[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5940 Introduced in House (IH)]

<DOC>






114th CONGRESS
  2d Session
                                H. R. 5940

 To prohibit the President from using funds appropriated under section 
  1304 of title 31, United States Code, to make payments to Iran, to 
 impose sanctions with respect to Iranian persons that hold or detain 
            United States citizens, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 6, 2016

Mr. Pompeo (for himself, Mr. Roskam, Mr. Zeldin, Mr. Meehan, Mr. Young 
of Indiana, and Mr. Costello of Pennsylvania) introduced the following 
 bill; which was referred to the Committee on Foreign Affairs, and in 
 addition to the Committees on the Judiciary, Rules, and Intelligence 
 (Permanent Select), 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 prohibit the President from using funds appropriated under section 
  1304 of title 31, United States Code, to make payments to Iran, to 
 impose sanctions with respect to Iranian persons that hold or detain 
            United States citizens, 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 ``No Ransom Payments Act of 2016''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) As of August 8, 2016, United States courts had awarded 
        more than $55,000,000,000 in terrorism-related judgments 
        against Iran to plaintiffs under the terrorism exception to the 
        jurisdictional immunity of a foreign state under section 1605A 
        of title 28, United States Code.
            (2) Such judgments against Iran include judgments relating 
        to Iran's involvement in the 1983 Marine barracks bombing in 
        Lebanon, a hostage-taking in Lebanon in 1984, a 1990 
        assassination in New York City, the 1996 Khobar Towers attack, 
        the 1998 attacks on two United States Embassies in Africa, and 
        various terrorist bombings in Jerusalem.
            (3) On November 4, 1979, more than 60 Americans were 
        captured at the United States Embassy in Tehran. Fifty-two 
        Americans were held hostage by the Islamic Republic of Iran for 
        444 days. On December 18, 2015, President Barack Obama signed 
        into law the Justice for United States Victims of State 
        Sponsored Terrorism Act (42 U.S.C. 10609) and established the 
        United States Victims of State Sponsored Terrorism Fund to 
        compensate United States victims of terrorism who either hold a 
        final judgment issued against a state sponsor of terrorism 
        under the terrorism exception to the Foreign Sovereign 
        Immunities Act, or were taken hostage from the United States 
        Embassy in Tehran, Iran, in 1979, or are a spouse or child of 
        someone who was taken hostage. As of August 8, 2016, the United 
        States Government has failed to provide any of the compensation 
        authorized under the Justice for United States Victims of State 
        Sponsored Terrorism Act.
            (4) On January 17, 2016, President Barack Obama announced 
        that 4 United States citizens (Jason Rezaian, Saeed Abedini, 
        Amir Hekmati, and Nosratollah Khosravi-Roodsari) unjustly held 
        by Iran and one United States citizen (Matthew Trevithick) who 
        had been detained by Iran, but not charged, had been released 
        in exchange for the release of 7 Iranian nationals jailed or 
        facing charges in the United States and that the United States 
        dropped its request with Interpol relating to 14 Iranian 
        nationals. At the same time the United States announced a 
        settlement of an Iranian claim for $1,700,000,000, consisting 
        of $400,000,000 held in a foreign military sales account since 
        the 1979 Iranian revolution and a settlement of $1,300,000,000 
        in interest.
            (5) On April 5, 2016, White House Spokesperson Josh 
        Earnest, in response to a question from a reporter about 
        whether the Obama administration misled Congress about the Iran 
        deal, stated: ``I don't think there's any evidence to 
        substantiate that kind of claim . . . I think you should take a 
        rather dim view of that suggestion because Congressman Pompeo . 
        . . didn't approve the deal and certainly didn't vote in favor 
        of it.''.
            (6) On June 9, 2016, Bloomberg News reported that Iran 
        instructed its Central Bank to transfer $1,700,000,000 to the 
        military of Iran, probably a reference to the payment described 
        in paragraph (4). Overall, Iran's military budget for 2017 
        increased to $19,000,000,000, an increase of 90 percent from 
        2016.
            (7) On August 3, 2016, the Wall Street Journal reported 
        that the United States had airlifted $400,000,000 in cash to 
        Iran in wooden pallets with euros, Swiss francs, and other 
        currencies in an unmarked cargo plane, which was later 
        clarified to reportedly be an Iran Air cargo plane. The report 
        stated that the money came from the central banks of the 
        Netherlands and Switzerland.
            (8) On August 4, 2016, Saeed Abedini said in an interview 
        on FOX Business Network that the hostages had to wait overnight 
        at the airport because they were unable to leave until another 
        plane arrived in Iran; the hostages left on a plane that had 
        been at the airport the entire time.
            (9) General Mohammad Reza Naghdi, a commander in the 
        Islamic Revolutionary Guard Corps, stated that ``taking this 
        money back was in return for the release of the American 
        spies''.
            (10) On August 3, 2016, State Department Deputy 
        Spokesperson Mark Toner stated that ``there was no quid pro 
        quo'' in reaction to a question regarding the statement in 
        paragraph (8).
            (11) On August 3, 2016, White House Spokesperson Josh 
        Earnest stated ``A week delay [in sequencing the payments to 
        not be perceived as a quid pro quo] would not have prevented 
        [Speaker] Paul Ryan and [Senator] Marco Rubio from falsely 
        claiming that they're a ransom.''. At the same press 
        conference, Earnest stated ``So it sounds to me like [Ryan and 
        Rubio] are once again in a position where they're making the 
        same argument as hardliners in Iran in an effort to undermine 
        the Iran nuclear agreement. The President made clear a year ago 
        that right-wingers in the United States were making common 
        cause with right-wingers in the Iranian government. And, again, 
        if they're doing it again to try to justify their opposition to 
        an agreement that has benefitted the American people, they can 
        do that, but I think that's going to be pretty hard for them to 
        explain. Maybe there's another letter from Senator Cotton to 
        the Supreme Leader we don't know about.''.
            (12) On August 4, 2016, State Department Deputy 
        Spokesperson Mark Toner stated ``The idea that this was all 
        orchestrated as part of some kind of quid pro quo is just not 
        accurate . . . I recognize, I can see, the optics of this and 
        that people would draw assumptions. People do. We can't keep 
        them from doing so, but it's just not true that there's any 
        linkage.''.
            (13) On August 18, 2016, State Department Spokesperson John 
        Kirby, in response to a question on whether the United States 
        Government would not give Iran the $400,000,000 in cash until 
        the United States citizens were released stated ``that's 
        correct''.
            (14) On June 24, 2015, President Barack Obama issued a 
        Presidential Policy Directive on Hostage Recovery Activities 
        (referred to as ``PPD 30''), which states: ``The United States 
        will use every appropriate resource to gain the safe return of 
        U.S. nationals who are held hostage. But the United States 
        Government will make no concessions to individuals or groups 
        holding U.S. nationals hostage. It is United States policy to 
        deny hostage-takers the benefits of ransom, prisoner releases, 
        policy changes, or other acts of concession. This policy 
        protects U.S. nationals and strengthens national security by 
        removing a key incentive for hostage-takers to target U.S. 
        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.''.
            (15) On January 27, 2014, the United Nations Security 
        Council unanimously adopted Resolution 2133, which ``calls upon 
        all Member States to prevent terrorists from benefiting 
        directly or indirectly from ransom payments or from political 
        considerations and to secure the safe release of hostages''.
            (16) On May 17, 2016, in a 6-2 decision, the United States 
        Supreme Court rejected a challenge by the Central Bank of Iran 
        to invalidate section 502 of the Iran Threat Reduction and 
        Syria Human Rights Act of 2012 (22 U.S.C. 8772), which makes 
        Iran's bonds frozen in a New York account available to enforce 
        terrorism judgments.
            (17) As of August 8, 2016, Iran has illegally detained 
        three dual Iranian-American citizens, Siamak Namazi, his father 
        Baquer, and Reza ``Robin'' Shahini.
            (18) Robert Levinson, a United States citizen, disappeared 
        on March 9, 2007, after traveling to Kish Island, Iran, and is 
        the longest held United States civilian in the history of the 
        United States and Iran has not abided by the repeated pledges 
        by and renewed commitment of officials of the Government of 
        Iran to provide their Government's assistance in the case of 
        Robert Levinson.

SEC. 3. POLICY OF THE UNITED STATES.

    It shall be the policy of the United States--
            (1) to ensure that all outstanding judgments awarded to 
        United States plaintiffs by United States courts against Iran 
        have been settled before or concurrent with a settlement of 
        Iran's claims against the United States; and
            (2) to prohibit hostage-takers from the benefits of ransom 
        by ensuring that the United States Government does not pay 
        ransom to a person or government for the purpose of securing 
        the release of unjustly detained United States citizens, 
        including citizens who are also citizens of other countries.

SEC. 4. PROHIBITION ON PAYMENTS TO IRAN WITH FUNDS APPROPRIATED FOR THE 
              PAYMENT OF FINAL JUDGMENTS.

    (a) In General.--On and after the date of the enactment of this 
Act, the President may not pay final judgments, awards, or compromise 
settlements, or interest or costs relating to such judgments, awards, 
or settlements, to Iran using amounts appropriated under section 1304 
of title 31, United States Code, or interest accrued on such amounts.
    (b) Termination.--The prohibition under subsection (a) shall remain 
in effect until the date on which the President certifies to Congress 
that--
            (1) Iran has returned to the United States any money paid 
        to Iran after January 1, 2016, from amounts appropriated under 
        section 1304 of title 31, United States Code;
            (2) Iran has satisfied all outstanding judgments against 
        Iran awarded to United States plaintiffs by United States 
        courts; and
            (3) individuals taken hostage and held for 444 days 
        following the seizure of the United States Embassy in Iran on 
        November 4, 1979, have been compensated from the United States 
        Victims of State Sponsored Terrorism Fund established under the 
        Justice for United States Victims of State Sponsored Terrorism 
        Act (42 U.S.C. 10609).

SEC. 5. CERTIFICATION REQUIRED TO PROVIDE FUNDS TO IRAN AND REPORT ON 
              FUNDS PROVIDED TO IRAN.

    (a) Certification.--Before the President may provide or authorize 
payment of any funds to Iran on or after the date of the enactment of 
this Act, the President shall certify to the appropriate congressional 
committees that--
            (1) the funds will not be used by Iran to engage in or 
        provide support for acts of international terrorism; and
            (2) Iran or groups supported by Iran are not unjustly 
        detaining United States citizens, including United States 
        citizens who are also citizens of other countries.
    (b) Report.--Not later than 60 days after the date of the enactment 
of this Act, the Director of National Intelligence shall submit to the 
appropriate congressional committees a report on whether funds paid to 
Iran by the United States after January 1, 2016, have been used by Iran 
to engage in or provide support for acts of international terrorism.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Relations, the Committee on 
        Banking, Housing, and Urban Affairs, the Committee on the 
        Judiciary, and the Select Committee on Intelligence of the 
        Senate; and
            (2) the Committee on Foreign Affairs, the Committee on 
        Financial Services, the Committee on the Judiciary, and the 
        Permanent Select Committee on Intelligence of the House of 
        Representatives.

SEC. 6. SANCTIONS WITH RESPECT TO IRANIAN PERSONS THAT HOLD OR DETAIN 
              UNITED STATES CITIZENS.

    (a) Imposition of Sanctions.--Not later than 60 days after the date 
of the enactment of this Act, the President shall impose the sanctions 
described in subsection (b) with respect to--
            (1) any Iranian person involved in the kidnapping or unjust 
        detention of a United States citizen on or after March 9, 2007, 
        including a United States citizen who is also a citizen of 
        another country;
            (2) any Iranian person that engages, or attempts to engage, 
        in an activity or transaction that materially contributes to, 
        or poses a risk of materially contributing to, kidnapping or 
        unjust detention described in paragraph (1); and
            (3) any Iranian person that--
                    (A) is owned or controlled by a person described in 
                paragraph (1) or (2);
                    (B) is acting for or on behalf of such a person; or
                    (C) provides, or attempts to provide--
                            (i) financial, material, technological, or 
                        other support to a person described in 
                        paragraph (1) or (2); or
                            (ii) goods or services in support of an 
                        activity or transaction described in paragraph 
                        (1) or (2).
    (b) Sanctions Described.--
            (1) Blocking of property.--The President shall block, in 
        accordance with the International Emergency Economic Powers Act 
        (50 U.S.C. 1701 et seq.), all transactions in all property and 
        interests in property of any person subject to subsection (a) 
        if such property and interests in property are in the United 
        States, come within the United States, or are or come within 
        the possession or control of a United States person.
            (2) Exclusion from united states.--The Secretary of State 
        shall deny a visa to, and the Secretary of Homeland Security 
        shall exclude from the United States, any person subject to 
        subsection (a) that is an alien.
            (3) Current visa revoked.--The issuing consular officer, 
        the Secretary of State, or the Secretary of Homeland Security 
        (or a designee of one of such Secretaries) shall revoke any 
        visa or other entry documentation issued to any person subject 
        to subsection (a) that is an alien, regardless of when issued. 
        The revocation shall take effect immediately and shall 
        automatically cancel any other valid visa or entry 
        documentation that is in the possession of the alien.
    (c) Exceptions; Penalties.--
            (1) Inapplicability of national emergency requirement.--The 
        requirements of section 202 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1701) shall not apply for 
        purposes of subsection (b)(1).
            (2) Compliance with united nations headquarters 
        agreement.--Paragraphs (2) and (3) of subsection (b) shall not 
        apply if admission to the United States is necessary to permit 
        the United States to comply with the Agreement regarding the 
        Headquarters of the United Nations, signed at Lake Success June 
        26, 1947, and entered into force November 21, 1947, between the 
        United Nations and the United States.
            (3) Penalties.--The penalties provided for in subsections 
        (b) and (c) of section 206 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705) shall apply to a person 
        that violates, attempts to violate, conspires to violate, or 
        causes a violation of regulations prescribed under subsection 
        (b)(1) to the same extent that such penalties apply to a person 
        that commits an unlawful act described in subsection (a) of 
        such section 206.
    (d) Definitions.--In this section:
            (1) Entity.--The term ``entity'' means a corporation, 
        business association, partnership, trust, society, or any other 
        entity.
            (2) Iranian person.--The term ``Iranian person'' means--
                    (A) an individual who is a citizen or national of 
                the Islamic Republic of Iran; or
                    (B) an entity organized under the laws of the 
                Islamic Republic of Iran or otherwise subject to the 
                jurisdiction of the Government of the Islamic Republic 
                of Iran.
            (3) Person.--The term ``person'' means an individual or 
        entity.
            (4) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States; 
                or
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity.

SEC. 7. PROHIBITION ON UNITED STATES GOVERNMENT PAYMENT OF RANSOM.

    (a) In General.--Except as provided by subsection (b), the 
President and all officers of the United States Government shall not 
make a payment to a government or person for the purpose of securing 
the release of unjustly detained United States citizens, including 
United States citizens who are also citizens of other countries.
    (b) Exception.--The prohibition under subsection (a) does not 
prohibit the United States Government from providing assistance to 
United States citizens that have been arrested.
    (c) Enforcement.--The Secretary of the Treasury, in consultation 
with the Secretary of State and the Attorney General, may take such 
actions, including the promulgation of such rules and regulations, as 
may be necessary to carry out the purposes of this section.
    (d) Definitions.--In this section:
            (1) Entity.--The term ``entity'' means a corporation, 
        business association, partnership, trust, society, or any other 
        entity.
            (2) Person.--The term ``person'' means an individual or 
        entity.

SEC. 8. PROHIBITION OF JUDGMENT FUND PAYMENTS TO STATE SPONSORS OF 
              TERRORISM.

    (a) In General.--Except as provided in subsection (b), the 
President and any officer of the United States Government may not use 
amounts appropriated under section 1304 of title 31, United States 
Code, or interest accrued on such amounts, to make any payment to a 
state sponsor of acts of international terrorism.
    (b) Waiver.--
            (1) In general.--The prohibition set forth in subsection 
        (a) shall not apply to a specific payment or a specific payee 
        if Congress has passed a joint resolution waiving the 
        application of such prohibition to such payment or payee in 
        accordance with paragraph (2).
            (2) Referral.--
                    (A) Senate.--A joint resolution that is introduced 
                in the Senate shall be referred to the Committee on 
                Foreign Relations of the Senate.
                    (B) House of representatives.--A joint resolution 
                that is introduced in the House of Representatives 
                shall be referred to the Committee on Foreign Affairs 
                of the House of Representatives.
            (3) Discharge.--If the committee to which a joint 
        resolution is referred does not report such resolution (or an 
        identical resolution) by the end of the 20-day period beginning 
        on the date on which the President submits a request described 
        in subsection (d)(1)(A) to Congress--
                    (A) such committee shall be immediately discharged 
                from further consideration of such resolution; and
                    (B) such resolution shall be placed on the 
                appropriate calendar of the House involved.
            (4) Consideration.--
                    (A) In general.--On or after the third day after 
                the date on which the committee to which a joint 
                resolution is referred has reported the resolution, or 
                the date on which the committee has been discharged 
                under paragraph (3) from further consideration of the 
                resolution, it is in order for any Member of the 
                respective House to move to proceed to the 
                consideration of the resolution if such Member 
                announced on a previous day to the House concerned the 
                Member's intention to do so.
                    (B) Points of order.--All points of order against 
                the joint resolution or against the consideration of 
                the resolution are waived.
                    (C) Effect of motion.--A motion described in 
                subparagraph (A) is highly privileged in the House of 
                Representatives and is privileged in the Senate and is 
                not debatable. The motion is not subject to amendment, 
                or to a motion to postpone, or to a motion to proceed 
                to the consideration of other business. A motion to 
                reconsider the vote by which the motion is agreed to or 
                disagreed to shall not be in order. If a motion to 
                proceed to the consideration of the joint resolution is 
                agreed to, the respective House shall immediately 
                proceed to consideration of the resolution without 
                intervening motion, order, or other business, and the 
                resolution shall remain the unfinished business of the 
                respective House until disposed.
                    (D) Debate.--Debate on the joint resolution, and on 
                all debatable motions and appeals in connection with 
                the resolution, shall be limited to not more than 2 
                hours, which shall be divided equally between those 
                favoring and those opposing the resolution. An 
                amendment to the resolution is not in order. A motion 
                further to limit debate is in order and not debatable. 
                A motion to postpone, or a motion to proceed to the 
                consideration of other business, or a motion to 
                recommit the resolution is not in order. A motion to 
                reconsider the vote by which the resolution is agreed 
                to or disagreed to is not in order.
                    (E) Final vote.--Immediately following the 
                conclusion of the debate on the joint resolution and a 
                single quorum call at the conclusion of the debate if 
                requested in accordance with the rules of the 
                appropriate House, the vote on final passage of the 
                resolution shall occur. In the Senate, adoption of the 
                joint resolution requires an affirmative vote of three-
                fifths of Senators, duly chosen and sworn.
                    (F) Appeals.--Appeals from the decisions of the 
                Chair relating to the application of the rules of the 
                Senate or the House of Representatives to the procedure 
                relating to the joint resolution shall be decided 
                without debate.
                    (G) Consideration by other house.--
                            (i) In general.--If, before the passage by 
                        one House of a joint resolution of that House, 
                        that House receives a joint resolution from the 
                        other House, the following procedures shall 
                        apply:
                                    (I) The resolution of the other 
                                House shall not be referred to a 
                                committee and may not be considered in 
                                the House receiving it except in the 
                                case of final passage under subclause 
                                (II)(bb).
                                    (II) With respect to a joint 
                                resolution of the House receiving the 
                                resolution--
                                            (aa) the procedure in that 
                                        House shall be the same as if 
                                        no resolution had been received 
                                        from the other House; and
                                            (bb) the vote on final 
                                        passage shall be on the 
                                        resolution of the other House.
                            (ii) Effect on remaining joint 
                        resolution.--Upon disposition of the resolution 
                        received from the other House, it shall no 
                        longer be in order to consider the resolution 
                        that originated in the receiving House.
    (c) Rules of the Senate and the House of Representatives.--This 
section is enacted by Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives, respectively;
            (2) as a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a joint resolution, and supersedes 
        other rules only to the extent that it is inconsistent with 
        such rules; and
            (3) with full recognition of the constitutional right of 
        either House to change the rules relating to the procedure of 
        that House at any time, in the same manner, and to the same 
        extent as in the case of any other rule of that House.
    (d) Definitions.--In this section:
            (1) Joint resolution.--The term ``joint resolution'' means 
        a joint resolution of approval that--
                    (A) is introduced during the 10-day period 
                beginning on the date on which the President submits a 
                request to Congress for a limited waiver of the 
                prohibition set forth in subsection (a);
                    (B) does not have a preamble;
                    (C) includes, immediately after the resolving 
                clause, the following: ``That Congress approves the 
                request submitted by the President on _____'', with the 
                blank line being filled in with the appropriate date;
                    (D) does not include any substantive legislative 
                text other than the text set forth in subparagraph (C); 
                and
                    (E) is titled ``Joint Resolution approving the 
                request of the President to waive the prohibition 
                against payments to a state sponsor of acts of 
                international terrorism.''.
            (2) State sponsor of acts of international terrorism.--The 
        term ``state sponsor of acts of international terrorism'' means 
        a country the government of which the Secretary of State has 
        determined has repeatedly provided support for acts of 
        international terrorism for purposes of--
                    (A) section 6(j) of the Export Administration Act 
                of 1979 (50 U.S.C. 4605(j)) (as in effect pursuant to 
                the International Emergency Economic Powers Act (50 
                U.S.C. 1701 et seq.));
                    (B) section 620A of the Foreign Assistance Act of 
                1961 (22 U.S.C. 2371);
                    (C) section 40 of the Arms Export Control Act (22 
                U.S.C. 2780); or
                    (D) any other provision of law.
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