[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2194 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2194

   To amend the Iran Sanctions Act of 1996 to enhance United States 
diplomatic efforts with respect to Iran by expanding economic sanctions 
                             against Iran.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 30, 2009

Mr. Berman (for himself, Ms. Ros-Lehtinen, Mr. Ackerman, Mr. Burton of 
Indiana, Mr. Sherman, Mr. Royce, Mr. Andrews, and Mr. Kirk) introduced 
  the following bill; which was referred to the Committee on Foreign 
   Affairs, and in addition to the Committees on Financial Services, 
Oversight and Government Reform, and Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
   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.

    This Act may be cited as the ``Iran Refined Petroleum Sanctions Act 
of 2009''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress finds the following:
            (1) The illicit nuclear activities of the Government of 
        Iran--combined with its development of unconventional weapons 
        and ballistic missiles, and support for international 
        terrorism--represent a serious threat to the security of the 
        United States and U.S. allies in Europe, the Middle East, and 
        around the world.
            (2) The United States and other responsible nations 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 unlawful nuclear activities, and, as 
        a result, the United Nations Security Council has adopted a 
        range of sanctions designed to encourage the Government of Iran 
        to cease those activities and comply with its obligations under 
        the Treaty on the Non-Proliferation of Nuclear Weapons 
        (commonly known as the ``Nuclear Non-Proliferation Treaty'').
            (4) As a presidential candidate, then-Senator Obama stated 
        that additional sanctions, especially those targeting Iran's 
        dependence on imported refined petroleum, may help to persuade 
        the Government of Iran to abandon its illicit nuclear 
        activities.
            (5) On October 7, 2008, then-Senator Obama stated, ``Iran 
        right now imports gasoline, even though it's an oil producer, 
        because its oil infrastructure has broken down. If we can 
        prevent them from importing the gasoline that they need and the 
        refined petroleum products, that starts changing their cost-
        benefit analysis. That starts putting the squeeze on them.''.
            (6) On June 4, 2008, then-Senator Obama stated, ``We should 
        work with Europe, Japan, and the Gulf states to find every 
        avenue outside the U.N. to isolate the Iranian regime--from 
        cutting off loan guarantees and expanding financial sanctions, 
        to banning the export of refined petroleum to Iran.''.
            (7) Major European allies, including the United Kingdom, 
        France, and Germany, have advocated that sanctions be 
        significantly toughened 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.
            (8) The serious and urgent nature of the threat from Iran 
        demands that the United States work together with U.S. allies 
        to do everything possible--diplomatically, politically, and 
        economically--to prevent Iran from acquiring a nuclear weapons 
        capability.
    (b) Sense of Congress.--It is the sense of the Congress that--
            (1) international diplomatic efforts to address Iran's 
        illicit nuclear efforts, unconventional and ballistic missile 
        development programs, and support for international terrorism 
        are more likely to be effective if the President is empowered 
        with the explicit authority to impose additional sanctions on 
        the Government of Iran;
            (2) the concerns of the United States regarding Iran are 
        strictly the result of the actions of the Government of Iran; 
        and
            (3) 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.
    (c) Statement of Policy.--It should be the policy of the United 
States to--
            (1) support international diplomatic efforts to end Iran's 
        uranium enrichment program and its nuclear weapons program;
            (2) encourage foreign governments to direct state-owned 
        entities to cease all investment in, and support of, Iran's 
        energy sector and all exports of refined petroleum products to 
        Iran;
            (3) encourage foreign governments to require private 
        entities based in their territories to cease all investment in, 
        and support of, Iran's energy sector and all exports of refined 
        petroleum products to Iran;
            (4) impose sanctions on the Central Bank of Iran and any 
        other Iranian bank or financial institution engaged in 
        proliferation activities or support of terrorist groups; and
            (5) work with the allies of the United States to take 
        appropriate measures to protect the international financial 
        system from deceptive and illicit practices by Iranian banks 
        and financial institutions involved in proliferation activities 
        or support of terrorist groups.

SEC. 3. AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996.

    (a) Expansion of Sanctions.--Section 5(a) of the Iran Sanctions Act 
of 1996 (50 U.S.C. 1701 note) is amended to read as follows:
    ``(a) Sanctions With Respect to the Development of Petroleum 
Resources of Iran and Exportation of Refined Petroleum to Iran.--
            ``(1) Development of petroleum resources of iran.--
                    ``(A) Investment.--Except as provided in subsection 
                (f), the President shall impose 2 or more of the 
                sanctions described in paragraphs (1) through (6) of 
                section 6(a) if the President determines that a person 
                has, with actual knowledge, on or after the date of the 
                enactment of this Act, made an investment of 
                $20,000,000 or more (or any combination of investments 
                of at least $5,000,000 each, which in the aggregate 
                equals or exceeds $20,000,000 in any 12-month period), 
                that directly and significantly contributed to the 
                enhancement of Iran's ability to develop petroleum 
                resources of Iran.
                    ``(B) Production of refined petroleum resources.--
                Except as provided in subsection (f), the President 
                shall impose the sanctions described in section 6(b) 
                (in addition to any sanctions imposed under 
                subparagraph (A)) if the President determines that a 
                person has, with actual knowledge, on or after the date 
                of the enactment of the Iran Refined Petroleum 
                Sanctions Act of 2009, sold, leased, or provided to 
                Iran any goods, services, technology, information, or 
                support that would allow Iran to maintain or expand its 
                domestic production of refined petroleum resources, 
                including any assistance in refinery construction, 
                modernization, or repair.
            ``(2) Exportation of refined petroleum resources to iran.--
        Except as provided in subsection (f), the President shall 
        impose the sanctions described in section 6(b) if the President 
        determines that a person has, with actual knowledge, on or 
        after the date of the enactment of the Iran Refined Petroleum 
        Sanctions Act of 2009, provided Iran with refined petroleum 
        resources or engaged in any activity that could contribute to 
        the enhancement of Iran's ability to import refined petroleum 
        resources, including--
                    ``(A) providing ships or shipping services to 
                deliver refined petroleum resources to Iran;
                    ``(B) underwriting or otherwise providing insurance 
                or reinsurance for such activity; or
                    ``(C) financing or brokering such activity.''.
    (b) Description of Sanctions.--Section 6 of such Act is amended--
            (1) by striking ``The sanctions to be imposed on a 
        sanctioned person under section 5 are as follows:'' and 
        inserting the following:
    ``(a) In General.--The sanctions to be imposed on a sanctioned 
person under subsections (a)(1)(A) and (b) of section 5 are as 
follows:''; and
            (2) by adding at the end the following:
    ``(b) Additional Sanctions.--The sanctions to be imposed on a 
sanctioned person under paragraphs (1)(B) and (2) of section 5(a) are 
as follows:
            ``(1) Foreign exchange.--The President shall, under such 
        regulations as the President may prescribe, prohibit any 
        transactions in foreign exchange by the sanctioned person.
            ``(2) Banking transactions.--The President shall, under 
        such regulations as the President may prescribe, prohibit any 
        transfers of credit or payments between, by, through, or to any 
        financial institution, to the extent that such transfers or 
        payments involve any interest of the sanctioned person.
            ``(3) Property transactions.--The President shall, under 
        such regulations as the President may prescribe, prohibit any 
        acquisition, holding, withholding, use, transfer, withdrawal, 
        transportation, importation, or exportation of, dealing in, or 
        exercising any right, power, or privilege with respect to, or 
        transactions involving, any property in which the sanctioned 
        person has any interest by any person, or with respect to any 
        property, subject to the jurisdiction of the United States.''.
    (c) Presidential Waiver.--Section 9(c)(2) of such Act is amended by 
amending subparagraph (C) to read as follows:
                    ``(C) an estimate of the significance of the 
                provision of the items described in paragraph (1) or 
                (2) of section 5(a) or section 5(b) to Iran's ability 
                to develop its petroleum resources, to maintain or 
                expand its domestic production of refined petroleum 
                resources, to import refined petroleum resources, or to 
                develop its weapons of mass destruction or other 
                military capabilities (as the case may be); and''.
    (d) Strengthening of Waiver Authority and Sanctions 
Implementation.--
            (1) Investigations.--Section 4(f) of the Iran Sanctions Act 
        of 1996 (50 U.S.C. 1701 note) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``should initiate'' and 
                        inserting ``shall immediately initiate'';
                            (ii) by inserting ``or 5(b)'' after 
                        ``section 5(a)''; and
                            (iii) by striking ``as described in such 
                        section'' and inserting ``as described in 
                        section 5(a)(1) or other activity described in 
                        section 5(a)(2) or 5(b) (as the case may be)'';
                    (B) in paragraph (2), by striking ``, pursuant to 
                section 5(a), if a person has engaged in investment 
                activity in Iran as described in such section'' and 
                inserting ``, pursuant to section 5(a) or (b) (as the 
                case may be), if a person has engaged in investment 
                activity in Iran as described in section 5(a)(1) or 
                other activity described in section 5(a)(2) or 5(b) (as 
                the case may be)''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) Definition of credible information.--For the purposes 
        of this subsection, the term `credible information' means 
        public or classified information or reporting supported by 
        other substantiating evidence.''.
            (2) Exception for proliferation security initiative.--
        Section 5(f) of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 
        note) is amended--
                    (A) in paragraph (6), by striking ``or'' at the 
                end;
                    (B) in paragraph (7), by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(8) if the President determines in writing that the 
        person to which the sanctions would otherwise be applied is--
                    ``(A) a citizen or resident of a country that is a 
                participant in the Proliferation Security Initiative; 
                or
                    ``(B) a foreign person that is organized under the 
                laws of a country described in subparagraph (A) and is 
                a subsidiary of a United States person.''.
            (3) General waiver authority.--Section 9(c)(1) of the Iran 
        Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by 
        striking ``important to the national interest of the United 
        States'' and inserting ``vital to the national security 
        interest of the United States''.
            (4) Rule of construction.--The amendments made by this 
        subsection shall not be construed to affect any exercise of the 
        authority of section 4(f) or 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.
    (e) Reports on United States Efforts To Curtail Certain Business 
Transactions Relating to Iran.--Section 10 of such Act is amended by 
adding at the end the following:
    ``(d) Reports on Certain Business Transactions Relating to Iran.--
            ``(1) In general.--Not later than 90 days after the date of 
        the enactment of the Iran Refined Petroleum Sanctions Act of 
        2009, and every 6 months thereafter, the President shall submit 
        a report to the appropriate congressional committees regarding 
        any person who has--
                    ``(A) provided Iran with refined petroleum 
                resources;
                    ``(B) sold, leased, or provided to Iran any goods, 
                services, or technology that would allow Iran to 
                maintain or expand its domestic production of refined 
                petroleum resources; or
                    ``(C) engaged in any activity that could contribute 
                to the enhancement of Iran's ability to import refined 
                petroleum resources.
            ``(2) Description.--For each activity set forth in 
        subparagraphs (A) through (C) of paragraph (1), the President 
        shall provide a complete and detailed description of such 
        activity, including--
                    ``(A) the date or dates of such activity;
                    ``(B) the name of any persons who participated or 
                invested in or facilitated such activity;
                    ``(C) the United States domiciliary of the persons 
                referred to in subparagraph (B);
                    ``(D) any Federal Government contracts to which the 
                persons referred to in subparagraph (B) are parties; 
                and
                    ``(E) the steps taken by the United States to 
                respond to such activity.
            ``(3) Form of reports; publication.--The reports required 
        under this subsection shall be--
                    ``(A) submitted in unclassified form, but may 
                contain a classified annex; and
                    ``(B) published in the Federal Register.''.
    (f) Clarification and Expansion of Definitions.--Section 14 of such 
Act is amended--
            (1) in paragraph (13)(B)--
                    (A) by inserting ``financial institution, insurer, 
                underwriter, guarantor, any other business 
                organization, including any foreign subsidiary, parent, 
                or affiliate of such a business organization,'' after 
                ``trust,''; and
                    (B) by inserting ``, such as an export credit 
                agency'' before the semicolon at the end; and
            (2) by amending paragraph (14) to read as follows:
            ``(14) Petroleum resources.--
                    ``(A) In general.--The term `petroleum resources' 
                includes petroleum, petroleum by-products, oil or 
                liquefied natural gas, oil or liquefied natural gas 
                tankers, and products used to construct or maintain 
                pipelines used to transport oil or compressed or 
                liquefied natural gas.
                    ``(B) Petroleum by-products.--The term `petroleum 
                by-products' means gasoline, kerosene, distillates, 
                propane or butane gas, diesel fuel, residual fuel oil, 
                and other goods classified in headings 2709 and 2710 of 
                the Harmonized Tariff Schedule of the United States.''.
    (g) Conforming Amendments.--
            (1) Multilateral regime.--Section 4 of such Act is 
        amended--
                    (A) in subsection (b)(2), by striking ``(in 
                addition to that provided in subsection (d))''; and
                    (B) by striking subsection (d) and redesignating 
                subsections (e) and (f) as subsections (d) and (e), 
                respectively.
            (2) Impositions of sanctions.--Section 5(b) of such Act is 
        amended by striking ``section 6'' and inserting ``section 
        6(a)''.
                                 <all>