1.Short title and table of
contents
(a)This Act may be cited
as the Stop Iran’s Nuclear Weapons
Program Act of 2011
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings.
Title I—Additional 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.
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)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.
<enum>I</enum><header>Additional
sanctions with respect to Iran</header>
<section display-inline="no-display-inline" id="H58AA547990394478AA02402E80B417F1"><enum>101.</enum><header>Expansion of
sanctions under the Iran Sanctions Act of 1996</header><text display-inline="no-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="H68784A8C5F704E948656213568C65B7B"><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="HFA37176B2CC04578A30BDCF5CF978B6C"><enum>(2)</enum><text>by adding at the
end the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HCC0B04DAC95E450CA13B7947B974A66E" style="OLC">
<paragraph id="H39020A670ADC468CB475C2D2D03BB7EA"><enum>(4)</enum><header>Other actions
relating to petroleum resources of Iran</header>
<subparagraph id="H008B037CDE5C49BAA55D7F56FB200844"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subsection (f), the President shall impose 3 or more of the sanctions described
in section 6(a) with respect to a person if the President determines that the
person knowingly, on or after the date of the enactment of the Stop Iran’s
Nuclear Weapons Program Act of 2011—</text>
<clause id="HB2C049A4F10940EDB4A59AF8496ECE14"><enum>(i)</enum><text display-inline="yes-display-inline">enters into a long-term agreement to
purchase petroleum resources from Iran;</text>
</clause><clause id="H0F5C18B3C96C4BEF9E0DBD5F636548F1"><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="H0A15F471B8594F60837FE8E01E456922"><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="HA938BA54B65A445C974315804D74B2F5"><enum>(B)</enum><header>Ancillary
services</header>
<clause id="HA4EE5296A4C940918A7B282EF9625878"><enum>(i)</enum><header>In
general</header><text>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).</text>
</clause><clause commented="no" id="H4A8CA6D3901B4774BDDDC350A0BE3351"><enum>(ii)</enum><header>Exception</header><text display-inline="yes-display-inline">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).</text>
</clause></subparagraph><subparagraph id="H99127B393752483AB911DA02505274E1"><enum>(C)</enum><header>Definitions</header>
<clause id="HAB6FD925E85049319C557E461057FD25"><enum>(i)</enum><header>Ancillary
services</header><text display-inline="yes-display-inline">In subparagraph (A),
the term <term>ancillary services</term> means underwriting, insurance,
reinsurance, financing, guarantees, brokering, or providing ships or shipping
services.</text>
</clause><clause id="H4C134DF4F18F408E87B61250BCE87C6B"><enum>(ii)</enum><header>Long-term
agreement</header><text>In subparagraph (A)(i), the term <term>long-term
agreement</term> means a contract or other agreement that provides for delivery
of petroleum resources beginning more than 1 year after the date of entry into
the contract or agreement (as the case may be).</text>
</clause><clause id="H294508D77BE34A10A0FB6BD18843F797"><enum>(iii)</enum><header>Future
delivery</header><text>In subparagraph (A)(ii), the term <term>future
delivery</term> means delivery that occurs more than 180 days after payment is
effected under the agreement.</text>
</clause></subparagraph></paragraph><paragraph id="HEBCFEB4358DC447F931E8FD858030F68"><enum>(5)</enum><header>Purchase,
subscription to, or facilitation of the issuance of Iranian sovereign
debt</header><text display-inline="yes-display-inline">Except as provided in
subsection (f), the President shall impose 3 or more of the sanctions described
in section 6(a) with respect to a person if the President determines that the
person knowingly, on or after the date of the enactment of the Stop Iran’s
Nuclear Weapons Program Act of 2011, purchases, subscribes to, or facilitates
the issuance of—</text>
<subparagraph id="H9AD82CFAEE3F430C82461DC846CC59B6"><enum>(A)</enum><text>sovereign debt of
the Government of Iran, including governmental bonds; or</text>
</subparagraph><subparagraph id="H1168F7DC4086452D93439EF604626C48"><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></section><section id="H10F0185249554C8CB867171BD9794780"><enum>102.</enum><header>Application to
subsidiaries</header>
<subsection id="H59A1B24A151241F4A27394135B6BF6B9"><enum>(a)</enum><header>In
General</header><text display-inline="yes-display-inline">Except as provided in
subsection (b), in any case in which an entity engages in an act outside the
United States which, if committed in the United States or by a United States
person, would violate Executive Order 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.</text>
</subsection><subsection id="H9A533BD4FB6C4F4EB7C60937AEFB7C62"><enum>(b)</enum><header>Exception</header><text display-inline="yes-display-inline">Subsection (a) shall not apply to a parent
company of an entity for an act described in subsection (a) if—</text>
<paragraph id="HC6A9A94160F24C97AAECE5AC791050F1"><enum>(1)</enum><text display-inline="yes-display-inline">within 90 days after the date of the
enactment of this Act—</text>
<subparagraph id="H31CE4D39478B47CEB535BDCCC9C0ADFC"><enum>(A)</enum><text>the parent company
causes the entity to cease committing acts described in subsection (a);
or</text>
</subparagraph><subparagraph id="H39325A864BC747FEA364C589E389FC57"><enum>(B)</enum><text>the entity ceases
committing acts described in subsection (a); or</text>
</subparagraph></paragraph><paragraph id="HC9F36DF8DC2944AA973EB93DC7380BC0"><enum>(2)</enum><text>in the case of an
entity acquired by a parent company, within 90 days of acquisition of the
entity—</text>
<subparagraph id="HB63A95EB70724E9ABF93FED5C087B9BF"><enum>(A)</enum><text>the parent company
causes the entity to cease committing acts described in subsection (a);
or</text>
</subparagraph><subparagraph id="H490ABE49615944AFAF18ADCF571D7E7D"><enum>(B)</enum><text display-inline="yes-display-inline">the entity ceases committing acts described
in subsection (a).</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H78D6F882D9C942C3A51C606A7F51C88F"><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="H9C1E2BF3DD634AF2AEAF550C670016D8"><enum>(d)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H77581E6173574A8C9FBABF1C3E15F2EE"><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="H4F61DF5DE5964D85B7004CB29355788C"><enum>(2)</enum><header>Parent
company</header><text>An entity is a <quote>parent company</quote> of another
entity if it controls, directly or indirectly, that other entity and is a
United States person.</text>
</paragraph><paragraph id="H51BF4179276347378B680B6A29A4CD1A"><enum>(3)</enum><header>United States
person</header><text>The term <term>United States person</term> means any
United States citizen, any alien lawfully admitted for permanent residence to
the United States, any entity organized under the laws of the United States, or
any person in the United States.</text>
</paragraph></subsection></section><section commented="no" id="H36E4C330AE4B4756BAE2FBA3AF0EC576"><enum>103.</enum><header>Additional
export sanctions against Iran</header><text display-inline="no-display-inline">Notwithstanding section 103(b)(2)(B)(iv) of
the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010
(Public Law 111–195; 22 U.S.C. 8512(b)(2)(B)(iv)) or 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—</text>
<paragraph commented="no" id="HCDB7D855291B4F46897730A6938FBA6F"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph commented="no" id="HC82E257EB7654921BCD98D541E8F43EB"><enum>(2)</enum><text display-inline="yes-display-inline">goods, services, or technology described in
paragraph (1) may not be exported or reexported.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H8447260C070044968A95E21AD5D95E44"><enum>104.</enum><header>Elimination of
certain tax incentives for oil companies investing in Iran</header>
<subsection commented="no" id="HF736B99EEC7042629CA1F9627733EB02"><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="H1B07EADFBD65475888A5232AA0E29345" style="OLC">
<paragraph commented="no" id="H466802D77F2E4F019FA7F4623B40D23E"><enum>(6)</enum><header>Denial when Iran
sanctions in effect</header>
<subparagraph commented="no" id="HAE858D92D5DF4CC5BE71BE9728234DAC"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">If sanctions are
imposed under section 5(a) of the Iran Sanctions Act of 1996 (relating to
sanctions with respect to the development of petroleum resources of Iran) on
any member of an expanded affiliated group the common parent of which is a
foreign corporation, paragraph (1) shall not apply to any expense paid or
incurred by any such member in any period during which the sanctions are in
effect.</text>
</subparagraph><subparagraph id="H8B3B92C49BB04831A6EA9444B86C0072"><enum>(B)</enum><header>Affirmation of
compliance</header>
<clause id="HD48922831976462D8A909B936986C1A9"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</clause><clause id="H46387F87D9AD49AD8ECDD16CDFF819D2"><enum>(ii)</enum><header>Special
rule</header><text display-inline="yes-display-inline">If, with respect to any
provision under section 5(a) of the Iran Sanctions Act of 1996—</text>
<subclause id="HCC234F4AF7A2466684F4697F9DEE3595"><enum>(I)</enum><text>a certification is
made under section 4(e)(3) of such Act, and</text>
</subclause><subclause id="H2CCE1CBCF2ED4AC49CB05905C1BE1233"><enum>(II)</enum><text>after the
certification the taxpayer does not conduct any activity in violation of the
provision,</text>
</subclause><continuation-text continuation-text-level="clause">any activity
by the taxpayer occurring before the certification with respect to the
provision shall not be taken into account.</continuation-text></clause></subparagraph><subparagraph commented="no" id="H65C08DA8D1CF4D4B98A723789A210B1E"><enum>(C)</enum><header>Expanded
affiliated group</header><text display-inline="yes-display-inline">For purposes
of this paragraph, the term <term>expanded affiliated group</term> means an
affiliated group as defined in section 1504(a), determined—</text>
<clause commented="no" id="H66A9E95CB5B6490DA8251BA465B8CFB0"><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="H5B958BFCC7B94F1494EA8D0A5EDD32ED"><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="H7076A5A69268438EAEDFD2D876C7BEA9"><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 commented="no" display-inline="no-display-inline" id="HCB166A431302428AA3D59EC861EA3FC9" section-type="subsequent-section"><enum>105.</enum><header>Inadmissibility of
certain aliens who engage in certain activities with respect to Iran</header>
<subsection commented="no" id="HEE2A321665834B20BFD0252FCE8AB5AE"><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="HFB61D53225884033AE80B26F1707BB5C" style="OLC">
<subparagraph commented="no" id="H31D88B0E82AE4775982895F1E3064176"><enum>(H)</enum><header>Individuals who
engage in certain activities with respect to Iran</header>
<clause commented="no" id="HE67DC7EED3B44ED08FD0734BB8C69BCD"><enum>(i)</enum><header>In
general</header><text>Subject to clause (iii), any alien described in clause
(ii) is inadmissible.</text>
</clause><clause commented="no" id="HD1F8329A2A6642EC96259138D73C043B"><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 commented="no" id="H6A3A7FCFF14E4887B8E279C5330A9AAA"><enum>(I)</enum><text>engages in—</text>
<item commented="no" id="H69DA79CD133C4E47841A3F132903FC44"><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 commented="no" id="HF7EBA1B34FAB4EB8B665101244D2D546"><enum>(bb)</enum><text>an
activity—</text>
<subitem commented="no" id="H5E9C71B5FABB45229A822C2186F29C8F"><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 commented="no" id="HC6F77DBCF4C24B68887E19C490A3A864"><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 commented="no" id="H0CC3B356F6DF48A7B4072A0EA3034F7D"><enum>(cc)</enum><text>an
activity—</text>
<subitem commented="no" id="HFAB6F56296CD403DAF807E81E6171089"><enum>(AA)</enum><text>relating to
support for international terrorism by the Government of Iran; and</text>
</subitem><subitem commented="no" id="HF1A150B7FE0F4493827F9957433A3DFC"><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 commented="no" id="H9B1FBB71FD2B42B583700AF0B98A72F0"><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 commented="no" id="H3DA2EC84A1C341F1BE3D9FCBA2EACE50"><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 commented="no" id="HFDFB63B89320405AABAB9E4E429C57F1"><enum>(III)</enum><text>is a spouse or
minor child of—</text>
<item commented="no" id="H55B59202FC744D39A38747EBFA3F732A"><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="H7C41001C70E349D3B01FFC6AFF0B30B2"><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 commented="no" id="H7A92597C035046068A04942FD2839E89"><enum>(iii)</enum><header>Notice; waiver
with respect to certain entities</header>
<subclause commented="no" id="H11B54CC378AA4EF39687AFB16DCAF8E8"><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 commented="no" id="H7ECE5A2DC9A64435BCFF6DB0FDBC018A"><enum>(aa)</enum><text>that the alien
may be inadmissible; and</text>
</item><item commented="no" id="H9119FE60E3874541BF87516E723CD473"><enum>(bb)</enum><text>of the reason for
the inadmissibility of the alien.</text>
</item></subclause><subclause commented="no" id="H90D2D816F8934517B0F8A55A6C81D8D3"><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 commented="no" id="H51C4609478344DDB948A43712FCFD40F"><enum>(aa)</enum><text>the alien is
described in subclause (II) or (III)(bb) of clause (ii);</text>
</item><item commented="no" id="HBA91320E01CE43F2BEDB2EDB39F098E6"><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 commented="no" id="HB89C367A977C401CB00F9B8616C3EB8B"><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 commented="no" id="H3F49819E954B4731A11100B732632234"><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="HB0A7F2161C7A47C4B913F1B9AEB68BEE" style="OLC">
<subsection commented="no" id="H1FD34BAF02E644318EA38F0921FBEF37"><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><section commented="no" display-inline="no-display-inline" id="H1CFA1B1141A54AC89E223FA59B7546C1" section-type="subsequent-section"><enum>106.</enum><header>Temporary increase
in fee for certain consular services</header>
<subsection commented="no" id="H90661C0A2D2E4A60BC8A192B8C9A66FA"><enum>(a)</enum><header>Increase in
fee</header><text display-inline="yes-display-inline">Notwithstanding any other
provision of law, not later than 120 days after the date of the enactment of
this Act, the Secretary of State shall increase by $1.00 the fee or surcharge
assessed under section 140(a) of the Foreign Relations Authorization Act,
Fiscal Years 1994 and 1995 (Public Law 103–236; 8 U.S.C. 1351 note) for
processing machine readable nonimmigrant visas and machine readable combined
border crossing identification cards and nonimmigrant visas.</text>
</subsection><subsection commented="no" id="H870D248780DB4F25A9755FE93FB5A9DB"><enum>(b)</enum><header>Deposit of
amounts</header><text display-inline="yes-display-inline">Fees collected under
the authority of subsection (a) shall be deposited in the Treasury.</text>
</subsection><subsection commented="no" id="H75BE5289D5AF477D8A8DF5BB39DFDF72"><enum>(c)</enum><header>Duration of
increase</header><text display-inline="yes-display-inline">The fee increase
authorized under subsection (a) shall terminate on the date that is one year
after the date on which such fee is first collected.</text>
</subsection></section><enum>II</enum><header>Application of
sanctions against affiliates of Iran’s Islamic Revolutionary Guard
Corps</header>
<section id="HE96DEAF2643943659286939817122630"><enum>201.</enum><header>Sanctions
against affiliates of Iran’s Islamic Revolutionary Guard Corps</header>
<subsection id="HEAF66C79CEC74281A38C0D46DB514150"><enum>(a)</enum><header>In
general</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 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.</text>
</subsection><subsection id="H11B8862773094073BA8ABEE1E99CDB7C"><enum>(b)</enum><header>Priority for
investigation</header><text display-inline="yes-display-inline">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).</text>
</subsection><subsection id="H621B3C25D1ED4BB08217C6A78B26C170"><enum>(c)</enum><header>Sensitive
transaction or activity</header><text display-inline="yes-display-inline">A
sensitive transaction or activity referred to in subsection (b) is—</text>
<paragraph id="H713BB06D24DA48A48EEC4A743D3413B9"><enum>(1)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph id="HD1B3CD17DEB7491B995ECAA94F81F7DB"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="HD16845EEAE5B4A2A814A2E4D0FD3F992"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="H3DB8677EAE5143FDB9241AD5ADC09470"><enum>(4)</enum><text>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</text>
</paragraph><paragraph id="HC50294232B4B42DB9CFD5B2540223A85"><enum>(5)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="H6FD4630D7931493EB53698FEB7BF91E5"><enum>(d)</enum><header>Exclusion from
United States</header><text display-inline="yes-display-inline">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).</text>
</subsection><subsection commented="no" id="H035D89F5B2424827B4903699D1B685C1"><enum>(e)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">Nothing in this
section shall be construed to remove any sanction of the United States in force
against 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.</text>
</subsection></section><section id="HFF0DA170975145EAA5CCAFC8D0E5F665"><enum>202.</enum><header>Measures
against foreign persons or entities supporting Iran’s Islamic Revolutionary
Guard Corps</header>
<subsection id="H8F1B295F92B941709CA449FD32286CDC"><enum>(a)</enum><header>Identification
and notification</header><text display-inline="yes-display-inline">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="H996F7E704EC94885B556CC9742633221"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="H134628A041C54AACA3D7CA8F91EF63F8"><enum>(2)</enum><text>conducts any
commercial transaction or financial transaction with Iran’s Islamic
Revolutionary Guard Corps or any such person or entity.</text>
</paragraph></subsection><subsection id="HDE361C6FE58D4263A5667D70912FCA9C"><enum>(b)</enum><header>Waiver</header>
<paragraph id="H453B356E466546A7A3DB8E22199AA862"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HBC4E240EB05C449C89930CDE31687502"><enum>(2)</enum><header>Notice to
Congress</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="H32F494025BAC4D0AA6E6F56DFA756D2D"><enum>(c)</enum><header>Sanctions</header>
<paragraph id="HA9F124E0D480442489DA61C81E6ED002"><enum>(1)</enum><header>In
general</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 following sanctions:</text>
<subparagraph id="HFE9603EC24174CB088E811B56116177F"><enum>(A)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="HF0441CCB74154DE9AA9B94A60AD465E4"><enum>(B)</enum><text>No products
produced by the person or entity may be imported into the United States.</text>
</subparagraph></paragraph><paragraph id="HAAE4932CC1384325935B1645CBAC1EE6"><enum>(2)</enum><header>Termination</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD48B1A82BFA64623B2E0675539815D3E"><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="H542B3195D901420C9CD52B1F992303CB"><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="HFD80840134C24E0DB51B242BF7C9BE0E"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H6CF0AC228C5641E1ADC66E1F6DB63E5F"><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="H364E560672CD4EEDB6E29C0788D69E93" 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="H077A417346D2478196EDD4BB5B1AA434"><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="HB22285C970B7488898E0094545F43254"><enum>203.</enum><header>Special
measures against foreign countries supporting Iran’s Islamic Revolutionary
Guard Corps</header>
<subsection id="HCDB978903DA9460B8BF685A90C3233B2"><enum>(a)</enum><header>Sanctions</header><text>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:</text>
<paragraph id="H1EA38C2A6762480DB2F70B051DD201CD"><enum>(1)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H26777CBC3D7C4630808CD0B4FCA9A252"><enum>(2)</enum><text>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).</text>
</paragraph><paragraph id="H6AF4251AD3CF431BAEAF270E2FA4AE38"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="H8CE78D3C41FC4FFB8EEB99346A189A22"><enum>(4)</enum><text>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.</text>
</paragraph><paragraph id="H815F382E212A4A438AF674A1F7D72031"><enum>(5)</enum><text>No exports to the
foreign country shall be permitted of any goods or technologies controlled for
national security reasons under the Export Administration Regulations.</text>
</paragraph><paragraph id="H09C18C04F2634BFFB664ECA07E8414D2"><enum>(6)</enum><text>Restrictions shall
be imposed on the importation into the United States of articles that are the
growth, product, or manufacture of the foreign country.</text>
</paragraph><paragraph id="H8B479C165425451992F0D50FBED0E425"><enum>(7)</enum><text>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).</text>
</paragraph></subsection><subsection id="H1D9CF01837DB4D66832EDD240BCD4DFE"><enum>(b)</enum><header>Termination</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H1F461DCA9E414129BFB30EB2C4384A40"><enum>(c)</enum><header>Waiver</header><text>The
President may waive the application of any measure described in subsection (a)
with respect to a foreign country if the President—</text>
<paragraph commented="no" id="HC5C23D57F64F46C993AC1254BCC99385"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H198140AC309D4B6886EF6FB63387C98C"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H363AAE8DFFD845579B5CFE85CD3DEA00" 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="HC511993C102A45CFB49CF3342B530F39"><enum>(2)</enum><text>submits to the
appropriate congressional committees a report that contains the reasons for the
determination.</text>
</paragraph></subsection></section><section commented="no" id="H6C09B6E110D840E189265A0946330B9F"><enum>204.</enum><header>Rule of
construction</header><text display-inline="no-display-inline">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).</text>
</section><section id="HEFFEF2180B984FE1896EFB691EE4B005"><enum>205.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="H80DB35070E304906B1D53F7153057F56"><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="H7E90EDDCDCCE4C6BB45477B2631D1D29"><enum>(2)</enum><header>Foreign
person</header><text>The term <term>foreign person</term> has the meaning given
the term in section 14 of the Iran Sanctions Act of 1996.</text>
</paragraph><paragraph id="HFC0E0F72FCBB43F2AD56DEB7ED5CCA6E"><enum>(3)</enum><header>Iran’s Islamic
Revolutionary Guard Corps</header><text display-inline="yes-display-inline">The
term <term>Iran’s Islamic Revolutionary Guard Corps</term> includes the Iran’s
Islamic Revolutionary Guard Corps-Qods Force.</text>
</paragraph></section><section id="H7B32A4D65A7B4DE59ECB762341F888F2"><enum>206.</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>Opposition of
transfer to Iran, North Korea, and Syria of goods, services, or technology
relevant to their capability to extract or mill uranium ore</header>
<section id="H1CAF1A6C9CBC43FC9F73AC3F258D457E"><enum>301.</enum><header>Statement of
policy</header><text display-inline="no-display-inline">It shall be the policy
of the United States—</text>
<paragraph id="H1E9847E66C724B83883F47CBD8B22FC8"><enum>(1)</enum><text display-inline="yes-display-inline">to oppose the transfer to Iran, North
Korea, and Syria of goods, services, or technology relevant to the capability
of those countries to extract or mill uranium ore; and</text>
</paragraph><paragraph id="H9B11A81DA7564474B06FAE3B00BCC737"><enum>(2)</enum><text>to work with
like-minded countries to impose restrictions on such transfers
internationally.</text>
</paragraph></section><section id="HD7A3934439A14542AA7D7318A3C030A6"><enum>302.</enum><header>Reporting
requirements under the Iran, North Korea, and Syria Nonproliferation
Act</header><text display-inline="no-display-inline">Section 2(a) of the Iran,
North Korea, and Syria Nonproliferation Act (50 U.S.C. 1701 note) is
amended—</text>
<paragraph id="H22A519AA81EE436098C11C817CF64965"><enum>(1)</enum><text>in paragraph (1),
by redesignating subparagraphs (A) through (E) as clauses (i) through (v),
respectively;</text>
</paragraph><paragraph id="HBF5B030AD565429DADE0546280D69F02"><enum>(2)</enum><text>by redesignating
paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;</text>
</paragraph><paragraph id="H9875AB6DD9D241F590AF734154730A7A"><enum>(3)</enum><text>in subparagraph
(B), as redesignated—</text>
<subparagraph id="H0B70AAFE144B4D75B81B991F0B870FF6"><enum>(A)</enum><text>by striking
<quote>paragraph (1)</quote> and inserting <quote>subparagraph (A)</quote>;
and</text>
</subparagraph><subparagraph id="HB52EB91D42DB4C66B561280A1DD7464F"><enum>(B)</enum><text>by striking the
period at the end and inserting <quote>; or</quote>;</text>
</subparagraph></paragraph><paragraph id="H3B06E39274AE4780912AA4D9EB10351C"><enum>(4)</enum><text>by striking all
that precedes subparagraph (A), as redesignated, and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H1C9E597AA38042FDA5E791695DDF5C23" style="OLC">
<subsection id="H67E5D4B7BE334F068D9DC10C1ADCB25B"><enum>(a)</enum><header>Reports</header><text display-inline="yes-display-inline">The President shall, at the times specified
in subsection (b), submit to the Committee on Foreign Affairs of the House of
Representatives and the Committee on Foreign Relations of the Senate a report
identifying every foreign person with respect to whom there is credible
information indicating that person—</text>
<paragraph id="HDAD270779F814A0F94AF026880AA3F8E"><enum>(1)</enum><text>on or after
January 1, 1999, transferred to or acquired from Iran, on or after January 1,
2005, transferred to or acquired from Syria, or on or after January 1, 2006,
transferred to or acquired from North
Korea—</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H96B99A566544423ABCF5B295D98B7A54"><enum>(5)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="H9C5AB974BC2748759EE0BEFC6E2A2572" style="OLC">
<paragraph id="H7A2DE70D86DA4DB68D19FF357C11B4A4"><enum>(2)</enum><text display-inline="yes-display-inline">on or after January 1, 2009, transferred to
Iran, Syria, or North Korea goods, services, or technology that could assist
efforts to extract or mill uranium ore within the territory or control of Iran,
North Korea, or
Syria.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H1ADBABD4AAC64E4BA33B2668B767625C"><enum>303.</enum><header>Conforming
amendments</header><text display-inline="no-display-inline">The Iran, North
Korea, and Syria Nonproliferation Act (50 U.S.C. 1701 note) is further amended
by striking <quote>Committee on International Relations</quote> each place it
appears and inserting <quote>Committee on Foreign Affairs</quote>.</text>
</section><enum>IV</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="HA81C2C3F42F8422BB46162DA20372495" section-type="subsequent-section"><enum>401.</enum><header>Rollover of gain
from divesting certain qualified securities of business entities engaged in
discouraged activities in Iran</header>
<subsection commented="no" id="HF279DB9C09F04F649C4881BB2185B736"><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="H19A7969D785A4750A14D44129A8633D9" style="OLC">
<section commented="no" id="H72A2FF35C1C647C688F7A437C1CE0938"><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="HCD3E622795F2430EA3717D857C3ED0FE"><enum>(a)</enum><header>Nonrecognition
of gain</header>
<paragraph commented="no" id="HA45B3F63AC6E42E4AE72F6F2EF944A09"><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="HBC20D2EA7ABA487D85CA9CB5195C6AA5"><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="H3815D5E5E957492BA90DCA34137167D7"><enum>(B)</enum><text>any portion of
such cost previously taken into account under this section.</text>
</subparagraph></paragraph><paragraph commented="no" id="H2D6FE04BC28644B4B9F11686319C92D9"><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="HBA5908DE4A0E459CA8C00B2870232D3D"><enum>(3)</enum><header>Exception where
taxpayer owns controlling interest in the business entity</header>
<subparagraph commented="no" id="H019472B0A55E4202B04BF6DB24BDA968"><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="HDD689D7F85AE4BA894D02C3C21229269"><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="H0722E17249DC4274B0992C8BC3F9EF43"><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="H6F9B11DEA4C04DFEAEFD1BBA08A55852"><enum>(b)</enum><header>Definitions and
special rules relating to securities and replacement property</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" id="HD6783600809F46CEA02C4116026F4323"><enum>(1)</enum><header>Qualified
security</header>
<subparagraph commented="no" id="H86ED4F2CF14B48948A872127CC2B808D"><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="HE1ED021B6B194997BA2C1D2C2728AF47"><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="HDE6FDC8F38B94866A47F63480E6DA8F8"><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="HDFB043D56D8F4AACB0F04B612E649F49"><enum>(2)</enum><header>Qualified
replacement property</header>
<subparagraph commented="no" id="HB9396F2E6DEB478EA027B975FA535462"><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="H35BA1B32A36744DDB2382AA2A33F4AE1"><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="HC44B6DC0E1984CFB8E44EECACA726A49"><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="H5CF5A4B679604C8B9400D0B4B2942E5F"><enum>(iii)</enum><text>meets the
requirements of subparagraph (B) or paragraph (3).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H28E538A9C410424D84CF4B92C988CD3C"><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="H5531748621E64BF1B13A65B8A3137237"><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="H8A1A4BA930EF4E4B9BEEEA9F725675DF"><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="H3DD3A06D40B64BE3B2DFFEF26425F3E0"><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="H31CA4D998A964B93ADFCDE5A51441CD1"><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="HBDEBB55062264B609B126D585F6C16B5"><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="H21B6FC6B7BB14E5A81FFA87153CD6BF1"><enum>(i)</enum><text>issued by a
business entity determined to be engaging in Iran discouraged activities,
or</text>
</clause><clause commented="no" id="H3786E7B9D8BC41C6965C08E1E19E0F7F"><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="H4F1E45CC37D74FC1AC505B4F768B57C2"><enum>(D)</enum><header>Business
declaration of policy</header>
<clause commented="no" id="HA1FF2173A6334D63AAC30434DB9C80F9"><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, 2012, from business entities engaged in Iran
discouraged activities.</quote>.</text>
</clause><clause commented="no" id="H2B4594A920A0464E87A76B7D00B76830"><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="HF6E99091A40D4D58B53327641AF7944B"><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="H8F09A39DB0BE4B498F4DA81017577749"><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="HF03950AED851406488C956BFBE65A93C"><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="HA73257936B8246569A80609F6D7AC520"><enum>(ii)</enum><text>without regard to
paragraphs (2) and (4) of section 1504(b).</text>
</clause></subparagraph><subparagraph commented="no" id="H276ABDB70EC34F64BCFAA19F00F1BE4C"><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="HED898E034A32436F802E981CB436BF2B"><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="H1D502341066048BCAFACFCFF9AE1ECD4"><enum>(3)</enum><header>Special rule for
securities of certain entities</header>
<subparagraph commented="no" id="H559072B3BCA74EED886BA90CDE224076"><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—</text>
<clause id="H0C444231A1474F7C8E23710C449EBF6F"><enum>(i)</enum><text>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>, and</text>
</clause><clause id="H12D7597B685C4E84AFE1470837857137"><enum>(ii)</enum><text>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—</text>
<subclause id="H55EA61D0E0A54B3C8B15B4949B999A4D"><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>
</subclause><subclause id="H9CAA6B3862724788B21F007B39B2EFD5"><enum>(II)</enum><text>section 40(d) of
the Arms Export Control Act (22 U.S.C. 2780(d)); or</text>
</subclause><subclause id="H86F4819A207D4996A808C25B053FFAA2"><enum>(III)</enum><text>section 620A(a)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)).</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="H3FE10319078F4F0A856260E5E85159A5"><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="HA77B7FCFC30E4528AE04B3914FBBEFC7"><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></paragraph><paragraph commented="no" id="H4437A863FAE54DDC86EFACDEE6227D9B"><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="H1A34F1FB334F4850A8CB34FA4B1BD978"><enum>(c)</enum><header>Definitions and
rules relating to Iran discouraged activities</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>Iran discouraged activity</term> 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.</text>
</subsection><subsection commented="no" id="HBE343221B6BC494D8A09DB61C1203AF7"><enum>(d)</enum><header>Doing business
with terrorists</header>
<paragraph commented="no" id="H0B6838622BCB4C9D98D58AFF6A5875E0"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph commented="no" id="H47CCF43DCD6D4DE781706B86018B8F16"><enum>(2)</enum><header>Terrorist</header><text>A
person is designated as a terrorist for purposes of paragraph (1) if such
person is designated or otherwise individually identified in or pursuant to an
Executive Order which is related to terrorism and issued under the authority of
the International Emergency Economic Powers Act or section 5 of the United
Nations Participation Act of 1945 for the purpose of imposing on such
organization an economic or other sanction.</text>
</paragraph><paragraph commented="no" id="H63F6AE00DCEA4E4E98CE9AF05B77C4DB"><enum>(3)</enum><header>Foreign
terrorist organization</header><text>For purposes of paragraph (1), the term
<term>foreign terrorist organization</term> means an organization designated
under section 219 of the Immigration and Nationality Act (8 U.S.C. 1189) as a
foreign terrorist organization.</text>
</paragraph></subsection><subsection commented="no" id="HDFFA6EA074D440A285D7DC1CD29D4575"><enum>(e)</enum><header>Identification
of business entities engaging in Iran discouraged activities</header>
<paragraph commented="no" id="H8631520AAA8442F7973614D73E522137"><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 activity.</text>
</paragraph><paragraph commented="no" id="H827A7A1AEA7E46EB99AC6F2C2687E6BE"><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="HAA36A0F22AD44F53A36E9CC429464C4E"><enum>(A)</enum><text>with regard to
activities on the date this section becomes effective, the business entity
limits its activity to continuing existing contracts, without extension or
expansion (except that an investment (as defined in section 14 of the Iran
Sanctions Act of 1996) that would subject a business entity to sanctions under
section 5 of the Iran Sanctions Act of 1996 shall be considered an Iran
discouraged activity, notwithstanding contracts entered into prior to the
effective date of this section), and</text>
</subparagraph><subparagraph commented="no" id="H9B510394DDD546C68CCE7783284F550C"><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="H3364AE32B87A44E786EEE05C23A12878"><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 commented="no" id="H9907BF077FBE4C1182EE72E33127888E"><enum>(f)</enum><header>Improvement in
the Actions of the Government of Iran</header>
<paragraph commented="no" id="H96C85E6F6285476BBDAF501C1A4C170A"><enum>(1)</enum><header>Termination of
nonrecognition treatment</header><text>Effective on the date when the
requirements described in paragraph (2) are met, subsection (a) shall not apply
to any Iran discouraged activity after such date.</text>
</paragraph><paragraph commented="no" id="H90D2824121F04F7585563489AF11D8C1"><enum>(2)</enum><header>Requirements</header><text>The
requirements described in this paragraph are—</text>
<subparagraph commented="no" id="H9743922322504F00A3EDA93CC130313E"><enum>(A)</enum><text>a declaration by
the President which states that, in the opinion of the President, Iran is no
longer engaging in efforts to develop or retain weapons of mass destruction,
and has not developed and is not developing the capacity to enrich or reprocess
uranium or plutonium, and</text>
</subparagraph><subparagraph commented="no" id="HE0F415A55AB04DC5BC53A28E1BEB0765"><enum>(B)</enum><text>a determination by
the Secretary of State that Iran should no longer be listed as a state sponsor
of acts of international terrorism pursuant to section 6(j) of the Export
Administration Act of 1979, section 620A of the Foreign Assistance Act of 1961,
section 40 of the Arms Export Control Act, or any other provision of
law.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H65A21B7E018244D4ACDF638E7BF64E3A"><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="HE6D31A2920A54B578258249950B129D9" style="OLC">
<toc container-level="quoted-block-container" idref="H19A7969D785A4750A14D44129A8633D9" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H72A2FF35C1C647C688F7A437C1CE0938" 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="H35F1C98EB94945619B1ADE77238BB3A4"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to with
respect to sales of securities after the date of the enactment of this
Act.</text>
</subsection></section><enum>V</enum><header>Prohibition on
United States Government contracts and investment for companies conducting
business in Iran</header>
<section id="H4123F318B509418D8AADEB16602326E7"><enum>501.</enum><header>Prohibition on
United States Government contracts</header>
<subsection id="HC5814273E3B34C1DBF4337D60DF3BBAA"><enum>(a)</enum><header>Certification
Requirement</header><text>The head of each executive agency shall ensure that
each contract with a company entered into by such executive agency for the
procurement of goods or services or agreement for the use of Federal funds as
part of a grant, loan, or loan guarantee, the provision of insurance or
reinsurance, or the provision of technical assistance to a company, includes a
clause that requires the company to certify to the contracting officer or other
appropriate official, as the case may be, that the company does not conduct
business operations in Iran described in section 504.</text>
</subsection><subsection id="HA7ED58D490404EBFA2472EBB79228735"><enum>(b)</enum><header>Remedies</header>
<paragraph id="HADC9E6278D534BC3BC8C06668DAA952B"><enum>(1)</enum><header>In
general</header><text>The head of an executive agency may impose remedies as
provided in this subsection if the head of the executive agency determines that
the contractor has submitted a false certification under subsection (a) after
the date the Federal Acquisition Regulation is revised pursuant to subsection
(e) to implement the requirements of this section.</text>
</paragraph><paragraph id="HBFE6D7A8F7A54532AFA8A4425A3B34F6"><enum>(2)</enum><header>Termination</header><text>The
head of an executive agency may terminate a covered contract with a company
upon the determination of a false certification under paragraph (1).</text>
</paragraph><paragraph id="H05E3B380185844149DC625FBAAE59283"><enum>(3)</enum><header>Suspension and
debarment</header><text>The head of an executive agency may debar or suspend a
contractor from eligibility for Federal contracts upon the determination of a
false certification under paragraph (1). The debarment period may not exceed 3
years.</text>
</paragraph><paragraph id="HD1B2C21EF4ED4119A7FE42CB7F8FE66A"><enum>(4)</enum><header>Inclusion on
list of parties excluded from Federal procurement and nonprocurement
programs</header><text>The Administrator of General Services shall include on
the List of Parties Excluded from Federal Procurement and Nonprocurement
Programs maintained by the Administrator under part 9 of the Federal
Acquisition Regulation issued 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).</text>
</paragraph><paragraph id="HFEA051C4FB4842DCBF2D7CAD31F7BEEF"><enum>(5)</enum><header>Rule of
construction</header><text>This section shall not be construed to limit the use
of other remedies available to the head of an executive agency or any other
official of the Federal Government on the basis of a determination of a false
certification under paragraph (1).</text>
</paragraph></subsection><subsection id="H2ECB732FF28D49289F41908600F9797B"><enum>(c)</enum><header>Waiver</header>
<paragraph id="H63226DCF8C1F4C86B7AC256BE691EC8A"><enum>(1)</enum><header>In
general</header><text>The President may waive the requirement of subsection (a)
on a case-by-case basis if the President determines and certifies in writing to
the appropriate congressional committees that it is in the national interest to
do so.</text>
</paragraph><paragraph id="HB0A9864046214F9A9D62EDAC95988809"><enum>(2)</enum><header>Reporting
requirement</header><text>Not later than 120 days after the date of the
enactment of this Act and semi-annually thereafter, the Administrator for
Federal Procurement Policy shall submit to the appropriate congressional
committees a report on waivers granted under paragraph (1).</text>
</paragraph></subsection><subsection id="H8E36A93A2EBD49CEBE2A5FA774009C69"><enum>(d)</enum><header>Implementation
Through the Federal Acquisition Regulation</header><text>Not later than 120
days after the date of the enactment of this Act, the Federal Acquisition
Regulation issued pursuant to section 1303 of title 41, United States Code,
shall be revised to provide for the implementation of the requirements of this
section.</text>
</subsection></section><section id="HADA681D09EEB450088B59CE39EEDA48D"><enum>502.</enum><header>Authority of
State and local governments to restrict contracts or licenses for certain
sanctionable persons</header><text display-inline="no-display-inline">Notwithstanding any other provision of law,
a State or local government may adopt and enforce measures to prohibit the
State or local government, as the case may be, from entering into or renewing
any contract with, or granting to or renewing any license for persons that
conduct business operations in Iran described in section 504.</text>
</section><section display-inline="no-display-inline" id="H1B506078D11640EC913953FC54D56AB7" section-type="subsequent-section"><enum>503.</enum><header>United States
pension plans</header>
<subsection id="H82A1721BA8EB4EC4967088E727EAB5AD"><enum>(a)</enum><header>Divestiture from
Iran</header><text display-inline="yes-display-inline">The managers of United
States Government pension plans or thrift savings plans, shall take, to the
extent consistent with the legal and fiduciary duties otherwise imposed on
them, immediate steps to divest all investments in any entity with respect to
which sanctions are applied for activities described in section 5(a) of the
Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note), as
amended by this Act, section 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).</text>
</subsection><subsection id="HECC31F2544A249D38D38E86DC6CEE50C"><enum>(b)</enum><header>Prohibition on
future investment</header><text display-inline="yes-display-inline">The
managers of United States Government pension plans or thrift savings plans
shall ensure that there is no future investment in any entity described in
subsection (a) for the duration of the period of time during which the entity
is sanctioned under the applicable provision of law described in subsection
(a).</text>
</subsection></section><section id="HB2560C34B9A744238F1299056A8F1DC9"><enum>504.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="H9F63C332E04541F18BA4465DE9EA0A5A"><enum>(1)</enum><header>Appropriate
congressional committees</header><text>The term <term>appropriate congressional
committees</term> means—</text>
<subparagraph id="H6C28A236E80042EA9A33AE7630DBD16F"><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="H4E553656B4C342CB8CDED277B2A4C9A6"><enum>(B)</enum><text>the Committee on
Financial Services, the Committee on Foreign Affairs, and the Permanent Select
Committee on Intelligence of the House of Representatives.</text>
</subparagraph></paragraph><paragraph id="H5F945030DEF94B9AAD746F9C2DE19519"><enum>(2)</enum><header>Affiliate</header><text>The
term <term>affiliate</term> means any individual or entity that directly or
indirectly controls, is controlled by, or is under common control with, the
company, including without limitation direct and indirect subsidiaries of the
company.</text>
</paragraph><paragraph id="HC06DD164D8AA4E4DA8E5112F06615772"><enum>(3)</enum><header>Business
operations</header><text display-inline="yes-display-inline">The term
<term>business operations</term> means—</text>
<subparagraph id="HE4A7838206AA4015A30FD7F5B98EC11C"><enum>(A)</enum><text display-inline="yes-display-inline">carrying out any of the activities
described in section 5 (a) and (b) of the Iran Sanctions Act of 1996 (Public
Law 104–172; 50 U.S.C. 1701 note), as amended by this Act, that are
sanctionable under such section;</text>
</subparagraph><subparagraph id="HC49F8193F93841618D21D7E1D4FF507F"><enum>(B)</enum><text display-inline="yes-display-inline">providing sensitive technology (as defined
in section 106(c) of the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 8515(c))) to the
Government of Iran; and</text>
</subparagraph><subparagraph id="HC0EA010356F7483C81BA9E82F1D49284"><enum>(C)</enum><text display-inline="yes-display-inline">carrying out any of the activities
described in section 302(a) of this Act.</text>
</subparagraph></paragraph><paragraph id="H3F592F3D233F47C6B653B418CD82064D"><enum>(4)</enum><header>Company</header><text>The
term <term>company</term> means—</text>
<subparagraph id="H39F7015571974432B1C69942F70A2DBB"><enum>(A)</enum><text>a sole
proprietorship, organization, association, corporation, partnership, limited
liability company, venture, or other entity, its subsidiary or affiliate;
and</text>
</subparagraph><subparagraph id="HFB55A7362AB74CECAD50EFF264AE76D9"><enum>(B)</enum><text>includes a company
owned or controlled, either directly or indirectly, by the government of a
foreign country, that is established or organized under the laws of, or has its
principal place of business in, such foreign country and includes United States
subsidiaries of the same.</text>
</subparagraph></paragraph><paragraph id="HA291189DB3E84F2C813E6EE70D52184D"><enum>(5)</enum><header>Entity</header><text>The
term <term>entity</term> means a sole proprietorship, a partnership, limited
liability corporation, association, trust, joint venture, corporation, or other
organization.</text>
</paragraph><paragraph id="H200FC1CDF99E4DDF91B3A93C9CB5696B"><enum>(6)</enum><header>Executive
agency</header><text>The term <term>executive agency</term> has the meaning
given the term in section 133 of title 41, United States Code.</text>
</paragraph><paragraph id="H575D49E9673A4C1185FAE7D5202EFB65"><enum>(7)</enum><header>Federal
funds</header><text>The term <term>Federal funds</term> means a sum of money or
other resources derived from United States taxpayers, which the United States
Government may provide to companies through government grants or loans, or
through the terms of a contract with the Federal Government, or through the
Emergency Economic Stabilization Act of 2008 <quote>Troubled Asset Relief
Program</quote> or other similar and related transaction vehicles, including a
grant, loan, or loan guarantee, the provision of insurance or reinsurance, or
the provision of technical assistance.</text>
</paragraph><paragraph id="HAD784CB8888B498DA4F65FACD5EDCE1D"><enum>(8)</enum><header>Government of
Iran</header><text>The term <term>Government of Iran</term> includes the
Government of Iran, any political subdivision, agency, or instrumentality
thereof, and any person owned or controlled by, or acting for or on behalf of,
the Government of Iran.</text>
</paragraph><paragraph id="H22B14376A9A64769BBCEC621611EAE50"><enum>(9)</enum><header>Petroleum
resources</header>
<subparagraph id="H6FDC501EBCAB4347BF4176841E8DB50E"><enum>(A)</enum><header>In
general</header><text>The term <term>petroleum resources</term> includes
petroleum, petroleum by-products, oil or liquefied natural gas, oil or
liquefied natural gas tankers, and products used to construct or maintain
pipelines used to transport oil or compressed or liquefied natural gas.</text>
</subparagraph><subparagraph commented="no" id="HECDA6C8A3C614028B8FEC1C064F01FB1"><enum>(B)</enum><header>Petroleum
by-products</header><text>The term <term>petroleum by-products</term> means
gasoline, kerosene, distillates, propane or butane gas, diesel fuel, residual
fuel oil, and other goods classified in headings 2709 and 2710 of the
Harmonized Tariff Schedule of the United States.</text>
</subparagraph></paragraph><paragraph id="H34D8E719A5F44D6F9DC9F624298D73C8"><enum>(10)</enum><header>Sensitive
technology</header><text>The term <term>sensitive technology</term> 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)).</text>
</paragraph></section><section id="H8824E8A57DCD4ED89A0078280F7905C1"><enum>505.</enum><header>Sunset</header><text display-inline="no-display-inline">This title shall terminate 30 days after the
date on which—</text>
<paragraph id="H34A85DC4C62645FF817C7951EBD44FA0"><enum>(1)</enum><text display-inline="yes-display-inline">the President has certified to Congress
that the Government of Iran has ceased providing support for acts of
international terrorism and no longer satisfies the requirements for
designation as a state-sponsor of terrorism for purposes of section 6(j) of the
Export Administration Act of 1979, section 620A of the Foreign Assistance Act
of 1961, section 40 of the Arms Export Control Act, or any other provision of
law; and</text>
</paragraph><paragraph id="H71F1951855F447B6A9ACBE582B97508E"><enum>(2)</enum><text>Iran has
permanently ceased the pursuit, acquisition, and development of nuclear,
biological, and chemical weapons and missiles.</text>
</paragraph></section><enum>VI</enum><header>Termination of
loan disbursements to Iran from the International Bank for Reconstruction and
Development</header>
<section id="HD0C5114B5BF24D1EB5DF35EBA8D0446F"><enum>601.</enum><header>Termination of
loan disbursements to Iran from the International Bank for Reconstruction and
Development</header>
<subsection id="HA7055E160FDA4B0889ED064A5754DF12"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The President of the
United States shall take all action available to seek a termination of
disbursements of funds under loans made by the International Bank for
Reconstruction and Development to Iran.</text>
</subsection><subsection id="HE7645177509F4E9D83335A8526D68C5B"><enum>(b)</enum><header>Report to the
Congress</header><text>On the date that is 6 months after the date of the
enactment of this Act, and every 6 months thereafter, the President shall
submit to the Committee on Financial Services of the House of Representatives
and the Committee on Foreign Relations of the Senate a report on the efforts
made by the United States to terminate the loan disbursements referred to in
subsection (a).</text>
</subsection></section><section id="H5AD270DF87DE45FF887773384AD8D928"><enum>602.</enum><header>United States
opposition to new country assistance strategy for Iran</header>
<subsection id="HA9292989213B4789AC2A36900D15608B"><enum>(a)</enum><header>Statement of
policy</header><text display-inline="yes-display-inline">It is the policy of
the United States to oppose a new Country Assistance Strategy for Iran.</text>
</subsection><subsection id="H20CE41B4BFA14D36A7396AEFBA94AF6E"><enum>(b)</enum><header>Actions To be
taken if the world bank violates the policy or makes a new loan to
Iran</header><text>If, after the date of the enactment of this Act, the
International Bank for Reconstruction and Development approves a Country
Assistance Strategy for Iran, or approves a loan to Iran, the President of the
United States shall—</text>
<paragraph id="H3FF5EFDC76464C1B804EB884FFC02FF9"><enum>(1)</enum><text display-inline="yes-display-inline">terminate any contribution by the United
States to the International Bank for Reconstruction and Development, the
International Finance Corporation, and the Multilateral Investment Guarantee
Corporation for the fiscal year in which the Country Assistance Strategy or
loan is approved, or (if loan disbursements to Iran for that fiscal year have
been made by such institutions) for the following fiscal year;</text>
</paragraph><paragraph id="H220E36371C7F411598D087711B013F63"><enum>(2)</enum><text display-inline="yes-display-inline">prohibit the sale of debt instruments of
the International Bank for Reconstruction and Development in the United States,
prohibit the purchase of any such debt instrument by any United States person;
and</text>
</paragraph><paragraph id="HD926AE1C5F114F58B5B73714537B2659"><enum>(3)</enum><text>prohibit the
United States Government and any state or municipal governmental entity from
purchasing any such debt instrument.</text>
</paragraph></subsection></section><section id="H246D6130A174445DA02B0A1B622419DB"><enum>603.</enum><header>Sunset</header><text display-inline="no-display-inline">Sections 601 and 602 shall terminate 30 days
after the date on which the President has certified to Congress that—</text>
<paragraph id="HFCA01DD2F7A644DCBD7EDB9C05CF1D9E"><enum>(1)</enum><text display-inline="yes-display-inline">the Government of Iran has ceased providing
support for acts of international terrorism and no longer satisfies the
requirements for designation as a state-sponsor of terrorism for purposes of
section 6(j) of the Export Administration Act of 1979, section 620A of the
Foreign Assistance Act of 1961, section 40 of the Arms Export Control Act, or
any other provision of law; and</text>
</paragraph><paragraph id="HB34BE8E7DAF24E8E86DF663D7C5141E8"><enum>(2)</enum><text>Iran has ceased
the pursuit, acquisition, and development of nuclear, biological, and chemical
weapons and ballistic missiles and ballistic missile launch technology.</text>
</paragraph></section><section id="H2B61825A4C4547C5B8A4D908039E96C6"><enum>604.</enum><header>Rule of
interpretation</header><text display-inline="no-display-inline">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.</text>
</section>