1.Short
title; 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; table of
contents.
Sec. 2. Findings.
TITLE I—Additional sanctions with respect to Iran
Sec. 101. Expansion of sanctions under the Iran Sanctions Act
of 1996.
Sec. 102. Application of sanctions to subsidiaries.
Sec. 103. Elimination of certain tax incentives for oil
companies investing in Iran.
Sec. 104. Inadmissibility of certain aliens who engage in
certain activities with respect to Iran.
TITLE II—Application of sanctions against affiliates of Iran's
Revolutionary Guard Corps
Sec. 201. Definitions.
Sec. 202. Sanctions on affiliates of Iran's Revolutionary Guard
Corps.
Sec. 203. Measures against foreign persons or entities
supporting Iran's Revolutionary Guard Corps and its agents and
affiliates.
Sec. 204. Special measures against foreign governments
supporting Iran's Revolutionary Guard Corps.
Sec. 205. Sunset.
TITLE III—Rollover of gain from divesting certain qualified
securities of business entities engaged in discouraged activities in Iran
Sec. 301. Rollover of gain from divesting certain qualified
securities of business entities engaged in discouraged activities in
Iran.
TITLE IV—Prohibition on United States Government contracts and
investment for companies conducting business in Iran
Sec. 401. Definitions.
Sec. 402. Expansion of prohibition on United States Government
contracts for persons that conduct business operations in Iran.
Sec. 403. Prohibition on provision of Federal grants, loans, or
other assistance to persons that conduct business operations in
Iran.
Sec. 404. Report on expansion of prohibition on United States
Government contracts for, and prohibition on provision of Federal grants,
loans, and other assistance to, persons that conduct business operations in
Iran.
Sec. 405. Divestiture from Iran by United States Government
retirement systems.
Sec. 406. Sunset.
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; 124 Stat. 1312).
(2)In the wake of
this new United States law and United Nations Security Council Resolution 1929
(2010) with respect to 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 noncivilian 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
sanctions with respect to Iran</header>
<section id="HDABC60910A0647FDA48D57A80153210B"><enum>101.</enum><header>Expansion of
sanctions under the Iran Sanctions Act of 1996</header>
<subsection commented="no" id="H65BA05D5F5074326AF1BFAF29D1678D6"><enum>(a)</enum><header>Sanctions with
respect to purchasing petroleum resources or sovereign debt of
Iran</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="H33E7B6B1F540410BBB15C5E8596D475D"><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="HB42ECD683B8143D19497A0D2FA7549E2"><enum>(2)</enum><text>by adding at the
end the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HD44C4555C9CA4B3EB3575085A3BA15CE" style="OLC">
<paragraph id="HA808FB25BD2F4FF8BD24C48CAEDA1F68"><enum>(4)</enum><header>Other actions
relating to petroleum resources of Iran</header>
<subparagraph id="H00D09FE17422493B8E4C01F356B03DDA"><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
<short-title>Stop Iran’s Nuclear Weapons Program Act of
2010</short-title>—</text>
<clause id="HD6B2FE12D94343BA8D8B4E56DBA778E4"><enum>(i)</enum><text>enters into a
long-term agreement to purchase petroleum resources from Iran;</text>
</clause><clause id="HB8C8F44398984D8E801D7F9A7640A5EC"><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="HDD6E5500A9BE413C8F612B124D485A48"><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="H95354412F7824666B5A8F2A1DC56862B"><enum>(B)</enum><header>Definitions</header>
<clause id="H8B0A73BA4B6B4349A5840FE4545A671C"><enum>(i)</enum><header>Long-term
agreement</header><text>For purposes of 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="H1AD7A6C3132E4B0FA131B9B540333212"><enum>(ii)</enum><header>Future
delivery</header><text>For purposes of 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="H8AB312EBD45A44198EC575CBA5E416C7"><enum>(5)</enum><header>Purchase,
subscription to, or facilitation of the issuance of sovereign debt of the
Government of Iran</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 <short-title>Stop Iran’s Nuclear Weapons Program Act
of 2010</short-title>, purchases, subscribes to, or facilitates the issuance
of—</text>
<subparagraph id="HA34226A36428420AA1EB8BF1EE321B7B"><enum>(A)</enum><text>sovereign debt of
the Government of Iran, including government bonds; or</text>
</subparagraph><subparagraph id="H749DDD33654D47E0994604C30A2B7476"><enum>(B)</enum><text display-inline="yes-display-inline">debt of any entity owned or controlled by
the Government of Iran, including
bonds.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idC395C82E20E14BE480519BE49F5EE04F"><enum>(b)</enum><header>Sanctions with
respect to facilitating extraction or milling of uranium ore in
Iran</header><text display-inline="yes-display-inline">Section 5(b)(1) of the
Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) is
amended—</text>
<paragraph id="idDF521A1D643A44A88F751CB4D3AD7BFD"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (A) and (B)
as clauses (i) and (ii), respectively;</text>
</paragraph><paragraph id="idD22FAD5A56A042BD814BCE4F9A74A87A"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>the President determines
that a person has, on or after</quote> and inserting the following: “the
President determines that a person has—</text>
<quoted-block display-inline="no-display-inline" id="id5B31EA2230C24CE192029AD498A06A26" style="OLC">
<subparagraph id="idF2FD37EEC8E1469F971CAD05BE5375E4"><enum>(A)</enum><text display-inline="yes-display-inline">on or
after</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id29A6E34CF4A84B9EB8E5DE1DF3A56110"><enum>(3)</enum><text>in subparagraph
(A)(ii), as redesignated, by striking the period and inserting <quote>;
or</quote>; and</text>
</paragraph><paragraph id="idDEF516BBC9B04B15AB67EC42FC6BCCA4"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC5EACA26A25D4C58B54C4C8F0575A062" style="OLC">
<subparagraph id="idA9BE082931E84ACC84C16665C4D232C0"><enum>(B)</enum><text>on or after the
date of the enactment of the <short-title>Stop Iran’s
Nuclear Weapons Program Act of 2010</short-title>, exported, transferred, or
otherwise provided to Iran any goods, services, technology, or other items
knowing that the provision of such goods, services, technology, or other items
would materially contribute to efforts to extract or mill uranium ore within
the territory or control of
Iran.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF1DCCA356AEB4211AA9A7C37A789D14E"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall—</text>
<paragraph id="HC41996A73F654A34896F139012D4D7A7"><enum>(1)</enum><text>take effect on the
date of the enactment of this Act; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF1A04DD6C00C4D769519AC7FA24CDF19"><enum>(2)</enum><text>apply with respect
to an investment or activity described in 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><section id="H8709DD61F0624DB6960AD6E22E212E7B"><enum>102.</enum><header>Application of
sanctions to subsidiaries</header>
<subsection id="H518375D07AEC4CAD870DDF7A26DFE572"><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 that, if committed in the United States or by a United States
person, would violate Executive Order 12959 (50 U.S.C. 1701 note) or Executive
Order 13059 (50 U.S.C. 1701 note) (or any successor thereto), section 103 of
the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010
(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 the act to the same extent as if the parent company had engaged
in the act.</text>
</subsection><subsection display-inline="no-display-inline" id="H5807B804CCDB42AFB67EF685CCE05304"><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="HADD7A8EB79584CC7AD5756ABFF49B091"><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="H80010623918D4800A17F1B3389EFD804"><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="H3B712F73361E45A19959AFC9D1EA9E90"><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="H6062345A619549DA857563E02B1A386C"><enum>(d)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="HD88E00144EDC46FAB39E658697E3AE37"><enum>(1)</enum><header>Entity</header><text>The
term <term>entity</term> means a partnership, association, trust, joint
venture, corporation, or other organization.</text>
</paragraph><paragraph id="HC984116F78F44610BF5D64DD74AE7A08"><enum>(2)</enum><header>Parent
company</header><text>An entity is a <term>parent company</term> of another
entity if it controls, directly or indirectly, that other entity and is a
United States person.</text>
</paragraph><paragraph id="HCE15FB3A7BF64FA8A71EEED68B8977B6"><enum>(3)</enum><header>United States
person</header><text>The term <term>United States person</term> means a United
States citizen, an alien lawfully admitted for permanent residence to the
United States, an entity organized under the laws of the United States, or a
person in the United States.</text>
</paragraph></subsection></section><section commented="no" id="H1096A168A30D40C8921E7646492B1560"><enum>103.</enum><header>Elimination of
certain tax incentives for oil companies investing in Iran</header>
<subsection commented="no" id="H5AF55E2D61CA47D5A49264B6856DC52D"><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="H7E7CF08AE376423DA54F4444AEA61626" style="OLC">
<paragraph commented="no" id="HC5483D7711F7406E953E838771EC1B43"><enum>(6)</enum><header>Denial when Iran
sanctions in effect</header>
<subparagraph commented="no" id="H6E52E9C1B0564022B4B8B16C5C39C168"><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 in Iran and
the production of refined petroleum products in, and the exportation of refined
petroleum products to, 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="HEE4F4EE7008740B49025A62D0B006E69"><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="H37A25FD7AB3A46DBB23D4ACECC66BD1D"><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="H323F203444FD47BFA7DE8608598759A0"><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="H2F1A423793634A50B2652FE8913B8C9F"><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="idF6843CC9F14C424886765CF9625435AB" section-type="subsequent-section"><enum>104.</enum><header>Inadmissibility of
certain aliens who engage in certain activities with respect to Iran</header>
<subsection id="idA66CD3C6E3EE4FDA98CD73A70F3F06F6"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 212(a)(3) of
the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)) is amended by adding
at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id8A86E12C425841FEA23A6A0D56E52437" style="OLC">
<subparagraph id="id5700CF95A6E0413384A5B8FEFAD62357"><enum>(H)</enum><header>Individuals who
engage in certain activities with respect to Iran</header>
<clause id="idEAA26A12CE484821975A6B68D4300A66"><enum>(i)</enum><header>In
general</header><text>Subject to clause (iii), any alien described in clause
(ii) is inadmissible.</text>
</clause><clause id="id03191B233AC14A48AEDB4E7154B28BC2"><enum>(ii)</enum><header>Aliens
described</header><text>An alien described in this clause is an alien that the
Secretary of State determines—</text>
<subclause id="idEBA17000F4C64994BE8D499A7FBF702C"><enum>(I)</enum><text>engages
in—</text>
<item id="idCAB110787EB64C4599479F096D961975"><enum>(aa)</enum><text>an
activity for which sanctions may be imposed pursuant to section 5 of the Iran
Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note);</text>
</item><item id="idB973FD41DE604F32A35F0AA81654CE09"><enum>(bb)</enum><text>an
activity—</text>
<subitem id="id5D2087C3A1AC4B2DA02C9CC309B563D6"><enum>(AA)</enum><text>relating to the
proliferation by Iran of weapons of mass destruction or the means of delivery
of such weapons; and</text>
</subitem><subitem id="id3096010FAF85433EAEA9DC19057BAD4F"><enum>(BB)</enum><text>for which
sanctions may be imposed pursuant to Executive Order 13382 (70 Fed. Reg. 38567)
(or any successor thereto);</text>
</subitem></item><item id="id78C07BF113674B0F90903EE385C49B7D"><enum>(cc)</enum><text>an
activity—</text>
<subitem id="id4FDFCB61E9EB423BB5631EBF97AD243E"><enum>(AA)</enum><text>relating to
support for international terrorism by the Government of Iran; and</text>
</subitem><subitem id="id280D7A4311074B0CA1B5B35DEDE03DB5"><enum>(BB)</enum><text>for which
sanctions may be imposed pursuant to Executive Order 13224 (66 Fed. Reg. 49079)
(or any successor thereto); or</text>
</subitem></item><item id="id7809F404DDD740A3A235E3DEF56DCB2F"><enum>(dd)</enum><text>any other
activity with respect to Iran for which sanctions may be imposed pursuant to
any other provision of law;</text>
</item></subclause><subclause id="id63B8148571C9425A83A0F8AFF47D9017"><enum>(II)</enum><text>is the chief
executive officer, president, or other individual in charge of overall
management of, a member of the board of directors of, or a shareholder with a
controlling interest in, an entity that engages in an activity described in
subclause (I); or</text>
</subclause><subclause id="idD21E14136FB840E2802A702DAAC64A23"><enum>(III)</enum><text>is a spouse or
minor child of—</text>
<item id="idED43FC7054974A0B9E4110524F63C2EB"><enum>(aa)</enum><text>an
alien who engages in an activity described in subclause (I); or</text>
</item><item commented="no" display-inline="no-display-inline" id="id045866D310DF4CF8A37BD731B58D0E11"><enum>(bb)</enum><text>the chief
executive officer, president, or other individual in charge of overall
management of, a member of the board of directors of, or a shareholder with a
controlling interest in, an entity that engages in an activity described in
subclause (I).</text>
</item></subclause></clause><clause id="idBD061C95182442BEA300A711A54D316E"><enum>(iii)</enum><header>Notice;
waiver with respect to certain entities</header>
<subclause id="idF4A1625B5ABF4A8BB8EAA554ACAACD74"><enum>(I)</enum><header>Notice</header><text>The
Secretary of State may notify an alien the Secretary determines may be
inadmissible under this subparagraph—</text>
<item id="idF013E96113C24663BF6FDC61C06680A6"><enum>(aa)</enum><text>that the alien
may be inadmissible; and</text>
</item><item id="idC17DBDD86FCC4F53B414B967194CF203"><enum>(bb)</enum><text>of
the reason for the inadmissibility of the alien.</text>
</item></subclause><subclause id="idAFD4827309AC41EBB4E9B39715D1FBB0"><enum>(II)</enum><header>Waiver</header><text>The
President may waive the application of this subparagraph and admit an alien to
the United States if—</text>
<item id="idD67FBFF6B4584E9B8EDD992DA87A4F92"><enum>(aa)</enum><text>the alien is
described in subclause (II) or (III)(bb) of clause (ii);</text>
</item><item id="idD91A65E4F29B46F297B9D930A0CA0CAA"><enum>(bb)</enum><text>the entity that
engaged in the activity that would otherwise result in the inadmissibility of
the alien under this subparagraph is no longer engaging the activity or has
taken significant steps toward stopping the activity; and</text>
</item><item id="idB0B47AA854724599ACE5578A74E155AC"><enum>(cc)</enum><text>the President
has received reliable assurances that the entity will not knowingly engage in
an activity described in clause (ii)(I)
again.</text>
</item></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id8B27E187B80D4D4A81C5C767BA10DD43"><enum>(b)</enum><header>Regulations</header><text display-inline="yes-display-inline">Section 428 of the Homeland Security Act of
2002 (6 U.S.C. 236) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id7D6BBD686EAE4D829243678DCC5890E9" style="OLC">
<subsection id="idB6A3970A754D4F8A84D25D5469FDDE0C"><enum>(j)</enum><header>Regulations
with respect to inadmissibility of aliens who engage in certain transactions
with Iran</header><text>Not later than 180 days after the date of the enactment
of this subsection, the Secretary shall issue regulations and guidelines for
interpreting and enforcing the prohibition under subparagraph (H) of section
212(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)) on the
admissibility of aliens who engage in certain sanctionable activities with
respect to Iran.</text>
</subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</subsection></section><enum>II</enum><header>Application of
sanctions against affiliates of Iran's Revolutionary Guard Corps</header>
<section id="HD8102972E586441CB06B8D536189BA14"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="H1C5C9DF376184DA6BE855A908B79C86F"><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="H3F7C40B9B285428391F4F0B5E52C562B"><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 commented="no" display-inline="no-display-inline" id="HDFABB536709B4178BC8FBF7DDC670935"><enum>(3)</enum><header>Iran's
Revolutionary Guard Corps</header><text display-inline="yes-display-inline">The
term <term>Iran's Revolutionary Guard Corps</term> includes Iran's
Revolutionary Guard Corps-Qods Force.</text>
</paragraph></section><section id="H659BA86342EE428B910B593DC36C32A9"><enum>202.</enum><header>Sanctions on
affiliates of Iran's Revolutionary Guard Corps</header>
<subsection id="H51392EDCCCD44239AE402B085BE69C32"><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
Iran's Revolutionary Guard Corps or is an individual serving as a
representative of Iran's Revolutionary Guard Corps.</text>
</subsection><subsection id="H1948A956C03F48C09747B91F6E09A200"><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 pursuant to
Executive Order 13382.</text>
</subsection><subsection id="H8278F3D6BB0A4F12B3203A0EA2C1D524"><enum>(c)</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).</text>
</subsection><subsection commented="no" id="H098552FAE31F4C26B11848D82B105293"><enum>(d)</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 Iran's Revolutionary Guard Corps as of the date of the enactment of
this Act by reason of the fact that Iran's Revolutionary Guard Corps is an
entity of the Government of Iran.</text>
</subsection></section><section id="HBA8839CAAA5A49A59C560C2A01C25619"><enum>203.</enum><header>Measures
against foreign persons or entities supporting Iran's Revolutionary Guard Corps
and its agents and affiliates</header>
<subsection display-inline="no-display-inline" id="H80D71965240546439E3C0C0AC720912B"><enum>(a)</enum><header>Identification
and notification</header><text>The President shall notify the appropriate
congressional committees in any case in which 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="HF2D64076CA904F2FB2A7173088F5B84F"><enum>(1)</enum><text display-inline="yes-display-inline">provides material support to Iran's
Revolutionary Guard Corps or any person or entity identified pursuant to
section 202(a) as an agent, alias, front, instrumentality, official, or
affiliate of Iran's Revolutionary Guard Corps or an individual serving as a
representative of Iran's Revolutionary Guard Corps; or</text>
</paragraph><paragraph id="H034B7D0DB78E41A3BF3DC3C26BE617B7"><enum>(2)</enum><text display-inline="yes-display-inline">conducts any commercial transaction or
financial transaction with Iran's Revolutionary Guard Corps or any such person
or entity.</text>
</paragraph></subsection><subsection id="H01DAB759A4C946508D371E2A8E02241A"><enum>(b)</enum><header>Form</header><text>The
President may submit the notification required under subsection (a) in
classified form.</text>
</subsection><subsection id="HEF667D7F9DEB4283B42A7BFA2FDA77AE"><enum>(c)</enum><header>Sanctions under
Executive Order 12938</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 the 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 that
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE7541B26D2D5489B82AC134FA112C5EC"><enum>(d)</enum><header>IEEPA
sanctions</header><text>The President may exercise the authorities provided
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="HE563179AD80043D38075C87B3B62A41F"><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="HE9F745AE4B1C4A8ABBDAFB50DE27C28E"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H43825B4F71A740A98FEA5CBDF23F24AC"><enum>(A)</enum><text>determines that the
person or entity has ceased the activity that resulted in the notification
under subsection (a) with respect to the person or entity (as the case may be)
and has taken measures to prevent its recurrence; or</text>
</subparagraph><subparagraph id="HA1BC84A52BD2487FA201306674E5D2E2" 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="H69D6B4533B2040C3BD660615FFC38174"><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="H41FDE0C858404878865C0B742290D199"><enum>204.</enum><header>Special
measures against foreign governments supporting Iran's Revolutionary Guard
Corps</header>
<subsection id="H63ED2B7EF7CE4C42AFD0A9BB597494B6"><enum>(a)</enum><header>Executive Order
12938 sanctions</header><text>With respect to any foreign entity identified
pursuant to section 203(a) that is a foreign government, the President shall,
in addition to applying to the entity the measures described in section 203(d),
apply to that government the measures set forth in section 5(b) of Executive
Order 12938.</text>
</subsection><subsection id="HF150414F1DC34960B7972B8742E8EADF"><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 government if the President—</text>
<paragraph commented="no" id="H2D3AFB5FF8CE42FD89B0321EFA2476E3"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HBD666738C90C4BE784CC8AC0A4104552"><enum>(A)</enum><text>determines that the
entity has ceased the activity that resulted in the identification of the
government pursuant to section 203(a) and has taken measures to prevent its
recurrence; or</text>
</subparagraph><subparagraph id="H4FFD570EA5694950B1B6CB556FD97E60" 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="H029D46A149EA400B9B3D254F66072379"><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="id6F183493E42445A49AF357FF0B9EAD3C"><enum>205.</enum><header>Sunset</header><text display-inline="no-display-inline">This title shall terminate on the date that
is 30 days after the date on which the President makes the certification
described in section 401(a) of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C. 8551(a)).</text>
</section><enum>III</enum><header>Rollover of gain
from divesting certain qualified securities of business entities engaged in
discouraged activities in Iran </header>
<section commented="no" display-inline="no-display-inline" id="H18FDD28F15824734B03B6E80A9A6768B" section-type="subsequent-section"><enum>301.</enum><header>Rollover of gain
from divesting certain qualified securities of business entities engaged in
discouraged activities in Iran</header>
<subsection commented="no" id="H9D3CDCADB58A4737AE0308D64A6E21FE"><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="idECC8014024D64FBBBC5ACC0B13230906" style="OLC">
<section commented="no" id="HE20D2A3EA12B477C80E80E820F35813D"><enum>1046.</enum><header>Rollover of
gain from divesting certain qualified securities of business entities engaged
in discouraged activities in Iran</header>
<subsection commented="no" id="HFED161EB771F45ECAABE76422A3A4569"><enum>(a)</enum><header>Nonrecognition
of gain</header>
<paragraph commented="no" id="H788A5305F52A41858A2B912B833C796B"><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, gain from such sale shall be recognized only to the extent that the
amount realized on such sale exceeds—</text>
<subparagraph commented="no" id="H19B5A0DF3BBA465C8E65FA8CCB44CC83"><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="HF05C5FC2C3E04F51846B0285DE4E1BF4"><enum>(B)</enum><text>any portion of
such cost previously taken into account under this section.</text>
</subparagraph></paragraph><paragraph commented="no" id="H50FDE7F1824242D1BFE8AB3242EA9B84"><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="HC2729767C41A466A9A2981D604A3BD2B"><enum>(3)</enum><header>Exception where
taxpayer owns controlling interest in the business entity</header>
<subparagraph commented="no" id="H117348DD70294F72AA0087EFE3A47615"><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.</text>
</subparagraph><subparagraph commented="no" id="H33626A5D172C488E8BB98EAA035BD275"><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="HAD01F804C7C04EF28AAABABF7DB0E90F"><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="HFFBE5EC0F11F4035BFD46F3CE71C3845"><enum>(b)</enum><header>Identification
of business entities engaging in Iran discouraged activities</header>
<paragraph commented="no" id="H5B3233544D5F49C9BF134165ED043086"><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 Iran discouraged activities.</text>
</paragraph><paragraph commented="no" id="H222B2D32FAB84155BE8FFECC197ED33F"><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, if—</text>
<subparagraph commented="no" id="H2CD85644027A4608B6546A0FCFE11F30"><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 (Public Law 104–172; 50 U.S.C. 1701 note)) 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="H96EBAD32EFFE4C0BA4578F81B54856A5"><enum>(B)</enum><text>with regard to any
Iran 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="HA6CA522FA6734577B57ECB65E6310589"><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 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.</text>
</paragraph></subsection><subsection id="id5AB5F8D851CB4A7D9A40370F7178E8DC"><enum>(c)</enum><header>Definitions
relating to discouraged activities</header>
<paragraph commented="no" id="HC08E1CC8E8974DF8BF7D68E6A3C3AE0F"><enum>(1)</enum><header>Foreign
terrorist organization</header><text>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><paragraph commented="no" id="H10D01F4AD8E84B5EA2F73F544F859B5E"><enum>(2)</enum><header>Iran discouraged
activity</header><text display-inline="yes-display-inline">The term <term>Iran
discouraged activity</term> means—</text>
<subparagraph commented="no" id="idB0D222345A72422E914F33C6423903DF"><enum>(A)</enum><text>engaging in an
investment activity described in section 202(c) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C.
8532(c));</text>
</subparagraph><subparagraph commented="no" id="id23BF2F0794C2472A8F54357521BAA03F"><enum>(B)</enum><text>engaging in an
activity described in section 5(a) of the Iran Sanctions Act of 1996 (Public
Law 104–172; 50 U.S.C. 1701 note); or</text>
</subparagraph><subparagraph commented="no" id="idF0CD3B59EAF94CD6A963ED2EC24549D0"><enum>(C)</enum><text>conducting
business with or making any charitable donation to any Iranian person
designated as a terrorist or to any foreign terrorist organization.</text>
</subparagraph></paragraph><paragraph commented="no" id="H6E480033AF6847C094B2E1DDE0927104"><enum>(3)</enum><header>Terrorist</header><text>The
term <term>terrorist</term> means a person designated or otherwise individually
identified in or pursuant to an executive order that is related to terrorism
and issued under the authority of the International Emergency Economic Powers
Act (50 U.S.C. 1701 et seq.) or section 5 of the United Nations Participation
Act of 1945 (22 U.S.C. 287c) for the purpose of imposing on such organization
an economic or other sanction.</text>
</paragraph></subsection><subsection commented="no" id="HD73374445E8C46B68190ABAF71219EE6"><enum>(d)</enum><header>Definitions and
special rules relating to securities and replacement property</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" id="HB3A69079F79647098686089EC180A841"><enum>(1)</enum><header>Qualified
security</header>
<subparagraph commented="no" id="HCD3CAE25E623462FAB36C241874688C9"><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.</text>
</subparagraph><subparagraph commented="no" id="HAE84EAB24087445BAE5F88534A5A866B"><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.</text>
</subparagraph><subparagraph commented="no" id="HAF1829EBD06540DBBB9A6670B7329191"><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="H07A363623D9D43C6985F845FD58BE763"><enum>(2)</enum><header>Qualified
replacement property</header>
<subparagraph commented="no" id="H64ADE436DBA9472C985D1C828236337D"><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="H53E1475B7FAC4526BA077D4DE057244D"><enum>(i)</enum><text display-inline="yes-display-inline">is not engaged in an Iran discouraged
activity on such date,</text>
</clause><clause commented="no" id="HA66131CA287A47F58D22E9AD47820EA7"><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 on such
date, and</text>
</clause><clause commented="no" id="H5A76C92800904B47A24141B4032F5D54"><enum>(iii)</enum><text>meets the
requirements of subparagraph (B).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H781F2EC42B934AFBBFDD26996DA87E93"><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="H52F8D1D695D6466CBF8876CD943C1225"><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="H9D01F5BA8FEE4189942ED759FECBFD70"><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="H62351D95A8474C519FD197BCAFD989E6"><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="HD4564AEEF7684C2DBE4DCADF3CA596F8"><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="HA2C59AC5F5574C53AC5585C34AD02F9B"><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="HA8C0594E52C74854B4786CAD5CE45D02"><enum>(i)</enum><text>issued by a
business entity determined to be engaging in Iran discouraged activities,
or</text>
</clause><clause commented="no" id="H1E650CBBD8E54F56805A927457022909"><enum>(ii)</enum><text>issued by the
Government of 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.</continuation-text></subparagraph><subparagraph commented="no" id="HB18BF17D867C420BAEFECE47ACDAD8DF"><enum>(D)</enum><header>Business
declaration of policy</header>
<clause commented="no" id="H225D3905CFAE4991A15DCC83A435CBCA"><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 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.</quote>.</text>
</clause><clause commented="no" id="H740030B39C64447B9A2A35D3752B714D"><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="H53FEA06866FF47659A04BD9D4CF6F69F"><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="H2FFC19CBA9AA455097927DF52C2A08C1"><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="H4461DBAB68A44FA7B4966EDD2B47416A"><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="H88601FBD53B94BE6B12D9F1E117724E4"><enum>(ii)</enum><text>without regard to
paragraphs (2) and (4) of section 1504(b).</text>
</clause></subparagraph><subparagraph commented="no" id="H53389B8F813C4458B1E8342F5814EE6D"><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="H2E52CB566E144C07967005C4EADBECBE"><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="HC6B0AF04B2B748A5A3A11FE4926B8C3C"><enum>(3)</enum><header>Special rule for
securities of certain entities</header>
<subparagraph commented="no" id="H3D16B36822704CF88602F808246D26A1"><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. This policy may or may not include investments concerning the provision
of food, medicine, humanitarian services in or to Iran.</quote>.</text>
</subparagraph><subparagraph commented="no" id="HEA841B0115614A6488FBF7B24DD12090"><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="HE211EAB7EA574C838299311FC6B2CE63"><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="H21E99479530344218A28D904A326C426"><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 that have been determined by
the Secretary of State to have repeatedly provided support for acts of
international terrorism pursuant to—</text>
<clause id="ID57add7ef1a1c4667afbb6df73577a98c"><enum>(i)</enum><text>section
6(j)(1)(A) of the Export Administration Act of 1979 (50 U.S.C. App.
2405(j)(1)(A)) (as in effect pursuant to the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.)) (or any successor thereto);</text>
</clause><clause id="ID1e4889b1dac44753be67fe24ba068f72"><enum>(ii)</enum><text>section 40(d) of
the Arms Export Control Act (22 U.S.C. 2780(d)); or</text>
</clause><clause id="ID6739c17eef5840a9befa561498d2a5d5"><enum>(iii)</enum><text>section 620A(a)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)).</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H2FFE826AFE154212B2AF145B5996C0D5"><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="HB136C019CC9C4CF98DCB67DB948F7712"><enum>(e)</enum><header>Termination</header><text display-inline="yes-display-inline">Subsection (a) shall not apply with respect
to any Iran discouraged activity on or after the date on which the President
makes the certification described in section 401(a) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C.
8551(a)).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H1B44FA8DB7254F3DAB40FAFE2E636227"><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="H1D60B4D9AAD64372B4FB038974336214" style="OLC">
<toc container-level="quoted-block-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HE20D2A3EA12B477C80E80E820F35813D" level="section">Sec. 1046. Rollover of gain from divesting certain qualified
securities of business entities engaged in discouraged activities in
Iran.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H3E1381D7B8264293B1D8E41F5D2F5A1F"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to sales of securities after the date of the enactment of this Act.</text>
</subsection></section><enum>IV</enum><header>Prohibition on
United States Government contracts and investment for companies conducting
business in Iran</header>
<section id="H430603772FD94B4DBC276B5DD16153F8"><enum>401.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="H8EA48EA7B63A4CE2A1EF1D9CE6E0D98B"><enum>(1)</enum><header>Appropriate
congressional committees</header><text>The term <term>appropriate congressional
committees</term> means—</text>
<subparagraph id="H4B15CDD1E67347149676F984846AEAFA"><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="H1566CB9D65134FAA9907244968BBB1B2"><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 commented="no" display-inline="no-display-inline" id="HCFA8B4A87DCD4E3B935D7481EBB8AE99"><enum>(2)</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><paragraph commented="no" id="HFB85FD19CDF748439571F8C41D0FF96D"><enum>(3)</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 persons through government grants or loans, or
through the terms of a contract with the Federal Government, or through the
Troubled Asset Relief Program established under title I of division A of the
Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.), 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></section><section id="H3AE5D9E1FCB541339EF64D137D1613ED"><enum>402.</enum><header>Expansion of
prohibition on United States Government contracts for persons that conduct
business operations in Iran</header>
<subsection id="id96D01A5E2EB849099B722035374DBF09"><enum>(a)</enum><header>In
general</header><text>Section 6(b) of the Iran Sanctions Act of 1996 (Public
Law 104–172; 50 U.S.C. 1701 note) is amended—</text>
<paragraph id="idD43B341729E449EDA1815C29BF22D8F8"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>does not engage in any activity for which sanctions may be
imposed under section 5.</quote> and inserting the following: “does not—</text>
<quoted-block display-inline="no-display-inline" id="id767DEA06EB084BA7B000C89D66C6E9BE" style="OLC">
<subparagraph id="idAB0ECEE46F304B76B7436F59AFB0F877"><enum>(A)</enum><text>engage in any
activity for which sanctions may be imposed under section 5;</text>
</subparagraph><subparagraph id="id06630D63690F428F93942CF63B629DED"><enum>(B)</enum><text>export sensitive
technology (as defined in paragraph (6)) to Iran; or</text>
</subparagraph><subparagraph id="id3B3A984FFD384B2A8D2E4074BA83D1FA"><enum>(C)</enum><text>engage in any
activity described in section 203(a) of the <short-title>Stop Iran’s Nuclear Weapons Program Act of
2010</short-title>.</text>
</subparagraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph id="id07140E28AC934A94921E6889BA73366F"><enum>(2)</enum><text>in paragraph
(5)—</text>
<subparagraph id="idC59127F595BE4C478D815D2CEA47ADF7"><enum>(A)</enum><text>by striking
<quote>The President may</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id23B483F41E264E48848BDAC7AE5AE9ED" style="OLC">
<subparagraph id="id35C25AE2B3974716A7C91F2D0413573B"><enum>(A)</enum><header>In
general</header><text>The President may</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id1DD4E8108E324140A51FDB833BDB47A9"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD313DFE527EC46E8BCEC85C186A226F4" style="OLC">
<subparagraph id="HCE7DC60D7E9D4A9688265E45419D0ABA"><enum>(B)</enum><header>Reporting
requirement</header><text>Not later than 120 days after the date of the
enactment of the <short-title>Stop Iran’s Nuclear Weapons
Program Act of 2010</short-title>, and every 180 days thereafter, the
Administrator for Federal Procurement Policy shall submit to the appropriate
congressional committees a report on waivers granted under subparagraph
(A).</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id4F5FA3A747474F18A99B660680AF631D"><enum>(3)</enum><text>by striking
paragraph (6) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idCA2753056AC44AFFB9495242DDC74B95" style="OLC">
<paragraph id="id4007F982497340958E645EDBF7EC3BEB"><enum>(6)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="idB3F97CE43B104B35A49265A8458A5A2D"><enum>(A)</enum><header>Executive
agency</header><text>The term <term>executive agency</term> has the meaning
given that term in section 4 of the Office of Federal Procurement Policy Act
(41 U.S.C. 403).</text>
</subparagraph><subparagraph id="id4FCBA82A6DF54EFE93BB5B74A64C7248"><enum>(B)</enum><header>Sensitive
technology</header>
<clause id="id4420F65354904D29A084077506FEDC21"><enum>(i)</enum><header>In
general</header><text>The term <term>sensitive technology</term> means
hardware, software, telecommunications equipment, or any other technology, that
the President determines is to be used specifically—</text>
<subclause id="id009C4B117EA54D4ABBEC20E7E4E0AE61"><enum>(I)</enum><text>to restrict the
free flow of unbiased information in Iran; or</text>
</subclause><subclause id="id74ACC50A27E241D2908A81F006DBCAAD"><enum>(II)</enum><text>to disrupt,
monitor, or otherwise restrict speech of the people of Iran.</text>
</subclause></clause><clause id="idA5D853608A424FE6AEE08BF36082E86A"><enum>(ii)</enum><header>Exception</header><text>The
term <term>sensitive technology</term> does not include information or
informational materials the exportation of which the President does not have
the authority to regulate or prohibit pursuant to section 203(b)(3) of the
International Emergency Economic Powers Act (50 U.S.C.
1702(b)(3)).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id7E810D531CA74BE5A0C532A85EA6ED78"><enum>(b)</enum><header display-inline="yes-display-inline">Implementation through the Federal
Acquisition Regulation</header><text display-inline="yes-display-inline">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 amendments made by subsection (a).</text>
</subsection><subsection id="idB7B10C1FF9AC48CDA42FD6F01EC1B18A"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="idCC1DCF8763014596ACE5226E151D29E7"><enum>(1)</enum><text>Section 106 of
the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010
(22 U.S.C. 8515) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idFFBEF5A6215F4840A6B26E5F07884B89" style="OLC">
<section commented="no" display-inline="no-display-inline" id="ID9A6651D282DF484DB49C6ABA3FE11532" section-type="subsequent-section"><enum>106.</enum><header display-inline="yes-display-inline">Government Accountability Office report on
effect of prohibition on government procurement from persons that export
sensitive technology to Iran</header><text display-inline="no-display-inline">Not later than 1 year after the date of the
enactment of this Act, the Comptroller General of the United States shall
submit to the appropriate congressional committees, the Committee on Armed
Services of the Senate, and the Committee on Armed Services of the House of
Representatives, a report assessing the extent to which executive agencies
would have entered into or renewed contracts for the procurement of goods or
services with persons that export sensitive technology to Iran if the
prohibition under section 6(b)(1)(B) of the Iran Sanctions Act of 1996 (Public
Law 104–172; 50 U.S.C. 1701 note) were not in
effect.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id2C30297073954933B777B2B584ED4A06"><enum>(2)</enum><text>The table of
contents for the Comprehensive Iran Sanctions, Accountability, and Divestment
Act of 2010 is amended by striking the item relating to section 106 and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idF25A11623A1344A6A9EAADE72800932F" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 106. Government
Accountability Office report on effect of prohibition on government procurement
from persons that export sensitive technology to
Iran.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="idC90BEB82F2204C268BD8E7115DD20DF0"><enum>403.</enum><header>Prohibition on
provision of Federal grants, loans, or other assistance to persons that conduct
business operations in Iran</header>
<subsection id="HA1DDBD57062C42F9AE7C359F521BF721"><enum>(a)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the head of
each executive agency shall require any person seeking Federal funds in the
form of a grant, loan, or loan guarantee, insurance or reinsurance, or
technical assistance from the agency to certify that the person does
not—</text>
<paragraph id="id803B9E4A935247A5B695D85DB3D217CE"><enum>(1)</enum><text>engage in any
activity for which sanctions may be imposed under section 5 of the Iran
Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note);</text>
</paragraph><paragraph id="id0395AB4E91B5429384E167470340BF45"><enum>(2)</enum><text>export sensitive
technology (as defined in section 6(b)(6) of the Iran Sanctions Act of 1996) to
Iran; or</text>
</paragraph><paragraph id="id04161818EBBA41CC934DBF7610FB7095"><enum>(3)</enum><text>engage in any
activity described in section 203(a) of this Act.</text>
</paragraph></subsection><subsection id="H916649E431BB43BCA444498F5227AC0E"><enum>(b)</enum><header>Waiver</header><text>The
President may waive the requirement under 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 of the United
States to do so.</text>
</subsection></section><section id="id565227A8836D44BDA4AC7F1C22444A4A"><enum>404.</enum><header>Report on
expansion of prohibition on United States Government contracts for, and
prohibition on provision of Federal grants, loans, and other assistance to,
persons that conduct business operations in Iran</header><text display-inline="no-display-inline">Not later than one year after the date on
which the Federal Acquisition Regulation is revised pursuant to section 402(b)
to provide for the implementation of the amendments made by section 402(a), the
Administrator of General Services, in consultation with the heads of other
executive agencies, shall submit to the Office of Management and Budget and the
appropriate congressional committees a report on the actions taken pursuant to
such amendments and section 403.</text>
</section><section commented="no" display-inline="no-display-inline" id="H1D69FA12D95A4A4588A5F0D82381560D" section-type="subsequent-section"><enum>405.</enum><header>Divestiture from
Iran by United States Government retirement systems</header>
<subsection commented="no" id="H6267B0D990334CFAB7CBEBB47D0AA03B"><enum>(a)</enum><header>Divestiture from
Iran</header><text display-inline="yes-display-inline">The managers of each
Government retirement system (including any thrift savings plan) 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 imposed for activities described in section 5(a) of the
Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note), section
6(b)(1)(B) of the Iran Sanctions Act of 1996, as amended by section 402 of this
Act, or section 203(a) of this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF8E19193A7E34FD49120F7B360EE5CEB"><enum>(b)</enum><header>Prohibition on
future investment</header><text display-inline="yes-display-inline">The
managers of each Government retirement system (including any thrift savings
plan) 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><subsection commented="no" display-inline="no-display-inline" id="id13EB61FC7FC54A058FFCC7FC82E3238B"><enum>(c)</enum><header>Government
retirement system defined</header><text>In this section, the term
<term>Government retirement system</term> means a retirement system established
by law for employees of the Government of the United States.</text>
</subsection></section><section id="HF3055EED56C14B86A2B3F12F80A48307"><enum>406.</enum><header>Sunset</header><text display-inline="no-display-inline">The provisions of this title (other than the
amendments made by section 402) shall terminate on the date that is 30 days
after the date on which the President makes the certification described in
section 401(a) of the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010 (22 U.S.C. 8551(a)).</text>
</section>