[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6296 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6296

  To enhance United States diplomatic efforts with respect to Iran by 
  imposing additional economic sanctions against Iran, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 2010

Mr. Sherman (for himself, Mr. Royce, Mr. Klein of Florida, Mr. Deutch, 
Mr. Engel, Mr. Poe of Texas, Mr. Sires, Mrs. Maloney, Ms. Berkley, and 
   Mr. Gene Green of Texas) introduced the following bill; which was 
 referred to the Committee on Foreign Affairs, and in addition to the 
 Committees on Ways and Means, the Judiciary, Financial Services, and 
   Oversight and Government Reform, 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 enhance United States diplomatic efforts with respect to Iran by 
  imposing additional economic sanctions against Iran, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Stop Iran's 
Nuclear Weapons Program Act of 2010''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings.
          TITLE I--ADDITIONAL BILATERAL SANCTIONS AGAINST IRAN

Sec. 101. Application to subsidiaries.
Sec. 102. Additional export sanctions against Iran.
Sec. 103. Temporary increase in fee for certain consular services.
                     TITLE II--ADDITIONAL MEASURES

Sec. 201. Elimination of certain tax incentives for oil companies 
                            investing in Iran.
Sec. 202. Expansion of sanctions under the Iran Sanctions Act of 1996.
  TITLE III--APPLICATION OF SANCTIONS AGAINST AFFILIATES OF THE IRAN 
                       REVOLUTIONARY GUARD CORPS

Sec. 301. Sanctions against affiliates of the Iran Revolutionary Guard 
                            Corps.
Sec. 302. Measures against foreign persons or entities supporting the 
                            Iran Revolutionary Guard Corps.
Sec. 303. Special measures against foreign governments supporting the 
                            Iran Revolutionary Guards Corps.
Sec. 304. Definitions.
  TITLE IV--OPPOSITION OF TRANSFER TO IRAN, NORTH KOREA, AND SYRIA OF 
GOODS, SERVICES, OR TECHNOLOGY RELEVANT TO THEIR CAPABILITY TO EXTRACT 
                          OR MILL URANIUM ORE

Sec. 401. Statement of policy.
Sec. 402. Reporting requirements under the Iran, North Korea, and Syria 
                            Nonproliferation Act.
Sec. 403. Conforming amendments.
 TITLE V--ROLLOVER OF GAIN FROM DIVESTING CERTAIN QUALIFIED SECURITIES 
OF BUSINESS ENTITIES ENGAGED IN DISCOURAGED ACTIVITIES IN IRAN OR SUDAN

Sec. 501. Rollover of gain from divesting certain qualified securities 
                            of business entities engaged in discouraged 
                            activities in Iran or Sudan.
    TITLE VI--PROHIBITION ON UNITED STATES GOVERNMENT CONTRACTS AND 
          INVESTMENT FOR COMPANIES CONDUCTING BUSINESS IN IRAN

Sec. 601. Prohibition on United States Government contracts.
Sec. 602. Authority of State and local governments to prohibit 
                            contracts.
Sec. 603. United States pension plans.
Sec. 604. Sunset.
Sec. 605. Definitions.
     TITLE VII--TERMINATION OF LOAN DISBURSEMENTS TO IRAN FROM THE 
         INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

Sec. 701. Termination of loan disbursements to Iran from the 
                            International Bank for Reconstruction and 
                            Development.
Sec. 702. United States opposition to new country assistance strategy 
                            for Iran.
Sec. 703. Sunset.
Sec. 704. Rule of interpretation.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) On July 1, 2010, President Obama signed into law the 
        Comprehensive Iran Sanctions, Accountability, and Divestment 
        Act of 2010 (Public Law 111-195).
            (2) In the wake of this new United States law and United 
        Nations Security Council Resolution 1929 on Iran, the European 
        Union, Japan, South Korea, Australia, and other friends and 
        allies of the United States also imposed significant economic 
        sanctions on Iran.
            (3) The latest report by the Director General of the 
        International Atomic Energy Agency to its Board of Directors, 
        issued on September 6, 2010, notes that Iran has continued its 
        record of insufficient cooperation with the agency, has 
        continued to fail to answer questions posed by the agency 
        regarding potential non-civilian nuclear activities by Iran, 
        and has failed to suspend sensitive nuclear activities, as 
        required by successive United Nations Security Council 
        resolutions.
            (4) While the United States and several like-minded 
        countries have worked individually and in concert to increase 
        the diplomatic and economic isolation of Iran to convince the 
        Government of Iran to abandon sensitive nuclear activities, the 
        United States and like-minded countries must do more in the 
        coming months to achieve that goal.

          TITLE I--ADDITIONAL BILATERAL SANCTIONS AGAINST IRAN

SEC. 101. APPLICATION TO SUBSIDIARIES.

    (a) In General.--Except as provided in subsection (b), in any case 
in which an entity engages in an act outside the United States which, 
if committed in the United States or by a United States person, would 
violate Executive Order No. 12959 of May 6, 1995, Executive Order No. 
13059 of August 19, 1997, section 103 of the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111-
195; 22 U.S.C. 8512), or any other prohibition on transactions with 
respect to Iran that is imposed under the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.), the parent company of 
that entity shall be subject to the penalties for such violation to the 
same extent as if the parent company had engaged in that act.
    (b) Exception.--Subsection (a) shall not apply to any act carried 
out under a contract or other obligation of any entity if--
            (1) the contract or obligation existed on the date of the 
        enactment of this Act, unless such contract or obligation is 
        extended in time in any manner or expanded to cover additional 
        activities beyond the terms of the contract or other obligation 
        as it existed on the date of the enactment of this Act; or
            (2) the parent company acquired that entity not knowing, 
        and not having reason to know, that such contract or other 
        obligation existed, unless such contract or other obligation is 
        extended in time in any manner or expanded to cover additional 
        activities beyond the terms of such contract or other 
        obligation as it existed at the time of such acquisition.
    (c) Construction.--Nothing in this section shall be construed as 
prohibiting the issuance of regulations, orders, directives, or 
licenses under the Executive orders described in subsection (a) or as 
being inconsistent with the authorities under the International 
Emergency Economic Powers Act.
    (d) Definitions.--In this section--
            (1) the term ``entity'' means a partnership, association, 
        trust, joint venture, corporation, or other organization;
            (2) an entity is a ``parent company'' of another entity if 
        it controls, directly or indirectly, that other entity and is a 
        United States person; and
            (3) the term ``United States person'' means any United 
        States citizen, any alien lawfully admitted for permanent 
        residence to the United States, any entity organized under the 
        laws of the United States, or any person in the United States.

SEC. 102. ADDITIONAL EXPORT SANCTIONS AGAINST IRAN.

    Notwithstanding section 103(b)(2)(B)(iv) of the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111-
195; 22 U.S.C. 8512(b)(2)(B)(iv)) or any other provision of law, 
effective on the date of the enactment of this Act--
            (1) licenses to export or reexport goods, services, or 
        technology relating to civil aviation that are otherwise 
        authorized by section 560.528 of title 31, Code of Federal 
        Regulations, as in effect on the date of the enactment of this 
        Act, may not be issued, and any such license issued before such 
        date of enactment is no longer valid; and
            (2) goods, services, or technology described in paragraph 
        (1) may not be exported or reexported.

SEC. 103. TEMPORARY INCREASE IN FEE FOR CERTAIN CONSULAR SERVICES.

    (a) Increase in Fee.--Notwithstanding any other provision of law, 
not later than 120 days after the date of the enactment of this Act, 
the Secretary of State shall increase by $1.00 the fee or surcharge 
assessed under section 140(a) of the Foreign Relations Authorization 
Act, Fiscal Years 1994 and 1995 (Public Law 103-236; 8 U.S.C. 1351 
note) for processing machine readable nonimmigrant visas and machine 
readable combined border crossing identification cards and nonimmigrant 
visas.
    (b) Deposit of Amounts.--Fees collected under the authority of 
subsection (a) shall be deposited in the Treasury.
    (c) Duration of Increase.--The fee increase authorized under 
subsection (a) shall terminate on the date that is one year after the 
date on which such fee is first collected.

                     TITLE II--ADDITIONAL MEASURES

SEC. 201. ELIMINATION OF CERTAIN TAX INCENTIVES FOR OIL COMPANIES 
              INVESTING IN IRAN.

    (a) In General.--Subsection (h) of section 167 of the Internal 
Revenue Code of 1986 (relating to amortization of geological and 
geophysical expenditures) is amended by adding at the end the following 
new paragraph:
            ``(6) Denial when iran sanctions in effect.--
                    ``(A) In general.--If sanctions are imposed under 
                section 5(a) of the Iran Sanctions Act of 1996 
                (relating to sanctions with respect to the development 
                of petroleum resources of Iran) on any member of an 
                expanded affiliated group the common parent of which is 
                a foreign corporation, paragraph (1) shall not apply to 
                any expense paid or incurred by any such member in any 
                period during which the sanctions are in effect.
                    ``(B) Expanded affiliated group.--For purposes of 
                subparagraph (A), the term `expanded affiliated group' 
                means an affiliated group as defined in section 
                1504(a), determined--
                            ``(i) by substituting `more than 50 
                        percent' for `at least 80 percent' each place 
                        it appears, and
                            ``(ii) without regard to paragraphs (2), 
                        (3), and (4) of section 1504(b).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to expenses paid or incurred on or after January 1, 2010.

SEC. 202. EXPANSION OF SANCTIONS UNDER THE IRAN SANCTIONS ACT OF 1996.

    (a) In General.--Section 5(a) of the Iran Sanctions Act of 1996 
(Public Law 104-172; 50 U.S.C. 1701 note) is amended--
            (1) in the heading, by inserting at the end before the 
        period the following: ``, etc''; and
            (2) by adding at the end the following new paragraphs:
            ``(4) Other actions relating to 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 
                Stop Iran's Nuclear Weapons Program Act of 2010--
                            ``(i) enters into a long-term agreement to 
                        purchase petroleum resources from Iran;
                            ``(ii) enters into an agreement to provide 
                        payment for future delivery of petroleum 
                        resources from Iran; or
                            ``(iii) enters into an agreement with the 
                        National Iranian Oil Company, any of its 
                        affiliates, or any entity owned or controlled 
                        by the Government of Iran to provide for the 
                        development of petroleum resources wherever 
                        located.
                    ``(B) Definitions.--
                            ``(i) Long-term agreement.--In subparagraph 
                        (A)(i), the term `long-term agreement' means a 
                        contract or other agreement that provides for 
                        delivery of petroleum resources beginning more 
                        than 1 year after the date of entry into the 
                        contract or agreement (as the case may be).
                            ``(ii) Future delivery.--In subparagraph 
                        (A)(ii), the term `future delivery' means 
                        delivery that occurs more than 180 days after 
                        payment is effected under the agreement.
            ``(5) Purchase, subscription to, or facilitation of the 
        issuance of iranian sovereign debt.--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 Stop Iran's Nuclear Weapons 
        Program Act of 2010, purchases, subscribes to, or facilitates 
        the issuance of--
                    ``(A) Iranian sovereign debt, including Iranian 
                governmental bonds; or
                    ``(B) debt of any entity owned or controlled by the 
                Iranian Government, including bonds''.
    (b) Effective Date.--The amendments made by this section shall--
            (1) take effect on the date of the enactment of this Act; 
        and
            (2) apply with respect to an investment or activity 
        described in subsection (a) 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.

  TITLE III--APPLICATION OF SANCTIONS AGAINST AFFILIATES OF THE IRAN 
                       REVOLUTIONARY GUARD CORPS

SEC. 301. SANCTIONS AGAINST AFFILIATES OF THE IRAN REVOLUTIONARY GUARD 
              CORPS.

    (a) Publication of Names of Affiliates in Federal Register.--Not 
later than 90 days after the date of the enactment of this Act, and as 
appropriate thereafter, the President shall publish in the Federal 
Register the name of each foreign person or foreign entity for which 
there is credible information indicating that the person or entity is 
as an agent, alias, front, instrumentality, official, or affiliate of 
the Iran Revolutionary Guard Corps or is an individual serving as a 
representative of the Iran Revolutionary Guard Corps.
    (b) Application of Existing Sanctions Against Iran to Affiliates.--
The President shall designate each foreign person or foreign entity 
identified in the Federal Register pursuant to subsection (a) for 
inclusion in the Annex to Executive Order 13382 (70 Fed. Reg. 38567; 
relating to blocking property of weapons of mass destruction 
proliferators and their supporters) and shall apply to each such 
foreign person or foreign entity all applicable sanctions of the United 
States contained in Executive Order 13382.
    (c) Sanctions Under Executive Order 13438.--
            (1) Publication of names of affiliates in federal 
        register.--Not later than 90 days after the date of the 
        enactment of this Act, and as appropriate thereafter, the 
        President shall publish in the Federal Register the name of 
        each foreign person or foreign entity--
                    (A) for which there is credible information 
                indicating that the person or entity is as an agent, 
                alias, front, instrumentality, official, or affiliate 
                of the Iran Revolutionary Guard Corps or is an 
                individual serving as a representative of the Iran 
                Revolutionary Guard Corps; and
                    (B) for which there is credible evidence that the 
                foreign person or foreign entity--
                            (i) has committed, or poses a significant 
                        risk of committing, an act or acts of violence 
                        that have the purpose or effect of--
                                    (I) threatening the peace or 
                                stability of Iraq or the Government of 
                                Iraq; or
                                    (II) undermining efforts to promote 
                                economic reconstruction and political 
                                reform in Iraq or to provide 
                                humanitarian assistance to the Iraqi 
                                people;
                            (ii) has materially assisted, sponsored, or 
                        provided financial, material, logistical, or 
                        technical support for, or goods or services in 
                        support of, such an act or acts of violence or 
                        any person whose property and interests in 
                        property are blocked pursuant to Executive 
                        Order 13438; or
                            (iii) is owned or controlled by, or has 
                        acted or purported to act for or on behalf of, 
                        directly or indirectly, any person whose 
                        property and interests in property are blocked 
                        pursuant to Executive Order 13438.
            (2) Application of sanctions under executive order 13438.--
        The President shall apply to each foreign person or foreign 
        entity identified in the Federal Register pursuant to paragraph 
        (1) all applicable sanctions and measures of the United States 
        contained in Executive Order 13438 (72 Fed. Reg. 39719; 
        relating to blocking property of certain persons who threaten 
        stabilization efforts in Iraq).
    (d) Exclusion From United States.--The Secretary of State shall 
deny a visa to, and the Secretary of Homeland Security shall exclude 
from the United States, any alien who, on or after the date of the 
enactment of this Act, is a foreign person identified in the Federal 
Register pursuant to subsection (a) or (c).
    (e) Rule of Construction.--Nothing in this section shall be 
construed to remove any sanction of the United States in force against 
the Iran Revolutionary Guard Corps as of the date of the enactment of 
this Act by reason of the fact that the Iran Revolutionary Guard Corps 
is an entity of the Government of Iran.

SEC. 302. MEASURES AGAINST FOREIGN PERSONS OR ENTITIES SUPPORTING THE 
              IRAN REVOLUTIONARY GUARD CORPS.

    (a) Notification.--Whenever the President determines that there is 
credible information indicating that a foreign person or foreign 
entity, on or after the date of the enactment of this Act, knowingly--
            (1) provided material support to the Iran Revolutionary 
        Guard Corps or any affiliated foreign person or foreign entity 
        identified pursuant to section 301 (a) or (c), or
            (2) conducted any commercial transaction or financial 
        transaction with the Iran Revolutionary Guards Corps or any 
        affiliated foreign person or foreign entity identified pursuant 
        to section 301 (a) or (c),
the President shall submit to the appropriate congressional committees 
a notification that contains the name of the foreign person or foreign 
entity (as the case may be).
    (b) Form.--The President may submit the notification required under 
subsection (a) in classified form.
    (c) Executive Order 12938 Sanctions.--Not later than 60 days after 
the date on which the President provides notice to the appropriate 
congressional committees pursuant to subsection (a), the President 
shall apply to each foreign person or foreign entity identified in such 
notice, for such time as the President may determine, the measures set 
forth in section 4 of Executive Order 12938 (59 Fed. Reg. 59099; 
relating to proliferation of weapons of mass destruction) and shall 
terminate such measures in accordance with the provisions of such 
section.
    (d) IEEPA Sanctions.--The President may exercise the authorities 
the President has under section 203(a) of the International Emergency 
Economic Powers Act (50 U.S.C. 1702(a)) to impose additional sanctions 
on each foreign person or foreign entity identified pursuant to 
subsection (a) of this section, for such time as the President may 
determine, without regard to section 202 of that Act.
    (e) Waiver.--The President may waive the application of any measure 
described in subsection (c) with respect to a foreign person or foreign 
entity if the President--
            (1)(A) determines that the person or entity has ceased the 
        offending activity and has taken measures to prevent its 
        recurrence; or
            (B) determines that it is vital to the national security 
        interests of the United States to do so; and
            (2) submits to the appropriate congressional committees a 
        report that contains the reasons for the determination.

SEC. 303. SPECIAL MEASURES AGAINST FOREIGN GOVERNMENTS SUPPORTING THE 
              IRAN REVOLUTIONARY GUARDS CORPS.

    (a) Executive Order 12938 Sanctions.--With respect to any foreign 
entity identified pursuant to section 302(a) that is a foreign 
government, the President shall, in addition to applying to the entity 
the measures described in section 302(d), apply to the entity the 
measures set forth in section 5(b) of Executive Order 12938.
    (b) Waiver.--The President may waive the application of any measure 
described in subsection (a) with respect to a foreign entity if the 
President--
            (1)(A) determines that the entity has ceased the offending 
        activity and has taken measures to prevent its recurrence; or
            (B) determines that it is vital to the national security 
        interests of the United States to do so; and
            (2) submits to the appropriate congressional committees a 
        report that contains the reasons for the determination.

SEC. 304. DEFINITIONS.

    In this title:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Affairs of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
            (2) Foreign person.--The term ``foreign person'' has the 
        meaning given the term in section 14 of the Iran Sanctions Act 
        of 1996.
            (3) Iran revolutionary guard corps.--The term ``Iran 
        Revolutionary Guard Corps'' includes the Iran Revolutionary 
        Guard Corps-Qods Force.

  TITLE IV--OPPOSITION OF TRANSFER TO IRAN, NORTH KOREA, AND SYRIA OF 
GOODS, SERVICES, OR TECHNOLOGY RELEVANT TO THEIR CAPABILITY TO EXTRACT 
                          OR MILL URANIUM ORE

SEC. 401. STATEMENT OF POLICY.

    It shall be the policy of the United States--
            (1) to oppose the transfer to Iran, North Korea, and Syria 
        of goods, services, or technology relevant to their capability 
        to extract or mill uranium ore; and
            (2) to work with like-minded countries to impose 
        restrictions on such transfers internationally.

SEC. 402. REPORTING REQUIREMENTS UNDER THE IRAN, NORTH KOREA, AND SYRIA 
              NONPROLIFERATION ACT.

    Section 2(a) of the Iran, North Korea, and Syria Nonproliferation 
Act (50 U.S.C. 1701 note) is amended--
            (1) in paragraph (1), by redesignating subparagraphs (A) 
        through (E) as clauses (i) through (v), respectively;
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (3) in subparagraph (B), as redesignated--
                    (A) by striking ``paragraph (1)'' and inserting 
                ``subparagraph (A)''; and
                    (B) by striking the period at the end and inserting 
                ``; or'';
            (4) by striking all that precedes subparagraph (A), as 
        redesignated, and inserting the following:
    ``(a) Reports.--The President shall, at the times specified in 
subsection (b), submit to the Committee on Foreign Affairs of the House 
of Representatives and the Committee on Foreign Relations of the Senate 
a report identifying every foreign person with respect to whom there is 
credible information indicating that person--
            ``(1) on or after January 1, 1999, transferred to or 
        acquired from Iran, on or after January 1, 2005, transferred to 
        or acquired from Syria, or on or after January 1, 2006, 
        transferred to or acquired from North Korea--''; and
            (5) by adding at the end the following new paragraph:
            ``(2) on or after January 1, 2009, transferred to Iran, 
        Syria, or North Korea goods, services, or technology that could 
        assist efforts to extract or mill uranium ore within the 
        territory or control of Iran, North Korea, or Syria.''.

SEC. 403. CONFORMING AMENDMENTS.

    The Iran, North Korea, and Syria Nonproliferation Act (50 U.S.C. 
1701 note) is further amended by striking ``Committee on International 
Relations'' each place it appears and inserting ``Committee on Foreign 
Affairs''.

 TITLE V--ROLLOVER OF GAIN FROM DIVESTING CERTAIN QUALIFIED SECURITIES 
OF BUSINESS ENTITIES ENGAGED IN DISCOURAGED ACTIVITIES IN IRAN OR SUDAN

SEC. 501. ROLLOVER OF GAIN FROM DIVESTING CERTAIN QUALIFIED SECURITIES 
              OF BUSINESS ENTITIES ENGAGED IN DISCOURAGED ACTIVITIES IN 
              IRAN OR SUDAN.

    (a) In General.--Part III of subchapter O of chapter 1 of the 
Internal Revenue Code of 1986 (relating to common nontaxable exchanges) 
is amended by adding at the end the following new section:

``SEC. 1046. ROLLOVER OF GAIN FROM DIVESTING CERTAIN QUALIFIED 
              SECURITIES OF BUSINESS ENTITIES ENGAGED IN DISCOURAGED 
              ACTIVITIES IN IRAN OR SUDAN.

    ``(a) Nonrecognition of Gain.--
            ``(1) In general.--In the case of any sale of any qualified 
        security held by a taxpayer with respect to which such taxpayer 
        elects the application of this section, in any business entity 
        that is engaged in an Iran discouraged activity or a Sudan 
        discouraged activity, gain from such sale shall be recognized 
        only to the extent that the amount realized on such sale 
        exceeds--
                    ``(A) the cost of any qualified replacement 
                property purchased by the taxpayer during the 30-day 
                period beginning on the date of such sale, reduced by
                    ``(B) any portion of such cost previously taken 
                into account under this section.
            ``(2) Exception for ordinary income gain.--This section 
        shall not apply to any gain which is treated as ordinary income 
        for purposes of this title.
            ``(3) Exception where taxpayer owns controlling interest in 
        the business entity.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any sale if, immediately before such sale, the taxpayer 
                owns a controlling interest in the business entity that 
                is engaged in an Iran discouraged activity or a Sudan 
                discouraged activity.
                    ``(B) Controlling interest.--For purposes of 
                subparagraph (A), the term `controlling interest' means 
                direct or indirect ownership of at least 50 percent of 
                the total voting power and value of all classes of 
                stock of a corporation. For purposes of the preceding 
                sentence, the rules of paragraphs (1) and (5) of 
                section 267(c) shall apply.
                    ``(C) Aggregation rule.--For purposes of this 
                paragraph, all members of the same controlled group of 
                corporations (within the meaning of section 267(f)) and 
                all persons under common control (within the meaning of 
                section 52(b) but determined by treating an interest of 
                more than 50 percent as a controlling interest) shall 
                be treated as 1 person.
    ``(b) Definitions and Special Rules Relating to Securities and 
Replacement Property.--For purposes of this section--
            ``(1) Qualified security.--
                    ``(A) In general.--The term `qualified security' 
                means any security held by a taxpayer in any business 
                entity that is engaged in an Iran discouraged activity 
                or a Sudan discouraged activity.
                    ``(B) Exception.--Such term shall not include any 
                security purchased or otherwise acquired after the date 
                of the enactment of this section which, at the time of 
                such purchase or acquisition, was issued by a business 
                entity then engaged in an Iran discouraged activity or 
                a Sudan discouraged activity.
                    ``(C) Security defined.--The term `security' has 
                the meaning given such term by section 165(g)(2).
            ``(2) Qualified replacement property.--
                    ``(A) In general.--The term `qualified replacement 
                property' means any security of a business entity that, 
                on the date of purchase by the taxpayer--
                            ``(i) is not engaged in an Iran discouraged 
                        activity or a Sudan discouraged activity on 
                        such date,
                            ``(ii) is not a member of an expanded 
                        affiliated group, any member of which is 
                        engaged in an Iran discouraged activity or a 
                        Sudan discouraged activity on such date, and
                            ``(iii) meets the requirements of 
                        subparagraph (B).
                    ``(B) Replacement property.--Property meets the 
                requirements of this paragraph if, with respect to the 
                sale of any security--
                            ``(i) except as provided in clause (ii), in 
                        the case that the security is a share of stock 
                        in a corporation, the replacement property is a 
                        share of stock in a corporation,
                            ``(ii) in the case that the security is a 
                        share of stock of a regulated investment 
                        company, real estate investment trust, hedge 
                        fund, investment partnership, or similar 
                        business entity, the replacement property is a 
                        share of stock in a regulated investment 
                        company, real estate investment trust, hedge 
                        fund, investment partnership, or similar 
                        business entity,
                            ``(iii) in the case that the security is a 
                        right to subscribe for, or to receive, a share 
                        of stock in a corporation, the replacement 
                        property is a right to subscribe for, or to 
                        receive, a share of stock in a corporation, and
                            ``(iv) in the case that the security is a 
                        bond, debenture, note, or certificate, or other 
                        evidence of indebtedness issued by a 
                        corporation, with interest coupons or in 
                        registered form, the replacement property is a 
                        bond, debenture, note, or certificate, or other 
                        evidence of indebtedness issued by a 
                        corporation, with interest coupons or in 
                        registered form.
                    ``(C) Deemed investment if investing in entities 
                engaged in discouraged activities.--Any regulated 
                investment company, real estate investment trust, hedge 
                fund, investment partnership, or similar business 
                entity, which invests in the securities--
                            ``(i) issued by a business entity 
                        determined to be engaging in Iran discouraged 
                        activities or Sudan discouraged activities, or
                            ``(ii) issued by the government of Sudan or 
                        Iran or any agency thereof,
                shall be deemed to be a business entity engaging in 
                Iran discouraged activities or Sudan discouraged 
                activities.
                    ``(D) Business declaration of policy.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this section, in the case of 
                        a business entity described in clause (iii), a 
                        security in such business entity shall not be 
                        treated as qualified replacement property 
                        unless the business entity has made the 
                        following declaration: `It is our policy not to 
                        make investments in business entities which 
                        engage in Iran discouraged activities or Sudan 
                        discouraged activities as defined in section 
                        1046 of the Internal Revenue Code of 1986, and 
                        to use due diligence to avoid making such 
                        investments. It is our policy to divest on or 
                        before December 31, 2010, from business 
                        entities engaged in Iran discouraged activities 
                        and Sudan discouraged activities.'.
                            ``(ii) Not qualified security.--If a 
                        business entity described in clause (iii) has 
                        made the declaration specified in clause (i), 
                        then from the time of such declaration an 
                        interest in such business entity shall not be 
                        treated as a qualified security.
                            ``(iii) Business entity described.--A 
                        business entity described in this clause is a 
                        regulated investment company, real estate 
                        investment trust, hedge fund, investment 
                        partnership, or similar business entity.
                    ``(E) Expanded affiliated group.--The term 
                `expanded affiliated group' means an affiliated group 
                as defined in section 1504(a), determined--
                            ``(i) by substituting `more than 50 
                        percent' for `at least 80 percent' each place 
                        it appears, and
                            ``(ii) without regard to paragraphs (2) and 
                        (4) of section 1504(b).
                    ``(F) Basis adjustments.--If gain from any sale is 
                not recognized by reason of subsection (a), such gain 
                shall be applied to reduce (in the order acquired) the 
                basis for determining gain or loss of any qualified 
                replacement property which is purchased by the taxpayer 
                during the 30-day period described in subsection (a).
                    ``(G) Holding period.--For purposes of determining 
                the period for which the taxpayer has held qualified 
                replacement property the acquisition of which resulted 
                in the nonrecognition under subsection (a) of any part 
                of the gain realized on the sale of a qualified 
                security, there shall be included the period for which 
                such qualified security had been held by the taxpayer.
            ``(3) Special rule for securities of certain entities.--
                    ``(A) In general.--For any business entity 
                described in subparagraph (C), a security in such 
                business entity shall be treated as qualified 
                replacement property if the business entity has made 
                the following declaration: `It is our policy not to 
                make investments in any person having an investment in, 
                or carrying on a trade or business (within the meaning 
                of section 162) in or with, Iran and Sudan. This policy 
                may or may not include investments concerning the 
                provision of food, medicine, humanitarian services in 
                or to Iran or Sudan or investments concerning 
                marginalized areas of Sudan (as defined in section 2 of 
                the Sudan Accountability and Divestment Act of 2007 
                (121 Stat. 2518)).'.
                    ``(B) Not qualified security.--If a business entity 
                described in subparagraph (C) has made the declaration 
                specified in subparagraph (A), then from the time of 
                such declaration an interest in such business entity 
                shall not be treated as a qualified security.
                    ``(C) Business entity described.--A business entity 
                described in this subparagraph is a regulated 
                investment company, real estate investment trust, hedge 
                fund, investment partnership, or similar business 
                entity.
                    ``(D) Certain business entities as replacement 
                property.--A business entity described in subparagraph 
                (C) making the declaration described in subparagraph 
                (A) may qualify as replacement property if it has 
                adopted restrictions on investment in persons that 
                invest in or carrying on a trade or business (within 
                the meaning of section 162) in or with countries other 
                than Iran and Sudan that are designated as state 
                sponsors of terrorism under section 6(j) of the Export 
                Administration Act of 1979, section 40 of the Arms 
                Export Control Act, or section 620A of the Foreign 
                Assistance Act of 1961.
            ``(4) Business entity.--The term `business entity' means 
        any corporation, limited liability partnership, limited 
        liability company, or any other business entity conducting 
        business activities in which the taxpayer has purchased or can 
        purchase securities.
    ``(c) Definitions and Rules Relating to Sudan Discouraged 
Activity.--For purposes of this section, the term `Sudan discouraged 
activity' means an investment in any business operation described in 
section 3(d) of the Sudan Accountability and Divestment Act of 2007 
(121 Stat. 2518).
    ``(d) Definitions and Rules Relating to Iran Discouraged 
Activities.--For purposes of this section--
            ``(1) Iran discouraged activity.--The term `Iran 
        discouraged activity' means--
                    ``(A) an investment of $20,000,000 or more--
                            ``(i) in the energy sector of Iran; or
                            ``(ii) in a person that provides oil or 
                        liquefied natural gas tankers, or products used 
                        to construct or maintain pipelines used to 
                        transport oil or liquefied natural gas, for the 
                        energy sector in Iran;
                    ``(B) an extension of $20,000,000 or more in credit 
                to another person, for 45 days or more, if that person 
                will use the credit to invest in the energy sector in 
                Iran;
                    ``(C) except as provided in section 5(f) of the 
                Iran Sanctions Act of 1996 (50 U.S.C. 1701 note), 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;
                    ``(D) except as provided in section 5(f) of the 
                Iran Sanctions Act of 1996 (50 U.S.C. 1701 note), the 
                sale, lease, or provision to Iran of 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; or
                    ``(E) except as provided in section 5(f) of the 
                Iran Sanctions Act of 1996 (50 U.S.C. 1701 note), 
                providing Iran with refined petroleum resources or 
                engaging in any activity that could contribute to the 
                enhancement of Iran's ability to import refined 
                petroleum resources, including--
                            ``(i) providing ships or shipping services 
                        to deliver refined petroleum resources to Iran;
                            ``(ii) underwriting or otherwise providing 
                        insurance or reinsurance for such activity; or
                            ``(iii) financing or brokering such 
                        activity.
            ``(2) Investment.--The `investment' of assets, with respect 
        to a State or local government, includes--
                    ``(A) a commitment or contribution of assets;
                    ``(B) a loan or other extension of credit; or
                    ``(C) the entry into or renewal of a contract for 
                goods or services.
            ``(3) Energy sector.--The term `energy sector' refers to 
        activities to develop petroleum or natural gas resources or 
        nuclear power.
            ``(4) Iran.--The term `Iran' includes any agency or 
        instrumentality of Iran.
    ``(e) Doing Business With Terrorists.--
            ``(1) In general.--For purposes of this section--
                    ``(A) A business entity has engaged in Iran 
                discouraged activities if it conducts business with or 
                makes any charitable donation to any Iranian person 
                designated as a terrorist or to any foreign terrorist 
                organization.
                    ``(B) A business entity has engaged in Sudan 
                discouraged activities if it conducts business with or 
                makes any charitable donation to any Sudanese person 
                designated as a terrorist or to any foreign terrorist 
                organization.
            ``(2) Terrorist.--A person is designated as a terrorist for 
        purposes of paragraph (1) if such person is designated or 
        otherwise individually identified in or pursuant to an 
        Executive Order which is related to terrorism and issued under 
        the authority of the International Emergency Economic Powers 
        Act or section 5 of the United Nations Participation Act of 
        1945 for the purpose of imposing on such organization an 
        economic or other sanction.
            ``(3) Foreign terrorist organization.--For purposes of 
        paragraph (1), the term `foreign terrorist organization' means 
        an organization designated under section 219 of the Immigration 
        and Nationality Act (8 U.S.C. 1189) as a foreign terrorist 
        organization.
    ``(f) Identification of Business Entities Engaging in Iran 
Discouraged Activities or Sudan Discouraged Activities.--
            ``(1) Publication of list.--For purposes of this section, 
        the Secretary shall publish and update at least every six 
        months a list of business entities engaging in any Sudan 
        discouraged activities or Iran discouraged activities, or both.
            ``(2) Regulations.--The Secretary shall issue regulations 
        defining how a business entity shall not be deemed to be 
        engaged in an Iran discouraged activity or Sudan discouraged 
        activity, if--
                    ``(A) with regard to activities on the date this 
                section becomes effective, the business entity limits 
                its activity to continuing existing contracts, without 
                extension or expansion (except that an investment (as 
                defined in section 14 of the Iran Sanctions Act of 
                1996) that would subject a business entity to sanctions 
                under section 5 of the Iran Sanctions Act of 1996 shall 
                be considered an Iran discouraged activity, 
                notwithstanding contracts entered into prior to the 
                effective date of this section), and
                    ``(B) with regard to any Iran discouraged activity 
                or Sudan discouraged activity carried on under 
                contracts entered into or expanded after the effective 
                date of this section, the contract was entered into at 
                a time when the business entity did not own or control 
                the subsidiary business entity, and after acquiring 
                such ownership or control the business entity has not 
                extended or expanded or renewed such contract.
            ``(3) Taxpayer self-help.--Until such time as the Secretary 
        publishes a list of those engaging in Iran discouraged 
        activities or Sudan discouraged activities or if the Secretary 
        fails to update that list as required in paragraph (1), the 
        taxpayer may determine, using credible, publicly available 
        information, which business entities engage in an Iran 
        discouraged activity or a Sudan discouraged activity.
    ``(g) Improvement in the Actions of the Government of the Sudan.--
Effective on the date when the President certifies under a section 12 
of the Sudan Accountability and Divestment Act of 2007 (121 Stat. 
2523), subsection (a) shall not apply to any Sudan discouraged activity 
after such date.
    ``(h) Improvement in the Actions of the Government of Iran.--
            ``(1) Termination of nonrecognition treatment.--Effective 
        on the date when the requirements described in paragraph (2) 
        are met, subsection (a) shall not apply to any Iran discouraged 
        activity after such date.
            ``(2) Requirements.--The requirements described in this 
        paragraph are--
                    ``(A) a declaration by the President which states 
                that, in the opinion of the President, Iran is no 
                longer engaging in efforts to develop or retain weapons 
                of mass destruction, and has not developed and is not 
                developing the capacity to enrich or reprocess uranium 
                or plutonium, and
                    ``(B) a determination by the Secretary of State 
                that Iran should no longer be listed as a state sponsor 
                of acts of international terrorism pursuant to section 
                6(j) of the Export Administration Act of 1979, section 
                620A of the Foreign Assistance Act of 1961, section 40 
                of the Arms Export Control Act, or any other provision 
                of law.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter O of chapter 1 of such Code is amended by adding at the end 
the following new item:

``Sec. 1046. Rollover of gain from divesting certain qualified 
                            securities of business entities engaged in 
                            discouraged activities in Iran or Sudan.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to with respect to sales of securities after the date of the 
enactment of this Act.

    TITLE VI--PROHIBITION ON UNITED STATES GOVERNMENT CONTRACTS AND 
          INVESTMENT FOR COMPANIES CONDUCTING BUSINESS IN IRAN

SEC. 601. PROHIBITION ON UNITED STATES GOVERNMENT CONTRACTS.

    (a) Certification Requirement.--The head of each executive agency 
shall ensure that each contract with a company entered into by such 
executive agency for the procurement of goods or services or agreement 
for the use of Federal funds as part of a grant, loan, or loan 
guarantee, the provision of insurance or reinsurance, or the provision 
of technical assistance to a company, includes a clause that requires 
the company to certify to the contracting officer that the company does 
not conduct business operations in Iran described in section 605.
    (b) Remedies.--
            (1) In general.--The head of an executive agency may impose 
        remedies as provided in this subsection if the head of the 
        executive agency determines that the contractor has submitted a 
        false certification under subsection (a) after the date the 
        Federal Acquisition Regulation is revised pursuant to 
        subsection (e) to implement the requirements of this section.
            (2) Termination.--The head of an executive agency may 
        terminate a covered contract with a company upon the 
        determination of a false certification under paragraph (1).
            (3) Suspension and debarment.--The head of an executive 
        agency may debar or suspend a contractor from eligibility for 
        Federal contracts upon the determination of a false 
        certification under paragraph (1). The debarment period may not 
        exceed 3 years.
            (4) 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 under section 25 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 421) each contractor that is 
        debarred, suspended, proposed for debarment or suspension, or 
        declared ineligible by the head of an executive agency on the 
        basis of a determination of a false certification under 
        paragraph (1).
            (5) Rule of construction.--This section 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).
    (c) Waiver.--
            (1) In general.--The President may waive the requirement of 
        subsection (a) on a case-by-case basis if the President 
        determines and certifies in writing to the appropriate 
        congressional committees that it is in the national interest to 
        do so.
            (2) Reporting requirement.--Not later than 120 days after 
        the date of the enactment of this Act and semi-annually 
        thereafter, the Administrator for Federal Procurement Policy 
        shall submit to the appropriate congressional committees a 
        report on waivers granted under paragraph (1).
    (d) Implementation Through the Federal Acquisition Regulation.--Not 
later than 120 days after the date of the enactment of this Act, 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 provide for the implementation of the requirements of this 
section.
    (e) Report.--Not later than one year after the date the Federal 
Acquisition Regulation is revised pursuant to subsection (e) to 
implement the requirements of this section, the Administrator of 
General Services, with the assistance of other executive agencies, 
shall submit to the Office of Management and Budget and the appropriate 
congressional committees a report on the actions taken under this 
section.

SEC. 602. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO PROHIBIT 
              CONTRACTS.

    Notwithstanding any other provision of law, a State or local 
government may adopt and enforce measures to prohibit the State or 
local government, as the case may be, from entering into or renewing a 
contract for the procurement of goods or services with persons that 
conduct business operations in Iran described in section 605.

SEC. 603. UNITED STATES PENSION PLANS.

    (a) Divestiture From Iran.--The managers of United States 
Government pension plans or thrift savings plans, shall take, to the 
extent consistent with the legal and fiduciary duties otherwise imposed 
on them, immediate steps to divest all investments in any entity with 
respect to which sanctions are applied for activities described in 
section 5(a) of the Iran Sanctions Act of 1996 (Public Law 104-172; 50 
U.S.C. 1701 note), as amended by this Act, section 302(a) of this Act, 
or section 106(a) of the Comprehensive Iran Sanctions, Accountability, 
and Divestment Act of 2010 (Public Law 111-195; 22 U.S.C. 8515).
    (b) Prohibition on Future Investment.--The managers of United 
States Government pension plans or thrift savings plans shall ensure 
that there is no future investment in any entity described in 
subsection (a) for the duration of the period of time during which the 
entity is sanctioned under the applicable provision of law described in 
subsection (a).

SEC. 604. SUNSET.

    This title shall terminate 30 days after the date on which--
            (1) the President has certified to Congress that 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 
        for purposes of section 6(j) of the Export Administration Act 
        of 1979, section 620A of the Foreign Assistance Act of 1961, 
        section 40 of the Arms Export Control Act, or any other 
        provision of law; and
            (2) Iran has permanently ceased the pursuit, acquisition, 
        and development of nuclear, biological, and chemical weapons 
        and missiles.

SEC. 605. DEFINITIONS.

    In this title:
            (1) Company.--The term ``company'' means--
                    (A) a sole proprietorship, organization, 
                association, corporation, partnership, limited 
                liability company, venture, or other entity, its 
                subsidiary or affiliate; and
                    (B) includes a company owned or controlled, either 
                directly or indirectly, by the government of a foreign 
                country, that is established or organized under the 
                laws of, or has its principal place of business in, 
                such foreign country and includes United States 
                subsidiaries of the same.
            (2) Affiliate.--The term ``affiliate'' means any individual 
        or entity that directly or indirectly controls, is controlled 
        by, or is under common control with, the company, including 
        without limitation direct and indirect subsidiaries of the 
        company.
            (3) Entity.--The term ``entity'' means a sole 
        proprietorship, a partnership, limited liability corporation, 
        association, trust, joint venture, corporation, or other 
        organization.
            (4) Federal funds.--The term ``Federal funds'' means a sum 
        of money or other resources derived from United States 
        taxpayers, which the United States Government may provide to 
        companies through government grants or loans, or through the 
        terms of a contract with the Federal Government, or through the 
        Emergency Economic Stabilization Act of 2008 ``Troubled Asset 
        Relief Program'' or other similar and related transaction 
        vehicles, including a grant, loan, or loan guarantee, the 
        provision of insurance or reinsurance, or the provision of 
        technical assistance.
            (5) Business operations.--The term ``business operations'' 
        means--
                    (A) carrying out any of the activities described in 
                section 5 (a) and (b) of the Iran Sanctions Act of 1996 
                (Public Law 104-172; 50 U.S.C. 1701 note), as amended 
                by this Act, that are sanctionable under such section;
                    (B) providing sensitive technology (as defined in 
                section 106(c) of the Comprehensive Iran Sanctions, 
                Accountability, and Divestment Act of 2010 (Public Law 
                111-195; 22 U.S.C. 8515(c)) to the Government of Iran; 
                and
                    (C) carrying out any of the activities described in 
                section 302(a) of this Act.
            (6) Government of iran.--The term ``Government of Iran'' 
        includes the Government of Iran, any political subdivision, 
        agency, or instrumentality thereof, and any person owned or 
        controlled by, or acting for or on behalf of, the Government of 
        Iran.
            (7) 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.
            (8) Sensitive technology.--The term ``sensitive 
        technology'' means hardware, software, telecommunications 
        equipment, or any other technology that the President 
        determines may be used by the Government of Iran--
                    (A) to restrict the free flow of unbiased 
                information in Iran; or
                    (B) to disrupt, monitor, or otherwise restrict 
                speech by the people of Iran.
            (9) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs, the Committee on Foreign Relations, and the 
                Select Committee on Intelligence of the Senate; and
                    (B) the Committee on Financial Services, the 
                Committee on Foreign Affairs, and the Permanent Select 
                Committee on Intelligence of the House of 
                Representatives.
            (10) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403).

     TITLE VII--TERMINATION OF LOAN DISBURSEMENTS TO IRAN FROM THE 
         INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

SEC. 701. TERMINATION OF LOAN DISBURSEMENTS TO IRAN FROM THE 
              INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT.

    (a) In General.--The President of the United States shall take all 
action available to seek a termination of disbursements of funds under 
loans made by the International Bank for Reconstruction and Development 
to Iran.
    (b) Report to the Congress.--On the date that is 6 months after the 
date of the enactment of this Act, and every 6 months thereafter, the 
President shall submit to the Committee on Financial Services of the 
House of Representatives and the Committee on Foreign Relations of the 
Senate a report on the efforts made by the United States to terminate 
the loan disbursements referred to in subsection (a).

SEC. 702. UNITED STATES OPPOSITION TO NEW COUNTRY ASSISTANCE STRATEGY 
              FOR IRAN.

    (a) Statement of Policy.--It is the policy of the United States to 
oppose a new Country Assistance Strategy for Iran.
    (b) Actions To Be Taken if the World Bank Violates the Policy or 
Makes a New Loan to Iran.--If, after the date of the enactment of this 
Act, the International Bank for Reconstruction and Development approves 
a Country Assistance Strategy for Iran, or approves a loan to Iran, the 
President of the United States shall--
            (1) terminate any contribution by the United States to the 
        International Bank for Reconstruction and Development, the 
        International Finance Corporation, and the Multilateral 
        Investment Guarantee Corporation for the fiscal year in which 
        the Country Assistance Strategy or loan is approved, or (if 
        loan disbursements to Iran for that fiscal year have been made 
        by such institutions) for the following fiscal year;
            (2) prohibit the sale of debt instruments of the 
        International Bank for Reconstruction and Development in the 
        United States, prohibit the purchase of any such debt 
        instrument by any United States person; and
            (3) prohibit the United States Government and any state or 
        municipal governmental entity from purchasing any such debt 
        instrument.

SEC. 703. SUNSET.

    Sections 701 and 702 shall terminate 30 days after the date on 
which the President has certified 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 
        for purposes of section 6(j) of the Export Administration Act 
        of 1979, section 620A of the Foreign Assistance Act of 1961, 
        section 40 of the Arms Export Control Act, or any other 
        provision of law; and
            (2) Iran has ceased the pursuit, acquisition, and 
        development of nuclear, biological, and chemical weapons and 
        ballistic missiles and ballistic missile launch technology.

SEC. 704. RULE OF INTERPRETATION.

    Nothing in section 701 or 702 shall be interpreted to affect United 
States contributions to, or the participation of the United States in, 
the International Development Association.
                                 <all>