[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4257 Introduced in House (IH)]

<DOC>






114th CONGRESS
  1st Session
                                H. R. 4257

   To protect the American and Iranian peoples as well as the global 
   economy from Iran's systematic abjuration of international legal 
  standards on human and civil rights, its support for international 
      terrorism, and the corrosive economic malfeasance of Iran's 
           Revolutionary Guard Corps, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 15, 2015

   Mr. Nunes (for himself, Mr. Thornberry, Mr. McCaul, Mr. Miller of 
  Florida, Mr. Frelinghuysen, Ms. Granger, Mr. King of New York, Mr. 
 LoBiondo, Mr. Rooney of Florida, Mr. Heck of Nevada, Mr. Pompeo, Mr. 
 Stewart, Mr. Tiberi, Mr. Roskam, Ms. Jenkins of Kansas, Mr. Marchant, 
   Mrs. Black, Mr. Meehan, Mr. Dold, and Mr. Holding) introduced the 
following bill; which was referred to the Committee on Foreign Affairs, 
    and in addition to the Committees on Rules, Ways and Means, and 
 Financial Services, 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 protect the American and Iranian peoples as well as the global 
   economy from Iran's systematic abjuration of international legal 
  standards on human and civil rights, its support for international 
      terrorism, and the corrosive economic malfeasance of Iran's 
           Revolutionary Guard Corps, 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.

    This Act may be cited as the ``IRGC Sanctions Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Iranian people have been seeking political and 
        economic freedom since 1979, and attempted to gain it during 
        the 2009 Green Revolution.
            (2) The Iranian Government, through Iran's Revolutionary 
        Guard Corps (IRGC) and its Basij militia auxiliaries, violently 
        crushed the 2009 Green Revolution, thwarting the legitimate 
        aspirations to political and economic freedom of the Iranian 
        people through terrorism, extrajudicial killings, arbitrary 
        imprisonment, and torture.
            (3) The Iranian Government systematically discriminates 
        against religious and ethnic minorities, including Bahais, 
        Christians, Jews, Sufis, Zoroastrians, Kurds, Arabs, Baluchis, 
        Turkmen, and Azeris, among others and denies them freedom to 
        emigrate.
            (4) The United States designated the Government of Iran as 
        a state sponsor of terrorism in 1984 and identified the IRGC 
        and the IRGC-Quds Force as principle agents of Iran's support 
        for international terrorism.
            (5) The IRGC has, since its inception in 1979, steadily 
        used its illegitimate power and threat of arbitrary detention, 
        torture, and extrajudicial killing to gain dominance over a 
        substantial proportion of Iran's economy, the proceeds from 
        which are being used to finance international terrorism, and to 
        repress the legitimate aspirations to political and economic 
        freedom of the Iranian people.
            (6) The IRGC has a substantial and growing presence in 
        Iran's financial and commercial sectors and extensive economic 
        interests in the defense production, construction, and oil 
        industries, among others, controlling billions of dollars in 
        corporate business, among others.
            (7) The IRGC directly owns substantial shares in 14 
        companies publicly traded on the Tehran Stock Exchange with a 
        combined value of $17 billion. There are an additional 13 
        publicly traded companies with significant ownership by the 
        IRGC, the Armed Forces, and the Basij militia. Taken together, 
        these 27 companies are worth more than 20 percent of the Tehran 
        Stock Exchange.
            (8) In addition, the IRGC controls hundreds of Iranian 
        privately held companies in nearly all sectors of the Iranian 
        economy.
            (9) Because of the authority wielded by the IRGC, including 
        the ability to arbitrarily detain, incarcerate, torture, and 
        kill Iranian citizens, Western legal norms for evaluating 
        control of business entities do not apply. Thus, IRGC influence 
        over Iranian economic activity may be vastly more pervasive 
        than may be mathematically calculated using standard Western 
        methodologies.
            (10) The Joint Comprehensive Plan of Action's termination 
        of sanctions on Iran will inevitably open the global economy to 
        these corporations, broadening the scope of the ability of the 
        IRGC to profit, including through international money 
        laundering, and to use its increasing economic resources to 
        conduct terrorist attacks around the globe.

SEC. 3. STATEMENT OF POLICY.

    It shall be the policy of the United States that--
            (1) in order to protect United States citizens and 
        businesses and the international community from the expanding 
        terrorist, financial, and commercial network of Iran's 
        Revolutionary Guard Corps (IRGC), also known as the Army of the 
        Guardians of the Iranian Revolution and the Iranian 
        Revolutionary Guard Corps, and to assist Iranian entrepreneurs, 
        businesses, workers, and farmers who want to participate 
        lawfully in the global economy, the United States shall seek to 
        prevent the IRGC from obtaining financial benefit from Iran's 
        post-Joint Comprehensive Plan of Action access to the global 
        economy; and
            (2) any and all financial transactions with subsidiaries or 
        affiliates of the IRGC shall be treated as a financial 
        transaction with the IRGC as a whole.

SEC. 4. CONGRESSIONAL APPROVAL OF RESCISSION OF DETERMINATION OF STATE 
              SPONSORS OF TERRORISM.

    (a) Arms Export Control Act.--Section 40(f)(2)(A) of the Arms 
Export Control Act (22 U.S.C. 2780(f)(2)(A)) is amended to read as 
follows:
            ``(A) In addition to meeting the requirements of 
        subparagraph (A) and (B) of paragraph (1), a determination made 
        by the Secretary of State under subsection (d) may be rescinded 
        only if Congress, within 45 days after receipt of a report 
        under paragraph (1)(B) with respect to a proposed rescission of 
        such determination, enacts a joint resolution the matter after 
        the resolving clause of which is as follows: `That the proposed 
        rescission of the determination under section 40(d) of the Arms 
        Export Control Act pursuant to the report submitted to the 
        Congress on ___ is hereby approved.', the blank to be completed 
        with the appropriate date.''.
    (b) Foreign Assistance Act of 1961.--Section 620A of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2371) is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) Additional Requirement With Respect to Rescission.--
            ``(1) In general.--In addition to meeting the requirements 
        of paragraphs (1) and (2) of subsection (c), a determination 
        made by the Secretary of State under subsection (a) may be 
        rescinded only if Congress, within 45 days after receipt of a 
        report under subsection (c)(2) with respect to a proposed 
        rescission of such determination, enacts a joint resolution the 
        matter after the resolving clause of which is as follows: `That 
        the proposed rescission of the determination under section 
        620A(a) of the Foreign Assistance Act of 1961 pursuant to the 
        report submitted to the Congress on ___ is hereby approved.', 
        the blank to be completed with the appropriate date.
            ``(2) Congressional procedures.--A joint resolution 
        described in paragraph (1) and introduced within the 
        appropriate 45-day period shall be considered in the Senate and 
        the House of Representatives in accordance with paragraphs (3) 
        through (7) of section 8066(c) of the Department of Defense 
        Appropriations Act (as contained in Public Law 98-473), except 
        that references in such paragraphs to the Committees on 
        Appropriations of the House of Representatives and the Senate 
        shall be deemed to be references to the Committee on Foreign 
        Affairs of the House of Representatives and the Committee on 
        Foreign Relations of the Senate, respectively.''.
    (c) Export Administration Act of 1979.--Section 6(j) of the Export 
Administration Act of 1979 (50 U.S.C. App. 2405) (as continued in 
effect pursuant to the International Emergency Economic Powers Act) is 
amended--
            (1) by redesignating paragraphs (5) and (6) as paragraphs 
        (6) and (7), respectively; and
            (2) by inserting after paragraph (4) the following:
            ``(5)(A) In addition to meeting the requirements of 
        subparagraphs (A) and (B) of paragraph (4), a determination 
        made by the Secretary of State under paragraph (1)(A) may be 
        rescinded only if Congress, within 45 days after receipt of a 
        report under paragraph (4)(B) with respect to a proposed 
        rescission of such determination, enacts a joint resolution the 
        matter after the resolving clause of which is as follows: `That 
        the proposed rescission of the determination under section 
        6(j)(1)(A) of the Export Administration Act of 1979 (as 
        continued in effect pursuant to the International Emergency 
        Economic Powers Act) pursuant to the report submitted to the 
        Congress on ___ is hereby approved.', the blank to be completed 
        with the appropriate date.
            ``(B) A joint resolution described in subparagraph (A) and 
        introduced within the appropriate 45-day period shall be 
        considered in the Senate and the House of Representatives in 
        accordance with paragraphs (3) through (7) of section 8066(c) 
        of the Department of Defense Appropriations Act (as contained 
        in Public Law 98-473), except that references in such 
        paragraphs to the Committees on Appropriations of the House of 
        Representatives and the Senate shall be deemed to be references 
        to the Committee on Foreign Affairs of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate, respectively.''.
    (d) Effective Date.--The amendments made by subsections (a), (b), 
and (c) take effect on the date of the enactment of this Act and apply 
with respect to a proposed rescission of a determination of the 
Secretary of State under section 40(d) of the Arms Export Control Act, 
section 620A of the Foreign Assistance Act of 1961, or section 6(j) of 
the Export Administration Act of 1979 (as continued in effect pursuant 
to the International Emergency Economic Powers Act), respectively, that 
is contained in any report submitted under any such section on or after 
such date of enactment.

SEC. 5. APPLICATION OF TITLE IV OF THE TRADE ACT OF 1974 TO IRAN.

    On and after the date of the enactment of this Act, title IV of the 
Trade Act of 1974 (19 U.S.C. 2431 et seq.) shall apply to Iran.

SEC. 6. PROHIBITIONS ON FINANCIAL TRANSACTIONS WITH IRAN'S 
              REVOLUTIONARY GUARD CORPS AND ITS AFFILIATES AND ENTITIES 
              OWNED OR CONTROLLED BY IRAN'S REVOLUTIONARY GUARD CORPS 
              AND ITS AFFILIATES.

    (a) In General.--Title III of the Iran Threat Reduction and Syria 
Human Rights Act of 2012 (22 U.S.C. 8741 et seq.) is amended by adding 
at the end the following:

   ``Subtitle C--Prohibitions on Financial Transactions With Iran's 
  Revolutionary Guard Corps and Its Affiliates and Entities Owned or 
   Controlled by Iran's Revolutionary Guard Corps and Its Affiliates

``SEC. 321. PROHIBITIONS ON FINANCIAL TRANSACTIONS WITH IRAN'S 
              REVOLUTIONARY GUARD CORPS AND ITS AFFILIATES AND ENTITIES 
              OWNED OR CONTROLLED BY IRAN'S REVOLUTIONARY GUARD CORPS 
              AND ITS AFFILIATES.

    ``(a) In General.--Except as provided in subsections (b) and (c), 
beginning on the date that is 30 days after the date of the enactment 
of the IRGC Sanctions Act, and notwithstanding any other provision of 
law, a United States person may not knowingly engage in any financial 
transaction with, or transfer of funds to, any of the following:
            ``(1) Iran's Revolutionary Guard Corps or any subdivision 
        of Iran's Revolutionary Guard Corps, including Iran's 
        Revolutionary Guard Corps-Quds Force.
            ``(2) Any person that is an agent, alias, front, 
        instrumentality, or affiliate of any entity specified in 
        paragraph (1).
            ``(3) Any person that is owned or controlled by an entity 
        specified in paragraph (1) or a person specified in paragraph 
        (2).
            ``(4) Any natural person who is a representative, official, 
        or senior member of any entity specified in paragraph (1).
            ``(5) Any person--
                    ``(A) for the purpose of avoiding a financial 
                transaction with, or transfer of funds to, an 
                individual or entity specified in any of paragraphs (1) 
                through (4); or
                    ``(B) for the benefit of an individual or entity 
                specified in any of paragraphs (1) through (4).
    ``(b) Exception Under Title V of National Security Act of 1947.--
The prohibitions on financial transactions and transfers of funds under 
subsection (a) shall not apply with respect to any activities subject 
to reporting requirements under title V of the National Security Act of 
1947.
    ``(c) Implementation; Penalties.--
            ``(1) Implementation.--The President shall exercise all 
        authorities under sections 203 and 205 of the International 
        Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to 
        carry out this section, except that the President--
                    ``(A) shall not issue any general license 
                authorizing, or otherwise authorize, any activity 
                prohibited under subsection (a); and
                    ``(B) shall require any United States person 
                seeking to engage in a financial transaction or 
                transfer of funds prohibited under subsection (a) to 
                submit a written request to the Office of Foreign 
                Assets Control of the Department of the Treasury.
            ``(2) Penalties.--A person that violates, attempts to 
        violate, conspires to violate, or causes a violation of 
        subsection (a) or any regulation, license, or order issued to 
        carry out subsection (a) shall be subject to the penalties set 
        forth in subsections (b) and (c) of section 206 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1705) to 
        the same extent as a person that commits an unlawful act 
        described in subsection (a) of that section.
    ``(d) Codification of Specially Designated Nationals and Blocked 
Persons.--On or after the date of the enactment of the IRGC Sanctions 
Act, any person that meets any of the criteria of paragraphs (2) 
through (5) of subsection (a) and is included on the list of specially 
designated nationals and blocked persons maintained by the Office of 
Foreign Assets Control of the Department of the Treasury, may not be 
removed from such list unless there is enacted a joint resolution 
stating that there exists convincing evidence that Iran's Revolutionary 
Guard Corps is completely divested from the person and providing for 
the removal of such person from such list.
    ``(e) Definitions.--In this section:
            ``(1) Controlled.--The term `controlled' means, with 
        respect to a person, to possess, directly or indirectly, the 
        power to direct or cause the direction of the management and 
        policies of the person, whether through--
                    ``(A) ownership of the person;
                    ``(B) a member or members of the board of directors 
                of the person; or
                    ``(C) threat of arbitrary detention, imprisonment, 
                torture, or killing, or otherwise.
            ``(2) Knowingly.--The term `knowingly', with respect to 
        conduct, a circumstance, or a result, has the meaning given 
        that term in section 101 of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010 (22 U.S.C. 8511).
            ``(3) Owned or ownership.--The term `owned' or `ownership' 
        means, with respect to a person--
                    ``(A) to hold more than 10 percent of the equity 
                interest by vote or value in the person;
                    ``(B) to hold a majority of seats on the board of 
                directors of the person; or
                    ``(C) to otherwise direct the actions, policies, or 
                personnel decisions of the person.
            ``(4) Person.--The term `person' means--
                    ``(A) a natural person, corporation, company, 
                business association, partnership, society, trust, or 
                any other nongovernmental entity, organization, or 
                group;
                    ``(B) any governmental entity or instrumentality of 
                a government; and
                    ``(C) any successor, subunit, parent entity, or 
                subsidiary of, or any entity under common ownership or 
                control with, any entity described in subparagraph (A) 
                or (B).
            ``(5) United states person.--The term `United States 
        person' has the meaning given such term in section 101 of the 
        Comprehensive Iran Sanctions, Accountability, and Divestment 
        Act of 2010 (22 U.S.C. 8511).

``SEC. 322. REPORT ON THE ROLE OF IRAN'S REVOLUTIONARY GUARD CORPS IN 
              THE ECONOMY AND FOREIGN RELATIONSHIPS OF IRAN.

    ``Not later than 90 days after the date of the enactment of the 
IRGC Sanctions Act, and on a quarterly basis thereafter, the President 
shall submit to Congress a report that--
            ``(1) describes all financial and commercial activities of 
        Iran's Revolutionary Guard Corps or any subdivision of Iran's 
        Revolutionary Guard Corps, including Iran's Revolutionary Guard 
        Corps-Quds Force, and any person that is an agent, alias, 
        front, instrumentality, or affiliate of any such entity; and
            ``(2) contains the watch list established and updated under 
        section 323.

``SEC. 323. WATCH LIST OF CERTAIN PERSONS TRANSITIONING ON OR OFF THE 
              LIST OF SPECIALLY DESIGNATED NATIONALS AND BLOCKED 
              PERSONS.

    ``(a) Establishment.--The President shall establish and update as 
appropriate a watch list of--
            ``(1) persons that the President determines meet any of the 
        criteria of paragraphs (2) through (5) of section 321(a) and 
        are not included on the list of specially designated nationals 
        and blocked persons maintained by the Office of Foreign Assets 
        Control of the Department of the Treasury; and
            ``(2) persons that are Iranian persons that meet the 
        requirements described in section 321(a)(3) and have been 
        removed from the list of specially designated nationals and 
        blocked persons maintained by the Office of Foreign Assets 
        Control of the Department of the Treasury in accordance with 
        the terms of United Nations Security Council Resolution 2231 
        (2015) and the Joint Comprehensive Plan of Action.
    ``(b) Removal.--Except as provided in subsection (a)(2), the 
President may remove a person listed on the watch list described in 
subsection (a) if--
            ``(1) on or after the date of the enactment of the IRGC 
        Sanctions Act, the person is included on the list of specially 
        designated nationals and blocked persons maintained by the 
        Office of Foreign Assets Control of the Department of the 
        Treasury; or
            ``(2) the person no longer meets any of the criteria of 
        paragraphs (2) through (5) of section 321(a).
    ``(c) Definition.--In this section, the term `Joint Comprehensive 
Plan of Action' means the Joint Comprehensive Plan of Action, agreed to 
at Vienna July 14, 2015, by Iran and by the People's Republic of China, 
France, Germany, the Russian Federation, the United Kingdom and the 
United States, with the High Representative of the European Union for 
Foreign Affairs and Security Policy, and all implementing materials and 
agreements related to the Joint Comprehensive Plan of Action.''.
    (b) Clerical Amendment.--The table of contents for the Iran Threat 
Reduction and Syria Human Rights Act of 2012 is amended by inserting at 
the end of the items relating to title III the following:

   ``Subtitle C--Prohibitions on Financial Transactions With Iran's 
  Revolutionary Guard Corps and Its Affiliates and Entities Owned or 
   Controlled by Iran's Revolutionary Guard Corps and Its Affiliates

``Sec. 321. Prohibitions on financial transactions with Iran's 
                            Revolutionary Guard Corps and its 
                            affiliates and entities owned or controlled 
                            by Iran's Revolutionary Guard Corps and its 
                            affiliates.
``Sec. 322. Report on the role of Iran's Revolutionary Guard Corps in 
                            the economy and foreign relationships of 
                            Iran.
``Sec. 323. Watch list of certain persons transitioning on or off the 
                            list of specially designated nationals and 
                            blocked persons.''.

SEC. 7. DISCLOSURES TO THE SECURITIES AND EXCHANGE COMMISSION RELATING 
              TO SANCTIONABLE ACTIVITIES.

    (a) In General.--Section 13(r) of the Securities Exchange Act of 
1934 (15 U.S.C. 78m(r)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (C), by striking ``or'' at the 
                end;
                    (B) in subparagraph (D)(iii), by striking period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(E) knowingly engaged in any financial 
                transaction with, or transferred funds to--
                            ``(i) Iran's Revolutionary Guard Corps or 
                        any subdivision of Iran's Revolutionary Guard 
                        Corps, including Iran's Revolutionary Guard 
                        Corps-Quds Force;
                            ``(ii) any person that is an agent, alias, 
                        front, instrumentality, or affiliate of any 
                        entity specified in clause (i);
                            ``(iii) any person that is owned or 
                        controlled by an entity specified in clause (i) 
                        or a person specified in clause (ii);
                            ``(iv) any natural person who is a 
                        representative, official, or senior member of 
                        any entity specified in clause (i); or
                            ``(v) any person--
                                    ``(I) for the purpose of avoiding a 
                                financial transaction with, or transfer 
                                of funds to, an individual or entity 
                                specified in any of clauses (i) through 
                                (iv); or
                                    ``(II) for the benefit of an 
                                individual or entity specified in any 
                                of clauses (i) through (iv).'';
            (2) by redesignating paragraph (6) as paragraph (8); and
            (3) by inserting after paragraph (5) the following:
            ``(6) Treatment of persons relying on regulation d.--Any 
        person that is not required to file an annual or quarterly 
        report under subsection (a) but that offers or sells securities 
        in reliance on an exemption provided under Regulation D (17 
        C.F.R. 230.500 et seq.) shall file a quarterly report with the 
        Commission containing the information required by paragraph (2) 
        if, during the previous quarter, the person or any affiliate of 
        the person took any action described in paragraph (1)(E).
            ``(7) Definitions.--In paragraph (1)(E), the terms 
        `controlled', `knowingly', and `owned' have the respective 
        meanings given such terms in section 321(e) of the Iran Threat 
        Reduction and Syria Human Rights Act of 2012.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect with respect to reports required to be filed with the 
Securities and Exchange Commission after the date that is 180 days 
after the date of the enactment of this Act.
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