1.Short title and table of
contents
(a)This Act may be cited
as the Stop Iran’s Nuclear Weapons
Program Act of 2010
.
(b)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.
2.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.
<enum>I</enum><header>Additional
bilateral sanctions against Iran</header>
<section id="H884D3BCC0C8F49679E84F19F4135971A"><enum>101.</enum><header>Application to
subsidiaries</header>
<subsection id="HB7A4F8FB92DC47979AA7038CC8F13FF8"><enum>(a)</enum><header>In
General</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection display-inline="no-display-inline" id="H8683DAD01FDC408ABF6611DCC706F384"><enum>(b)</enum><header>Exception</header><text display-inline="yes-display-inline">Subsection (a) shall not apply to any act
carried out under a contract or other obligation of any entity if—</text>
<paragraph id="HC91227A92C984B77BBBB2CEF4A25EBCC"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="HCB99828E39924E5C84247AD8163EF7A6"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H06BE5B84D24A47138805A4CACB2F8D36"><enum>(c)</enum><header>Construction</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H22720CCC5ECE423B91BF307B0E36B31B"><enum>(d)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="H2061658570194A07990ECDE068251063"><enum>(1)</enum><text>the term
<term>entity</term> means a partnership, association, trust, joint venture,
corporation, or other organization;</text>
</paragraph><paragraph id="HE85B5B09FDE241F0810F16BECF12D875"><enum>(2)</enum><text>an entity is a
<quote>parent company</quote> of another entity if it controls, directly or
indirectly, that other entity and is a United States person; and</text>
</paragraph><paragraph id="HEEFC733B9F6749FB9073457D96984836"><enum>(3)</enum><text>the term
<term>United States person</term> 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.</text>
</paragraph></subsection></section><section commented="no" id="HA8711895D28C4E859277FE2907A2674C"><enum>102.</enum><header>Additional
export sanctions against Iran</header><text display-inline="no-display-inline">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—</text>
<paragraph commented="no" id="H3F6F6B79CBC149F1A5B27D72BA2CE612"><enum>(1)</enum><text>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</text>
</paragraph><paragraph commented="no" id="H816F587472D4432E99D4B175B3592E42"><enum>(2)</enum><text display-inline="yes-display-inline">goods, services, or technology described in
paragraph (1) may not be exported or reexported.</text>
</paragraph></section><section display-inline="no-display-inline" id="HF7F065CB5F054C33BA46F269F1069421" section-type="subsequent-section"><enum>103.</enum><header>Temporary increase
in fee for certain consular services</header>
<subsection id="H2CC41BE3A29B462C9827B59603241DBB"><enum>(a)</enum><header>Increase in
fee</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HB677C6E2D8774B15838E3003D770A077"><enum>(b)</enum><header>Deposit of
amounts</header><text display-inline="yes-display-inline">Fees collected under
the authority of subsection (a) shall be deposited in the Treasury.</text>
</subsection><subsection id="H6090D6E06446416D96980396A1D23D82"><enum>(c)</enum><header>Duration of
increase</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><enum>II</enum><header>Additional
measures</header>
<section commented="no" id="H592CC32400294461A12D32252044D915"><enum>201.</enum><header>Elimination of
certain tax incentives for oil companies investing in Iran</header>
<subsection commented="no" id="H147FE2A6CCA44BDD9EBB57C62154D5B0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H3273767740E8438A82EE25E1C2D03432" style="OLC">
<paragraph commented="no" id="HDB0F0D587C0144CC8D22BDC8AB57789C"><enum>(6)</enum><header>Denial when Iran
sanctions in effect</header>
<subparagraph commented="no" id="H89B34D3586F54340ABB5B618ED4CFD5E"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph commented="no" id="H21CBF90DB36C43609F8FF7ABF90BE393"><enum>(B)</enum><header>Expanded
affiliated group</header><text display-inline="yes-display-inline">For purposes
of subparagraph (A), the term <term>expanded affiliated group</term> means an
affiliated group as defined in section 1504(a), determined—</text>
<clause commented="no" id="HC88E3EAC5A80430E92AC5D40792E34D2"><enum>(i)</enum><text>by substituting
<quote>more than 50 percent</quote> for <quote>at least 80 percent</quote> each
place it appears, and</text>
</clause><clause commented="no" id="H5E85F0A09C94475EB4B0A71235A06D22"><enum>(ii)</enum><text>without regard to
paragraphs (2), (3), and (4) of section
1504(b).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HC98DAA1FE15D42528BBB6CF58910D3D9"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to expenses
paid or incurred on or after January 1, 2010.</text>
</subsection></section><section id="H5AB19397305E474890041B6FFD091897"><enum>202.</enum><header>Expansion of
sanctions under the Iran Sanctions Act of 1996</header>
<subsection commented="no" id="H163BE556AF3E45E98AB58909EE8E6A65"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 5(a) of the
Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) is
amended—</text>
<paragraph id="HB05D319EA66A4120882D9CA07A0F8691"><enum>(1)</enum><text>in the heading, by
inserting at the end before the period the following: <quote><header-in-text level="subsection" style="OLC">, etc</header-in-text></quote>; and</text>
</paragraph><paragraph id="H74B8BC872E564D95A175C46693BA1063"><enum>(2)</enum><text>by adding at the
end the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H4A4C3F4912C34EDC8639FFC955409AA7" style="OLC">
<paragraph id="H41819FC1A85A4374847CC54FD27D93BE"><enum>(4)</enum><header>Other actions
relating to petroleum resources of Iran</header>
<subparagraph id="H592BCEB4E30A46CAB4A792D0D89472D1"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<clause id="H85F9A35801814564A56E4F798AE47722"><enum>(i)</enum><text>enters into a
long-term agreement to purchase petroleum resources from Iran;</text>
</clause><clause id="H212A1605709B4AE588FA19AFE6B46EF7"><enum>(ii)</enum><text display-inline="yes-display-inline">enters into an agreement to provide payment
for future delivery of petroleum resources from Iran; or</text>
</clause><clause id="H7761671693A641039FC8D79757C15655"><enum>(iii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph id="HAB834E1E517243718E1CB5231A533A1E"><enum>(B)</enum><header>Definitions</header>
<clause id="H4D5F008F33224752B4222E5CE7830BA5"><enum>(i)</enum><header>Long-term
agreement</header><text>In subparagraph (A)(i), the term <term>long-term
agreement</term> 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).</text>
</clause><clause id="H0D82425DE441441C9FB077B4348A50C5"><enum>(ii)</enum><header>Future
delivery</header><text>In subparagraph (A)(ii), the term <term>future
delivery</term> means delivery that occurs more than 180 days after payment is
effected under the agreement.</text>
</clause></subparagraph></paragraph><paragraph id="H775D741A35D54352989C47BE9AA2AD1E"><enum>(5)</enum><header>Purchase,
subscription to, or facilitation of the issuance of Iranian sovereign
debt</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H4D0F1939D0F74CE7BF19B0EB9F5919C1"><enum>(A)</enum><text>Iranian sovereign
debt, including Iranian governmental bonds; or</text>
</subparagraph><subparagraph id="H117E9A9B80014215AA4D859FEB716615"><enum>(B)</enum><text display-inline="yes-display-inline">debt of any entity owned or controlled by
the Iranian Government, including
bonds</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H1399D2AB1D1D4F13AD90E5A41FF1B6B9"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall—</text>
<paragraph id="HA35B2DBED81B4AD989847867F99D6124"><enum>(1)</enum><text>take effect on the
date of the enactment of this Act; and</text>
</paragraph><paragraph id="H1F57D1C9FB804BE0920BB4CBEEFDD4F6"><enum>(2)</enum><text>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.</text>
</paragraph></subsection></section><enum>III</enum><header>Application of
sanctions against affiliates of the Iran Revolutionary Guard Corps</header>
<section id="HDD72CAC0A2F44E50A4A9DD7DDD1DAF01"><enum>301.</enum><header>Sanctions
against affiliates of the Iran Revolutionary Guard Corps</header>
<subsection id="H727062737B1340BDA9F41710809CAC7A"><enum>(a)</enum><header>Publication of
names of affiliates in federal register</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HE5DEF68BDC2441C081DBB084DEDC4E03"><enum>(b)</enum><header>Application of
existing sanctions against Iran to affiliates</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H1C996AB50B9440D68DEE93AB99DEF1AC"><enum>(c)</enum><header>Sanctions under
Executive Order 13438</header>
<paragraph id="HEAB8AF51A1084EBD9651DD983F10A668"><enum>(1)</enum><header>Publication of
names of affiliates in federal register</header><text>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—</text>
<subparagraph id="H909FD2DD2971438BA86F284E9D397B61"><enum>(A)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph id="H8FF8D9BAC56F45F9B11B8C4F144AC268"><enum>(B)</enum><text>for which there is
credible evidence that the foreign person or foreign entity—</text>
<clause id="H1C3C4DED9215493BA6AF8CF6631EC41F"><enum>(i)</enum><text>has
committed, or poses a significant risk of committing, an act or acts of
violence that have the purpose or effect of—</text>
<subclause id="H027A1C8FCBFF46C4BCDFDB7800779075"><enum>(I)</enum><text>threatening the
peace or stability of Iraq or the Government of Iraq; or</text>
</subclause><subclause id="H4411C1B6CF9A4812A2E3376E46F757F3"><enum>(II)</enum><text>undermining
efforts to promote economic reconstruction and political reform in Iraq or to
provide humanitarian assistance to the Iraqi people;</text>
</subclause></clause><clause id="HF2F63B9C43704E248A5740D3AE769595"><enum>(ii)</enum><text>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</text>
</clause><clause id="H4E440CD6D7A64C208E0BADCF84EEA629"><enum>(iii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph></paragraph><paragraph id="H6A576F1BF7784449A9E5F7C6B4CCFAA0"><enum>(2)</enum><header>Application of
sanctions under executive order 13438</header><text display-inline="yes-display-inline">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).</text>
</paragraph></subsection><subsection id="H64C8EC11B2744859B1AEB68B58B89ACA"><enum>(d)</enum><header>Exclusion from
United States</header><text>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).</text>
</subsection><subsection commented="no" id="HF99929F9EEE34C1C8BE5A622B155E28C"><enum>(e)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="H4515379AE9EE4E8E8009E84D74ED2B6F"><enum>302.</enum><header>Measures
against foreign persons or entities supporting the Iran Revolutionary Guard
Corps</header>
<subsection display-inline="no-display-inline" id="HF77A22BCED774CEE88EBB0E348FF15C2"><enum>(a)</enum><header>Notification</header><text>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—</text>
<paragraph id="H3B70B4D968DA4064A9D7AC97F36AA325"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="H8939591223604DC58A12AD4F0733916C"><enum>(2)</enum><text display-inline="yes-display-inline">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),</text>
</paragraph><continuation-text continuation-text-level="subsection">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).</continuation-text></subsection><subsection id="HD9E04F4F8C004D12AA1A2577D5BA0E53"><enum>(b)</enum><header>Form</header><text>The
President may submit the notification required under subsection (a) in
classified form.</text>
</subsection><subsection id="H9790B2737F1145AD88187C0363705BBE"><enum>(c)</enum><header>Executive Order
12938 sanctions</header><text>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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6D987C90134F49A884146DE79462F71C"><enum>(d)</enum><header>IEEPA
sanctions</header><text>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.</text>
</subsection><subsection id="H9F988BBA57A6426E83311BA2A4444BDB"><enum>(e)</enum><header>Waiver</header><text>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—</text>
<paragraph commented="no" id="H59ACADBFD8D140C59E393738D85B8808"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H2E4B3AEB81CF40D3B0E7AF44C2174131"><enum>(A)</enum><text>determines that the
person or entity has ceased the offending activity and has taken measures to
prevent its recurrence; or</text>
</subparagraph><subparagraph id="H8CEAEBC8701A4019B27BE2ABC9BC3DCF" indent="up1"><enum>(B)</enum><text>determines that it is vital to the
national security interests of the United States to do so; and</text>
</subparagraph></paragraph><paragraph id="HA992EC48E4214414869DF0A8CCC96EBB"><enum>(2)</enum><text>submits to the
appropriate congressional committees a report that contains the reasons for the
determination.</text>
</paragraph></subsection></section><section id="H0D4DCE6F760845A89713DE75A378B01D"><enum>303.</enum><header>Special
measures against foreign governments supporting the Iran Revolutionary Guards
Corps</header>
<subsection id="H40A69B5FE9F04AEA81E8993C2A0EE638"><enum>(a)</enum><header>Executive Order
12938 sanctions</header><text>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.</text>
</subsection><subsection id="H5E305778B01D4E06B55DFB2F892782B4"><enum>(b)</enum><header>Waiver</header><text>The
President may waive the application of any measure described in subsection (a)
with respect to a foreign entity if the President—</text>
<paragraph commented="no" id="H873533C263194E1A94D7600EF15A20FD"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H6A82C57EEC9B4E3DA20024E74D255E1F"><enum>(A)</enum><text>determines that the
entity has ceased the offending activity and has taken measures to prevent its
recurrence; or</text>
</subparagraph><subparagraph id="H2261EBD751B14B1FA489ED8AB1872F12" indent="up1"><enum>(B)</enum><text>determines that it is vital to the
national security interests of the United States to do so; and</text>
</subparagraph></paragraph><paragraph id="HE844FE83631B4571812D97276333F91D"><enum>(2)</enum><text>submits to the
appropriate congressional committees a report that contains the reasons for the
determination.</text>
</paragraph></subsection></section><section id="H1F58DA566C424928A199C9239569702D"><enum>304.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="HE2D8BE4FF323466C854D77B64DE8FEF3"><enum>(1)</enum><header>Appropriate
congressional committees</header><text display-inline="yes-display-inline">The
term <term>appropriate congressional committees</term> means the Committee on
Foreign Affairs of the House of Representatives and the Committee on Foreign
Relations of the Senate.</text>
</paragraph><paragraph id="H67851C04D64A4C279A8A8F9748547FF0"><enum>(2)</enum><header>Foreign
person</header><text>The term <term>foreign person</term> has the meaning given
the term in section 14 of the Iran Sanctions Act of 1996.</text>
</paragraph><paragraph id="H27267C19AB2149358CA3354D71FD084A"><enum>(3)</enum><header>Iran
Revolutionary Guard Corps</header><text display-inline="yes-display-inline">The
term <term>Iran Revolutionary Guard Corps</term> includes the Iran
Revolutionary Guard Corps-Qods Force.</text>
</paragraph></section><enum>IV</enum><header>Opposition of
transfer to Iran, North Korea, and Syria of goods, services, or technology
relevant to their capability to extract or mill uranium ore</header>
<section id="HA441FBA33EAA409EA710DD9BC9F68DC2"><enum>401.</enum><header>Statement of
policy</header><text display-inline="no-display-inline">It shall be the policy
of the United States—</text>
<paragraph id="H7DABE31F9AFA483DA7CF3A5E2D46AAAF"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="HE4E2A15DE6174C9D9E3B09E23A1B661C"><enum>(2)</enum><text>to work with
like-minded countries to impose restrictions on such transfers
internationally.</text>
</paragraph></section><section id="HF5C00C4B9EDB4CF7A0ED2494F628F425"><enum>402.</enum><header>Reporting
requirements under the Iran, North Korea, and Syria Nonproliferation
Act</header><text display-inline="no-display-inline">Section 2(a) of the Iran,
North Korea, and Syria Nonproliferation Act (50 U.S.C. 1701 note) is
amended—</text>
<paragraph id="H1A7701FCA5C447A8A5D5C172F5A0A497"><enum>(1)</enum><text>in paragraph (1),
by redesignating subparagraphs (A) through (E) as clauses (i) through (v),
respectively;</text>
</paragraph><paragraph id="HA0BD6A2CC9AE44B88150BE792D5A5708"><enum>(2)</enum><text>by redesignating
paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;</text>
</paragraph><paragraph id="HA3DC697B13FE4ECDB36080A10387E458"><enum>(3)</enum><text>in subparagraph
(B), as redesignated—</text>
<subparagraph id="HB406846E14B24CACA670712679AD7E1C"><enum>(A)</enum><text>by striking
<quote>paragraph (1)</quote> and inserting <quote>subparagraph (A)</quote>;
and</text>
</subparagraph><subparagraph id="H1F908437343F4FA29CFF4FEDB67E8437"><enum>(B)</enum><text>by striking the
period at the end and inserting <quote>; or</quote>;</text>
</subparagraph></paragraph><paragraph id="HF58A7AB55174450180EAD9E720B6EF21"><enum>(4)</enum><text>by striking all
that precedes subparagraph (A), as redesignated, and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="HF8BFB85B05E34D77AA18A7CD1394E14D" style="OLC">
<subsection id="H401A8A8F088442748C5E4E425493267C"><enum>(a)</enum><header>Reports</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="HBA5C4280D796401D96F48C5EEB3B80EF"><enum>(1)</enum><text>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—</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9CBF4C569DDB40E1B6E32860FD31A0DB"><enum>(5)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="HEC167D2D98024DA0B446383BC1E96121" style="OLC">
<paragraph id="H3D83F0F0838345AB9861985F676E36E0"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HD016EF641A6542DB8F8D0BD6F5BA2C89"><enum>403.</enum><header>Conforming
amendments</header><text display-inline="no-display-inline">The Iran, North
Korea, and Syria Nonproliferation Act (50 U.S.C. 1701 note) is further amended
by striking <quote>Committee on International Relations</quote> each place it
appears and inserting <quote>Committee on Foreign Affairs</quote>.</text>
</section><enum>V</enum><header>Rollover of gain
from divesting certain qualified securities of business entities engaged in
discouraged activities in Iran or Sudan </header>
<section commented="no" display-inline="no-display-inline" id="H4A096B7A6F1847D9B5A350B7CC9BBAF9" section-type="subsequent-section"><enum>501.</enum><header>Rollover of gain
from divesting certain qualified securities of business entities engaged in
discouraged activities in Iran or Sudan</header>
<subsection commented="no" id="H56FFC94B8B824B05A0265FCC37CF8D0B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H9CE135D5D93D43BB828231C95E38A423" style="OLC">
<section commented="no" id="H0401B5BB725847399AF4AECE4DD76858"><enum>1046.</enum><header>Rollover of
gain from divesting certain qualified securities of business entities engaged
in discouraged activities in Iran or Sudan</header>
<subsection commented="no" id="H6C45174B8567483CAC5FFCFA223DC745"><enum>(a)</enum><header>Nonrecognition
of gain</header>
<paragraph commented="no" id="H9EE2FFB72F80481999A75DA0638DDD0F"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph commented="no" id="H60875B8FC4724EB9B6327BAE7F5C725F"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph commented="no" id="H2017BCFDF48743EBBAACFB10D801C19C"><enum>(B)</enum><text>any portion of
such cost previously taken into account under this section.</text>
</subparagraph></paragraph><paragraph commented="no" id="H87318C2F5D2D4B5BB42357E6D654B284"><enum>(2)</enum><header>Exception for
ordinary income gain</header><text>This section shall not apply to any gain
which is treated as ordinary income for purposes of this title.</text>
</paragraph><paragraph commented="no" id="H6BA7BCEF50DA4D0982BCB767EF62B587"><enum>(3)</enum><header>Exception where
taxpayer owns controlling interest in the business entity</header>
<subparagraph commented="no" id="H3B3D077153214BCBA2B42406B60D7045"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph commented="no" id="H592A2D080F914DA3B6415F4EC8B48D10"><enum>(B)</enum><header>Controlling
interest</header><text>For purposes of subparagraph (A), the term
<term>controlling interest</term> 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.</text>
</subparagraph><subparagraph commented="no" id="H12D0381ACD934F0BAB234557F0529FC1"><enum>(C)</enum><header>Aggregation
rule</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H14C6FB4151914333BB787C2BE405EB59"><enum>(b)</enum><header>Definitions and
special rules relating to securities and replacement property</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" id="HAA0AEC6E092C49728993CE3959EFFEA5"><enum>(1)</enum><header>Qualified
security</header>
<subparagraph commented="no" id="H3AEF290A25D6469ABC6815F464474A39"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified security</term> means any
security held by a taxpayer in any business entity that is engaged in an Iran
discouraged activity or a Sudan discouraged activity.</text>
</subparagraph><subparagraph commented="no" id="HA2E707DC3D6940709A52C81BD1E2F4C3"><enum>(B)</enum><header>Exception</header><text>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.</text>
</subparagraph><subparagraph commented="no" id="HAEFA2B30450A49CFA2AFB52228FDFCDA"><enum>(C)</enum><header>Security
defined</header><text display-inline="yes-display-inline">The term
<term>security</term> has the meaning given such term by section
165(g)(2).</text>
</subparagraph></paragraph><paragraph commented="no" id="H53B7EE75C1E24E9FB03EB9906F8C6F72"><enum>(2)</enum><header>Qualified
replacement property</header>
<subparagraph commented="no" id="H29E34DAD8A9740128189BF327369FC78"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified replacement property</term>
means any security of a business entity that, on the date of purchase by the
taxpayer—</text>
<clause commented="no" id="HD0A7259357DD4B5DBC2C1F170B464E2A"><enum>(i)</enum><text display-inline="yes-display-inline">is not engaged in an Iran discouraged
activity or a Sudan discouraged activity on such date,</text>
</clause><clause commented="no" id="HEEFDD91D36784FC3990B8BC2AEEC654E"><enum>(ii)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause commented="no" id="H4D83E0B41D2141C8BE4C83C080F23C2A"><enum>(iii)</enum><text>meets the
requirements of subparagraph (B).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4091E76C6BD74781BBD4FF3908F53602"><enum>(B)</enum><header>Replacement
property</header><text>Property meets the requirements of this paragraph if,
with respect to the sale of any security—</text>
<clause commented="no" id="H33681A8447AB4E67ACA976E213BE0D83"><enum>(i)</enum><text display-inline="yes-display-inline">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,</text>
</clause><clause commented="no" id="H9D3D4EEE1D4B4C91B75E7525CB16EDC5"><enum>(ii)</enum><text display-inline="yes-display-inline">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,</text>
</clause><clause commented="no" id="H01DA5AE389134E39B00EE4C6B77A95B1"><enum>(iii)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause commented="no" id="H6DAEEAB2990044DBB0B9E9329BF33B97"><enum>(iv)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph commented="no" id="H645B955690504D2E91511851CEF7ED82"><enum>(C)</enum><header>Deemed
investment if investing in entities engaged in discouraged
activities</header><text display-inline="yes-display-inline">Any regulated
investment company, real estate investment trust, hedge fund, investment
partnership, or similar business entity, which invests in the
securities—</text>
<clause commented="no" id="HB29D52C4A1CF45258D022A7D66CA78CA"><enum>(i)</enum><text>issued by a
business entity determined to be engaging in Iran discouraged activities or
Sudan discouraged activities, or</text>
</clause><clause commented="no" id="H026EC438537843669DB6B50415128571"><enum>(ii)</enum><text>issued by the
government of Sudan or Iran or any agency thereof,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">shall be deemed to be a business
entity engaging in Iran discouraged activities or Sudan discouraged
activities.</continuation-text></subparagraph><subparagraph commented="no" id="H6188A5207CDE4057B58FD1F2255DCF90"><enum>(D)</enum><header>Business
declaration of policy</header>
<clause commented="no" id="HCBBD16833C814CB1B9D17D648267A334"><enum>(i)</enum><header>In
general</header><text>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: <quote>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.</quote>.</text>
</clause><clause commented="no" id="H7DFA75737B654CDBB857BD3A8D03B508"><enum>(ii)</enum><header>Not qualified
security</header><text display-inline="yes-display-inline">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.</text>
</clause><clause commented="no" id="HC9595864EC7245189CB825535E0A8467"><enum>(iii)</enum><header>Business
entity described</header><text display-inline="yes-display-inline">A business
entity described in this clause is a regulated investment company, real estate
investment trust, hedge fund, investment partnership, or similar business
entity.</text>
</clause></subparagraph><subparagraph commented="no" id="HFA604283172B48EC8751B0F220FDC557"><enum>(E)</enum><header>Expanded
affiliated group</header><text display-inline="yes-display-inline">The term
<term>expanded affiliated group</term> means an affiliated group as defined in
section 1504(a), determined—</text>
<clause commented="no" id="HA11ECB93749F49C0A866E864CB53D439"><enum>(i)</enum><text>by substituting
<quote>more than 50 percent</quote> for <quote>at least 80 percent</quote> each
place it appears, and</text>
</clause><clause commented="no" id="H4BA6090B9F2C49D3A64C96D063F5F9A3"><enum>(ii)</enum><text>without regard to
paragraphs (2) and (4) of section 1504(b).</text>
</clause></subparagraph><subparagraph commented="no" id="H00F272C32CD3477C8605A82117D7DE8A"><enum>(F)</enum><header>Basis
adjustments</header><text display-inline="yes-display-inline">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).</text>
</subparagraph><subparagraph commented="no" id="H90E755BE3FE944529155052F1D1EA6F6"><enum>(G)</enum><header>Holding
period</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph commented="no" id="HB8306C31FC484BAD97BD49942051B008"><enum>(3)</enum><header>Special rule for
securities of certain entities</header>
<subparagraph commented="no" id="H8C2E5CAFFEC14C8DA0C82442052AD355"><enum>(A)</enum><header>In
general</header><text>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: <quote>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)).</quote>.</text>
</subparagraph><subparagraph commented="no" id="H0D8FE57E6E104D509503400D62B8A577"><enum>(B)</enum><header>Not qualified
security</header><text>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.</text>
</subparagraph><subparagraph commented="no" id="H71CCFF5F967544D5AA73639C392B839F"><enum>(C)</enum><header>Business entity
described</header><text>A business entity described in this subparagraph is a
regulated investment company, real estate investment trust, hedge fund,
investment partnership, or similar business entity.</text>
</subparagraph><subparagraph commented="no" id="H80A541D425EF43749F2C9C58C55A134E"><enum>(D)</enum><header>Certain business
entities as replacement property</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph commented="no" id="HD234A0E649E44880A9B12A4472E23E92"><enum>(4)</enum><header>Business
entity</header><text display-inline="yes-display-inline">The term
<term>business entity</term> 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.</text>
</paragraph></subsection><subsection commented="no" id="H98583A28DCE24AA5B5C076CE44EFD201"><enum>(c)</enum><header>Definitions and
rules relating to Sudan discouraged activity</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>Sudan discouraged activity</term> means an investment in any business
operation described in section 3(d) of the Sudan Accountability and Divestment
Act of 2007 (121 Stat. 2518).</text>
</subsection><subsection commented="no" id="H5E830B5B4C2E48EB9CBB77E6998B23C5"><enum>(d)</enum><header>Definitions and
rules relating to Iran discouraged activities</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" id="H259297AC78694512AE8BCE20D99E99A6"><enum>(1)</enum><header>Iran discouraged
activity</header><text>The term <term>Iran discouraged activity</term>
means—</text>
<subparagraph commented="no" id="H68CE2CB1E0824970BC68F416050AAC60"><enum>(A)</enum><text>an investment of
$20,000,000 or more—</text>
<clause commented="no" id="H06E70DFCD13E4DF6A346703C54C230E3"><enum>(i)</enum><text>in the energy
sector of Iran; or</text>
</clause><clause commented="no" id="H427E5394DF4F401EA6DFADC42DB71A85"><enum>(ii)</enum><text>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;</text>
</clause></subparagraph><subparagraph commented="no" id="H76FB5E3A2E444F5AB6CC36BB49DCE78F"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph commented="no" id="H6F7E5A436AEE4786946DA67730782B8E"><enum>(C)</enum><text>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;</text>
</subparagraph><subparagraph commented="no" id="HFE7416870DD34B8498AF31F54348CEB5"><enum>(D)</enum><text>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</text>
</subparagraph><subparagraph commented="no" id="H18BF38604F324F90BB6220B6063820A4"><enum>(E)</enum><text>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—</text>
<clause commented="no" id="HFFDD534FAB644DC09DF442872C833AD3"><enum>(i)</enum><text>providing ships or
shipping services to deliver refined petroleum resources to Iran;</text>
</clause><clause commented="no" id="HE1BC6B3E7C45410EBDCE20D5FD20CC64"><enum>(ii)</enum><text>underwriting or
otherwise providing insurance or reinsurance for such activity; or</text>
</clause><clause commented="no" id="HF022C583CF7D449395324210C3D333EB"><enum>(iii)</enum><text>financing or
brokering such activity.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="HB48F7BD9FF734945856BA34C435FAB9E"><enum>(2)</enum><header>Investment</header><text>The
<quote>investment</quote> of assets, with respect to a State or local
government, includes—</text>
<subparagraph commented="no" id="H78253CDD707748CD922255BF4A076CF7"><enum>(A)</enum><text>a commitment or
contribution of assets;</text>
</subparagraph><subparagraph commented="no" id="H57E9C0BBF0634C41A57895A2D8902D87"><enum>(B)</enum><text>a loan or other
extension of credit; or</text>
</subparagraph><subparagraph commented="no" id="H10A16119DBAD4BB48FD407AA7465582C"><enum>(C)</enum><text>the entry into or
renewal of a contract for goods or services.</text>
</subparagraph></paragraph><paragraph commented="no" id="HE89CCFD8BCD74FBDB4FD138010CC965A"><enum>(3)</enum><header>Energy
sector</header><text>The term <term>energy sector</term> refers to activities
to develop petroleum or natural gas resources or nuclear power.</text>
</paragraph><paragraph commented="no" id="HF9DDEB72DCBE431AA2262BA715EB767D"><enum>(4)</enum><header>Iran</header><text>The
term <term>Iran</term> includes any agency or instrumentality of Iran.</text>
</paragraph></subsection><subsection commented="no" id="HD785AD8463D34D8E8B4EBB16E11E37ED"><enum>(e)</enum><header>Doing business
with terrorists</header>
<paragraph commented="no" id="HDC154310443F4B60BE2AF0D0B60FBB68"><enum>(1)</enum><header>In
general</header><text>For purposes of this section—</text>
<subparagraph commented="no" id="H34C68B60861F4B7898838B181C8AC9AC"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph commented="no" id="HBCA6AE96DED543C0AA89FCD3E9388559"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph commented="no" id="H32C92E60E02047B898478B0B41A9452A"><enum>(2)</enum><header>Terrorist</header><text>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.</text>
</paragraph><paragraph commented="no" id="H8C5CDDA1828A433BBA827BABC0F55AE5"><enum>(3)</enum><header>Foreign
terrorist organization</header><text>For purposes of paragraph (1), the term
<term>foreign terrorist organization</term> means an organization designated
under section 219 of the Immigration and Nationality Act (8 U.S.C. 1189) as a
foreign terrorist organization.</text>
</paragraph></subsection><subsection commented="no" id="H8F75296BD74D4141A58E3AE1BE02A440"><enum>(f)</enum><header>Identification
of business entities engaging in Iran discouraged activities or Sudan
discouraged activities</header>
<paragraph commented="no" id="HE4375567637C4488B401B8110C0FCE79"><enum>(1)</enum><header>Publication of
list</header><text>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.</text>
</paragraph><paragraph commented="no" id="HE704B33A38B048FA9822FE20154D44F0"><enum>(2)</enum><header>Regulations</header><text>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—</text>
<subparagraph commented="no" id="H9599E90F2D184B21B065CFDA51FB5275"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph commented="no" id="H51003E9087C24BF7AE9C85149708B3D0"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph commented="no" id="H419B2CC4612B4517B00A52EFA7806527"><enum>(3)</enum><header>Taxpayer
self-help</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection commented="no" id="H91CCD2BCEDBF4461BE00E49ADF362955"><enum>(g)</enum><header>Improvement in
the Actions of the Government of the Sudan</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" id="H7FE0AF5D083446F7A86E73CE3B7DCB01"><enum>(h)</enum><header>Improvement in
the Actions of the Government of Iran</header>
<paragraph commented="no" id="H40DFB31813D84C8FA7E5E7DB43DEC55F"><enum>(1)</enum><header>Termination of
nonrecognition treatment</header><text>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.</text>
</paragraph><paragraph commented="no" id="HD29D36D03DB74683880C90CF9DC0B9B9"><enum>(2)</enum><header>Requirements</header><text>The
requirements described in this paragraph are—</text>
<subparagraph commented="no" id="H0616B2C8507A4BD583FAEB825FDD55EC"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph commented="no" id="H4CA6D78138564807B7D7B9B8C8DB13EB"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H0FE733AC16DA46B9BCD56C05BE41D860"><enum>(b)</enum><header>Clerical
amendment</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="H0C650B37BF434CA3B0219E2762FEAAFF" style="OLC">
<toc container-level="quoted-block-container" idref="H9CE135D5D93D43BB828231C95E38A423" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H0401B5BB725847399AF4AECE4DD76858" level="section">Sec. 1046. Rollover of gain from divesting certain qualified
securities of business entities engaged in discouraged activities in Iran or
Sudan.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HD84B684E9696441184A5F67B9B9F3C0F"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to with
respect to sales of securities after the date of the enactment of this
Act.</text>
</subsection></section><enum>VI</enum><header>Prohibition on
United States Government contracts and investment for companies conducting
business in Iran</header>
<section id="H20A09F8FA56A49AF864F443679A59413"><enum>601.</enum><header>Prohibition on
United States Government contracts</header>
<subsection id="H7AC58684F4734BC69D3F6ABFC300910C"><enum>(a)</enum><header>Certification
Requirement</header><text>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.</text>
</subsection><subsection id="H10A30D1E6D224200A3E54FD4E0E22886"><enum>(b)</enum><header>Remedies</header>
<paragraph id="H3323EC05852B4DE682AC86AADA24D113"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H7742803C562049FE97614C4C4213300D"><enum>(2)</enum><header>Termination</header><text>The
head of an executive agency may terminate a covered contract with a company
upon the determination of a false certification under paragraph (1).</text>
</paragraph><paragraph id="HAAC3A71E84594DD79278A529C1E83179"><enum>(3)</enum><header>Suspension and
debarment</header><text>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.</text>
</paragraph><paragraph id="HE1296238AF0C492B8858E45DDAF23D84"><enum>(4)</enum><header>Inclusion on
list of parties excluded from Federal procurement and nonprocurement
programs</header><text>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).</text>
</paragraph><paragraph id="HE4467CD3FB58416983DA7F01325C5E80"><enum>(5)</enum><header>Rule of
construction</header><text>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).</text>
</paragraph></subsection><subsection id="H44DFF232EF50407296A44531223EC7F2"><enum>(c)</enum><header>Waiver</header>
<paragraph id="H3F0A8D7F9971430CAAB8DB9EA2B95AF4"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H24AAD39725274B88A5A6B08358B298E3"><enum>(2)</enum><header>Reporting
requirement</header><text>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).</text>
</paragraph></subsection><subsection id="H24841BE239454B8DAAEB6A8C60EB193E"><enum>(d)</enum><header>Implementation
Through the Federal Acquisition Regulation</header><text>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.</text>
</subsection><subsection id="H78B9709C2DC04CEB885D3133E56E90E4"><enum>(e)</enum><header>Report</header><text>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.</text>
</subsection></section><section id="H9B878FB41F3C499CB9B8D4B2BF4ECAC4"><enum>602.</enum><header>Authority of
State and local governments to prohibit contracts</header><text display-inline="no-display-inline">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.</text>
</section><section display-inline="no-display-inline" id="H0CE07FC9F4F14E04934B0BAE0510B9FB" section-type="subsequent-section"><enum>603.</enum><header>United States
pension plans</header>
<subsection id="H308C85D888BC4C85A026735AC50C2F08"><enum>(a)</enum><header>Divestiture from
Iran</header><text display-inline="yes-display-inline">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).</text>
</subsection><subsection id="H2F60BC81658D42DBAB8BB59C67E68234"><enum>(b)</enum><header>Prohibition on
future investment</header><text display-inline="yes-display-inline">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).</text>
</subsection></section><section id="HE2A8FDE80FCA4481B82052E8DDF020DD"><enum>604.</enum><header>Sunset</header><text display-inline="no-display-inline">This title shall terminate 30 days after the
date on which—</text>
<paragraph id="HF3BDDF03B7034AB08467FCA17BB39CED"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="HFAEC5340EF1F41A1B9EDFA8715ACB9DE"><enum>(2)</enum><text>Iran has
permanently ceased the pursuit, acquisition, and development of nuclear,
biological, and chemical weapons and missiles.</text>
</paragraph></section><section id="H8B67FC8DA6424F2CA364F074BEBA7F47"><enum>605.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="H56D51CAB77584497836B48635357DCEB"><enum>(1)</enum><header>Company</header><text>The
term <term>company</term> means—</text>
<subparagraph id="H06F98759DF2942199AD764B25EA0D65C"><enum>(A)</enum><text>a sole
proprietorship, organization, association, corporation, partnership, limited
liability company, venture, or other entity, its subsidiary or affiliate;
and</text>
</subparagraph><subparagraph id="H59776E7FBE6E4BF49FEF9DBCE650F737"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H7D48B11A95FD4189A2343540BDE279F9"><enum>(2)</enum><header>Affiliate</header><text>The
term <term>affiliate</term> 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.</text>
</paragraph><paragraph id="H4DF3DE81EBB746699092D37094BD46FB"><enum>(3)</enum><header>Entity</header><text>The
term <term>entity</term> means a sole proprietorship, a partnership, limited
liability corporation, association, trust, joint venture, corporation, or other
organization.</text>
</paragraph><paragraph id="HED6EF159E4F4464A820B0AF8F4121927"><enum>(4)</enum><header>Federal
funds</header><text>The term <term>Federal funds</term> 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 <quote>Troubled Asset Relief
Program</quote> 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.</text>
</paragraph><paragraph id="H7D4297BC5FD24F5892F3641AFE110EA0"><enum>(5)</enum><header>Business
operations</header><text display-inline="yes-display-inline">The term
<term>business operations</term> means—</text>
<subparagraph id="H309E79D970F94ADF81918E407B0D8D0B"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph id="H2DFD91BD37854E5DBD87276D2377F1CC"><enum>(B)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph id="HE53F755DEB7449CD8360AECCDCE50C08"><enum>(C)</enum><text display-inline="yes-display-inline">carrying out any of the activities
described in section 302(a) of this Act.</text>
</subparagraph></paragraph><paragraph id="H8CE21BF2140646669DD39235201282FB"><enum>(6)</enum><header>Government of
Iran</header><text>The term <term>Government of Iran</term> 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.</text>
</paragraph><paragraph id="H9E025565BC9843A9B08973F7D651D5A6"><enum>(7)</enum><header>Petroleum
resources</header>
<subparagraph id="H2B22BF2BB99A4BC7B50AA8D7F849F500"><enum>(A)</enum><header>In
general</header><text>The term <term>petroleum resources</term> 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.</text>
</subparagraph><subparagraph commented="no" id="H64B535078B944A1A892EEDAFD19381BF"><enum>(B)</enum><header>Petroleum
by-products</header><text>The term <term>petroleum by-products</term> 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.</text>
</subparagraph></paragraph><paragraph id="HA45166399D744FCAA58338DD83E40FA8"><enum>(8)</enum><header>Sensitive
technology</header><text>The term <term>sensitive technology</term> means
hardware, software, telecommunications equipment, or any other technology that
the President determines may be used by the Government of Iran—</text>
<subparagraph id="H87DE6DDA3E734A8EACA052398C3A6D8E"><enum>(A)</enum><text>to restrict the
free flow of unbiased information in Iran; or</text>
</subparagraph><subparagraph id="H3D634E7C96294CF4956D3890BFEBC906"><enum>(B)</enum><text>to disrupt,
monitor, or otherwise restrict speech by the people of Iran.</text>
</subparagraph></paragraph><paragraph id="H138861A87BDF41B599ED44C5BF5E2D2D"><enum>(9)</enum><header>Appropriate
congressional committees</header><text>The term <term>appropriate congressional
committees</term> means—</text>
<subparagraph id="HFBE24DF9AD51495ABB69479711101602"><enum>(A)</enum><text>the Committee on
Banking, Housing, and Urban Affairs, the Committee on Foreign Relations, and
the Select Committee on Intelligence of the Senate; and</text>
</subparagraph><subparagraph id="H4888BE9FB99543A197EF9B637C28F281"><enum>(B)</enum><text>the Committee on
Financial Services, the Committee on Foreign Affairs, and the Permanent Select
Committee on Intelligence of the House of Representatives.</text>
</subparagraph></paragraph><paragraph id="H0EC234EA68F444B6967441BCC6580D6D"><enum>(10)</enum><header>Executive
agency</header><text>The term <term>executive agency</term> has the meaning
given the term in section 4 of the Office of Federal Procurement Policy Act (41
U.S.C. 403).</text>
</paragraph></section><enum>VII</enum><header>Termination of
loan disbursements to Iran from the International Bank for Reconstruction and
Development</header>
<section id="HEE938F99230A4485AB791FBB97FD2230"><enum>701.</enum><header>Termination of
loan disbursements to Iran from the International Bank for Reconstruction and
Development</header>
<subsection id="HFA3FD33C93034F0E8C856E570CBACB56"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HBB96714DBFBD4B9DA5B30B01274F2BDA"><enum>(b)</enum><header>Report to the
Congress</header><text>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).</text>
</subsection></section><section id="H5D9CBE195B1049CC9C4BCA39CBF8FB14"><enum>702.</enum><header>United States
opposition to new country assistance strategy for Iran</header>
<subsection id="HEB57219DCB9D493599B5D1CF7AEE4F03"><enum>(a)</enum><header>Statement of
policy</header><text display-inline="yes-display-inline">It is the policy of
the United States to oppose a new Country Assistance Strategy for Iran.</text>
</subsection><subsection id="HEC9929CBC58248E0A99948CBD46CAFC3"><enum>(b)</enum><header>Actions To be
taken if the world bank violates the policy or makes a new loan to
Iran</header><text>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—</text>
<paragraph id="H96BF4D3741214F57AE4AE8E205A57658"><enum>(1)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph id="H140AC51BD17A4EED8343CC06E6838FD0"><enum>(2)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="HCE1787E66AC84FF699DCEA7AFD61E78F"><enum>(3)</enum><text>prohibit the
United States Government and any state or municipal governmental entity from
purchasing any such debt instrument.</text>
</paragraph></subsection></section><section id="H42BDE7E7574A44B09B66B23DB2ADB11D"><enum>703.</enum><header>Sunset</header><text display-inline="no-display-inline">Sections 701 and 702 shall terminate 30 days
after the date on which the President has certified to Congress that—</text>
<paragraph id="H8C2330BF16F24A378E595EA8D985B19D"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="H5BFFFF556A9F4A78B0F8ED21A8F3A670"><enum>(2)</enum><text>Iran has ceased
the pursuit, acquisition, and development of nuclear, biological, and chemical
weapons and ballistic missiles and ballistic missile launch technology.</text>
</paragraph></section><section id="HFC0E82B197BF442D8E435CC1E5716AAB"><enum>704.</enum><header>Rule of
interpretation</header><text display-inline="no-display-inline">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.</text>
</section>