[Congressional Record Volume 162, Number 84 (Thursday, May 26, 2016)]
[Senate]
[Page S3313]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4271. Mr. COTTON submitted an amendment intended to be proposed by 
him to the bill S. 2943, to authorize appropriations for fiscal year 
2017 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle D of title XII, add the following:

     SEC. 1227. LIMITATION ON USE OF FUNDS TO PROCURE, OR ENTER 
                   INTO ANY CONTRACT FOR THE PROCUREMENT OF, ANY 
                   GOODS OR SERVICES FROM PERSONS THAT PROVIDE 
                   MATERIAL SUPPORT TO CERTAIN IRANIAN PERSONS.

       (a) Limitation.--No funds authorized to be appropriated for 
     the Department of Defense for fiscal year 2017 may be used to 
     procure, or enter into any contract for the procurement of, 
     any goods or services from any person that provides material 
     support to, including engaging in a significant transaction 
     or transactions with, a covered Iranian person during such 
     fiscal year.
       (b) Certification.--The Federal Acquisition Regulation 
     shall be revised to require a certification from each person 
     that is a prospective contractor that such person does not 
     engage in any of the conduct described in subsection (a). 
     Such revision shall apply with respect to contracts in an 
     amount greater than the simplified acquisition threshold (as 
     defined in section 134 of title 41, United States Code) for 
     which solicitations are issued on or after the date that is 
     90 days after the date of the enactment of this Act.
       (c) Waiver.--The Secretary of Defense, in consultation with 
     the Secretary of State and the Secretary of the Treasury, 
     may, on a case-by-case basis, waive the limitation in 
     subsection (a) with respect to a person if the Secretary of 
     Defense, in consultation with the Secretary of State and the 
     Secretary of the Treasury--
       (1) determines that the waiver is important to the national 
     security interest of the United States; and
       (2) submits to the appropriate committees of Congress a 
     notification of, and detailed justification for, the waiver 
     not less than 30 days before the date on which the waiver is 
     to take effect.
       (d) Definitions.--In this section:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Armed Services and the Committee on 
     Foreign Relations of the Senate; and
       (B) the Committee on Armed Services and the Committee on 
     Foreign Affairs of the House of Representatives.
       (2) Covered iranian person.--The term ``covered Iranian 
     person'' means an Iranian person that--
       (A) is included on the list of specially designated 
     nationals and blocked persons maintained by the Office of 
     Foreign Assets Control of the Department of the Treasury and 
     the property and interests in property of which are blocked 
     pursuant to the International Emergency Economic Powers Act 
     (50 U.S.C. 1701 et seq.) for acting on behalf of or at the 
     direction of, or being owned or controlled by, the Government 
     of Iran;
       (B) is included on the list of persons identified as 
     blocked solely pursuant to Executive Order 13599; or
       (C) in the case of an Iranian person described in paragraph 
     (3)(B)--
       (i) is owned, directly or indirectly, by--

       (I) Iran's Revolutionary Guard Corps, or any agent or 
     affiliate thereof; or
       (II) one or more other Iranian persons that are included on 
     the list of specially designated nationals and blocked 
     persons as described in subparagraph (A) if such Iranian 
     persons collectively own a 25 percent or greater interest in 
     the Iranian person; or

       (ii) is controlled, managed, or directed, directly or 
     indirectly, by Iran's Revolutionary Guard Corps, or any agent 
     or affiliate thereof, or by one or more other Iranian persons 
     described in clause (i)(II).
       (3) Iranian person.--The term ``Iranian person'' means--
       (A) an individual who is a national of Iran; or
       (B) an entity that is organized under the laws of Iran or 
     otherwise subject to the jurisdiction of the Government of 
     Iran.
       (4) Person.--The term ``person'' means has the meaning 
     given such term in section 560.305 of title 31, Code of 
     Federal Regulation, as such section 560.305 was in effect on 
     April 22, 2016.
       (5) Significant transaction or transactions.--The term 
     ``significant transaction or transactions'' shall be 
     determined, for purposes of this section, in accordance with 
     section 561.404 of title 31, Code of Federal Regulations, as 
     such section 561.404 was in effect on January 1, 2016.
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