ceased its practices of violence, unlawful detention, 
    torture, and abuse of citizens of Iran while engaging in peaceful 
    political activity;
        (3) conducted a transparent investigation into the killings, 
    arrests, and abuse of peaceful political activists that occurred in 
    the aftermath of the June 12, 2009, presidential election in Iran 
    and prosecuted the individuals responsible for such killings, 
    arrests, and abuse; and
        (4) made public commitments to, and is making demonstrable 
    progress toward--
            (A) establishing an independent judiciary; and
            (B) respecting the human rights and basic freedoms 
        recognized in the Universal Declaration of Human Rights.
    SEC. 106. PROHIBITION ON PROCUREMENT CONTRACTS WITH PERSONS THAT 
      EXPORT SENSITIVE TECHNOLOGY TO IRAN.
    (a) In General.--Except as provided in subsection (b), and pursuant 
to such regulations as the President may prescribe, the head of an 
executive agency may not enter into or renew a contract, on or after 
the date that is 90 days after the date of the enactment of this Act, 
for the procurement of goods or services with a person that exports 
sensitive technology to Iran.
    (b) Authorization to Exempt Certain Products.--The President is 
authorized to exempt from the prohibition under subsection (a) only 
eligible products, as defined in section 308(4) of the Trade Agreements 
Act of 1979 (19 U.S.C. 2518(4)), of any foreign country or 
instrumentality designated under section 301(b) of that Act (19 U.S.C. 
2511(b)).
    (c) Sensitive Technology Defined.--
        (1) In general.--The term ``sensitive technology'' means 
    hardware, software, telecommunications equipment, or any other 
    technology, that the President determines is to be used 
    specifically--
            (A) to restrict the free flow of unbiased information in 
        Iran; or
            (B) to disrupt, monitor, or otherwise restrict speech of 
        the people of Iran.
        (2) Exception.--The term ``sensitive technology'' does not 
    include information or informational materials the exportation of 
    which the President does not have the authority to regulate or 
    prohibit pursuant to section 203(b)(3) of the International 
    Emergency Economic Powers Act (50 U.S.C. 1702(b)(3)).
    (d) Government Accountability Office Report on Effect of 
Procurement Prohibition.--Not later than 1 year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the appropriate congressional committees, the Committee 
on Armed Services of the Senate, and the Committee on Armed Services of 
the House of Representatives, a report assessing the extent to which 
executive agencies would have entered into or renewed contracts for the 
procurement of goods or services with persons that export sensitive 
technology to Iran if the prohibition under subsection (a) were not in 
effect.
    SEC. 107. HARMONIZATION OF CRIMINAL PENALTIES FOR VIOLATIONS OF 
      SANCTIONS.
    (a) In General.--
        (1) Violations of united nations security council resolutions 
    imposing sanctions.--Section 5(b) of the United Nations 
    Participation Act of 1945 (22 U.S.C. 287c(b)) is amended--
            (A) by striking ``find not more than $10,000'' and 
        inserting ``fined not more than $1,000,000''; and
            (B) by striking ``ten years'' and all that follows and 
        inserting ``20 years, or both.''.
        (2) Violations of controls on exports and imports of defense 
    articles and defense services.--Section 38(c) of the Arms Export 
    Control Act (22 U.S.C. 2778(c)) is amended by striking ``ten 
    years'' and inserting ``20 years''.
        (3) Violations of prohibition on transactions with countries 
    that support acts of international terrorism.--Section 40(j) of the 
    Arms Export Control Act (22 U.S.C. 2780(j)) is amended by striking 
    ``10 years'' and inserting ``20 years''.
        (4) Violations of the trading with the enemy act.--Section 
    16(a) of the Trading with the enemy Act (50 U.S.C. App. 16(a)) is 
    amended by striking ``if a natural person'' and all that follows 
    and inserting ``if a natural person, be imprisoned for not more 
    than 20 years, or both.''.
    (b) Study by United States Sentencing Commission.--Not later than 1 
year after the date of the enactment of this Act, the United States 
Sentencing Commission, pursuant to the authority under sections 994 and 
995 of title 28, United States Code, and the responsibility of the 
United States Sentencing Commission to advise Congress on sentencing 
policy under section 995(a)(20) of title 28, United States Code, shall 
study and submit to Congress a report on the impact and advisability of 
imposing a mandatory minimum sentence for violations of--
        (1) section 5(a) of the United Nations Participation Act of 
    1945 (22 U.S.C. 287c(a));
        (2) sections 38, 39, and 40 of the Arms Export Control Act (22 
    U.S.C. 2778, 2779, and 2780); and
        (3) the Trading with the enemy Act (50 U.S.C. App. 1 et seq.).
    SEC. 108. AUTHORITY TO IMPLEMENT UNITED NATIONS SECURITY COUNCIL 
      RESOLUTIONS IMPOSING SANCTIONS WITH RESPECT TO IRAN.
    In addition to any other authority of the President with respect to 
implementing resolutions of the United Nations Security Council, the 
President may prescribe such regulations as may be necessary to 
implement a resolution that is agreed to by the United Nations Security 
Council and imposes sanctions with respect to Iran.
    SEC. 109. INCREASED CAPACITY FOR EFFORTS TO COMBAT UNLAWFUL OR 
      TERRORIST FINANCING.
    (a) Findings.--Congress finds the following:
        (1) 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.
        (2) The Secretary of the Treasury has designated, including 
    most recently on June 16, 2010, various Iranian individuals and 
    banking, military, energy, and shipping entities as proliferators 
    of weapons of mass destruction pursuant to Executive Order 13382 
    (50 U.S.C. 1701 note), thereby blocking transactions subject to the 
    jurisdiction of the United States by those individuals and entities 
    and their supporters.
        (3) The Secretary of the Treasury has also identified an array 
    of entities in the insurance, petroleum, and petrochemicals 
    industries that the Secretary has determined to be owned or 
    controlled by the Government of Iran and added those entities to 
    the list contained in Appendix A to part 560 of title 31, Code of 
    Federal Regulations (commonly known as the ``Iranian Transactions 
    Regulations''), thereby prohibiting transactions between United 
    States persons and those entities.
    (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) $102,613,000 for fiscal year 2011; and
        (2) such sums as may be necessary for each of the fiscal years 
    2012 and 2013.
    (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 ``$100,419,000 for 
fiscal year 2011 and such sums as may be necessary for each of the 
fiscal years 2012 and 2013''.
    (d) Authorization of Appropriations for Bureau of Industry and 
Security of the Department of Commerce.--There are authorized to be 
appropriated to the Secretary of Commerce for the Bureau of Industry 
and Security of the Department of Commerce--
        (1) $113,000,000 for fiscal year 2011; and
        (2) such sums as may be necessary for each of the fiscal years 
    2012 and 2013.
    SEC. 110. REPORTS ON INVESTMENTS IN THE ENERGY SECTOR OF IRAN.
    (a) Initial Report.--
        (1) In general.--Not later than 90 days after the date of the 
    enactment of this Act, the President shall submit to the 
    appropriate congressional committees a report--
            (A) on investments in the energy sector of Iran that were 
        made during the period described in paragraph (2); and
            (B) that contains--
                (i) an estimate of the volume of energy-related 
            resources (other than refined petroleum), including 
            ethanol, that Iran imported during the period described in 
            paragraph (2); and
                (ii) a list of all significant known energy-related 
            joint ventures, investments, and partnerships located 
            outside Iran that involve Iranian entities in partnership 
            with entities from other countries, including an 
            identification of the entities from other countries; and
                (iii) an estimate of--

                    (I) the total value of each such joint venture, 
                investment, and partnership; and
                    (II) the percentage of each such joint venture, 
                investment, and partnership owned by an Iranian entity.

        (2) Period described.--The period described in this paragraph 
    is the period beginning on January 1, 2006, and ending on the date 
    that is 60 days after the date of the enactment of this Act.
    (b) Updated Reports.--Not later than 180 days after submitting the 
report required by subsection (a), and every 180 days thereafter, the 
President shall submit to the appropriate congressional committees a 
report containing the matters required in the report under subsection 
(a)(1) for the 180-day period beginning on the date that is 30 days 
before the date on which the preceding report was required to be 
submitted by this section.
    SEC. 111. REPORTS ON CERTAIN ACTIVITIES OF FOREIGN EXPORT CREDIT 
      AGENCIES AND OF THE EXPORT-IMPORT BANK OF THE UNITED STATES.
    (a) Report on Certain Activities of Export Credit Agencies of 
Foreign Countries.--
        (1) In general.--Not later than 90 days after the date of the 
    enactment of this Act, the President shall submit to the 
    appropriate congressional committees a report on any activity of an 
    export credit agency of a foreign country that is an activity 
    comparable to an activity described in subsection (a) or (b) of 
    section 5 of the Iran Sanctions Act of 1996, as amended by section 
    102 of this Act.
        (2) Updates.--The President shall update the report required by 
    paragraph (1) as new information becomes available with respect to 
    the activities of export credit agencies of foreign countries.
    (b) Report on Certain Financing by the Export-Import Bank of the 
United States.--Not later than 30 days (or, in extraordinary 
circumstances, not later than 15 days) before the Export-Import Bank of 
the United States approves cofinancing (including loans, guarantees, 
other credits, insurance, and reinsurance) in which an export credit 
agency of a foreign country identified in the report required by 
subsection (a) will participate, the President shall submit to the 
appropriate congressional committees a report identifying--
        (1) the export credit agency of the foreign country; and
        (2) the beneficiaries of the financing.
    SEC. 112. SENSE OF CONGRESS REGARDING IRAN'S REVOLUTIONARY GUARD 
      CORPS AND ITS AFFILIATES.
    It is the sense of Congress that the United States should--
        (1) persistently target Iran's Revolutionary Guard Corps and 
    its affiliates with economic sanctions for its support for 
    terrorism, its role in proliferation, and its oppressive activities 
    against the people of Iran;
        (2) identify, as soon as possible--
            (A) any foreign individual or entity that is an agent, 
        alias, front, instrumentality, official, or affiliate of Iran's 
        Revolutionary Guard Corps;
            (B) any individual or entity that--
                (i) has provided material support to any individual or 
            entity described in subparagraph (A); or
                (ii) has conducted any financial or commercial 
            transaction with any such individual or entity; and
            (C) any foreign government that--
                (i) provides material support to any such individual or 
            entity; or
                (ii) conducts any commercial transaction or financial 
            transaction with any such individual or entity; and
        (3) immediately impose sanctions, including travel 
    restrictions, sanctions authorized pursuant to this Act or the Iran 
    Sanctions Act of 1996, as amended by section 102 of 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 the individuals, entities, and governments described in 
    paragraph (2).
    SEC. 113. SENSE OF CONGRESS REGARDING 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, affiliates and supporters of 
    Hezbollah designated for the imposition of sanctions under that 
    Act, 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. 114. SENSE OF CONGRESS REGARDING THE IMPOSITION OF 
      MULTILATERAL SANCTIONS WITH RESPECT TO IRAN.
    It is the sense of Congress that--
        (1) in general, effective multilateral sanctions are preferable 
    to unilateral sanctions in order to achieve desired results from 
    countries such as Iran; and
        (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.
    SEC. 115. REPORT ON PROVIDING COMPENSATION FOR VICTIMS OF 
      INTERNATIONAL TERRORISM.
    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 equitable methods for providing compensation on 
a comprehensive basis to victims of acts of international terrorism who 
are citizens or residents of the United States or nationals of the 
United States (as defined in section 101(a) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)).

    TITLE II--DIVESTMENT FROM CERTAIN COMPANIES THAT INVEST IN IRAN

    SEC. 201. DEFINITIONS.
    In this title:
        (1) Energy sector of iran.--The term ``energy sector of Iran'' 
    refers to activities to develop petroleum or natural gas resources 
    or nuclear power in Iran.
        (2) Financial institution.--The term ``financial institution'' 
    has the meaning given that term in section 14 of the Iran Sanctions 
    Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 note).
        (3) Iran.--The term ``Iran'' includes the Government of Iran 
    and 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 entity, or subsidiary 
        of, or any entity under common ownership or control with, 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 Commonwealth of the Northern Mariana Islands, American Samoa, 
    Guam, the United States Virgin Islands, and any other territory or 
    possession of the United States.
        (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 of a State or 
        locality; 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 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 Iran 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 of 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 for investment in the energy sector of 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) or (i) is not preempted by any Federal 
law or regulation.
    (g) Definitions.--In this section:
        (1) 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.).
        (2) Investment.--The ``investment'' includes--
            (A) a commitment or contribution of funds or property;
            (B) a loan or other extension of credit; and
            (C) the entry into or renewal of a contract for goods or 
        services.
    (h) Effective Date.--
        (1) In general.--Except as provided in paragraph (2) or 
    subsection (i), 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.--Except as provided in subsection (i), 
    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.
    (i) Authorization for Prior Enacted Measures.--
        (1) In general.--Notwithstanding any other provision of this 
    section or any other provision of law, a State or local government 
    may enforce a measure (without regard to the requirements of 
    subsection (d), except as provided in paragraph (2)) adopted by the 
    State or local government before the date of the enactment of this 
    Act that provides for the divestment of assets of the State or 
    local government from, or prohibits the 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 (determined 
    without regard to subsection (c)) or other business activities in 
    Iran that are identified in the measure.
        (2) Application of notice requirements.--A measure described in 
    paragraph (1) shall be subject to the requirements of paragraphs 
    (1) and (2) and the first sentence of paragraph (3) of subsection 
    (d) on and after the date that is 2 years 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 2010.''.
    (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) of this section.
    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 subparagraph (A) or (B) of section 
404(a)(1) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1104(a)(1)), if--
        (1) the fiduciary makes such determination using credible 
    information that is available to the public; and
        (2) the fiduciary prudently determines that the result of such 
    divestment or avoidance of investment would not be expected to 
    provide the employee benefit plan with--
            (A) a lower rate of return than alternative investments 
        with commensurate degrees of risk; or
            (B) a higher degree of risk than alternative investments 
        with commensurate rates of return.
    SEC. 205. TECHNICAL CORRECTIONS TO SUDAN ACCOUNTABILITY AND 
      DIVESTMENT ACT OF 2007.
    (a) ERISA Plan Investments.--Section 5 of the Sudan Accountability 
and Divestment Act of 2007 (Public Law 110-174; 50 U.S.C. 1701 note) is 
amended--
        (1) by striking ``section 404 of the Employee Retirement Income 
    Security Act of 1974 (29 U.S.C. 1104)'' and inserting 
    ``subparagraph (A) or (B) of section 404(a)(1) of the Employee 
    Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)(1))''; 
    and
        (2) by striking paragraph (2) and inserting the following:
        ``(2) the fiduciary prudently determines that the result of 
    such divestment or avoidance of investment would not be expected to 
    provide the employee benefit plan with--
            ``(A) a lower rate of return than alternative investments 
        with commensurate degrees of risk; or
            ``(B) a higher degree of risk than alternative investments 
        with commensurate rates of return.''.
    (b) Safe Harbor for Changes of Investment Policies by Asset 
Managers.--
        (1) In general.--Section 13(c)(2)(A) of the Investment Company 
    Act of 1940 (15 U.S.C. 80a-13(c)(2)(A)) is amended to read as 
    follows:
            ``(A) Rule of construction.--Nothing in paragraph (1) shall 
        be construed to create, imply, diminish, change, or affect in 
        any way whether or not a private right of action exists under 
        subsection (a) or any other provision of this Act.''.
        (2) Applicability.--The amendment made by paragraph (1) shall 
    apply as if included in the Sudan Accountability and Divestment Act 
    of 2007 (Public Law 110-174; 50 U.S.C. 1701 note).

  TITLE III--PREVENTION OF DIVERSION OF CERTAIN GOODS, SERVICES, AND 
                          TECHNOLOGIES TO IRAN

    SEC. 301. DEFINITIONS.
    In this title:
        (1) Allow.--The term ``allow'', with respect to the diversion 
    through a country of goods, services, or technologies, means the 
    government of the country knows or has reason to know that the 
    territory of the country is being used for such diversion.
        (2) 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 Foreign Affairs and the Permanent 
        Select Committee on Intelligence of the House of 
        Representatives.
        (3) Commerce control list.--The term ``Commerce Control List'' 
    means the list maintained pursuant to part 774 of the Export 
    Administration Regulations (or any corresponding similar regulation 
    or ruling).
        (4) Divert; diversion.--The terms ``divert'' and ``diversion'' 
    refer to the transfer or release, directly or indirectly, of a 
    good, service, or technology to an end-user or an intermediary that 
    is not an authorized recipient of the good, service, or technology.
        (5) End-user.--The term ``end-user'', with respect to a good, 
    service, or technology, means the person that receives and 
    ultimately uses the good, service, or technology.
        (6) Export administration regulations.--The term ``Export 
    Administration Regulations'' means subchapter C of chapter VII of 
    title 15, Code of Federal Regulations (or any corresponding similar 
    regulation or ruling).
        (7) Government.--The term ``government'' includes any agency or 
    instrumentality of a government.
        (8) Intermediary.--The term ``intermediary'' means a person 
    that receives a good, service, or technology while the good, 
    service, or technology is in transit to the end-user of the good, 
    service, or technology.
        (9) International traffic in arms regulations.--The term 
    ``International Traffic in Arms Regulations'' means subchapter M of 
    chapter I of title 22, Code of Federal Regulations (or any 
    corresponding similar regulation or ruling).
        (10) Iran.--The term ``Iran'' includes the Government of Iran 
    and any agency or instrumentality of Iran.
        (11) Iranian end-user.--The term ``Iranian end-user'' means an 
    end-user that is the Government of Iran or a person in, or an 
    agency or instrumentality of, Iran.
        (12) Iranian intermediary.--The term ``Iranian intermediary'' 
    means an intermediary that is the Government of Iran or a person 
    in, or an agency or instrumentality of, Iran.
        (13) 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)).
        (14) United states munitions list.--The term ``United States 
    Munitions List'' means the list maintained pursuant to part 121 of 
    the International Traffic in Arms Regulations (or any corresponding 
    similar regulation or ruling).
    SEC. 302. IDENTIFICATION OF COUNTRIES OF CONCERN WITH RESPECT TO 
      THE DIVERSION OF CERTAIN GOODS, SERVICES, AND TECHNOLOGIES TO OR 
      THROUGH IRAN.
    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Director of National Intelligence shall 
submit to the President, the Secretary of Defense, the Secretary of 
Commerce, the Secretary of State, the Secretary of the Treasury, and 
the appropriate congressional committees a report that identifies each 
country the government of which the Director believes, based on all 
information available to the Director, is allowing the diversion 
through the country of goods, services, or technologies described in 
subsection (b) to Iranian end-users or Iranian intermediaries.
    (b) Goods, Services, and Technologies Described.--Goods, services, 
or technologies described in this subsection are goods, services, or 
technologies--
        (1) that--
            (A) originated in the United States;
            (B) would make a material contribution to Iran's--
                (i) development of nuclear, chemical, or biological 
            weapons;
                (ii) ballistic missile or advanced conventional weapons 
            capabilities; or
                (iii) support for international terrorism; and
            (C) are--
                (i) items on the Commerce Control List or services 
            related to those items; or
                (ii) defense articles or defense services on the United 
            States Munitions List; or
        (2) that are prohibited for export to Iran under a resolution 
    of the United Nations Security Council.
    (c) Updates.--The Director of National Intelligence shall update 
the report required by subsection (a)--
        (1) as new information becomes available; and
        (2) not less frequently than annually.
    (d) Form.--The report required by subsection (a) and the updates 
required by subsection (c) may be submitted in classified form.
    SEC. 303. DESTINATIONS OF DIVERSION CONCERN.
    (a) Designation.--
        (1) In general.--The President shall designate a country as a 
    Destination of Diversion Concern if the President determines that 
    the government of the country allows substantial diversion of 
    goods, services, or technologies described in section 302(b) 
    through the country to Iranian end-users or Iranian intermediaries.
        (2) Determination of substantial.--For purposes of paragraph 
    (1), the President shall determine whether the government of a 
    country allows substantial diversion of goods, services, or 
    technologies described in section 302(b) through the country to 
    Iranian end-users or Iranian intermediaries based on criteria that 
    include--
            (A) the volume of such goods, services, and technologies 
        that are diverted through the country to such end-users or 
        intermediaries;
            (B) the inadequacy of the export controls of the country;
            (C) the unwillingness or demonstrated inability of the 
        government of the country to control the diversion of such 
        goods, services, and technologies to such end-users or 
        intermediaries; and
            (D) the unwillingness or inability of the government of the 
        country to cooperate with the United States in efforts to 
        interdict the diversion of such goods, services, or 
        technologies to such end-users or intermediaries.
    (b) Report on Designation.--Upon designating a country as a 
Destination of Diversion Concern under subsection (a), the President 
shall submit to the appropriate congressional committees a report--
        (1) notifying those committees of the designation of the 
    country; and
        (2) containing a list of the goods, services, and technologies 
    described in section 302(b) that the President determines are 
    diverted through the country to Iranian end-users or Iranian 
    intermediaries.
    (c) Licensing Requirement.--Not later than 45 days after submitting 
a report required by subsection (b) with respect to a country 
designated as a Destination of Diversion Concern under subsection (a), 
the President shall require a license under the Export Administration 
Regulations or the International Traffic in Arms Regulations (whichever 
is applicable) to export to that country a good, service, or technology 
on the list required under subsection (b)(2), with the presumption that 
any application for such a license will be denied.
    (d) Delay of Imposition of Licensing Requirement.--
        (1) In general.--The President may delay the imposition of the 
    licensing requirement under subsection (c) with respect to a 
    country designated as a Destination of Diversion Concern under 
    subsection (a) for a 12-month period if the President--
            (A) determines that the government of the country is taking 
        steps--
                (i) to institute an export control system or strengthen 
            the export control system of the country;
                (ii) to interdict the diversion of goods, services, or 
            technologies described in section 302(b) through the 
            country to Iranian end-users or Iranian intermediaries; and
                (iii) to comply with and enforce United Nations 
            Security Council Resolutions 1696 (2006), 1737 (2006), 1747 
            (2007), 1803 (2008), and 1929 (2010), and any other 
            resolution that is agreed to by the Security Council and 
            imposes sanctions with respect to Iran;
            (B) determines that it is appropriate to carry out 
        government-to-government activities to strengthen the export 
        control system of the country; and
            (C) submits to the appropriate congressional committees a 
        report describing the steps specified in subparagraph (A) being 
        taken by the government of the country.
        (2) Additional 12-month periods.--The President may delay the 
    imposition of the licensing requirement under subsection (c) with 
    respect to a country designated as a Destination of Diversion 
    Concern under subsection (a) for additional 12-month periods after 
    the 12-month period referred to in paragraph (1) if the President, 
    for each such 12-month period--
            (A) makes the determinations described in subparagraphs (A) 
        and (B) of paragraph (1) with respect to the country; and
            (B) submits to the appropriate congressional committees an 
        updated version of the report required by subparagraph (C) of 
        paragraph (1).
        (3) Strengthening export control systems.--If the President 
    determines under paragraph (1)(B) that is it appropriate to carry 
    out government-to-government activities to strengthen the export 
    control system of a country designated as a Destination of 
    Diversion Concern under subsection (a), the United States shall 
    initiate government-to-government activities that may include--
            (A) cooperation by agencies and departments of the United 
        States with counterpart agencies and departments in the 
        country--
                (i) to develop or strengthen the export control system 
            of the country;
                (ii) to strengthen cooperation among agencies of the 
            country and with the United States and facilitate 
            enforcement of the export control system of the country; 
            and
                (iii) to promote information and data exchanges among 
            agencies of the country and with the United States;
            (B) training officials of the country to strengthen the 
        export control systems of the country--
                (i) to facilitate legitimate trade in goods, services, 
            and technologies; and
                (ii) to 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 articles; and
            (C) encouraging the government of the country to 
        participate in the Proliferation Security Initiative, such as 
        by entering into a ship boarding agreement pursuant to the 
        Initiative.
    (e) Termination of Designation.--The designation of a country as a 
Destination of Diversion Concern under subsection (a) shall terminate 
on the date on which the President determines, and certifies to the 
appropriate congressional committees, that the country has adequately 
strengthened the export control system of the country to prevent the 
diversion of goods, services, and technologies described in section 
302(b) to Iranian end-users or Iranian intermediaries.
    (f) Form of Reports.--A report required by subsection (b) or (d) 
may be submitted in classified form.
    SEC. 304. REPORT ON EXPANDING DIVERSION CONCERN SYSTEM TO ADDRESS 
      THE DIVERSION OF UNITED STATES ORIGIN GOODS, SERVICES, AND 
      TECHNOLOGIES TO CERTAIN COUNTRIES OTHER THAN IRAN.
    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the President shall submit to the appropriate 
congressional committees a report that--
        (1) identifies any country that the President determines is 
    allowing the diversion, in violation of United States law, of items 
    on the Commerce Control List or services related to those items, or 
    defense articles or defense services on the United States Munitions 
    List, that originated in the United States to another country if 
    such other country--
            (A) is seeking to obtain nuclear, biological, or chemical 
        weapons, or ballistic missiles; 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 Diversion Concern to include countries identified 
    under paragraph (1).
    (b) Form.--The report required by subsection (a) may be submitted 
in classified form.
    SEC. 305. ENFORCEMENT AUTHORITY.
    The Secretary of Commerce may designate any employee of the Office 
of Export Enforcement of the Department of Commerce to conduct 
activities specified in clauses (i), (ii), and (iii) of section 
12(a)(3)(B) of the Export Administration Act of 1979 (50 U.S.C. App. 
2411(a)(3)(B)) when the employee is carrying out activities to 
enforce--
        (1) the provisions of the Export Administration Act of 1979 (50 
    U.S.C. App. 2401 et seq.) (as in effect pursuant to the 
    International Emergency Economic Powers Act (50 U.S.C. 1701 et 
    seq.));
        (2) the provisions of this title, or any other provision of law 
    relating to export controls, with respect to which the Secretary of 
    Commerce has enforcement responsibility; or
        (3) any license, order, or regulation issued under--
            (A) the Export Administration Act of 1979 (50 U.S.C. App. 
        2401 et seq.) (as in effect pursuant to the International 
        Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)); or
            (B) a provision of law referred to in paragraph (2).

                      TITLE IV--GENERAL PROVISIONS

    SEC. 401. GENERAL PROVISIONS.
    (a) Sunset.--The provisions of this Act (other than sections 105 
and 305 and the amendments made by sections 102, 107, 109, and 205) 
shall terminate, and section 13(c)(1)(B) of the Investment Company Act 
of 1940, as added by section 203(a), shall cease to be effective, 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 (as 
    defined in section 301) 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.
    (b) Presidential Waivers.--
        (1) In general.--The President may waive the application of 
    sanctions under section 103(b), the requirement to impose or 
    maintain sanctions with respect to a person under section 105(a), 
    the requirement to include a person on the list required by section 
    105(b), the application of the prohibition under section 106(a), or 
    the imposition of the licensing requirement under section 303(c) 
    with respect to a country designated as a Destination of Diversion 
    Concern under section 303(a), if the President determines that such 
    a waiver is in the national interest of the United States.
        (2) Reports.--
            (A) In general.--If the President waives the application of 
        a provision pursuant to paragraph (1), the President shall 
        submit to the appropriate congressional committees a report 
        describing the reasons for the waiver.
            (B) Special rule for report on waiving imposition of 
        licensing requirement under section 303(c).--In any case in 
        which the President waives, pursuant to paragraph (1), the 
        imposition of the licensing requirement under section 303(c) 
        with respect to a country designated as a Destination of 
        Diversion Concern under section 303(a), the President shall 
        include in the report required by subparagraph (A) of this 
        paragraph an assessment of whether the government of the 
        country is taking the steps described in subparagraph (A) of 
        section 303(d)(1).
    (c) Authorizations of Appropriations.--
        (1) Authorization of appropriations for the department of state 
    and the department of the treasury.--There are authorized to be 
    appropriated to the Secretary of State and to the Secretary of the 
    Treasury such sums as may be necessary to implement the provisions 
    of, and amendments made by, titles I and III of this Act.
        (2) Authorization of appropriations for the department of 
    commerce.--There are authorized to be appropriated to the Secretary 
    of Commerce such sums as may be necessary to carry out title III.
    SEC. 402. DETERMINATION OF BUDGETARY EFFECTS.
    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, jointly submitted for printing in the 
Congressional Record by the Chairmen of the House and Senate Budget 
Committees, provided that such statement has been submitted prior to 
the vote on passage in the House acting first on this conference report 
or amendment between the Houses.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.