[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)''.
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