    [House Hearing, 112 Congress]
    [From the U.S. Government Publishing Office]

    TO STRENGTHEN IRAN SANCTIONS LAWS FOR THE PURPOSE OF COMPELLING IRAN TO
         ABANDON ITS PURSUIT OF NUCLEAR WEAPONS AND OTHER THREATENING
    ACTIVITIES, AND FOR OTHER PURPOSES; AND TO PROVIDE FOR THE APPLICATION
     OF MEASURES TO FOREIGN PERSONS WHO TRANSFER TO IRAN, NORTH KOREA, AND
      SYRIA CERTAIN GOODS, SERVICES, OR TECHNOLOGY, AND FOR OTHER PURPOSES

    =======================================================================

                                     MARKUP

                                   BEFORE THE

                          COMMITTEE ON FOREIGN AFFAIRS

                            HOUSE OF REPRESENTATIVES

                          ONE HUNDRED TWELFTH CONGRESS

                                 FIRST SESSION

                                       ON

                            H.R. 1905 and H.R. 2105

                                   __________

                                NOVEMBER 2, 2011

                                   __________

                               Serial No. 112-117

                                   __________

            Printed for the use of the Committee on Foreign Affairs

     Available via the World Wide Web: http://www.foreignaffairs.house.gov/

                                     ______

                      U.S. GOVERNMENT PRINTING OFFICE
    71-035                    WASHINGTON : 2012
    -----------------------------------------------------------------------
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    20402-0001

                          COMMITTEE ON FOREIGN AFFAIRS

                     ILEANA ROS-LEHTINEN, Florida, Chairman
    CHRISTOPHER H. SMITH, New Jersey     HOWARD L. BERMAN, California
    DAN BURTON, Indiana                  GARY L. ACKERMAN, New York
    ELTON GALLEGLY, California           ENI F.H. FALEOMAVAEGA, American
    DANA ROHRABACHER, California             Samoa
    DONALD A. MANZULLO, Illinois         DONALD M. PAYNE, New Jersey
    EDWARD R. ROYCE, California          BRAD SHERMAN, California
    STEVE CHABOT, Ohio                   ELIOT L. ENGEL, New York
    RON PAUL, Texas                      GREGORY W. MEEKS, New York
    MIKE PENCE, Indiana                  RUSS CARNAHAN, Missouri
    JOE WILSON, South Carolina           ALBIO SIRES, New Jersey
    CONNIE MACK, Florida                 GERALD E. CONNOLLY, Virginia
    JEFF FORTENBERRY, Nebraska           THEODORE E. DEUTCH, Florida
    MICHAEL T. McCAUL, Texas             DENNIS CARDOZA, California
    TED POE, Texas                       BEN CHANDLER, Kentucky
    GUS M. BILIRAKIS, Florida            BRIAN HIGGINS, New York
    JEAN SCHMIDT, Ohio                   ALLYSON SCHWARTZ, Pennsylvania
    BILL JOHNSON, Ohio                   CHRISTOPHER S. MURPHY, Connecticut
    DAVID RIVERA, Florida                FREDERICA WILSON, Florida
    MIKE KELLY, Pennsylvania             KAREN BASS, California
    TIM GRIFFIN, Arkansas                WILLIAM KEATING, Massachusetts
    TOM MARINO, Pennsylvania             DAVID CICILLINE, Rhode Island
    JEFF DUNCAN, South Carolina
    ANN MARIE BUERKLE, New York
    RENEE ELLMERS, North Carolina
    ROBERT TURNER, New YorkAs
        of October 5, 2011 deg.
                       Yleem D.S. Poblete, Staff Director
                 Richard J. Kessler, Democratic Staff Director

                                C O N T E N T S

                                  ----------
                                                                       Page

                                   MARKUP OF

    H.R. 1905, To strengthen Iran sanctions laws for the purpose of
      compelling Iran to abandon its pursuit of nuclear weapons and
      other threatening activities, and for other purposes...........     2
      Amendment in the nature of a substitute to H.R. 1905 offered by
        the Honorable Ileana Ros-Lehtinen, a Representative in
        Congress from the State of Florida, and chairman, Committee
        on Foreign Affairs...........................................    85
      En bloc amendments to the amendment in the nature of a
        substitute to H.R. 1905 offered by:..........................
          The Honorable Theodore E. Deutch, a Representative in
            Congress from the State of Florida.......................   202
          The Honorable William Keating, a Representative in Congress
            from the Commonwealth of Massachusetts...................   205
          The Honorable Ted Poe, a Representative in Congress from
            the State of Texas.......................................   206
          The Honorable Edward R. Royce, a Representative in Congress
            from the State of California.............................   208
      Amendment to the amendment in the nature of a substitute to
        H.R. 1905 offered by the Honorable Howard L. Berman, a
        Representative in Congress from the State of California......   213
    H.R. 2105, To provide for the application of measures to foreign
      persons who transfer to Iran, North Korea, and Syria certain
      goods, services, or technology, and for other purposes.........   219
      Amendment in the nature of a substitute to H.R. 2105 offered by
        the Honorable Ileana Ros-Lehtinen............................   259
      Amendment to the amendment in the nature of a substitute to
        H.R. 2105 offered by the Honorable Howard L. Berman and the
        Honorable Ileana Ros-Lehtinen................................   303

                                    APPENDIX

    Markup notice....................................................   306
    Markup minutes...................................................   307
    The Honorable Ron Paul, a Representative in Congress from the
      State of Texas: Prepared statement on H.R. 1905................   309
    The Honorable Gerald E. Connolly, a Representative in Congress
      from the Commonwealth of Virginia: Prepared statement on H.R.
      1905 and H.R. 2105.............................................   311
    The Honorable Dennis Cardoza, a Representative in Congress from
      the State of California: Prepared statement....................   313
    The Honorable Laura Richardson, a Representative in Congress from
      the State of California: Prepared statement on H.R. 1905.......   315
    TO STRENGTHEN IRAN SANCTIONS LAWS FOR THE PURPOSE OF COMPELLING IRAN TO
         ABANDON ITS PURSUIT OF NUCLEAR WEAPONS AND OTHER THREATENING
    ACTIVITIES, AND FOR OTHER PURPOSES; AND TO PROVIDE FOR THE APPLICATION
     OF MEASURES TO FOREIGN PERSONS WHO TRANSFER TO IRAN, NORTH KOREA, AND
      SYRIA CERTAIN GOODS, SERVICES, OR TECHNOLOGY, AND FOR OTHER PURPOSES

                                  ----------

                          WEDNESDAY, NOVEMBER 2, 2011

                      House of Representatives,
                                  Committee on Foreign Affairs,
                                                        Washington, DC.
        The committee met, pursuant to notice, at 10:05 a.m., in
    room 2172, Rayburn House Office Building, Hon. Ileana Ros-
    Lehtinen (chairman of the committee) presiding.
        Chairman Ros-Lehtinen. The committee will come to order.
        Pursuant to notice, the committee meets today to consider
    two timely bills to address critical threats facing the United
    States.
        At the outset, without objection, all members may have 5
    days to submit remarks on either of today's bills for the
    record.
        I now call up the bill H.R. 1905, the Iran Threat Reduction
    Act of 2011.
        Ms. Carroll. H.R. 1905, to strengthen Iran sanctions laws
    for the purpose of compelling----
        Chairman Ros-Lehtinen. Thank you.
        Without objection, the bill is considered as read and open
    for amendment at any point.
        [H.R. 1905 follows:]

        Chairman Ros-Lehtinen. In addition, without objection, the
    bipartisan amendment in the nature of a substitute, which was
    provided to your offices on Monday and which all members have
    before them this morning, is made the pending business of the
    committee, is considered as read, and is open for an amendment
    at any time.
        [The amendment in the nature of a substitute follows:]

        Chairman Ros-Lehtinen. I will now recognize myself for
    brief remarks on this measure, followed by the ranking member
    and then other members seeking recognition.
        Today, the committee is marking up legislation to address
    the threat posed by the Iranian regime to our Nation, to our
    interests, and our allies. One Congress after another have
    passed Iran sanctions bills only to see them progressively
    weakened during the legislative process, or not fully enforced
    by the executive branch. Some might wonder if it is worth doing
    at all.
        Well, yesterday, speaking in the so-called Iranian
    Parliament, the so-called President, Mahmoud Ahmadinejad,
    publicly admitted that sanctions against Iran were impacting
    his financial institutions, stating, ``Our banks cannot make
    international transactions anymore.'' But there is much more to
    be done. We must move quickly to tighten existing sanctions and
    add new and tougher ones, as we are going to do today.
        The Iranian regime's Achilles heel is its energy sector. As
    far back as 1995, former Under Secretary of State Peter Tarnoff
    stated, ``A straight line links Iran's oil income and its
    ability to sponsor terrorism and build weapons of mass
    destruction . . . and any private company that helps Iran
    expand its oil [sector] must accept that it is indirectly
    contributing to this menace.''
        The Iran Threat Reduction Act is designed to clamp new and
    tougher sanctions on Iran's energy sector, threatening the
    regime's existence if it refuses to halt its nuclear weapons
    program.
        Negotiations and concessions after concessions to the
    regime have only been met with contempt. For 15 years, foreign
    energy companies have continued to provide, through their
    investments in Iran's energy sector, the financial resources
    for the regime to continue to pursue its nuclear ambitions, its
    chemical and biological weapons program, and its sponsorship of
    international terrorism.
        Fifteen years of pleading, 15 years of concessions have
    only allowed the Iranian threat to steadily build. In its
    report earlier this year, the International Atomic Energy
    Agency all but stated outright that the evidence indicates that
    Iran is working on a nuclear weapons capability. We have wasted
    years, we have watched the threat develop, and now we must act
    before time runs out.
        I am happy to say that H.R. 1905 has 343 cosponsors from
    both sides of the aisle, including most members of this
    committee. Given that you are familiar with the introduced
    bill, I will briefly note some of the provisions of the
    amendment in the nature of a substitute.
        The amendment in the nature of a substitute amends Title I
    of the bill by including a requirement that all entities
    currently granted an exemption under the special rule terminate
    their activities 1 year from the date of the enactment; also,
    adding bartering to the list of prohibited services related to
    Iran's importation of refined petroleum; and requiring the
    President to impose sanctions on any person who purchases,
    subscribes to, or facilitates the issuance of Iranian sovereign
    debt.
        The changes to Title II include requiring the Secretary of
    State to issue guidelines describing goods, services, and
    technologies considered as sensitive technologies; and
    expanding the definition of ``foreign subsidiary'' in existing
    Executive orders.
        The amendment in the nature of a substitute sharpens Title
    III's intended impact on the Iranian Islamic Revolutionary
    Guard Corps, or IRGC, by adding prohibitions on conducting
    commercial or financial transactions or investment in entities
    controlled by the IRGC, sanctions against affiliates of the
    IRGC, and measures targeting foreign persons, entities, and
    foreign countries aiding the IRGC.
        Finally, Title VI is strengthened by prohibiting foreigners
    who engage in certain activities with respect to Iran from
    entering the U.S. and increasing the civil and criminal
    penalties under the International Emergency Economic Powers
    Act.
        Following the markup, I will seek speedy consideration of
    this legislation on the House floor. I hope that the Senate
    will act with similar urgency on this, or any bill actually, so
    that we can proceed to conference quickly and have these bills
    on the President's desk in time to hand the regime a nice
    holiday present.
        I now turn to my friend, the ranking member, for the
    remarks that he would like to make on this bill and the one
    other bill, as well. Mr. Berman is recognized.
        Mr. Berman. Well, thank you very much, Madam Chairman. And
    I apologize in advance for the length of this statement, but,
    first, I would like to begin by commending you and your staff
    for the hard work, the creativity, the cooperative spirit you
    have brought to our joint effort to produce a strong bill. I
    also thank members on both sides of the aisle for their efforts
    and ideas geared toward improving this bill and strengthening
    our overall sanctions regime on Iran.
        Madam Chairman, last year, the President signed into law
    our Comprehensive Iran Sanctions Accountability and Divestment
    Act, CISADA. This law provided the tools for the administration
    to impose strengthened sanctions against companies that support
    Iran's energy sector and against financial institutions that
    support Iran's Islamic Revolutionary Guard Corps.
        That bill has been effective in many ways. It has impeded
    Iran's access to international financial markets, as Iranian
    President Ahmadinejad acknowledged yesterday. And it has led
    every major Western energy company to draw down its Iran
    operations. It has also laid the groundwork for the EU to
    oppose tough sanctions.
        Yet, as I have said previously, nothing that we do or that
    the administration has done can be deemed truly effective until
    Iran ends its nuclear weapons program and stops supporting
    terrorism. And we know that Iran is continuing to increase its
    stockpile of low-enriched uranium and make progress in other
    ways toward a nuclear weapons capability. Accordingly, we must
    now seek to strengthen sanctions significantly.
        The bill we are marking up today, the Iran Threat Reduction
    Act, builds on past efforts by restricting the terms on which a
    company can pledge to end its work in Iran as an alternative to
    sanctions, expanding the types of activities that trigger
    Presidential investigations of potentially sanctionable
    activity, and widening the scope of sanctions on human rights
    abusers.
        I also want to make clear my view that nothing in this bill
    should limit in any way the President's ability to conduct
    diplomacy as he sees fit.
        For now, I would like to focus on two of the measures
    which, with the chairman's cooperation, I added to this
    amendment in the nature of a substitute. And then I would like
    to discuss briefly the amendment I plan on offering this
    morning.
        One of the measures I included in the substitute would
    restrict foreign subsidiaries of U.S. companies from engaging
    in business with Iran, making them subject to the same
    sanctions as their parent U.S.-based company. We wanted to do
    this in CISADA, but the other house wasn't too excited about
    that prospect. We hope now we can move forward on this. The
    notion that a foreign subsidiary of a U.S. company can conduct
    business that would be sanctionable in the U.S., conduct
    business that U.S. National security interests prevent the U.S.
    company itself from conducting, undermines our efforts to
    prevent Iran from achieving a nuclear weapons capability.
        We should never allow the slightest bit of doubt as to our
    seriousness of purpose regarding our efforts to prevent Iran
    from achieving a nuclear weapons capability. That is why we
    have to bring the behavior of foreign subsidiaries of U.S.
    companies into line with U.S. practice. When U.S. companies
    allow their foreign subsidiaries to sell Iran materials that
    are prohibited under U.S. law, those companies are violating
    the spirit of our sanctions regime. Once this bill becomes law,
    such behavior will be a violation of the letter of the law, as
    well.
        Another measure included in the substitute would impose
    sanctions on foreign commercial enterprises that do business
    with the Iran Revolutionary Guard Corps. In CISADA, we
    established a sanction regime for foreign banks that conduct
    business or facilitate sanctions transactions with the IRGC.
    Given the prominent role that the IRGC plays in the Iranian
    economy, we believe that sanction has had a significant impact.
    Now we need to widen the net to extend the prohibition to all
    commercial enterprises.
        Among its terrorist activities, we all know, is the recent
    plot to assassinate the Saudi Ambassador to the United States
    that was carried out by the Quds Force, which is the IRGC's
    special operations force. There should be consequences for this
    type of behavior, and I believe the international community
    must stand up against this threat. This measure will give
    foreign companies incentive to do that.
        And, finally, the amendment that I will be offering shortly
    would sanction the Central Bank of Iran if it is found to be
    engaged in facilitating WMD development, terrorism, or any type
    of support for the IRGC. In fact, I believe the Central Bank of
    Iran is not only engaging in those activities, I believe it is
    the ultimate engine of those activities. We will need to work
    with our global partners to make a sanction on the Central Bank
    as effective as possible. Our hope is that an economically
    challenged Iran will have less money to spend on weapons of
    mass destruction, terrorism, and other nefarious activities.
        By all accounts, Madam Chairman, the sanctions we passed
    last year have made life difficult for the Iranians. But oil
    prices remain high, a lifesaver of the Iranian economy. They
    continue to increase its stockpile of enriched uranium, and it
    is increasing at increasingly higher levels. The nuclear clock
    is moving ever closer to midnight. We can't nibble around the
    edges. We need a sanctions regime that is as bold as the
    Iranian nuclear program is brazen. Our legislation, fortified
    by sanctions on the Central Bank of Iran, is an important step
    in that direction.
        And I thank the chairman for the time.
        Chairman Ros-Lehtinen. Thank you very much, Mr. Berman.
        And our speaking clock is ticking, as well, but I would
    like to recognize any member seeking recognition to speak on
    the underlying bill and the amendment in the nature of a
    substitute.
        Mr. Deutch is recognized.
        Mr. Deutch. Thank you, Madam Chairman. I would like to take
    a moment to thank you and Ranking Member Berman for your
    efforts to bring this bill together and move forward with such
    strong bipartisan support.
        For the past year, the historic turmoil in the Middle East
    threatens to leave one nation emboldened and empowered, Iran.
    Iran's surrogates have gained influence, with Hezbollah taking
    full control of the government in Lebanon, and Hamas, a
    terrorist organization responsible for perpetrating attacks
    that just this year have included the slaughter of children and
    their parents in Itamar and the direct targeting of a school
    bus in southern Israel, signing a unity agreement with Fatah.
        Increased terror attacks are only part of the Iranian
    framework for expanded influence. Through it all, Iran
    continues its illicit pursuit of nuclear weapons. In fact, the
    IAEA is expected to release a report this month providing
    greater detail on potential military dimensions of Iran's
    nuclear program. The IAEA director general publicly stated he
    is increasingly concerned about activities related to the
    development of a nuclear payload for missile.
        Additionally, we know the regime plans to triple its output
    of 20-percent-enriched uranium under the guise of powering a
    medical research reactor. The regimeis installing advanced
    centrifuges at an underground facility. It has shown time and
    again that it is not willing to grant international inspectors
    full access to all of its facilities. And we know that it is
    only a short jump from 20 percent to the 90-percent enrichment
    needed to produce a nuclear weapon. Iran continues to defy
    international law, continues to look for ways to evade
    sanctions, and continues to move closer toward weaponization.
        But U.S. and international sanctions have shown they can
    successfully bring great pressure on the Iranian economy. The
    regime has felt the squeeze of $60 billion of lost investments
    in its energy sector, and we must seize this opportunity to
    tighten even further the economic noose on Iran before the
    regime makes its ultimate move toward weaponization. This bill
    will close loopholes that have made it easier for companies to
    continue to conduct business with Iran. And, most importantly,
    it will take greater action in identifying those companies for
    all the world to see.
        Madam Chairman, I would like to thank you for working with
    me to include provisions of the Iran Transparency and
    Accountability Act in this bill. These new requirements put the
    onus of determining the extent and nature of a company's
    involvement in Iran on that company or its subsidiary if traded
    on U.S. stock exchanges by requiring the disclosure of all
    material business with Iran on SEC filings. This forced
    disclosure would ease the burden of proof on the State
    Department and would accelerate the imposition of sanctions on
    those companies. It will also give American investors the
    opportunity to decide whether their hard-earned money will go
    toward supporting countries and companies that choose to put
    profit over international security.
        This legislation also includes mandatory sanctions on those
    who perpetrate the most egregious human rights abuses. This
    regime's use of intimidation and excessive force to suppress
    its opposition must be stopped, and the United States must
    stand with the people of Iran in their quest for democracy and
    freedom. This bill helps to reaffirm our commitment to them.
        We must, Madam Chairman, continue to escalate the pressure
    on the Iranian regime. We must make it clear to not only the
    regime but to the Iranian people striving for democracy and
    human rights that we are serious, we are determined, and we are
    aggressive in our approach to halt Iran's illegal,
    destabilizing, and dangerous pursuit of weapons of mass
    destruction.
        Again, Madam Chairman, to you and to the ranking member, I
    thank you for your great work on this bill. And I yield back
    the balance of my time.
        Chairman Ros-Lehtinen. Thank you very much, Mr. Deutch. And
    it was our honor to put your provisions in our bill, which
    further strengthens it. So thank you for your contributions.
        And I apologize to Mr. Smith, who--I did not recognize his
    baseball signals. I should have gone to him first. Mr. Smith of
    New Jersey is recognized.
        Mr. Smith. Thank you very much, Madam Chair. And, again, I
    want to congratulate you and the ranking member in bringing
    this extraordinarily important legislation before the
    committee, and hopefully it will become law.
        It is abundantly clear that Iran is a nation that pursues
    its interests with ruthless disregard of others, especially
    Israel, and without any kind of international cooperation. Over
    the last three decades, Iran has portrayed itself as a nation
    in need of nuclear power. With the cover provided by less-than-
    diligent international officials and the assistance of nations
    eager to profit from Iran's passionate pursuit of nuclear
    capability, Iran has been furiously developing its nuclear
    capabilities. There are at least 17 confirmed or suspected
    nuclear processing, research, or storage sites reportedly
    operating in Iran as we consider this legislation.
        The recently foiled Iranian plot to assassinate the Saudi
    Ambassador to the U.S. and to bomb the Saudi and Israeli
    Embassies here in Washington demonstrates the urgent need to
    abandon the illusion of the effectiveness of more measured
    sanctions. Iran has been listed by the State Department as a
    State Sponsor of Terrorism since 1984, and there is ample
    evidence of Iranian support for attacks on American troops in
    Iraq.
        Under the circumstances, we can no longer depend on
    incremental ratcheting of pressure on Iran to halt its nuclear
    bomb ambitions. Iran poses too great a danger without nuclear
    weapons, and H.R. 1905 gives us further tools to protect our
    interests and our very livelihood and lives against a renegade
    nuclear Iran.
        Again, I thank you for this extraordinarily important
    legislation and yield back.
        Chairman Ros-Lehtinen. I thank the gentleman.
        Mr. Sherman is recognized.
        Mr. Sherman. Madam Chair, thank you for your work in
    bringing this bill, combining the best ideas from so many
    members and, of course, your own into a bill that will be
    another important step toward dissuading Iran from developing
    nuclear weapons. We have to create a circumstance where the
    regime in Tehran has to choose between its nuclear weapons
    program and regime survival.
        We owe a special debt of gratitude to the mullahs who run
    Iran because it is their incompetence and corruption that
    creates some risk to regime survival even at a time when oil is
    selling at historically high levels. And we owe a debt to the
    Iranian people, who came close to overthrowing this regime
    recently and who pose a real threat to its survival.
        But the steps we have taken to date and even the steps that
    we plan to take today are just steps along the road. The
    journey of many miles continues today with one more important
    step. We are going to have to do even more than this to cause
    this regime to have to fear for its survival.
        I want to thank the Madam Chair for co-sponsoring last year
    and then again this year my Stop Iran's Nuclear Program Act.
    And I hope that we can move that bill before the end of the
    year, as well, although so much of it is included in the bill
    we deal with today.
        That bill, both in its 2010 and 2011 versions, dealt
    extensively, as the bill before us today does, with the Iran
    Revolutionary Guard Corps. And, of course, the provisions are
    included today in Title III. That corps includes the Quds
    Force, which was identified as the masterminds behind the
    threats to Saudi diplomats here on our soil, but, just as
    importantly, plays a critical, some would say a majority, role
    in the Iran economy and in its nuclear program.
        In 2007, the Treasury Department took the important step of
    designating the IRGC for its proliferation activities. Some 80
    entities owned or controlled by the Revolutionary Guard Corps
    have also been designated. While this has caused some non-U.S.
    companies to shy away from business with those entities, some
    have continued to do so.
        In a bill that I introduced along with our chair, Ed Royce,
    and Dan Burton back in 2009, the Revolutionary Guard Corps
    Designation Implementation Act, which I think serves as the
    basis for Title III of today's bill, we make it clear that if
    you do business with the Revolutionary Guard Corps, you can't
    do business with the United States. This bill today, to the
    credit of its author, will tell, for example, Mercedes, ``If
    you sell trucks to the Quds Force, you are not selling trucks
    in the United States.''
        Like the Stop Iran's Nuclear Program Act of 2010 and then
    the new one of 2011, this bill deals with sovereign debt, the
    Halliburton loophole, sensitive Internet technologies, aircraft
    parts and repair, and an authorization for State governments to
    take action. Let me review those important provisions.
        It prevents companies from loaning money to Iran, whether
    in dollars or euros or any other currency. It tells the
    foreign-incorporated subsidiaries of U.S. multinational
    corporations that they, too, cannot do business with Iran.
        Senator Chuck Schumer and I pushed successfully in CISADA,
    section 106, to designate technologies that suppress the
    Internet as items that should not be sold to the Iranian
    regime. The State Department has failed to enforce that. This
    provision requires the State Department to provide clear
    guidance as to what kinds of technologies cannot be sold to
    Iran without being subject to U.S. sanctions.
        This bill prohibits aircraft parts and services to Iran.
    Their so-called civilian planes have been used for a variety of
    nefarious solutions, including resupplying the Assad's bloody
    suppression machine in Syria.
        The bill also allows State governments to take the actions
    in support of our sanctions against Iran, most significantly to
    deny insurance licenses to companies that conduct a host of
    sanctionable activities in Iran.
        This bill is an important first step. It includes many
    important provisions. We need to pass it into law as quickly as
    possible, and then we need to look at the next step.
        I yield back.
        Chairman Ros-Lehtinen. Thank you so much, Mr. Sherman.
        Ms. Schmidt of Ohio is recognized.
        Mrs. Schmidt. Thank you, Madam Chairman. And I really want
    to applaud both sides for working on this very important
    measure.
        You know, when Ahmadinejad spoke to his government, he
    stated that the sanctions are impacting Iran's financial
    capabilities, especially in the international market. And this
    bill shows the importance of the U.S. sanctions as they exist,
    but it also points out the need for additional sanctions and
    the need to tighten language so Iran cannot find ways around
    these sanctions through friends on the international scene.
        Speaking in a single voice sends a clear message of what
    these sanctions are and how they are to operate. It also sends
    a voice of the potential danger of a nuclear Iran to the world,
    and it lessens their ability to improve their economy through
    international means.
        I encourage not only my colleagues here to vote for this
    but my friends on my side of the aisle in the House, the other
    side of the aisle in the House, and in the Senate, and the
    President to then sign it quickly, as soon as possible.
        I yield back my time.
        Chairman Ros-Lehtinen. Thank you very much, Ms. Schmidt.
        Mr. Rohrabacher is recognized.
        Mr. Rohrabacher. Thank you very much, Madam Chairman. I
    want to thank you personally for your leadership, your very
    strong leadership, on this, if America is going to be at peace
    and we are not going to find ourselves backed into a corner
    where we have to give up our freedom and may have to end up in
    a war 10 years from now, we need strong leadership. You are
    providing that today, Madam Chairman. Thank you.
        There is a country that, however, cannot be ignored when we
    are discussing how to pressure Iran to change its course, and
    that country that seems to be ignored so often in these debates
    is Communist China. This is because Communist China, of course,
    is the partner of so many American multinational corporations
    who don't want us to talk about the sins of China. Well,
    Communist China has been the foremost diplomatic and economic
    backer of the Tehran mullah regime, an increasingly active, as
    well, military ally of the Iranian mullah dictatorship.
        Well, to attain our goal of changing Iran's course, Beijing
    must be persuaded to change its course. Increasing sanctions by
    adding Iranian oil development and purchasing its oil exports
    have to be applied to China, and they will be with this
    legislation. Existing large-scale China-Iranian projects in the
    energy sector would be, with this legislation, stopped. The
    Chinese imports of oil from Iran increased 40 percent from
    January to August of this year compared to the same period last
    year. They have a very tangible relationship that is working
    against the purposes of a more peaceful world.
        We now ask the Obama administration to act on what we are
    imposing today. And let's just remember that, just a year ago,
    John Pomfret of The Washington Post reported that Robert
    Einhorn, the State Department special advisor for
    nonproliferation and arms control, had given the Chinese a
    ``significant list'' of companies and banks that were working
    with Iran.
        By the way, when we are talking about Chinese companies,
    many of these companies we are talking about are owned by the
    People's Liberation Army, so it is part and parcel of the
    Chinese Government and their military. So, already, the
    administration has a list of Chinese companies that are already
    in violation. So we know what Beijing--and we have known what
    it is up to, yet nothing has been done to change that Chinese
    behavior. Indeed, China is increasing trade with Iran to offset
    the sanctions.
        In diplomacy, China continues to back Iran on the nuclear
    issue and, just recently, pressed the IAEA not to release
    damning information on the Iranian military nuclear research.
    China has given help to Iran both in its nuclear and missile
    program, so it provides Tehran with weapons that menace its
    neighbors and also delivery systems.
        So, by all means, we should be enacting the chairman's
    strengthened version of the Iran Threat Reduction Act, and I
    applaud her for it, but we must realize that these sanctions
    will be undercut by Beijing unless we are willing to stand up
    to Beijing and tell them that we are serious about this
    legislation and this task of making sure that the mullahs in
    Iran don't become a nuclear power.
        Unless we can convince the Communist Chinese regime by
    resolute action that they will face severe consequences if they
    continue to support Tehran, we can expect them to go about with
    business as usual. We should be watching out for the interests
    of our country, the national security of our country, and the
    long-term prosperity of the American people. And that means we
    are going to have so overcome the corporate influences here in
    Washington, DC, that are preventing us for standing up from
    human rights and taking the policies that we need to take in
    order to ensure that China doesn't threaten our security and
    our peace in the years to come.
        So, Madam Chairman, again, thanks for your leadership. We
    need to make sure that we remember that China is part of this
    problem. Thank you.
        Chairman Ros-Lehtinen. Amen. Thank you.
        We will now move to consider additional amendments to the
    underlying substitute amendment, as provided to your offices
    last night.
        I ask unanimous consent that the following bipartisan,
    noncontroversial amendments, which members have before them, be
    considered en bloc: Amendments 32, 33, and 34 from Mr. Deutch,
    enhancing the ``credible information'' definition, requiring
    publication of waivers, and requiring a report on divestment;
    Amendment 18 from Mr. Keating, adding Syria to the list of
    entities receiving material support from Iran; Amendment 190
    from Judge Poe that I drafted with him, as well, adding a
    finding and policy statement regarding Iranian activity and
    Camp Ashraf; and Amendment 60 from Mr. Royce, strengthening the
    aims of the State Department's Internet freedom strategy.
        [The amendments referred to follow:]

        Chairman Ros-Lehtinen. You should all have copies in your
    packet.
        I would like to recognize the authors of the amendments so
    that they can be recognized to explain their portion of the en
    bloc amendment, starting with Mr. Royce of California.
        Thank you, Mr. Royce.
        Mr. Royce. Thank you, Madam Chair. And I thank you and I
    thank the ranking member, as well, for your work on this very
    important legislation. And I also want to express my
    appreciation for your incorporation of my amendment here.
        This amendment nudges the administration to work closely
    with United States telecom and software companies within the
    OFAC licensing process so that Iranian democracy activists have
    better access to software to aid their organizing. This is an
    area that needs attention. And the amendment also spotlights
    foreign companies that are assisting Iranian jamming efforts,
    another issue that we have to deal with here.
        I also understand that Mr. Berman will be offering an
    amendment to strengthen the language on Iran's Central Bank.
    While many central banks around the world operate
    independently, Iran's Central Bank is, in fact, an arm of the
    regime and has assisted Iranian banks to sidestep U.S.
    financial pressure. At a Terrorism, Nonproliferation, and Trade
    Subcommittee hearing, experts recommended this. Mr. Berman's
    amendment pushes this forward, and it should be adopted.
        And thank you. I yield back.
        Chairman Ros-Lehtinen. Thank you very much.
        Mr. Deutch is recognized to explain his amendment.
        Mr. Deutch. Thank you, Madam Chairman. I would like to
    thank you and Ranking Member Berman for your willingness to
    work to incorporate these three amendments into the
    legislation.
        Madam Chairman, all three are aimed at achieving the same
    results: Identifying the companies that continue to support the
    Iranian regime's illicit quest for nuclear weapons.
        Current law states that investigations into possible
    sanctions must begin upon the receipt of credible evidence. The
    Iran Threat Reduction Act aims to define what constitutes this
    credible information. My amendment will add to the list of
    credible evidence reports published by State and local
    governments.
        Madam Chairman, you and I are privileged to represent the
    State of Florida, a State that in 2007 became the first State
    in the country to divest its pension funds from companies
    supporting the Iranian regime's nuclear weapons program. In
    authoring the Protecting Florida's Investment Act, we went to
    great lengths to create a detailed process for identifying
    those companies doing business in Iran.
        As a result, the State Board of Administration in Florida
    publishes a quarterly report, which I have here, that is
    comprised of data from four external research providers, NGOs,
    Federal Government reports, company disclosures and SEC
    filings, investor relations Web sites, and industry
    publications.
        Additionally, the State board engages directly with the
    companies, requesting specific information about activities in
    Iran, and tracks such correspondence in its report. At the
    publishing of its last report on September the 20th, the
    Florida State Board of Administration had reviewed over 400
    companies and affiliates.
        Madam Chairman, I ask unanimous consent to have the Florida
    quarterly report placed in the record.
        Chairman Ros-Lehtinen. Without objection.
        [Note: The Florida State Board of Administration's
    quarterly report, ``Protecting Florida's Investments Act
    (PFIA),'' dated September 20, 2011, is not reprinted here but
    is available in committee records.]
        Mr. Deutch. Florida is not the only State government
    committed to preventing a nuclear-armed Iran. There are nearly
    20 other States with Iran divestment laws and countless
    municipalities.
        If a company appears on reports published by these State
    and local governments, particularly given the detailed process
    used to identify those companies and maintain an up-to-date
    list of scrutinized companies, the administration must take it
    seriously and must immediately commence an investigation. This
    amendment will ensure that these reports are considered
    credible evidence to trigger that investigation into possible
    violations of U.S. sanctions law.
        Also included, Madam Chairman, in the amendment package is
    a 180-day deadline for those companies on which the imposition
    of sanctions has already been waived pursuant to the special
    rule. In the fall of 2010, five companies were subject to the
    special rule: Total, Statoil, ENI, Royal Dutch Shell, and
    Inpex. This amendment will ensure that those companies have
    fulfilled their obligations to terminate business in Iran. It
    is well known that the Iranian energy sector is the main source
    of funding for the regime's nuclear weapons program. These
    companies must not prolong any technological services that
    assist the regime in the production of its financial lifeline,
    oil.
        And, lastly, Madam Chairman, the adoption of this package
    will require that the name of any company on which the
    President has chosen to waive the imposition of sanctions in
    the interest of national security, that that name be made
    public. The world must know that the U.S. is serious about
    using economic sanctions to prevent a nuclear-armed Iran. By
    simply publishing just the name of the company, we put others
    on notice, all around the world, that the U.S. is watching, we
    are investigating, and we are taking our responsibility in the
    international community seriously.
        Madam Chairman, I again would like to thank you and Ranking
    Member Berman for moving forward with this vital piece of
    legislation that reaffirms the United States' commitment to
    prevention a nuclear-armed Iran. And I yield back the balance
    of my time.
        Chairman Ros-Lehtinen. Thank you so much, Mr. Deutch. And I
    thank you again for those valuable contributions to
    strengthening our bill. Thank you.
        Mr. Keating is recognized to explain his amendment.
        Mr. Keating. Thank you, Madam Chair. And I would like to
    thank you and the ranking member for your efforts in this very
    important bill.
        My amendment recognizes the Government of Syria as a
    recipient of material and political assistance by Iran. This
    bill already identifies Iran's relationship with armed militant
    groups of, you know, Iraq and Afghanistan, but it reaffirms
    Iran's support and assistance to Hamas and Hezbollah. But one
    entity missing from the bill, I believed, was the Government of
    Syria, who consistently enables Iran's support for the latter
    organizations.
        Syria is one, if not the most, of Iran's most strategic
    allies. The unrest that has unfolded across the country is one
    of great concern to Iran's tactical stability. Iran has openly
    supported the regime's violent crackdown on peaceful Syrian
    protestors, supplying Assad's proponents with equipment to
    repress the crowds and technology to monitor, track, and block
    the use of the Internet as a means of mobilization and
    coordination. In May of this year, Iran sent members of the
    elite Quds Force of the Iranian Revolutionary Guard Corps to
    assist in crushing the opposition--the very same forces
    involved in the plot to assassinate Saudi Arabia's Ambassador
    to the United States.
        This past summer, in a meeting between a high-ranking Quds
    Force official and Syria's deputy vice president of security
    affairs, Iran agreed to provide $23 million to Syria for the
    construction of a military base in order to better facilitate
    direct arms shipments.
        Iran President Mahmoud Ahmadinejad and Syrian Vice
    President al-Sharaa have reaffirmed the unity between their
    countries in their common position on the Palestinian issue and
    their intent to expand cooperation against Israel. Tehran and
    Damascus are well aware of the advantage brought by their
    relationship over the security of Israel. As mentioned, Syria
    serves as the gateway for shipments of weapons and military
    equipment from Iran to the open arms of Hezbollah in Lebanon.
    In June of last year, it was reported that a sophisticated air
    defense radar system, capable of intercepting Israeli air
    strikes, had been sent to Syria by Iran.
        I could go on and on, Madam Chairman. As we move forward
    with implementing and further restricting sanctions on Iran,
    one thing is important to understand: The relationship between
    Iran and Syria is a direct threat to the safety and security of
    Israel and democracy in the region. I therefore ask and
    appreciate the inclusion of this amendment in the en bloc
    amendments.
        And thank you. And I yield my time back.
        Chairman Ros-Lehtinen. Thank you, sir. We commend you for
    that amendment.
        I would like to turn now to Judge Poe to explain his
    amendment, which reaffirms our commitment to the security and
    the welfare of the residents of Camp Ashraf. Judge Poe?
        Mr. Poe. Thank you, Madam Chair.
        Some of the bravest Iranian dissidents are those that are
    willing to risk their lives to voice opposition to the current
    Ahmadinejad corrupt regime. Camp Ashraf in Iraq is full of
    these kinds of heroes. They are Iranians who love their country
    but have been forced to move because their own government does
    not tolerate anyone who disagrees with its own totalitarian,
    oppressive policies. They have been falsely imprisoned,
    tortured, and seen their family members murdered. They were
    forced to leave their homeland and flee to Iraq. Now they have
    applied to the UNHCR to be recognized as political refugees and
    are currently classified as asylum seekers.
        But the camp is in danger. Iraqi troops have attacked the
    camp on two separate occasions, killing dozens and wounding
    hundreds. Now the people at Camp Ashraf are under siege. Iraq
    says it wants to close the camp completely by December 31st
    before UNHCR can complete the process and recognize them as
    political refugees. There are photos and video of Iraqi
    soldiers already entering the camp in preparation for this. If
    history is any guide, it will mean another massacre.
        And the State Department needs to know that our best hope
    for regime change in Iran comes from the people of Iran
    themselves. We should publicly and vocally support a regime
    change by the freedom-loving people in Iran and the freedom-
    loving people in Camp Ashraf. If we don't do a good job of
    supporting the opposition, the least we can do now is prevent
    the folks in Camp Ashraf from being massacred again.
        This amendment urges the Government of Iraq to not harm
    these freedom fighters and not return them to Iran, where they
    would face certain death, and not to close the camp before
    UNHCR can complete its process.
        We must remember, Madam Chairman, that 85 of these people
    that are in the camp are either U.S. citizens or permanent
    residents of the United States.
        I am thankful for the chairman and ranking member for their
    support of this important amendment. I yield back.
        Chairman Ros-Lehtinen. Thank you, Judge Poe.
        Hearing no further request for recognition, the question
    occurs on the en bloc amendment.
        All those in favor say aye.
        All opposed, no.
        In the opinion of the chair, the ayes have it, and the en
    bloc amendment is agreed to.
        I now would like to ask the ranking member if he has an
    amendment at the desk.
        Mr. Berman. Yes. Madam Chairman, I have an amendment co-
    sponsored by you at the desk.
        Chairman Ros-Lehtinen. The clerk will report the amendment.
        Ms. Carroll. Amendment to the amendment in the nature of a
    substitute to H.R. 1905, offered by Mr. Berman of California
    and Ms. Ros-Lehtinen of Florida. In section 401, strike
    subsection (b) and insert the following----
        Chairman Ros-Lehtinen. Thank you.
        Without objection, the amendment is considered read.
        [The amendment to the amendment in the nature of a
    substitute follows:]

        Chairman Ros-Lehtinen. The ranking member is recognized to
    explain his amendment as the amendment is being handed out. Mr.
    Berman?
        Mr. Berman. Thank you very much, Madam Chairman.
        Mr. Royce made reference to this amendment.
        The Central Bank of Iran is the linchpin of Iran's
    financial system. It is Iran's only remaining link with the
    global banking system. Its opaque financial activities have
    generated strong suspicions that it almost certainly plays a
    critical role in funding Iran's nuclear and ballistic missile
    programs along with the various activities of the Iranian
    Revolutionary Guard Corps.
        And yet, the Central Bank has not been designated under the
    Treasury Department's sanctions. As a result, the Central Bank
    is not included in our Specially Designated Nationals List,
    which functions as a global watch list.
        My amendment would require the President to make a
    determination within 30 days after enactment whether the
    Central Bank is involved in any of the four areas: Supporting
    Iran's WMD or missile programs, including proliferation of WMD
    to other governments; financing Iran's procurement of advanced
    conventional weapons; providing financial services for the
    IRGC; or furthering Iran's support of international terrorism.
        I believe an objective determination is likely to show that
    the Central Bank of Iran is indeed involved in one or more of
    these activities. If the President determines that the Central
    Bank of Iran is indeed involved in any of these activities,
    then he would be required to apply sanctions under the
    International Emergency Economic Powers Act, IEEPA. That would
    mean that any foreign bank involved in significant transactions
    with the Central Bank of Iran would also be blocked from the
    U.S. economy. The amendment would thus force banks to make a
    choice: Either terminate transactions with the Central Bank or
    risk the loss of your business in the United States.
        This amendment would be a substitute for section 401(b) of
    the underlying markup text. That section calls for a report to
    Congress on the Central Bank but doesn't require any action
    taken by the U.S. Government.
        The stakes could not be higher. Iran is making inexorable
    progress in enriching uranium, it is experimenting with nuclear
    warhead design, it is developing ballistic missiles, it is
    building up its inventory of advanced conventional weapons, and
    it continues to support international terrorism. The Central
    Bank of Iran is widely suspected of supporting all of these
    activities, and it is time that the bank and those who work
    with it are called to account.
        This amendment improves the committee's bill, and it would
    vastly strengthen U.S. policy toward Iran. And I urge my
    colleagues to vote for it.
        Chairman Ros-Lehtinen. Yes, thank you, Mr. Berman. I also
    ask our colleagues to support this essential amendment to our
    bill.
        Hearing no further requests for----
        Mr. Rohrabacher. Madam Chairman?
        Chairman Ros-Lehtinen. Mr. Rohrabacher?
        Mr. Rohrabacher. Number one, I want to thank Mr. Berman for
    this very important amendment, which, frankly, is a policy we
    should have been involved with all along. I do not understand
    how we have let the banks off the hook on things like this.
        I will use this opportunity to underscore what Judge Poe
    brought up a few moments ago about the situation in Camp
    Ashraf. Let me note that the residents of Camp Ashraf are
    totally vulnerable. They are disarmed at the request of the
    United States military. They are totally vulnerable, and they
    have already endured one massacre.
        We keep pushing on this end for a redesignation of the MEK,
    which are the residents of Camp Ashraf, who are currently
    designated by our Government as a terrorist organization. That
    designation is undermining the efforts to relocate these
    people. Before we get a chance to do this, if we don't relocate
    them, and they end up being massacred again, it will be because
    our Government has not acted.
        I want to make sure that we are on record today, that it is
    made very clear, that unless the MEK is redesignated, as has
    happened throughout Europe and other countries, redesignated
    not as a terrorist organization, and it is followed by another
    massacre of these unarmed people, the blood of these innocent
    people will be on the hands of our State Department and our
    Government. When the blood is in the sand and people say, who
    is at fault, they should look to Washington, DC, if we refuse
    to take the steps now that are necessary for their relocation.
        This is very serious. We are talking about over 30 people
    have been murdered and hundreds more wounded. These are unarmed
    people who are basically there because of American policy. So I
    would underscore what Judge Poe stated today.
        And we had the Secretary of State with us just a few days
    ago, committing that whatever can be done will be done as soon
    as they can do it. Well, let's see some action. If not, again,
    our State Department bureaucracy will have the blood of these
    innocent people on their hands if there is another massacre.
        Thank you very much, Madam Chairman.
        Chairman Ros-Lehtinen. Thank you so much, Mr. Rohrabacher.
        Mr. Duncan is recognized.
        Mr. Duncan. Thank you, Madam Chairman.
        Just real briefly, I will speak in support of this
    amendment because I want to remind the committee and the
    Members of Congress that are following this interesting markup
    that, just a few weeks ago, it was very evident that the Quds
    Force, the Iranian Revolutionary Guard, was involved in a
    terror plot that was going to take place on U.S. soil, in this
    very city, in the assassination attempt of another sovereign
    nation's Ambassador to the United States.
        So this is the right level of sanctions at this point in
    time against the Central Bank of Iran, and it sends the right
    signal to the Quds Force and Hezbollah and others that we are
    not going to just take that issue lightly. And I appreciate Mr.
    Berman for bringing this amendment up.
        I yield back.
        Chairman Ros-Lehtinen. As do I. Thank you.
        Hearing no further request for recognition, the question
    occurs on the Berman amendment.
        All those in favor say aye.
        All opposed, no.
        In the opinion of the chair, the ayes have it, and the
    amendment is agreed to.
        Are there any other amendments to the Iran Threat Reduction
    Act?
        Hearing no further amendments, the question is on agreeing
    to the bipartisan amendment in the nature of a substitute, as
    amended.
        All those in favor say aye.
        All opposed, no.
        In the opinion of the chair, the ayes have it, and the
    amendment in the nature of a substitute, as amended, is agreed
    to.
        Without objection, the underlying bill, H.R. 1905, as
    amended, is agreed to.
        And I now move that the chair be authorized to seek
    consideration of the measure by the House under suspension of
    the rules.
        All those in favor say aye.
        All those opposed, no.
        The ayes have it, and the motion is agreed to.
        Without objection, the bill, as amended, will be reported
    as a single amendment in the nature of a substitute
    incorporating the amendments adopted by the committee. And the
    staff is directed to make technical and conforming changes.
        I now call up the bill H.R. 2105, the Iran, North Korea,
    and Syria Nonproliferation Reform and Modernization Act of
    2011. Without objection, the bill is considered as read and
    open for amendment at any point.
        [H.R. 2105 follows:]

        Chairman Ros-Lehtinen. In addition, without objection, the
    bipartisan amendment in the nature of a substitute, which was
    provided to your offices on Monday, and which all members have
    before them, is made the pending business of the committee, is
    considered as read, and is open for amendment at any point.
        [The amendment in the nature of a substitute follows:]

        Chairman Ros-Lehtinen. I now recognize myself for remarks
    on the measure.
        Today, we are considering H.R. 2105, the Iran, Syria, and
    North Korea Nonproliferation Modernization and Reform Act, for
    which there is an amendment in the nature of a substitute.
        The legislation has a finer focus than ITRA's broad reach,
    namely on those persons or countries which are directly
    assisting Iran's efforts to acquire or develop weapons of mass
    destruction, especially its nuclear program, as well as
    missiles and other advanced conventional weapons.
        It is not possible to stop Iran's nuclear weapons program
    without targeting its nuclear program as a whole, because there
    is no safe dividing line between those activities and
    facilities that are purely peaceful and those which are
    military-related. Even seemingly safe material, such as low-
    enriched uranium, can be used in radiological devices. So we
    have no choice but to target the entire sector, which, I might
    add, is the subject of the U.N. Security Council resolutions,
    as well, which call for a halt to Iran's entire nuclear
    program.
        Those penalties necessarily must include prohibiting U.S.
    nuclear cooperation with countries which either assist or allow
    their citizens to assist Iran's WMD program. The amendment in
    the nature of a substitute which is being offered adds some new
    and important measures, including changing the reporting
    requirement from every 6 months to every 4 months and expanding
    the range of actions covered; also, denying an exemption to
    those assisting the acquisition by Iran, North Korea, or Syria
    of destabilizing amounts of conventional weapons; and
    tightening the prohibition on landing rights in the U.S.
    regarding vessels that have visited ports in Iran, North Korea,
    or Syria in the preceding 2 years.
        I believe this amendment strengthens the legislation, and I
    urge my colleagues to vote for its adoption.
        And I now turn to my friend, the ranking member, for
    remarks that he would care to make.
        Mr. Berman. Thank you, Madam Chairman.
        The Iran, North Korea, and Syria Nonproliferation Sanctions
    Act--we call it ``INKSNA''--was initiated by Chairman Ben
    Gilman, and it forced the United States Government to review
    all intelligence or credible evidence regarding sensitive
    transfers of goods and services related to WMD missiles or
    conventional weapons and made such transfers sanctionable acts.
        While the reports required by INKSNA are 2 years behind
    schedule, an ongoing problem that has plagued successive
    administrations, we have frequently seen new rounds of
    sanctions issued against companies and individuals who are more
    interested in making a buck than in protecting the global
    security environment.
        The specific details of sanction transfers are classified,
    but press reports indicated INKSNA sanctions have been imposed,
    for example, on Chinese entities for selling carbon fiber and
    pressure transducers--did you hear that, Mr. Rohrabacher--which
    would assist Iran in building more advanced gas centrifuges.
    Multiple Russian, Chinese, and even the European weapons
    exporters have been sanctioned, presumably for the transfer of
    arms to Iran and Syria, and Chinese chemical supply companies
    have been repeatedly sanctioned.
        This bill, as amended by the amendment in the nature of a
    substitute, strengthens INKSNA by making sensitive transfers
    subject to the full range of sanctions enacted under CISADA. It
    also extends the waiver of INKSNA prohibitions on payments to
    Russia for ferrying U.S. Astronauts to the International Space
    Station to 2016 from until the end of 2012.
        I would like to change the chairman for agreeing to support
    an amendment to address my concerns about the way the
    underlying bill deals with Russia. I have a number of other
    ideas about ways to strengthen INKSNA, dealing with expediting
    the delayed reports and some other issues. But rather than--I
    look forward to working with the chairman on these
    strengthening provisions as the process goes forward.
        And I support the bill and urge my colleagues to do the
    same.
        Chairman Ros-Lehtinen. Thank you so much, Mr. Berman.
        I understand that Mr. Rohrabacher of California would like
    to engage in a colloquy regarding a section of this legislation
    regarding payments to Russians. And I would like to recognize
    Mr. Rohrabacher at this time.
        Mr. Rohrabacher. Thank you very much, Madam Chairman.
        And I thank the ranking member for being so diligent about
    the Chinese threat, as well. Thank you.
        Madam Chairman, as you are aware, for several years
    American firms have been encouraged to develop new commercial
    cargo and new crew transportation services to the International
    Space Station; this is so we will not be totally dependent on
    Russia for those transportation services now that the space
    shuttle has been retired.
        As a senior member of the Science Committee, I have been
    following these events very closely. Some of these new services
    that we are developing here will be using some Russia hardware
    in their rockets, but the total amount of money flowing to
    Russia overall will be greatly reduced if we have American
    commercial providers giving us the services that we now rely
    totally on the Russian system for.
        This legislation still bars any transfer of funds to those
    companies which proliferate, even though there will be some
    Russian hardware involved in those commercial companies that
    will soon be going on the market to be offering their services
    to the International Space Station.
        I would request a clarification. Is it the intent of the
    chair that any portion of this legislation to stop NASA or
    other Federal agencies from purchasing services from American
    firms even as they use some of the technologies within their
    own rockets from companies in Russia so long as those Russian
    companies are not proliferating?
        Chairman Ros-Lehtinen. Well, I thank the gentleman for the
    opportunity to clarify this point regarding purchasing those
    services from American sources.
        Not only does no provision in this legislation have that
    purpose or effect, but you and I are in full agreement that the
    U.S. should make every effort to purchase those services from
    domestic sources as soon as possible. And to that end, to the
    maximum extent possible, any reliance on Russian sources of any
    type should be ended.
        Mr. Rohrabacher. Thank you very much. So we are minimizing
    the actual use of Russian technology, maximizing America's
    developed technology. Thank you for the clarification.
        What I would like to propose today is that the chair, the
    ranking member, and I, working together with the Science
    Committee--which, as I say, I am a senior member of the Science
    Committee--and that we work together as this bill goes to the
    floor to further perfect this language so that NASA is
    encouraged to accelerate these commercial services, as compared
    to being totally reliant on the Russian Government. And, in
    that matter, we will encourage the growth of jobs in the United
    States and increase our overall nonproliferation leverage over
    Russia's Government.
        Chairman Ros-Lehtinen. I thank the gentleman. And I assure
    you that I will work with the member and with the ranking
    member and others, including consulting with our colleagues on
    the Science Committee, to achieve our nonproliferation and
    space goals more effectively. And I thank the gentleman for
    raising these important issues.
        Mr. Rohrabacher. Thank you.
        Chairman Ros-Lehtinen. Do other members seek recognition on
    the underlying bill?
        Mr. Sherman is recognized.
        Mr. Sherman. Thank you. I want to commend you for putting
    forward what is one of the toughest nonproliferation bills ever
    to come before this committee. I want to thank you for the
    opportunity to be the lead Democratic cosponsor.
        I commend you for requiring reports every 4 months. Both
    the last administration and this administration have been
    somewhat tardy in producing the reports. And I think by
    shortening the time period and requiring three reports a year,
    we are underlying the fact that we expect to get these reports
    and expect to get them on time.
        The U.S.-China Economic and Security Review Commission
    identified a loophole in current law that arguably exempts from
    sanctions the Chinese companies that are providing short-range
    anti-naval cruise missiles to Iran and perhaps others included
    in this bill. And I think it is important, especially for the
    protection of our naval crews, that that be included in this
    sanctions regime.
        Finally, as you know, Madam Chairman, for so many years I
    have been working to sanction those who would sell uranium
    mining equipment and technology to Iran. It is critical that we
    stop Iran's nuclear program. It is just as critical that even
    if they have enough uranium for one or two devices, that we
    prevent them from getting any more. That is why we need to work
    around the world to stop Iran from buying yellow cake or
    uranium in any form, but it is critically important that we
    prevent Iran from being able to mine uranium within its own
    territory. And this bill would go as far as any to accomplish
    that goal.
        So, with that, I yield back.
        Chairman Ros-Lehtinen. Thank you so much, Mr. Sherman.
        I would like to point out that it is a delight to have Ms.
    Wilson back with us and that you are feeling good, you are
    looking good. Welcome back, Frederica. We missed you.
        Ms. Wilson of Florida. Thank you.
        Chairman Ros-Lehtinen. Do any other members seek
    recognition to speak on the underlying bill, the amendment in
    the nature of a substitute?
        Do any other members have amendments?
        Mr. Berman does. The clerk will read the amendment.
        Ms. Carroll. Amendment to the amendment in the nature of a
    substitute to H.R. 2105, offered by Mr. Berman of California
    and Ms. Ros-Lehtinen of California. Page 16, line 12, strike
    ``and.'' Page 16----
        Chairman Ros-Lehtinen. Thank you. We will consider the
    amendment as having been read.
        [The amendment to the amendment in the nature of a
    substitute follows:]

        Chairman Ros-Lehtinen. And Mr. Berman is recognized to
    explain his amendment while our wonderful colleagues give out
    copies. Thank you.
        Mr. Berman. Thank you very much, Madam Chairman.
        This amendment would simply eliminate the specific
    reference to Russia and would exempt the Bushehr reactor, so
    long as and only if it is not used for Iran's nuclear weapons
    program, from sanctions under this bill.
        Just to be clear, the amendment would not exempt future
    civilian power reactors, nor would it prevent Russia from being
    sanctioned like any other country if they engage in
    sanctionable activity.
        I urge my colleagues to support the amendment.
        Chairman Ros-Lehtinen. I also do support this. I would like
    to thank the ranking member for his amendment and for working
    with us right up until the gavel went down to draft that
    agreeable language.
        I support this amendment and would like to ask unanimous
    consent that it be considered adopted.
        Without objection, so ordered.
        Do any other members seek recognition?
        Seeing no further requests for recognition, the question is
    on agreeing to the bipartisan amendment in the nature of a
    substitute, as amended by Mr. Berman.
        All those in favor say aye.
        All opposed, no.
        In the opinion of the chair, the ayes have it, and the
    amendment in the nature of a substitute, as amended, is agreed
    to.
        Without objection, the underlying bill, H.R. 2105, as
    amended, is agreed to.
        And I now move that the chair be authorized to seek
    consideration of the measure by the House under suspension of
    the rules.
        Mr. Berman. Madam Chairman?
        Chairman Ros-Lehtinen. Yes? Mr. Berman is recognized.
        Mr. Berman. Could I add a unanimous consent request for
    general leave for Members of the House to insert statements?
        Chairman Ros-Lehtinen. Without objection, so ordered.
        All those in favor say aye.
        All opposed, no.
        The ayes have it, and the motion is agreed to.
        Without objection, the bill, as amended, will be reported
    as a single amendment in the nature of a substitute
    incorporating the amendments adopted by our committee. And the
    staff is directed to make technical and conforming changes.
        I want to thank all of the members and especially the
    staff, this hardworking, bipartisan staff, for the work and the
    cooperation that went into today's markup.
        These are important bills. We are going to change history.
    We are going to hold the executive branch accountable and make
    them do the right thing.
        Having concluded our business, the committee stands
    adjourned. Thank you, ladies and gentlemen.
        [Whereupon, at 11:10 a.m., the committee was adjourned.]

                                A P P E N D I X

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