[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1655 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1655

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 15, 2011

  Mr. Sherman (for himself, Mr. Royce, Ms. Berkley, Mr. Shuler, Mrs. 
Maloney, and Mr. Poe of Texas) introduced the following bill; which was 
 referred to the Committee on Foreign Affairs, and in addition to the 
 Committees on Ways and Means, the Judiciary, Financial Services, and 
   Oversight and Government Reform, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Stop Iran's 
Nuclear Weapons Program Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings.
           TITLE I--ADDITIONAL SANCTIONS WITH RESPECT TO IRAN

Sec. 101. Expansion of sanctions under the Iran Sanctions Act of 1996.
Sec. 102. Application to subsidiaries.
Sec. 103. Additional export sanctions against Iran.
Sec. 104. Elimination of certain tax incentives for oil companies 
                            investing in Iran.
Sec. 105. Inadmissibility of certain aliens who engage in certain 
                            activities with respect to Iran.
Sec. 106. Temporary increase in fee for certain consular services.
TITLE II--APPLICATION OF SANCTIONS AGAINST AFFILIATES OF IRAN'S ISLAMIC 
                       REVOLUTIONARY GUARD CORPS

Sec. 201. Sanctions against affiliates of Iran's Islamic Revolutionary 
                            Guard Corps.
Sec. 202. Measures against foreign persons or entities supporting 
                            Iran's Islamic Revolutionary Guard Corps.
Sec. 203. Special measures against foreign countries supporting Iran's 
                            Islamic Revolutionary Guard Corps.
Sec. 204. Rule of construction.
Sec. 205. Definitions.
Sec. 206. Sunset.
 TITLE III--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. 301. Statement of policy.
Sec. 302. Reporting requirements under the Iran, North Korea, and Syria 
                            Nonproliferation Act.
Sec. 303. Conforming amendments.
TITLE IV--ROLLOVER OF GAIN FROM DIVESTING CERTAIN QUALIFIED SECURITIES 
     OF BUSINESS ENTITIES ENGAGED IN DISCOURAGED ACTIVITIES IN IRAN

Sec. 401. Rollover of gain from divesting certain qualified securities 
                            of business entities engaged in discouraged 
                            activities in Iran.
    TITLE V--PROHIBITION ON UNITED STATES GOVERNMENT CONTRACTS AND 
          INVESTMENT FOR COMPANIES CONDUCTING BUSINESS IN IRAN

Sec. 501. Prohibition on United States Government contracts.
Sec. 502. Authority of State and local governments to restrict 
                            contracts or licenses for certain 
                            sanctionable persons.
Sec. 503. United States pension plans.
Sec. 504. Definitions.
Sec. 505. Sunset.
     TITLE VI--TERMINATION OF LOAN DISBURSEMENTS TO IRAN FROM THE 
         INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

Sec. 601. Termination of loan disbursements to Iran from the 
                            International Bank for Reconstruction and 
                            Development.
Sec. 602. United States opposition to new country assistance strategy 
                            for Iran.
Sec. 603. Sunset.
Sec. 604. Rule of interpretation.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) On July 1, 2010, President Obama signed into law the 
        Comprehensive Iran Sanctions, Accountability, and Divestment 
        Act of 2010 (Public Law 111-195; 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) According to the report of the Director General of the 
        International Atomic Energy Agency titled ``Implementation of 
        the NPT Safeguards Agreement and relevant provisions of 
        Security Council resolutions in the Islamic Republic of Iran'', 
        dated February 25, 2011, Iran continues to defy the 
        international community by continuing uranium enrichment 
        activities, failing to suspend heavy water-related projects, 
        failing to provide sufficient cooperation to the Agency to 
        resolve outstanding suspicions about potential military 
        dimensions of its program, withholding requested design 
        information regarding various facilities and equipment, and by 
        not implementing the Additional Protocol to the NPT Safeguards 
        Agreement.
            (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 in an effort to 
        convince the Government of Iran to abandon sensitive nuclear 
        activities, the United States and like-minded countries must do 
        more in the coming months to achieve that goal.

           TITLE I--ADDITIONAL SANCTIONS WITH RESPECT TO IRAN

SEC. 101. EXPANSION OF SANCTIONS UNDER THE IRAN SANCTIONS ACT OF 1996.

    Section 5(a) of the Iran Sanctions Act of 1996 (Public Law 104-172; 
50 U.S.C. 1701 note) is amended--
            (1) in the heading, by inserting at the end before the 
        period the following: ``, etc''; and
            (2) by adding at the end the following new paragraphs:
            ``(4) Other actions relating to petroleum resources of 
        iran.--
                    ``(A) In general.--Except as provided in subsection 
                (f), the President shall impose 3 or more of the 
                sanctions described in section 6(a) with respect to a 
                person if the President determines that the person 
                knowingly, on or after the date of the enactment of the 
                Stop Iran's Nuclear Weapons Program Act of 2011--
                            ``(i) enters into a long-term agreement to 
                        purchase petroleum resources from Iran;
                            ``(ii) enters into an agreement to provide 
                        payment for future delivery of petroleum 
                        resources from Iran; or
                            ``(iii) enters into an agreement with the 
                        National Iranian Oil Company, any of its 
                        affiliates, or any entity owned or controlled 
                        by the Government of Iran to provide for the 
                        development of petroleum resources wherever 
                        located.
                    ``(B) Ancillary services.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) and 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 2011, enters into an agreement 
                        to provide ancillary services to support an 
                        agreement described in clause (i), (ii), or 
                        (iii) of subparagraph (A).
                            ``(ii) Exception.--The President shall not 
                        be required to apply or maintain the sanctions 
                        under clause (i) with respect to a person who 
                        provides underwriting, insurance, or 
                        reinsurance services to support an agreement 
                        described in clause (i), (ii), or (iii) of 
                        subparagraph (A) if the President determines in 
                        writing that the person has exercised due 
                        diligence in establishing and enforcing 
                        official policies, procedures, and controls to 
                        ensure that the person does not underwrite or 
                        enter into a contract to provide insurance or 
                        reinsurance for the activities described in 
                        clause (i), (ii), or (iii) of subparagraph (A).
                    ``(C) Definitions.--
                            ``(i) Ancillary services.--In subparagraph 
                        (A), the term `ancillary services' means 
                        underwriting, insurance, reinsurance, 
                        financing, guarantees, brokering, or providing 
                        ships or shipping services.
                            ``(ii) Long-term agreement.--In 
                        subparagraph (A)(i), the term `long-term 
                        agreement' means a contract or other agreement 
                        that provides for delivery of petroleum 
                        resources beginning more than 1 year after the 
                        date of entry into the contract or agreement 
                        (as the case may be).
                            ``(iii) Future delivery.--In subparagraph 
                        (A)(ii), the term `future delivery' means 
                        delivery that occurs more than 180 days after 
                        payment is effected under the agreement.
            ``(5) Purchase, subscription to, or facilitation of the 
        issuance of iranian sovereign debt.--Except as provided in 
        subsection (f), the President shall impose 3 or more of the 
        sanctions described in section 6(a) with respect to a person if 
        the President determines that the person knowingly, on or after 
        the date of the enactment of the Stop Iran's Nuclear Weapons 
        Program Act of 2011, purchases, subscribes to, or facilitates 
        the issuance of--
                    ``(A) sovereign debt of the Government of Iran, 
                including governmental bonds; or
                    ``(B) debt of any entity owned or controlled by the 
                Government of Iran, including bonds.''.

SEC. 102. APPLICATION TO SUBSIDIARIES.

    (a) In General.--Except as provided in subsection (b), in any case 
in which an entity engages in an act outside the United States which, 
if committed in the United States or by a United States person, would 
violate Executive Order 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 (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 
the act to the same extent as if the parent company had engaged in the 
act.
    (b) Exception.--Subsection (a) shall not apply to a parent company 
of an entity for an act described in subsection (a) if--
            (1) within 90 days after the date of the enactment of this 
        Act--
                    (A) the parent company causes the entity to cease 
                committing acts described in subsection (a); or
                    (B) the entity ceases committing acts described in 
                subsection (a); or
            (2) in the case of an entity acquired by a parent company, 
        within 90 days of acquisition of the entity--
                    (A) the parent company causes the entity to cease 
                committing acts described in subsection (a); or
                    (B) the entity ceases committing acts described in 
                subsection (a).
    (c) Construction.--Nothing in this section shall be construed as 
prohibiting the issuance of regulations, orders, directives, or 
licenses under the Executive orders described in subsection (a) or as 
being inconsistent with the authorities under the International 
Emergency Economic Powers Act.
    (d) Definitions.--In this section:
            (1) Entity.--The term ``entity'' means a partnership, 
        association, trust, joint venture, corporation, or other 
        organization.
            (2) Parent company.--An entity is a ``parent company'' of 
        another entity if it controls, directly or indirectly, that 
        other entity and is a United States person.
            (3) United states person.--The term ``United States 
        person'' means any United States citizen, any alien lawfully 
        admitted for permanent residence to the United States, any 
        entity organized under the laws of the United States, or any 
        person in the United States.

SEC. 103. ADDITIONAL EXPORT SANCTIONS AGAINST IRAN.

    Notwithstanding section 103(b)(2)(B)(iv) of the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111-
195; 22 U.S.C. 8512(b)(2)(B)(iv)) or section 1606 of the Iran-Iraq Arms 
Non-Proliferation Act of 1992 (Public Law 102-484; 50 U.S.C. 1701 note) 
or any other provision of law, effective on the date of the enactment 
of this Act--
            (1) licenses to export or reexport goods, services, or 
        technology relating to civil aviation of United States origin 
        to Iran may not be issued, and any such license issued before 
        such date of enactment is no longer valid; and
            (2) goods, services, or technology described in paragraph 
        (1) may not be exported or reexported.

SEC. 104. ELIMINATION OF CERTAIN TAX INCENTIVES FOR OIL COMPANIES 
              INVESTING IN IRAN.

    (a) In General.--Subsection (h) of section 167 of the Internal 
Revenue Code of 1986 (relating to amortization of geological and 
geophysical expenditures) is amended by adding at the end the following 
new paragraph:
            ``(6) Denial when iran sanctions in effect.--
                    ``(A) In general.--If sanctions are imposed under 
                section 5(a) of the Iran Sanctions Act of 1996 
                (relating to sanctions with respect to the development 
                of petroleum resources of Iran) on any member of an 
                expanded affiliated group the common parent of which is 
                a foreign corporation, paragraph (1) shall not apply to 
                any expense paid or incurred by any such member in any 
                period during which the sanctions are in effect.
                    ``(B) Affirmation of compliance.--
                            ``(i) In general.--Paragraph (1) shall not 
                        apply to any expense paid or incurred by any 
                        member of such group in any period in the 
                        taxable year unless the corporation affirms 
                        that it and all members of its expanded 
                        affiliated group have not conducted any 
                        activities during the taxable year described in 
                        section 5(a) of the Iran Sanctions Act of 1996. 
                        The affirmation required by the preceding 
                        sentence shall be made on the return of tax for 
                        such taxable year in the manner required by the 
                        Secretary.
                            ``(ii) Special rule.--If, with respect to 
                        any provision under section 5(a) of the Iran 
                        Sanctions Act of 1996--
                                    ``(I) a certification is made under 
                                section 4(e)(3) of such Act, and
                                    ``(II) after the certification the 
                                taxpayer does not conduct any activity 
                                in violation of the provision,
                        any activity by the taxpayer occurring before 
                        the certification with respect to the provision 
                        shall not be taken into account.
                    ``(C) Expanded affiliated group.--For purposes of 
                this paragraph, the term `expanded affiliated group' 
                means an affiliated group as defined in section 
                1504(a), determined--
                            ``(i) by substituting `more than 50 
                        percent' for `at least 80 percent' each place 
                        it appears, and
                            ``(ii) without regard to paragraphs (2), 
                        (3), and (4) of section 1504(b).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to expenses paid or incurred on or after January 1, 2010.

SEC. 105. INADMISSIBILITY OF CERTAIN ALIENS WHO ENGAGE IN CERTAIN 
              ACTIVITIES WITH RESPECT TO IRAN.

    (a) In General.--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:
                    ``(H) Individuals who engage in certain activities 
                with respect to iran.--
                            ``(i) In general.--Subject to clause (iii), 
                        any alien described in clause (ii) is 
                        inadmissible.
                            ``(ii) Aliens described.--An alien 
                        described in this clause is an alien that the 
                        Secretary of State determines--
                                    ``(I) engages in--
                                            ``(aa) 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);
                                            ``(bb) an activity--

                                                    ``(AA) relating to 
                                                the proliferation by 
                                                Iran of weapons of mass 
                                                destruction or the 
                                                means of delivery of 
                                                such weapons; and

                                                    ``(BB) for which 
                                                sanctions may be 
                                                imposed pursuant to 
                                                Executive Order 13382 
                                                (70 Fed. Reg. 38567) 
                                                (or any successor 
                                                thereto);

                                            ``(cc) an activity--

                                                    ``(AA) relating to 
                                                support for 
                                                international terrorism 
                                                by the Government of 
                                                Iran; and

                                                    ``(BB) for which 
                                                sanctions may be 
                                                imposed pursuant to 
                                                Executive Order 13224 
                                                (66 Fed. Reg. 49079) 
                                                (or any successor 
                                                thereto); or

                                            ``(dd) any other activity 
                                        with respect to Iran for which 
                                        sanctions may be imposed 
                                        pursuant to any other provision 
                                        of law;
                                    ``(II) 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
                                    ``(III) is a spouse or minor child 
                                of--
                                            ``(aa) an alien who engages 
                                        in an activity described in 
                                        subclause (I); or
                                            ``(bb) 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).
                            ``(iii) Notice; waiver with respect to 
                        certain entities.--
                                    ``(I) Notice.--The Secretary of 
                                State may notify an alien the Secretary 
                                determines may be inadmissible under 
                                this subparagraph--
                                            ``(aa) that the alien may 
                                        be inadmissible; and
                                            ``(bb) of the reason for 
                                        the inadmissibility of the 
                                        alien.
                                    ``(II) Waiver.--The President may 
                                waive the application of this 
                                subparagraph and admit an alien to the 
                                United States if--
                                            ``(aa) the alien is 
                                        described in subclause (II) or 
                                        (III)(bb) of clause (ii);
                                            ``(bb) 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
                                            ``(cc) the President has 
                                        received reliable assurances 
                                        that the entity will not 
                                        knowingly engage in an activity 
                                        described in clause (ii)(I) 
                                        again.''.
    (b) Regulations.--Section 428 of the Homeland Security Act of 2002 
(6 U.S.C. 236) is amended by adding at the end the following:
    ``(j) Regulations With Respect to Inadmissibility of Aliens Who 
Engage in Certain Transactions With Iran.--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.''.

SEC. 106. TEMPORARY INCREASE IN FEE FOR CERTAIN CONSULAR SERVICES.

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

TITLE II--APPLICATION OF SANCTIONS AGAINST AFFILIATES OF IRAN'S ISLAMIC 
                       REVOLUTIONARY GUARD CORPS

SEC. 201. SANCTIONS AGAINST AFFILIATES OF IRAN'S ISLAMIC REVOLUTIONARY 
              GUARD CORPS.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, and as appropriate thereafter, the President 
shall identify in, and, in the case of a foreign person or foreign 
entity not already so designated, shall designate 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 all applicable sanctions of the 
United States pursuant to Executive Order 13382 to each foreign person 
or foreign entity for which there is a reasonable basis for determining 
that the person or entity is as an agent, alias, front, 
instrumentality, official, or affiliate of Iran's Islamic Revolutionary 
Guard Corps or is an individual serving as a representative of Iran's 
Islamic Revolutionary Guard Corps.
    (b) Priority for Investigation.--In carrying out this section, the 
President shall give priority to investigating foreign persons and 
foreign entities identified under section 560.304 of title 31, Code of 
Federal Regulations (relating to the definition of the Government of 
Iran) and foreign persons and foreign entities for which there is a 
reasonable basis to suspect that the person or entity has conducted or 
attempted to conduct one or more sensitive transactions or activities 
described in subsection (c).
    (c) Sensitive Transaction or Activity.--A sensitive transaction or 
activity referred to in subsection (b) is--
            (1) a financial transaction or series of transactions 
        valued at more than $1,000,000 in the aggregate in any 12-month 
        period involving a non-Iranian financial institution;
            (2) a transaction to facilitate the manufacture, import, 
        export, or transfer of items needed for the development of 
        nuclear, chemical, biological, or advanced conventional 
        weapons, including ballistic missiles;
            (3) a transaction relating to the manufacture, procurement, 
        or sale of goods, services, and technology relating to Iran's 
        energy sector, including the development of the energy 
        resources of Iran, export of petroleum products, and import of 
        refined petroleum and refining capacity available to Iran;
            (4) a transaction relating to the procurement of sensitive 
        technologies (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)); or
            (5) an attempt to interfere in the internal affairs of Iraq 
        or Afghanistan, or equip or train, or encourage violence by, 
        individuals or groups opposed to the governments of those 
        countries.
    (d) Exclusion From United States.--The Secretary of State shall 
deny a visa to, and the Secretary of Homeland Security shall exclude 
from the United States, any alien who, on or after the date of the 
enactment of this Act, is a foreign person designated for inclusion in 
the Annex to Executive Order 13382 pursuant to subsection (a).
    (e) Rule of Construction.--Nothing in this section shall be 
construed to remove any sanction of the United States in force against 
Iran's Islamic Revolutionary Guard Corps as of the date of the 
enactment of this Act by reason of the fact that Iran's Islamic 
Revolutionary Guard Corps is an entity of the Government of Iran.

SEC. 202. MEASURES AGAINST FOREIGN PERSONS OR ENTITIES SUPPORTING 
              IRAN'S ISLAMIC REVOLUTIONARY GUARD CORPS.

    (a) Identification and Notification.--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--
            (1) provides material support to Iran's Islamic 
        Revolutionary Guard Corps or any person or entity that 
        identified pursuant to section 201(a) as an agent, alias, 
        front, instrumentality, official, or affiliate of Iran's 
        Islamic Revolutionary Guard Corps or an individual serving as a 
        representative of Iran's Islamic Revolutionary Guard Corps; or
            (2) conducts any commercial transaction or financial 
        transaction with Iran's Islamic Revolutionary Guard Corps or 
        any such person or entity.
    (b) Waiver.--
            (1) In general.--Notwithstanding any other provision of 
        this title and subject to paragraph (2), the President is not 
        required to make any identification or designation of or 
        determination with respect to a foreign person or foreign 
        entity for purposes of this title if doing so would cause 
        damage to the national security of the United States through 
        the divulgence of sources and methods of intelligence or other 
        critical classified information.
            (2) Notice to congress.--The President shall notify 
        Congress of any exercise of the authority of paragraph (1) and 
        shall include in the notification an identification of the 
        foreign person or foreign entity, including a description of 
        the activity or transaction that would have caused the 
        identification, designation, or determination for purposes of 
        this title.
    (c) Sanctions.--
            (1) In general.--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 following sanctions:
                    (A) No department or agency of the United States 
                Government may procure or enter into a contract for the 
                procurement of goods or services from the person or 
                entity.
                    (B) No products produced by the person or entity 
                may be imported into the United States.
            (2) Termination.--The President may terminate the sanctions 
        applied to a foreign person or foreign entity pursuant to 
        paragraph (1) if the President determines that the person or 
        entity no longer engages in the activity or activities for 
        which the sanctions were imposed and has provided assurances to 
        the United States Government that it will not engage in the 
        activity or activities in the future.
    (d) IEEPA Sanctions.--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.
    (e) Waiver.--The President may waive the application of any measure 
described in subsection (c) with respect to a foreign person or foreign 
entity if the President--
            (1)(A) determines that the person or entity has ceased the 
        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
            (B) determines that it is vital to the national security 
        interests of the United States to do so; and
            (2) submits to the appropriate congressional committees a 
        report that contains the reasons for the determination.

SEC. 203. SPECIAL MEASURES AGAINST FOREIGN COUNTRIES SUPPORTING IRAN'S 
              ISLAMIC REVOLUTIONARY GUARD CORPS.

    (a) Sanctions.--With respect to any foreign entity identified 
pursuant to section 202(a) that is an agency of the government of a 
foreign country, the President shall, in addition to applying to the 
entity the sanctions described in section 202(c), apply to the foreign 
country the following measures:
            (1) No assistance shall be provided to the foreign country 
        under the Foreign Assistance Act of 1961, or any successor Act, 
        or the Arms Export Control Act, or any successor Act, other 
        than assistance that is intended to benefit the people of the 
        foreign country directly and that is not provided through 
        governmental agencies or entities of the foreign country.
            (2) The United States shall oppose any loan or financial or 
        technical assistance to the foreign country by international 
        financial institutions in accordance with section 701 of the 
        International Financial Institutions Act (22 U.S.C. 262d).
            (3) The United States shall deny to the foreign country any 
        credit or financial assistance by any department, agency, or 
        instrumentality of the United States Government.
            (4) The United States Government shall not approve the sale 
        to the foreign country any defense articles or defense services 
        or issue any license for the export of items on the United 
        States Munitions List.
            (5) No exports to the foreign country shall be permitted of 
        any goods or technologies controlled for national security 
        reasons under the Export Administration Regulations.
            (6) Restrictions shall be imposed on the importation into 
        the United States of articles that are the growth, product, or 
        manufacture of the foreign country.
            (7) At the earliest practicable date, the Secretary of 
        State shall terminate, in a manner consistent with 
        international law, the authority of any air carrier that is 
        controlled in fact by the government of the foreign country to 
        engage in air transportation (as defined in section 40102(5) of 
        title 49, United States Code).
    (b) Termination.--The President may terminate the sanctions applied 
to a foreign country pursuant to subsection (a) if the President 
determines that the foreign entity involved no longer engages in the 
activity or activities for which the sanctions were imposed and has 
provided assurances to the United States Government that it will not 
engage in the activity or activities in the future.
    (c) Waiver.--The President may waive the application of any measure 
described in subsection (a) with respect to a foreign country if the 
President--
            (1)(A) determines that the entity has ceased the activity 
        that resulted in the notification under section 202(a) with 
        respect to the entity and has taken measures to prevent its 
        recurrence; or
            (B) determines that it is vital to the national security 
        interests of the United States to do so; and
            (2) submits to the appropriate congressional committees a 
        report that contains the reasons for the determination.

SEC. 204. RULE OF CONSTRUCTION.

    Nothing in this title shall be construed to limit the authority of 
the President to otherwise designate foreign persons or foreign 
entities 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).

SEC. 205. DEFINITIONS.

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

SEC. 206. SUNSET.

    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)).

 TITLE III--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. 301. STATEMENT OF POLICY.

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

SEC. 302. REPORTING REQUIREMENTS UNDER THE IRAN, NORTH KOREA, AND SYRIA 
              NONPROLIFERATION ACT.

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

SEC. 303. CONFORMING AMENDMENTS.

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

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

SEC. 401. ROLLOVER OF GAIN FROM DIVESTING CERTAIN QUALIFIED SECURITIES 
              OF BUSINESS ENTITIES ENGAGED IN DISCOURAGED ACTIVITIES IN 
              IRAN.

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

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

    ``(a) Nonrecognition of Gain.--
            ``(1) In general.--In the case of any sale of any qualified 
        security held by a taxpayer with respect to which such taxpayer 
        elects the application of this section, in any business entity 
        that is engaged in an Iran discouraged activity, gain from such 
        sale shall be recognized only to the extent that the amount 
        realized on such sale exceeds--
                    ``(A) the cost of any qualified replacement 
                property purchased by the taxpayer during the 30-day 
                period beginning on the date of such sale, reduced by
                    ``(B) any portion of such cost previously taken 
                into account under this section.
            ``(2) Exception for ordinary income gain.--This section 
        shall not apply to any gain which is treated as ordinary income 
        for purposes of this title.
            ``(3) Exception where taxpayer owns controlling interest in 
        the business entity.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any sale if, immediately before such sale, the taxpayer 
                owns a controlling interest in the business entity that 
                is engaged in an Iran discouraged activity.
                    ``(B) Controlling interest.--For purposes of 
                subparagraph (A), the term `controlling interest' means 
                direct or indirect ownership of at least 50 percent of 
                the total voting power and value of all classes of 
                stock of a corporation. For purposes of the preceding 
                sentence, the rules of paragraphs (1) and (5) of 
                section 267(c) shall apply.
                    ``(C) Aggregation rule.--For purposes of this 
                paragraph, all members of the same controlled group of 
                corporations (within the meaning of section 267(f)) and 
                all persons under common control (within the meaning of 
                section 52(b) but determined by treating an interest of 
                more than 50 percent as a controlling interest) shall 
                be treated as 1 person.
    ``(b) Definitions and Special Rules Relating to Securities and 
Replacement Property.--For purposes of this section--
            ``(1) Qualified security.--
                    ``(A) In general.--The term `qualified security' 
                means any security held by a taxpayer in any business 
                entity that is engaged in an Iran discouraged activity.
                    ``(B) Exception.--Such term shall not include any 
                security purchased or otherwise acquired after the date 
                of the enactment of this section which, at the time of 
                such purchase or acquisition, was issued by a business 
                entity then engaged in an Iran discouraged activity.
                    ``(C) Security defined.--The term `security' has 
                the meaning given such term by section 165(g)(2).
            ``(2) Qualified replacement property.--
                    ``(A) In general.--The term `qualified replacement 
                property' means any security of a business entity that, 
                on the date of purchase by the taxpayer--
                            ``(i) is not engaged in an Iran discouraged 
                        activity on such date,
                            ``(ii) is not a member of an expanded 
                        affiliated group, any member of which is 
                        engaged in an Iran discouraged activity on such 
                        date, and
                            ``(iii) meets the requirements of 
                        subparagraph (B) or paragraph (3).
                    ``(B) Replacement property.--Property meets the 
                requirements of this paragraph if, with respect to the 
                sale of any security--
                            ``(i) except as provided in clause (ii), in 
                        the case that the security is a share of stock 
                        in a corporation, the replacement property is a 
                        share of stock in a corporation,
                            ``(ii) in the case that the security is a 
                        share of stock of a regulated investment 
                        company, real estate investment trust, hedge 
                        fund, investment partnership, or similar 
                        business entity, the replacement property is a 
                        share of stock in a regulated investment 
                        company, real estate investment trust, hedge 
                        fund, investment partnership, or similar 
                        business entity,
                            ``(iii) in the case that the security is a 
                        right to subscribe for, or to receive, a share 
                        of stock in a corporation, the replacement 
                        property is a right to subscribe for, or to 
                        receive, a share of stock in a corporation, and
                            ``(iv) in the case that the security is a 
                        bond, debenture, note, or certificate, or other 
                        evidence of indebtedness issued by a 
                        corporation, with interest coupons or in 
                        registered form, the replacement property is a 
                        bond, debenture, note, or certificate, or other 
                        evidence of indebtedness issued by a 
                        corporation, with interest coupons or in 
                        registered form.
                    ``(C) Deemed investment if investing in entities 
                engaged in discouraged activities.--Any regulated 
                investment company, real estate investment trust, hedge 
                fund, investment partnership, or similar business 
                entity, which invests in the securities--
                            ``(i) issued by a business entity 
                        determined to be engaging in Iran discouraged 
                        activities, or
                            ``(ii) issued by the government of Iran or 
                        any agency thereof,
                shall be deemed to be a business entity engaging in 
                Iran discouraged activities.
                    ``(D) Business declaration of policy.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this section, in the case of 
                        a business entity described in clause (iii), a 
                        security in such business entity shall not be 
                        treated as qualified replacement property 
                        unless the business entity has made the 
                        following declaration: `It is our policy not to 
                        make investments in business entities which 
                        engage in Iran discouraged activities 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, 2012, from 
                        business entities engaged in Iran discouraged 
                        activities.'.
                            ``(ii) Not qualified security.--If a 
                        business entity described in clause (iii) has 
                        made the declaration specified in clause (i), 
                        then from the time of such declaration an 
                        interest in such business entity shall not be 
                        treated as a qualified security.
                            ``(iii) Business entity described.--A 
                        business entity described in this clause is a 
                        regulated investment company, real estate 
                        investment trust, hedge fund, investment 
                        partnership, or similar business entity.
                    ``(E) Expanded affiliated group.--The term 
                `expanded affiliated group' means an affiliated group 
                as defined in section 1504(a), determined--
                            ``(i) by substituting `more than 50 
                        percent' for `at least 80 percent' each place 
                        it appears, and
                            ``(ii) without regard to paragraphs (2) and 
                        (4) of section 1504(b).
                    ``(F) Basis adjustments.--If gain from any sale is 
                not recognized by reason of subsection (a), such gain 
                shall be applied to reduce (in the order acquired) the 
                basis for determining gain or loss of any qualified 
                replacement property which is purchased by the taxpayer 
                during the 30-day period described in subsection (a).
                    ``(G) Holding period.--For purposes of determining 
                the period for which the taxpayer has held qualified 
                replacement property the acquisition of which resulted 
                in the nonrecognition under subsection (a) of any part 
                of the gain realized on the sale of a qualified 
                security, there shall be included the period for which 
                such qualified security had been held by the taxpayer.
            ``(3) Special rule for securities of certain entities.--
                    ``(A) In general.--For any business entity 
                described in subparagraph (C), a security in such 
                business entity shall be treated as qualified 
                replacement property if--
                            ``(i) the business entity has made the 
                        following declaration: `It is our policy not to 
                        make investments in any person having an 
                        investment in, or carrying on a trade or 
                        business (within the meaning of section 162) in 
                        or with, Iran. This policy may or may not 
                        include investments concerning the provision of 
                        food, medicine, humanitarian services in or to 
                        Iran.', and
                            ``(ii) the business entity 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 acts of 
                        international terrorism pursuant to--
                                    ``(I) 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);
                                    ``(II) section 40(d) of the Arms 
                                Export Control Act (22 U.S.C. 2780(d)); 
                                or
                                    ``(III) section 620A(a) of the 
                                Foreign Assistance Act of 1961 (22 
                                U.S.C. 2371(a)).
                    ``(B) Not qualified security.--If a business entity 
                described in subparagraph (C) has made the declaration 
                specified in subparagraph (A), then from the time of 
                such declaration an interest in such business entity 
                shall not be treated as a qualified security.
                    ``(C) Business entity described.--A business entity 
                described in this subparagraph is a regulated 
                investment company, real estate investment trust, hedge 
                fund, investment partnership, or similar business 
                entity.
            ``(4) Business entity.--The term `business entity' means 
        any corporation, limited liability partnership, limited 
        liability company, or any other business entity conducting 
        business activities in which the taxpayer has purchased or can 
        purchase securities.
    ``(c) Definitions and Rules Relating to Iran Discouraged 
Activities.--For purposes of this section, the term `Iran discouraged 
activity' means any activity described in section 5(a) of the Iran 
Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) with 
respect to which sanctions described in section 6(a) of such Act may be 
imposed.
    ``(d) Doing Business With Terrorists.--
            ``(1) In general.--For purposes of this section, 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.
            ``(2) Terrorist.--A person is designated as a terrorist for 
        purposes of paragraph (1) if such person is designated or 
        otherwise individually identified in or pursuant to an 
        Executive Order which is related to terrorism and issued under 
        the authority of the International Emergency Economic Powers 
        Act or section 5 of the United Nations Participation Act of 
        1945 for the purpose of imposing on such organization an 
        economic or other sanction.
            ``(3) Foreign terrorist organization.--For purposes of 
        paragraph (1), the term `foreign terrorist organization' means 
        an organization designated under section 219 of the Immigration 
        and Nationality Act (8 U.S.C. 1189) as a foreign terrorist 
        organization.
    ``(e) Identification of Business Entities Engaging in Iran 
Discouraged Activities.--
            ``(1) Publication of list.--For purposes of this section, 
        the Secretary shall publish and update at least every six 
        months a list of business entities engaging in any Iran 
        discouraged activity.
            ``(2) Regulations.--The Secretary shall issue regulations 
        defining how a business entity shall not be deemed to be 
        engaged in an Iran discouraged activity, if--
                    ``(A) with regard to activities on the date this 
                section becomes effective, the business entity limits 
                its activity to continuing existing contracts, without 
                extension or expansion (except that an investment (as 
                defined in section 14 of the Iran Sanctions Act of 
                1996) that would subject a business entity to sanctions 
                under section 5 of the Iran Sanctions Act of 1996 shall 
                be considered an Iran discouraged activity, 
                notwithstanding contracts entered into prior to the 
                effective date of this section), and
                    ``(B) with regard to any Iran discouraged activity 
                carried on under contracts entered into or expanded 
                after the effective date of this section, the contract 
                was entered into at a time when the business entity did 
                not own or control the subsidiary business entity, and 
                after acquiring such ownership or control the business 
                entity has not extended or expanded or renewed such 
                contract.
            ``(3) Taxpayer self-help.--Until such time as the Secretary 
        publishes a list of those engaging in Iran discouraged 
        activities or 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.
    ``(f) Improvement in the Actions of the Government of Iran.--
            ``(1) Termination of nonrecognition treatment.--Effective 
        on the date when the requirements described in paragraph (2) 
        are met, subsection (a) shall not apply to any Iran discouraged 
        activity after such date.
            ``(2) Requirements.--The requirements described in this 
        paragraph are--
                    ``(A) a declaration by the President which states 
                that, in the opinion of the President, Iran is no 
                longer engaging in efforts to develop or retain weapons 
                of mass destruction, and has not developed and is not 
                developing the capacity to enrich or reprocess uranium 
                or plutonium, and
                    ``(B) a determination by the Secretary of State 
                that Iran should no longer be listed as a state sponsor 
                of acts of international terrorism pursuant to section 
                6(j) of the Export Administration Act of 1979, section 
                620A of the Foreign Assistance Act of 1961, section 40 
                of the Arms Export Control Act, or any other provision 
                of law.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter O of chapter 1 of such Code is amended by adding at the end 
the following new item:

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

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

SEC. 501. PROHIBITION ON UNITED STATES GOVERNMENT CONTRACTS.

    (a) Certification Requirement.--The head of each executive agency 
shall ensure that each contract with a company entered into by such 
executive agency for the procurement of goods or services or agreement 
for the use of Federal funds as part of a grant, loan, or loan 
guarantee, the provision of insurance or reinsurance, or the provision 
of technical assistance to a company, includes a clause that requires 
the company to certify to the contracting officer or other appropriate 
official, as the case may be, that the company does not conduct 
business operations in Iran described in section 504.
    (b) Remedies.--
            (1) In general.--The head of an executive agency may impose 
        remedies as provided in this subsection if the head of the 
        executive agency determines that the contractor has submitted a 
        false certification under subsection (a) after the date the 
        Federal Acquisition Regulation is revised pursuant to 
        subsection (e) to implement the requirements of this section.
            (2) Termination.--The head of an executive agency may 
        terminate a covered contract with a company upon the 
        determination of a false certification under paragraph (1).
            (3) Suspension and debarment.--The head of an executive 
        agency may debar or suspend a contractor from eligibility for 
        Federal contracts upon the determination of a false 
        certification under paragraph (1). The debarment period may not 
        exceed 3 years.
            (4) Inclusion on list of parties excluded from federal 
        procurement and nonprocurement programs.--The Administrator of 
        General Services shall include on the List of Parties Excluded 
        from Federal Procurement and Nonprocurement Programs maintained 
        by the Administrator under part 9 of the Federal Acquisition 
        Regulation issued pursuant to section 1303 of title 41, United 
        States Code, each contractor that is debarred, suspended, 
        proposed for debarment or suspension, or declared ineligible by 
        the head of an executive agency on the basis of a determination 
        of a false certification under paragraph (1).
            (5) Rule of construction.--This section shall not be 
        construed to limit the use of other remedies available to the 
        head of an executive agency or any other official of the 
        Federal Government on the basis of a determination of a false 
        certification under paragraph (1).
    (c) Waiver.--
            (1) In general.--The President may waive the requirement of 
        subsection (a) on a case-by-case basis if the President 
        determines and certifies in writing to the appropriate 
        congressional committees that it is in the national interest to 
        do so.
            (2) Reporting requirement.--Not later than 120 days after 
        the date of the enactment of this Act and semi-annually 
        thereafter, the Administrator for Federal Procurement Policy 
        shall submit to the appropriate congressional committees a 
        report on waivers granted under paragraph (1).
    (d) Implementation Through the Federal Acquisition Regulation.--Not 
later than 120 days after the date of the enactment of this Act, the 
Federal Acquisition Regulation issued pursuant to section 1303 of title 
41, United States Code, shall be revised to provide for the 
implementation of the requirements of this section.

SEC. 502. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO RESTRICT 
              CONTRACTS OR LICENSES FOR CERTAIN SANCTIONABLE PERSONS.

    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 
any contract with, or granting to or renewing any license for persons 
that conduct business operations in Iran described in section 504.

SEC. 503. UNITED STATES PENSION PLANS.

    (a) Divestiture From Iran.--The managers of United States 
Government pension plans or thrift savings plans, shall take, to the 
extent consistent with the legal and fiduciary duties otherwise imposed 
on them, immediate steps to divest all investments in any entity with 
respect to which sanctions are applied for activities described in 
section 5(a) of the Iran Sanctions Act of 1996 (Public Law 104-172; 50 
U.S.C. 1701 note), as amended by this Act, section 202(a) of this Act, 
or section 106(a) of the Comprehensive Iran Sanctions, Accountability, 
and Divestment Act of 2010 (Public Law 111-195; 22 U.S.C. 8515).
    (b) Prohibition on Future Investment.--The managers of United 
States Government pension plans or thrift savings plans shall ensure 
that there is no future investment in any entity described in 
subsection (a) for the duration of the period of time during which the 
entity is sanctioned under the applicable provision of law described in 
subsection (a).

SEC. 504. DEFINITIONS.

    In this title:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs, the Committee on Foreign Relations, and the 
                Select Committee on Intelligence of the Senate; and
                    (B) the Committee on Financial Services, the 
                Committee on Foreign Affairs, and the Permanent Select 
                Committee on Intelligence of the House of 
                Representatives.
            (2) Affiliate.--The term ``affiliate'' means any individual 
        or entity that directly or indirectly controls, is controlled 
        by, or is under common control with, the company, including 
        without limitation direct and indirect subsidiaries of the 
        company.
            (3) Business operations.--The term ``business operations'' 
        means--
                    (A) carrying out any of the activities described in 
                section 5 (a) and (b) of the Iran Sanctions Act of 1996 
                (Public Law 104-172; 50 U.S.C. 1701 note), as amended 
                by this Act, that are sanctionable under such section;
                    (B) providing sensitive technology (as defined in 
                section 106(c) of the Comprehensive Iran Sanctions, 
                Accountability, and Divestment Act of 2010 (Public Law 
                111-195; 22 U.S.C. 8515(c))) to the Government of Iran; 
                and
                    (C) carrying out any of the activities described in 
                section 302(a) of this Act.
            (4) Company.--The term ``company'' means--
                    (A) a sole proprietorship, organization, 
                association, corporation, partnership, limited 
                liability company, venture, or other entity, its 
                subsidiary or affiliate; and
                    (B) includes a company owned or controlled, either 
                directly or indirectly, by the government of a foreign 
                country, that is established or organized under the 
                laws of, or has its principal place of business in, 
                such foreign country and includes United States 
                subsidiaries of the same.
            (5) Entity.--The term ``entity'' means a sole 
        proprietorship, a partnership, limited liability corporation, 
        association, trust, joint venture, corporation, or other 
        organization.
            (6) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 133 of title 41, United 
        States Code.
            (7) Federal funds.--The term ``Federal funds'' means a sum 
        of money or other resources derived from United States 
        taxpayers, which the United States Government may provide to 
        companies through government grants or loans, or through the 
        terms of a contract with the Federal Government, or through the 
        Emergency Economic Stabilization Act of 2008 ``Troubled Asset 
        Relief Program'' or other similar and related transaction 
        vehicles, including a grant, loan, or loan guarantee, the 
        provision of insurance or reinsurance, or the provision of 
        technical assistance.
            (8) Government of iran.--The term ``Government of Iran'' 
        includes the Government of Iran, any political subdivision, 
        agency, or instrumentality thereof, and any person owned or 
        controlled by, or acting for or on behalf of, the Government of 
        Iran.
            (9) Petroleum resources.--
                    (A) In general.--The term ``petroleum resources'' 
                includes petroleum, petroleum by-products, oil or 
                liquefied natural gas, oil or liquefied natural gas 
                tankers, and products used to construct or maintain 
                pipelines used to transport oil or compressed or 
                liquefied natural gas.
                    (B) Petroleum by-products.--The term ``petroleum 
                by-products'' means gasoline, kerosene, distillates, 
                propane or butane gas, diesel fuel, residual fuel oil, 
                and other goods classified in headings 2709 and 2710 of 
                the Harmonized Tariff Schedule of the United States.
            (10) Sensitive technology.--The term ``sensitive 
        technology'' has the meaning given the term 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)).

SEC. 505. SUNSET.

    This title shall terminate 30 days after the date on which--
            (1) the President has certified to Congress that the 
        Government of Iran has ceased providing support for acts of 
        international terrorism and no longer satisfies the 
        requirements for designation as a state-sponsor of terrorism 
        for purposes of section 6(j) of the Export Administration Act 
        of 1979, section 620A of the Foreign Assistance Act of 1961, 
        section 40 of the Arms Export Control Act, or any other 
        provision of law; and
            (2) Iran has permanently ceased the pursuit, acquisition, 
        and development of nuclear, biological, and chemical weapons 
        and missiles.

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

SEC. 601. TERMINATION OF LOAN DISBURSEMENTS TO IRAN FROM THE 
              INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT.

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

SEC. 602. UNITED STATES OPPOSITION TO NEW COUNTRY ASSISTANCE STRATEGY 
              FOR IRAN.

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

SEC. 603. SUNSET.

    Sections 601 and 602 shall terminate 30 days after the date on 
which the President has certified to Congress that--
            (1) the Government of Iran has ceased providing support for 
        acts of international terrorism and no longer satisfies the 
        requirements for designation as a state-sponsor of terrorism 
        for purposes of section 6(j) of the Export Administration Act 
        of 1979, section 620A of the Foreign Assistance Act of 1961, 
        section 40 of the Arms Export Control Act, or any other 
        provision of law; and
            (2) Iran has ceased the pursuit, acquisition, and 
        development of nuclear, biological, and chemical weapons and 
        ballistic missiles and ballistic missile launch technology.

SEC. 604. RULE OF INTERPRETATION.

    Nothing in section 601 or 602 shall be interpreted to affect United 
States contributions to, or the participation of the United States in, 
the International Development Association.
                                 <all>