[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5931 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 600
114th CONGRESS
  2d Session
                                H. R. 5931

                          [Report No. 114-767]

 To provide for the prohibition on cash payments to the Government of 
                     Iran, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 6, 2016

 Mr. Royce (for himself, Mr. Zeldin, Ms. Ros-Lehtinen, Mr. Nunes, Mr. 
  Meadows, Mr. Thornberry, Mr. Sessions, Mr. Donovan, Mr. McCaul, Mr. 
   Dent, Mr. Chaffetz, Mr. Conaway, Mr. Rohrabacher, Mr. Ribble, Mr. 
Trott, Mr. Young of Iowa, Mr. DesJarlais, Mr. Cook, Mr. Pittenger, Mr. 
   DeSantis, Mr. Duffy, Mr. Stivers, Mr. Fitzpatrick, Mr. Yoho, Mr. 
 Rothfus, Mr. Chabot, and Mr. Williams) introduced the following bill; 
         which was referred to the Committee on Foreign Affairs

                           September 20, 2016

Additional sponsors: Mr. Salmon, Mr. Barr, Mr. Emmer of Minnesota, Mr. 
 Abraham, Mr. Garrett, Mr. Marino, Mr. Gibson, Mr. Posey, Mr. Kelly of 
 Mississippi, Mr. Messer, Mr. Burgess, Mr. Weber of Texas, Mr. Flores, 
Mr. Huizenga of Michigan, Mr. King of New York, Mr. Olson, Mrs. Wagner, 
Mr. Blum, Mr. LaMalfa, Mr. Goodlatte, Mr. Jody B. Hice of Georgia, Mr. 
Collins of New York, Mr. Ross, Mr. Pompeo, Mr. Allen, Mr. Mulvaney, Mr. 
 Rokita, Mr. Bost, Mr. Harper, Mr. Bucshon, Mr. Valadao, Mr. Bishop of 
 Michigan, Mr. Smith of New Jersey, Mr. Wilson of South Carolina, Mr. 
    Ratcliffe, Mr. Marchant, Mr. Roe of Tennessee, Mr. Calvert, Mr. 
Shimkus, Mr. Smith of Texas, Mr. Murphy of Pennsylvania, Mr. Gosar, Mr. 
                        Turner, and Mr. Wenstrup

                           September 20, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           September 6, 2016]


_______________________________________________________________________

                                 A BILL


 
 To provide for the prohibition on cash payments to the Government of 
                     Iran, and for other purposes.


 


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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prohibiting Future Ransom Payments 
to Iran Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Since 1979, when it held more than 50 United States 
        citizens for 444 days, Iran has repeatedly held United States 
        citizens hostage.
            (2) Presidential Policy Directive 30 issued by President 
        Barack Obama on June 24, 2015, states that ``It is United 
        States policy to deny hostage-takers the benefits of ransom, 
        prisoner releases, policy changes, or other acts of 
        concession.''.
            (3) On January 17, 2016, the President announced that Iran 
        would release several United States citizens while the United 
        States would grant clemency to and release seven Iranian 
        nationals serving sentences or awaiting trial in the United 
        States for serious crimes.
            (4) Senior officials of the Department of State have 
        acknowledged that these United States citizens were released as 
        part of a ``prisoner swap'' and Iranian negotiators reportedly 
        asked for a cash payment.
            (5) On January 17, 2016, the President also announced that 
        ``The United States and Iran are now settling a longstanding 
        Iranian government claim against the United States 
        Government.''.
            (6) The overall amount of the settlement is approximately 
        $1,700,000,000.
            (7) Subsequent reports revealed that $400,000,000 of this 
        $1,700,000,000 settlement was secretly flown to Iran, in cash, 
        simultaneously with the release of these United States 
        citizens.
            (8) One of the United States citizens released that night, 
        Pastor Saeed Abedini, has stated that Iranian officials 
        explained a delay in their departure was due to the status of 
        another plane.
            (9) Senior officials at the National Security Division of 
        the Department of Justice reportedly objected to the 
        $400,000,000 cash payment, warning that Iran would see it as a 
        ransom.
            (10) On August 18, 2016, a Department of State spokesman 
        admitted that the $400,000,000 cash payment was ``leverage'' to 
        gain the release of Americans held hostage by Iran.
            (11) Iranian State Television quoted General Mohammad Reza 
        Naghdi, commander of the Basij militia, as claiming ``Taking 
        this much money back was in return for the release of the 
        American spies.''.
            (12) According to Presidential Policy Directive 30, the 
        United States policy against paying ransom and releasing 
        prisoners ``protects United States nationals and strengthens 
        national security by removing a key incentive for hostage-
        takers to target United States nationals, thereby interrupting 
        the vicious cycle of hostage-takings, and by helping to deny 
        terrorists and other malicious actors the money, personnel, and 
        other resources they need to conduct attacks against the United 
        States, its nationals, and its interests.''.
            (13) Since the United States released Iranians serving 
        sentences or awaiting trial in the United States for serious 
        crimes and provided Iran with $400,000,000 in cash, Iran has 
        taken several more United States citizens hostage.
            (14) On August 22, 2016, the Department of State issued an 
        ``Iran Travel Warning'' noting that ``Iranian authorities 
        continue to unjustly detain and imprison U.S. citizens, 
        particularly Iranian-Americans, including students, 
        journalists, business travelers, and academics, on charges 
        including espionage and posing a threat to national 
        security.''.
            (15) The Government of the United States has designated 
        Iran as a state sponsor of terrorism since 1984 and a 
        jurisdiction of primary money laundering concern since 2011.
            (16) The Department of State's most recent Country Reports 
        on Terrorism makes clear that ``Iran continued its terrorist-
        related activity in 2015, including support for Hizballah, 
        Palestinian terrorist groups in Gaza, and various groups in 
        Iraq and throughout the Middle East.''.
            (17) In announcing Iran's designation as a jurisdiction of 
        primary money laundering concern, the Department of the 
        Treasury made clear that ``any and every financial transaction 
        with Iran poses grave risk of supporting'' Iran's ongoing 
        illicit activities, including terrorism.
            (18) On March 17, 2016, the Department of State 
        acknowledged in a letter to Congress that there remain some 
        ``large claims'' pending before the Iran-United States Claims 
        Tribunal, ``many of which are against the United States''.

SEC. 3. STATEMENT OF POLICY.

    It shall be the policy of the United States Government not to pay 
ransom or release prisoners for the purpose of securing the release of 
United States citizens taken hostage abroad.

SEC. 4. PROHIBITION ON CASH PAYMENTS TO THE GOVERNMENT OF IRAN.

    (a) Prohibition.--Notwithstanding any other provision of law, 
beginning on the date of the enactment of this Act, the United States 
Government may not provide, directly or indirectly, promissory notes 
(including currency) issued by the United States Government or 
promissory notes (including currency) issued by a foreign government, 
to the Government of Iran.
    (b) Licensing Requirement.--
            (1) In general.--Beginning on the date of the enactment of 
        this Act, the conduct of a transaction or payment in connection 
        with an agreement to settle a claim or claims brought before 
        the Iran-United States Claims Tribunal may be made only--
                    (A) on a case-by-case basis and pursuant to a 
                specific license by the Office of Foreign Assets 
                Control of the Department of the Treasury; and
                    (B) in a manner that is not in contravention of the 
                prohibition in subsection (a).
            (2) Publication in federal register.--The President shall 
        publish in the Federal Register a list of transactions and 
        payments, including the amount and method of each such 
        transaction and payment, by the United States Government to the 
        Government of Iran in connection with the agreement described 
        in paragraph (1).
    (c) Termination.--The prohibition in subsection (a) and the 
licensing requirement in subsection (b) shall remain in effect until 
the date on which the President certifies to the appropriate 
congressional committees that--
            (1) the President has rescinded a preliminary draft rule or 
        final rule (as in effect on the day before the date of the 
        enactment of this Act) that provides for the designation of 
        Iran as a jurisdiction of primary money laundering concern 
        pursuant to section 5318A of title 31, United States Code; and
            (2) the Secretary of State has removed Iran from the list 
        of countries determined to have repeatedly provided support for 
        acts of international terrorism under section 6(j) of the 
        Export Administration Act of 1979 (as continued in effect 
        pursuant to the International Emergency Economic Powers Act), 
        section 40 of the Arms Export Control Act, section 620A of the 
        Foreign Assistance Act of 1961, or any other provision of law.
    (d) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs and the Committee on 
        Financial Services of the House of Representatives; and
            (2) the Committee on Foreign Relations and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate.

SEC. 5. REPORT ON OUTSTANDING CLAIMS BEFORE THE IRAN-UNITED STATES 
              CLAIMS TRIBUNAL.

    (a) Report.--The President shall submit to the appropriate 
congressional committees a report that lists and evaluates each 
outstanding claim before the Iran-United States Claims Tribunal.
    (b) Matters To Be Included.--The report required under subsection 
(a) shall include the following:
            (1) The total value of each outstanding claim.
            (2) The current status of each outstanding claim.
            (3) The likelihood that each claim will be resolved in the 
        next 6 months.
    (c) Submission to Congress.--The report required under subsection 
(a) shall be submitted to the appropriate congressional committees not 
later than 30 days after the date of the enactment of this Act and 
every 180 days thereafter for a period not to exceed 3 years.
    (d) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs of the House of 
        Representatives; and
            (2) the Committee on Foreign Relations of the Senate.

SEC. 6. NOTIFICATION AND CERTIFICATION RELATING TO SETTLEMENTS OF 
              OUTSTANDING CLAIMS BEFORE THE IRAN-UNITED STATES CLAIMS 
              TRIBUNAL.

    (a) Notification.--The President shall notify the appropriate 
congressional committees not later than 30 days prior to conducting a 
transaction or payment from the Government of the United States to the 
Government of Iran in connection with an agreement to settle a claim or 
claims brought before the Iran-United States Claims Tribunal.
    (b) Matters To Be Included.--The notification required under 
subsection (a) shall include the following:
            (1) The total amount of the settlement, including the total 
        principal and interest, and an explanation of the calculation 
        of the interest.
            (2) A legal analysis of why the settlement was made, 
        including a detailed description of all claims and counter-
        claims covered by the settlement.
            (3) A certification by the President that the settlement is 
        not a ransom for the release of individuals held hostage by 
        Iran.
            (4) An identification of each entity of the Government of 
        Iran that will receive amounts from the settlement.
            (5) A certification that the funds provided to Iran under 
        the settlement will not be used to provide support to foreign 
        terrorist organizations, the regime of Bashar al-Assad, or 
        other destabilizing activities.
            (6) Whether an equal amount of Iranian funds are available 
        and accessible in the United States to satisfy judgments 
        against Iran by victims of Iranian-sponsored terrorism.
            (7) A copy of the settlement agreement.
            (8) A description of the disposition of any related claims 
        that have been subrogated to the United States Government.
            (9) A certification that the settlement is in the best 
        interest of the United States.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs of the House of 
        Representatives; and
            (2) the Committee on Foreign Relations of the Senate.

SEC. 7. EXCLUSION OF CERTAIN ACTIVITIES.

    Nothing in this Act shall apply to any activities subject to the 
reporting requirements of title V of the National Security Act of 1947.

SEC. 8. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to authorize any payment by 
the Government of the United States to the Government of Iran.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Government of iran.--The term ``Government of Iran'' 
        means--
                    (A) the state and the Government of Iran, as well 
                as any political subdivision, agency, or 
                instrumentality thereof;
                    (B) any entity owned or controlled directly or 
                indirectly by the foregoing;
                    (C) any person to the extent that such person is, 
                or has been, or to the extent that there is reasonable 
                cause to believe that such person is, or has been, 
                acting or purporting to act directly or indirectly on 
                behalf of any of the foregoing; and
                    (D) any person or entity identified by the 
                Secretary of the Treasury to be the Government of Iran 
                under part 560 of title 31, Code of Federal 
                Regulations.
            (2) Iran-united states claims tribunal.--The term ``Iran-
        United States Claims Tribunal'' means the tribunal established 
        pursuant to the Algiers Accords on January 19, 1981, to resolve 
        certain claims by nationals of one party against the other 
        party and certain claims between the parties.
                                                 Union Calendar No. 600

114th CONGRESS

  2d Session

                               H. R. 5931

                          [Report No. 114-767]

_______________________________________________________________________

                                 A BILL

 To provide for the prohibition on cash payments to the Government of 
                     Iran, and for other purposes.

_______________________________________________________________________

                           September 20, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed