[Congressional Record (Bound Edition), Volume 158 (2012), Part 6]
[Senate]
[Pages 7507-7513]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   IRAN THREAT REDUCTION ACT OF 2011

  Mr. REID. Madam President, I ask unanimous consent that the Foreign 
Relations Committee be discharged from further consideration of H.R. 
1905, the Iran Threat Reduction Act, and that the Senate proceed to its 
consideration; that the Johnson of South Dakota-Shelby substitute 
amendment, which is at the desk and is the text of Calendar No. 320, S. 
2101, the Iran Sanctions, Accountability, and Human Rights Act, as 
reported by the Banking Committee, be considered; that a Johnson of 
South Dakota-Shelby amendment, which is at the desk, be agreed to; that 
the substitute amendment, as amended, be agreed to; that the bill, as 
amended, be read a third time and the Senate proceed to a vote on 
passage of the bill, as amended.
  The PRESIDING OFFICER. Is there objection to the consent request?
  Mr. McCAIN. Madam President, reserving the right to object, and I 
will not object, I would like to thank both leaders for their hard work 
in getting what I believe is one of the more important sense-of-the-
Senate resolutions achieved here. It is very difficult. I think words 
matter. The fact that this resolution points out that we need a 
comprehensive policy that includes economic sanctions, diplomacy in 
military planning, capabilities, and options; that this objective is 
consistent with the one stated by President Barack Obama in the State 
of the Union Address where he said, ``Let there be no doubt: America is 
determined to prevent Iran from getting a nuclear weapon, and I will 
take no options off the table to achieve that goal''--I think this is 
an important resolution. I thank the majority leader.
  I also point out that the final part of it says that nothing in the 
act shall be construed as a declaration of war or an authorization of 
the use of force against Iran or Syria.
  First of all, it is not an authorization. Second of all, I wonder if 
we ought to include Canada and maybe Brazil and other countries along 
with that since this resolution contemplates in no way anything 
concerning Syria, but I guess we could probably throw it in. However, I 
will not ask for a unanimous consent to amend to add Canada, although 
the Canadians are very upset because they have no teams in the finals 
of the National Hockey League Stanley Cup championship series.
  Again, I thank both the Senate majority leader and the Republican 
leader for the work they did and also our friend Senator Menendez, who 
was also an important factor in getting this done.

[[Page 7508]]

  I do not object.
  The PRESIDING OFFICER. The Senator from South Carolina.
  Mr. GRAHAM. Madam President, to the majority leader, well done. I 
think we are going to be able to voice vote a resolution that states 
the policy of our country and our President very clearly.
  To the Senator from New Jersey, Mr. Menendez, great job on the 
sanctions. I hope the Senator understands why I wanted to put in all 
options. I hope the sanctions will work. This is a clear statement by 
the Senate backing up our President that when it comes to Iran having 
nuclear capabilities, there will be more than sanctions on the table, 
and the Iranians need to know that.
  I hope we can end this peacefully for Israel's sake, for our sake, 
and for the world's sake as we approach beefing up the sanctions with 
the Banking Committee, with Senator Menendez's and Senator Kirk's 
leadership, and others, who have done a great job. If you are on the 
Banking Committee, you did a great job. I don't even know who is on it.
  The bottom line is I think the sanctions were really well drafted and 
will enhance the President's hand, so to speak. We cannot leave this 
debate without making a very simple unequivocal statement that the goal 
is to get it right. And if sanctions can lead to getting it right, God 
bless. If the sanctions will not get us to where we want to go, 
everything is on the table, including the use of military force, 
because this country--Republicans and Democrats--is not going to allow 
the Iranian regime to develop nuclear capability that will put the 
world into darkness.
  To everybody who negotiated this outcome, thank you very much.
  I yield the floor.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2123) in the nature of a substitute is as follows:
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The amendment (No. 2124) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The substitute amendment, as amended, was agreed to.
  The amendment was ordered to be engrossed and the bill to be read a 
third time.
  The bill was read the third time.
  The PRESIDING OFFICER. The question is on passage of the bill as 
amended.
  The bill (H.R. 1905), as amended, was passed.
  Mr. REID. Madam President, I ask unanimous consent that the motion to 
reconsider be laid upon the table and that any statements related to 
this matter be printed in the Record in the appropriate place as if 
read.

  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. REID. Madam President, before we leave here this evening, I must 
mention the good work done by the Banking Committee. Senator Johnson of 
South Dakota has been stalwart in this issue. He and Senator Shelby 
worked together. It has been very heartwarming.
  I appreciate Senator Menendez, who has been a loud voice in making 
sure we do something on this legislation about which he feels so 
strongly.
  The most important thing for me is Iranians need to know we mean 
business, particularly with the next round of international 
negotiations taking place the day after tomorrow.
  I am glad we resolved our differences and everyone realizes how 
important it is to advance these measures to prevent Iran from 
obtaining a nuclear weapon. They should be aware that there is still 
more we can do. I am very happy with what we have done at this time.
  The PRESIDING OFFICER. The Senator from South Dakota.
  Mr. JOHNSON of South Dakota. Madam President, I rise to discuss 
today's unanimous, bipartisan approval of the Senate Iran Sanctions, 
Accountability and Human Rights Act. With this action, we are adding 
additional tough, targeted sanctions against the Iranian Government, 
making it clear to the Iranian Government that they must stop their 
illicit pursuit of nuclear weapons or face increased pressure on their 
economy.
  Madam President, I ask unanimous consent that a longer statement of 
mine on the bill plus a summary be included in the Record following my 
remarks.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (See exhibit 1.)
  Mr. JOHNSON. The bill the Senate adopted today passed the Banking 
Committee earlier this year by a unanimous bipartisan vote. Among its 
other provisions, this legislation will have important effects because 
it requires intensified targeting of Iran's Revolutionary Guard Corps, 
sanctioning energy and uranium mining joint ventures with Iran, and 
mandating sanctions for those who supply Iran with weapons and other 
technologies used to commit human abuses, including those used to 
impose an electronic curtain of censorship on Iran's citizens. In 
addition, this legislation gives the President additional authority to 
sanction the Asad regime in Syria.
  Today the Senate has shown that we can still act in a bipartisan way 
on important priorities. I thank every Member for supporting passage of 
this bill today. In particular, I thank all the members of the Banking 
Committee for their work, including Ranking Member Shelby and Senators 
Menendez, Kirk, Schumer, and Brown. In addition, I thank Majority 
Leader Reid for his determination to get this legislation through the 
Senate.
  I look forward to working with my colleagues in the House to quickly 
come together on a final bill the President can sign soon. It is 
important that the Congress act swiftly so that we can continue to put 
pressure on the Iranian regime to end its illicit and illegal nuclear 
activity.
  Again, I thank all my colleagues for their support on the Iran 
sanctions bill today.

                               Exhibit 1

                       Tightening Iran Sanctions

       Mr. JOHNSON of South Dakota. Mr. President, the prospect of 
     a nuclear-armed Iran is the most pressing foreign policy 
     challenge we face, and we must continue to do all we can--
     politically, economically, and diplomatically--to avoid that 
     result. The meetings here in Washington in March between 
     Israeli Prime Minister Netanyahu and President Obama 
     underscored the gravity of these issues, and the importance 
     of an intensified, unified effort by the international 
     community to further isolate Iran's leaders and compel them 
     to abandon their illicit nuclear activities. Iran's 
     willingness to sit down again with the P5 + 1 group--the five 
     permanent members of the UN Security Council plus Germany--
     and begin to re-engage on the nuclear issues is a hopeful 
     sign. But even after the first meeting, which both sides 
     called ``constructive,'' it remains to be seen whether Iran 
     will actually be willing to work towards progress on the 
     central issues at the negotiating sessions planned for 
     Baghdad later this week, or whether these meetings will 
     simply be another in a series of stalling actions to buy time 
     to enrich additional uranium and further fortify their 
     nuclear program.
       As that process moves forward, today the full Senate is 
     finally acting on an important bill to confront this very 
     serious threat to our national security, to Israel and to our 
     other allies in the Middle East and Europe. S. 2101, the Iran 
     Sanctions Accountability and Human Rights Act of 2012, was 
     approved by a unanimous bipartisan vote in the Senate Banking 
     Committee. I am pleased that, with the help of ranking member 
     Senator Shelby and other committee colleagues, we are 
     presenting to the full Senate, as we did 2 years ago, this 
     bipartisan bill to expand and tighten sanctions on Iran, 
     along with a manager's amendment to address several issues 
     that required updating to take into account recent events, 
     and clarifications or additions that my colleagues sought to 
     expand the reach and effectiveness of the bill, including 
     changes requested by Senator Menendez to an amendment he 
     offered in committee, section 503, to narrow its application 
     while preserving his original intent to enable attachment of 
     assets in which the government of Iran has an interest, to 
     satisfy certain terror-related judgments against Iran.
       In pressing this bill forward we recognize that economic 
     sanctions are not an end: they are a means to an end. That 
     end is to apply enough pressure to secure agreement from 
     Iran's leaders to fully, completely and verifiably abandon 
     their illicit nuclear program. The President has made clear 
     that his policy is not to contain Iran once it has a nuclear 
     weapon: it is to prevent Iran from achieving that goal in the 
     first place. He is

[[Page 7509]]

     deadly serious about that. At the same time, he is moving 
     forward diplomatically, in consultation with our allies, to 
     test Iran's willingness to come clean on its nuclear program, 
     and resolve the international community's concerns on this 
     front.
       Let me describe where we have been on Iran sanctions, so 
     that Senators may better understand where we're going. This 
     has been the subject of heated rhetoric on the Presidential 
     campaign trail, so I want to describe clearly the 
     longstanding bipartisan approach we in Congress have taken. 
     Since here in the Senate we sometimes cannot even agree to 
     cross the street together, in today's hyper-partisan 
     environment bipartisan agreement on this bill is notable. On 
     Iran sanctions we have always worked in a bipartisan fashion; 
     I hope that will continue.
       In coordination with allies like the European Union, Japan, 
     South Korea, Australia, Canada, and others, the 
     Administration has taken its own steps to increase pressure 
     on Iran's petrochemical industry, oil and gas industry, and 
     financial sector. We acted in the Senate 5 months ago on an 
     amendment by Senators Menendez and Kirk to sanction the 
     Central Bank of Iran and other banks that deal with Iranian 
     banks involved in nefarious activities. Shortly thereafter, 
     Europe announced it will ban oil imports from Iran, starting 
     in July. This will further increase pressure on Iran's 
     economy and cut off other key sources of revenue for their 
     nuclear program. Almost $60 billion in energy-related 
     projects in Iran have been put on hold or discontinued. Oil 
     shipments have sharply declined due to sanctions. The Wall 
     Street Journal recently reported that Iran's crude oil output 
     has dropped to its lowest level in over 20 years, due largely 
     to the tightening squeeze of sanctions. And, in the last few 
     months, about half of the tankers booked monthly to load at 
     the country's largest terminal didn't complete the voyages, 
     according to brokers, company officials and ship-tracking 
     data. It is clear Iran is losing oil sales to key customers 
     in Europe, Asia, and elsewhere, and is having some of its 
     biggest customers demand steep discounts to buy its oil. Some 
     estimate the losses in Iran's oil revenues are approaching 40 
     percent of daily sales. Iran's oil exports have the potential 
     to fall another 300,000 to 500,000 barrels a day or more when 
     the European Union's embargo takes effect in July, according 
     to a report this week by Barclays. That is a huge impact. A 
     senior IRGC official acknowledged the effectiveness of 
     sanctions recently, saying: ``The regime is at the height of 
     isolation and in the midst of a technological, scientific and 
     economic siege. We are not in a situation of imaginary 
     threats and sanctions. Threats and sanctions against us are 
     effectively being pursued.'' These sanctions have had a more 
     powerful effect than many thought possible.
       Iran is also isolated diplomatically. The international 
     community is lined up against their nuclear program, with 
     progressively tougher UN sanctions imposed on them. Their 
     most important ally, Syria, is collapsing into civil war. 
     They are, as President Obama said, in a ``world of hurt.'' 
     Many believe the recent shift by Iran's leaders on the 
     nuclear issue is the result of that pain, and the intense 
     pressure of heightened sanctions. But while it is clear that 
     existing sanctions are biting, they have not yet persuaded 
     Iran's leaders to drop their nuclear ambitions. We must not 
     let up now, as negotiations on these issues are continuing.
       I believe that further progress in those negotiations 
     depends on intensifying that pressure on Iran's leaders, and 
     that's what this bill is all about. With these new sanctions, 
     including those targeted at the IRGC, we are forcing Iran's 
     military and political leaders to make a clear choice. They 
     can end the suppression of their people, come clean on their 
     nuclear program, suspend enrichment, and stop supporting 
     terrorist activities around the globe. Or they can continue 
     to face sustained multilateral economic and diplomatic 
     pressure, and deepen their international isolation.
       Just as then-Chairman Dodd and Ranking Member Shelby did in 
     2010, Senator Shelby and I have incorporated ideas from many 
     of our Senate colleagues into one Committee bill, including 
     from S. 1048 sponsored by Senator Menendez. Senator Menendez 
     has been a leader on these issues, along with Senator Kirk, 
     and we acknowledge their many contributions. The bill also 
     borrows and refines ideas from legislation developed by 
     Senators Lautenberg, Gillibrand, Schumer, Kyl, Lieberman, 
     Brown, and others. I will now touch on a few of the 
     highlights of this bill and I will insert a more 
     comprehensive and detailed summary into the record at the end 
     of my remarks. Our legislation will: broaden the list of 
     available sanctions, require intensified targeting of Iran's 
     Revolutionary Guard Corps, require firms traded on US stock 
     exchanges to disclose Iran-related activity to the Securities 
     and Exchange Commission, sanction energy and uranium mining 
     joint ventures with Iran, penalize US parent firms for 
     certain Iran-related activities of their foreign 
     subsidiaries, mandate sanctions for those who supply Iran 
     with weapons and other technologies used to commit human 
     rights abuses, including those used to impose an ``Electronic 
     Curtain'' on Iran's citizens, and provide for other similar 
     measures designed to increase pressure on Iran's government.
       All told, when enacted the bill will significantly increase 
     pressure on Iran's leaders, and that must be our goal as we 
     move forward in this process. I hope and expect my colleagues 
     will support this bill enthusiastically, and that we will be 
     able to reconcile it with the House bill and move it forward 
     quickly into law this year. I look forward to working with my 
     House colleagues, including Chairman Ros-Lehtinen and Ranking 
     Member Berman, who as former Foreign Affairs Committee 
     Chairman has led the sanctions effort against Iran for many 
     years, and played a key role in developing both CISADA and 
     the House version of this measure, to get a bill enacted this 
     year.

      Iran Sanctions, Accountability and Human Rights Act of 2012


                       Section-by-Section Summary

     Sec. 1--Short Title, Table of Contents
     Sec. 2--Findings
       Contains a series of findings about the threat posed by 
     Iran, the bipartisan understanding of the implications of its 
     achieving a nuclear weapons capability, steps taken thus far 
     by the US, its allies and the United Nations Security Council 
     to counter that threat, and the need to intensify those 
     efforts to counter that threat and deter Iran's nuclear 
     ambitions.
     Sec. 3--Definitions
       Provides that the definitions of key terms (``appropriate 
     congressional committees,'' ``credible information,'' and 
     ``knowingly,'') will be those found in the Iran Sanctions Act 
     (ISA) of 1996, as amended, and that the definition of 
     ``United States person'' will be that found in the 
     Comprehensive Iran Sanctions, Accountability, and Divestment 
     Act of 2010 (CISADA).
     Sec. 101--Statement of Policy
       Defines US policy to be to prevent Iran from (i) acquiring 
     or developing nuclear weapons and advanced conventional 
     weapons and ballistic missile capabilities, (ii) continuing 
     its support for international terrorism, and (iii) engaging 
     in other activities designed to destabilize its neighbors in 
     the region. It also outlines the US policy of support for 
     full implementation of all sanctions against Iran as part of 
     multilateral efforts to compel Iran to abandon its illicit 
     nuclear program.
     Sec. 102--Expansion and Implementation of Multilateral 
         Sanctions Regime
       States the sense of Congress that expansion and vigorous 
     implementation of bilateral and multilateral sanctions 
     against Iran, and vigorous enforcement of all U.S. sanctions, 
     is an effective way to achieve the goal of compelling Iran to 
     abandon its efforts to achieve a nuclear weapons capability.
     Sec. 103--Diplomatic Efforts to Expand Multilateral Sanctions 
         Regime
       Urges efforts by the US to expand the UN sanctions regime 
     to include (i) imposing additional travel restrictions on 
     Iranian officials responsible for human rights violations, 
     the development of Iran's nuclear and ballistic missile 
     programs, and Iran's support for terrorism; (ii) withdrawing 
     sea- and airport landing rights for Iran Shipping Lines and 
     Iran Air, for their role in nuclear proliferation and illegal 
     arms sales; (iii) expanding the range of sanctions to which 
     Iran is subject; (iv) expanding sanctions to limit Iran's 
     petroleum development, imports of refined petroleum products 
     and reduce its revenue from sale of petrochemical products, 
     and (v) accelerating US diplomatic and economic efforts to 
     help allies reduce their dependence on Iranian crude oil and 
     other petroleum products. Requires periodic reporting to 
     Congress.
     Sec. 104--Imposition of Sanctions with regard to Iran
       Declares the sense of Congress that efforts should be made 
     to maximize the effects of sanctions and to preserve 
     information-sharing.
     Sec. 201--Sanctions with respect to Energy Joint Ventures 
         with Iran
       Extends ISA sanctions to persons knowingly participating in 
     petroleum resources development joint ventures established on 
     or after January 1, 2002 anywhere in the world, unless such 
     ventures are terminated within 180 days of enactment, in 
     which Iran's government is a substantial partner or investor, 
     or through which Iran could otherwise receive energy sector 
     technology or know-how not previously available to its 
     government.
     Sec. 202--Expands Sanctions on Providers of Goods and 
         Services to Iran's Energy Sector
       Requires imposition of ISA sanctions on persons who 
     knowingly sell, lease, or provide to Iran goods, services, 
     technology or support (including refinery construction or 
     repair), or infrastructure predominantly used for the 
     transportation of refined petroleum products, that could 
     directly and significantly contribute to its petroleum 
     resources development or refining programs, in single 
     transactions of $1 million or more or multiple transactions 
     aggregating to $5 million or more in any 12-month period. 
     Requires imposition of at least three ISA sanctions to 
     persons who knowingly sell, lease, or provide to Iran goods, 
     services, technology or support for its petrochemical sector 
     in a single transaction of $250,000 or more, or multiple 
     transactions aggregating to $1,000,000 or

[[Page 7510]]

     more in any 12-month period. In so doing, codifies the 
     President's decision to extend US sanctions to Iran's 
     petrochemical sector, adopting the standards, thresholds and 
     petrochemicals list contained in Executive Order 13590.
     Sec. 203--Sanctions with respect to Uranium Joint Ventures 
         with Iran
       Requires ISA sanctions to be imposed on persons who 
     knowingly participate in joint ventures with Iran's 
     government, Iranian firms, or persons acting for or on behalf 
     of Iran's government in the mining, production or 
     transportation of uranium anywhere in the world. Exempts such 
     persons from sanctions if they withdraw from such joint 
     ventures within 6 months after the date of enactment.
     Sec. 204--Expansion of Sanctions Available under the Iran 
         Sanctions Act of 1996
       Expands the current menu of sanctions, available to the 
     President under the ISA, to authorize exclusion from the 
     United States of aliens who are corporate officers, 
     principals or controlling shareholders in a sanctioned firm, 
     and permits applicable ISA sanctions to be applied to the CEO 
     or other principal executive officers (or persons performing 
     similar functions) of a sanctioned firm, which could include 
     a freeze of their US assets.
     Sec. 205--Definitions
       Defines ``credible information'' and ``petrochemical 
     product.'' ``Credible information'' includes public 
     announcements by persons that they are engaged in certain 
     activities, including those made in a report to stockholders, 
     and may include announcements by the Government of Iran, and 
     reports from the General Accountability Office (GAO), the 
     Energy Information Administration, the Congressional Research 
     Service, or other reputable governmental organizations. 
     Defines ``petrochemical product'' consistent with Executive 
     Order 13590.
     Sec. 211--Sanctions for Shipping WMD or Terrorism-related 
         Materials to or from Iran
       Requires the blocking of assets of, and imposes other 
     sanctions on, persons who knowingly provide ships, insurance 
     or reinsurance, or other shipping services, for 
     transportation of goods that materially contribute to Iran's 
     WMD program or its terrorism-related activities. The 
     sanctions apply to parents of the persons involved if they 
     knew or should have known of the sanctionable activity and to 
     any of their subsidiaries or affiliates that knowingly 
     participated in the activity. Provides for Presidential 
     national security interest waiver; requires a report to 
     Congress regarding the use of such a waiver.
     Sec. 212--Imposition of Sanctions on Subsidiaries and Agents 
         of UN-sanctioned Persons
       Amends CISADA to ensure that US financial sanctions imposed 
     on UN-designated entities reach those persons acting on 
     behalf of, at the direction of, or owned or controlled by, 
     the designated entities. Requires the Treasury Department to 
     revise its regulations within 90 days of enactment to 
     implement the change.
     Sec. 213--Liability of US Companies for Violations by their 
         Foreign Subsidiaries
       Requires the imposition of civil penalties under the 
     International Emergency Economic Powers Act (IEEPA) of up to 
     twice the amount of the relevant transaction on US parent 
     companies for the activities of their foreign subsidiaries 
     which, if undertaken by a US person or in the United States, 
     would violate US sanctions law. Subsidiaries are defined as 
     those entities in which a US person holds more than fifty 
     percent equity interest or a majority of the seats on the 
     board, or that a US person otherwise controls. Covers 
     activities under the current US trade embargo with Iran and 
     would apply regardless of whether the subsidiary was 
     established to circumvent US sanctions.
     Sec. 214--Securities and Exchange Commission Disclosures on 
         Certain Activities in Iran
       Amends the Securities and Exchange Act of 1934 to require 
     issuers whose stock is traded on US exchanges to disclose 
     whether they or their affiliates have knowingly engaged in 
     activities (i) in section 5 of the ISA (energy sector 
     activity); (ii) in 104(c)(2) or (d)1 of CISADA (related to 
     foreign financial institutions who facilitate WMD/terrorism, 
     money laundering, IRGC activity, and other violations); (iii) 
     in 105A(b)(2) of CISADA (related to those who transfer 
     weapons and other technologies to Iran likely to be used for 
     human rights abuses); (iv) with persons whose property is 
     blocked for WMD/terrorism and; (v) persons in the government 
     of Iran. Provides for periodic public disclosure of such 
     information, and conveyance of that information by the SEC to 
     Congress and the President. Requires the President to 
     initiate an investigation into the possible imposition of 
     sanctions as specified, and to make a sanctions determination 
     within 6 months.
     Sec. 215--Immigration Restrictions on Senior Iranian 
         Officials and their Family Members
       Requires the identification of and denial of visa requests 
     to senior officials, including the Supreme Leader, the 
     President, members of the Assembly of Experts, senior members 
     of the Intelligence Ministry of Iran, and members of the IRGC 
     with the rank of brigadier general or higher that are 
     involved in nuclear proliferation, support international 
     terrorism or the commission of serious human rights abuses 
     against citizens of Iran. Also includes their family members. 
     Provides for Presidential national security interest and UN 
     obligations waiver; requires a report to Congress regarding 
     the use of such a waiver.
     Sec. 216--Sanctions with respect to the Provision of Certain 
         Financial Communications Services to the Central Bank of 
         Iran and Sanctioned Iranian Financial Institutions
       States the sense of Congress that the President should 
     intensify current diplomatic efforts to ensure that global 
     financial communications services providers such as SWIFT 
     terminate services to Iranian financial institutions 
     designated for the imposition of sanctions pursuant to IEEPA. 
     Requires the Comptroller General of the United States to 
     submit a list, within 60 days of the date of enactment, of 
     entities that provide financial communications services to or 
     facilitate access to such services for the Central Bank of 
     Iran or financial institutions described in 104(c)(2)(E)(ii) 
     of CISADA (i.e., institutions whose property is blocked in 
     connection with Iran's proliferation of WMD or its support 
     for terrorism). Requires reporting by the Secretary of the 
     Treasury within 90 days of enactment on the efforts of SWIFT 
     to terminate the provision of services to the Central Bank of 
     Iran and Iranian financial institutions designated for 
     sanction. Authorizes the imposition of sanctions under CISADA 
     or IEEPA with respect to a financial communications services 
     provider, and the directors of, and shareholders with a 
     significant interest in, a provider, that has not terminated 
     such services to the Central Bank of Iran or designated 
     Iranian financial institutions.
     Sec. 217--GAO Reports on Iran's Energy Sector
       Mandates regular reports from GAO on foreign investment in 
     Iran's energy sector, exporters of refined petroleum products 
     to Iran, entities providing shipping and insurance services 
     to Iran, Iranian energy joint ventures worldwide, and 
     countries where Iranian petroleum is produced or refined.
     Sec. 218--Expanded Reporting on Iran's Crude Oil and Refined 
         Petroleum Products
       Amends section 110(b) of CISADA to require additional 
     reporting on the volume of crude oil and refined petroleum 
     products imported to and exported from Iran, the persons 
     selling and transporting crude oil and refined petroleum 
     products, the countries with primary jurisdiction over those 
     persons and the countries in which those products were 
     refined, the sources of financing for such imports and the 
     involvement of foreign persons in efforts to assist Iran in 
     developing its oil and gas production capacity, importing 
     advanced technology to upgrade existing Iranian refineries, 
     converting existing chemical plants to petroleum refineries 
     and maintaining, upgrading or expanding refineries or 
     constructing new refineries.
     Sec. 301--Sanctions on Iran Revolutionary Guard Corps 
         Officials, Agents, and Affiliates
       Requires the President to identify, and designate for 
     sanctions, officials, affiliates and agents of the IRGC 
     within 90 days of enactment, and periodically thereafter; 
     designation requires exclusion of such persons from the 
     United States, and imposition of sanctions (related to WMD 
     under IEEPA, including freezing their assets and otherwise 
     isolating them financially). Also, outlines priorities for 
     investigating certain foreign persons and transactions in 
     assessing connections to the IRGC. Requires the President to 
     report on designations and waivers.
     Sec. 302--Sanctions on Foreign Persons Supporting IRGC
       Subjects foreign persons to ISA sanctions if those persons 
     knowingly provide material assistance to, or engage in any 
     significant transaction--including barter transactions--with 
     officials of the IRGC, its agents or affiliates. Requires 
     imposition of similar sanctions against those persons who 
     engage in significant transactions with UN-sanctioned 
     persons, those acting for or on their behalf, or those owned 
     or controlled by them. Provides for additional sanctions 
     under IEEPA as the President deems appropriate. Requires the 
     President to report on designations and waivers, as 
     applicable.
     Sec. 303--Rule of Construction
       Clarifies that section 301 and 302 sanctions do not limit 
     in any way the President's authority to designate persons for 
     sanction under IEEPA.
     Sec. 311--Extension of US Procurement Ban to Foreign Persons 
         who interact with IRGC
       Requires certification by prospective US government 
     contractors (for contract solicitations issued beginning 90 
     days from the date of enactment) that neither they nor their 
     subsidiaries have engaged in significant economic 
     transactions with designated IRGC officials, agents or 
     affiliates.
     Sec. 312--Sanctions Determinations on NIOC and NITC
       Amends CISADA to require the Secretary of the Treasury to 
     determine and notify Congress whether the National Iranian 
     Oil Company and the National Iranian Tanker Company are 
     agents or affiliates of the IRGC. If found to be IRGC 
     entities, sanctions apply to

[[Page 7511]]

     transactions or relevant financial services for the purchase 
     of petroleum or petroleum products from the NIOC or NITC only 
     if the President determines that there exists a sufficient 
     supply of petroleum from countries other than Iran to permit 
     purchasers to significantly reduce in volume their purchases 
     from Iran. Provides for an exception to financial 
     institutions of a country that has significantly reduced its 
     purchases of Iranian petroleum or petroleum products within 
     specified periods which track those provided for in section 
     1245 of the FY 2012 National Defense Authorization Act.
     Sec. 401--Sanctions on those Transferring to Iran 
         Technologies for Human Rights Abuses
       Imposes sanctions provided for in CISADA, including a visa 
     ban and property blocking/asset freeze, on persons and firms 
     which supply Iran with equipment and technologies--including 
     weapons, rubber bullets, tear gas and other riot control 
     equipment, and jamming, monitoring and surveillance 
     equipment--which the President determines are likely to be 
     used by Iranian officials to commit human rights abuses. 
     Requires the President to maintain and update lists of such 
     persons who commit human rights abuses, submit updated lists 
     to Congress, and make the unclassified portion of those lists 
     public. Requires the President to report on designations and 
     waivers, as applicable.
     Sec. 402--Sanctions on those Engaging in Censorship and 
         Repression in Iran
       Requires imposition of sanctions as in section 401 against 
     individuals and firms found to have engaged in censorship or 
     curtailment of the rights of freedom of expression or 
     assembly of Iran's citizens.
     Sec. 411--Expedited Processing of Human Rights, Humanitarian, 
         and Democracy Aid
       Requires the Office of Foreign Assets Control (OFAC) of the 
     Treasury Department to establish a 90-day process to expedite 
     processing of US Iran-related humanitarian, human rights and 
     democratization aid by entities receiving funds from the 
     State Department; the Broadcasting Board of Governors; and 
     other federal agencies. Requires the State Department to 
     conduct a foreign policy review within 30 days of request 
     submission. Provides for additional time for processing of 
     applications involving certain specified sensitive goods and 
     technology, and requests involving novel or extraordinary 
     circumstances.
     Sec. 412--Comprehensive Strategy to Promote Internet Freedom 
         in Iran
       Requires the Administration to devise a comprehensive 
     strategy and report to Congress on how best to assist Iran's 
     citizens in freely and safely accessing the Internet, 
     developing counter-censorship technologies, expanding access 
     to ``surrogate'' programming including Voice of America's 
     Persian News Network, and Radio FARDA inside Iran, and taking 
     other similar measures.
     Sec. 413--Sense of Congress on Political Prisoners
       Declares that the United States should expand efforts to 
     identify, assist, and protect prisoners of conscience in Iran 
     and intensify work to abolish Iranian human rights 
     violations. Directs the Secretary of State to publicly call 
     for the release of political prisoners, as appropriate.
     Sec. 501--Exclusion of Certain Iranian Students from the US
       Requires the Secretary of State to deny visas and the 
     Secretary of Homeland Security to exclude certain Iranian 
     university students who may seek to come to the U.S. to study 
     to prepare for work in Iran's energy sector or in fields 
     related to its nuclear program, including nuclear sciences or 
     nuclear engineering.
     Sec. 502--Technical Correction
       Reaffirms longstanding US policy allowing the sale of 
     certain licensed agricultural commodities to Iran by amending 
     section 1245(d)2 of the National Defense Authorization Act to 
     allow for continued payments related to such commodities.
     Sec. 503 Interests in Financial Assets of Iran
       Deems blocked assets of Iran seized or frozen in the US, 
     and property interests of Iran in the United States, to 
     include property held in book entry and related indirect 
     forms, property held by securities clearing agencies and 
     other intermediaries, and inchoate interests in funds 
     transfers in the payment process through intermediary banks, 
     regardless of federal or state law that might otherwise 
     apply, if that property is an interest held for the benefit 
     of Iran or if any intermediary holds the interest for the 
     benefit of Iran and the status of the property is relevant to 
     any attachment or proceedings in aid of execution, whenever 
     issued, on judgments against Iran for damages for personal 
     injury or death caused by torture, extrajudicial killing, 
     aircraft sabotage, or hostage taking, or material support for 
     such an act. Defines various terms used for purposes of the 
     section, including ``blocked asset,'' ``clearing 
     corporation,'' ``financial asset,'' ``security,'' and 
     ``securities Intermediary.''
     Sec. 504--Report on Membership of Iran in International 
         Organizations
       Requires the Secretary of State to submit a report to 
     Congress listing the international organizations of which 
     Iran is a member and detailing the amount the US contributes 
     to each such organization annually.
     Sec. 601--Technical implementation; penalties
       Provides the President with the necessary procedural tools 
     to administer the provisions of this new law, drawing on 
     relevant provisions of IEEPA, including ensuring that the 
     Administration can require recordkeeping of certain persons, 
     and has subpoena and enforcement authority for certain 
     specified provisions of the bill.
     Sec. 602--Applicability to Authorized Intelligence Activities
       Provides a general exemption for authorized intelligence 
     activities of the U.S.
     Sec. 603--Termination
       Provides for termination of some provisions of the new law 
     if the President certifies as required in CISADA that Iran 
     has ceased its support for terrorism and ceased efforts to 
     pursue, acquire or develop weapons of mass destruction and 
     ballistic missiles and ballistic missile launch technology.
     Sec. 701--Short Title for Title VII
       The ``Syria Human Rights Accountability Act of 2012.''
     Sec. 702--Sanctions on Those Responsible for Human Rights 
         Abuses of Syria's Citizens
       Requires the President to identify within 90 days, and 
     sanction under IEEPA, officials of the Syrian government or 
     those acting on their behalf who are complicit in or 
     responsible for the commission of serious human rights abuses 
     against Syria's citizens, regardless of whether the abuses 
     occurred in Syria.
     Sec. 703--Sanctions on those Transferring to Syria 
         Technologies for Human Rights Abuses
       Requires the President to identify and sanction persons 
     determined to have engaged in the transfer of technologies--
     including weapons, rubber bullets, tear gas and other riot 
     control equipment, and jamming, monitoring and surveillance 
     equipment--which the President determines are likely to be 
     used by Syrian officials to commit human rights abuses or 
     restrict the free flow of information in Syria. Provides for 
     exceptions where a person has agreed to stop providing such 
     technologies, and agreed not to knowingly provide such 
     technologies in the future. Requires the President to report 
     on designations and waivers, where applicable, and to update 
     the list periodically.
     Sec. 704--Sanctions on those Engaging in Censorship and 
         Repression in Syria
       Requires the President to identify and report to Congress 
     within 90 days of enactment those persons and firms found to 
     have engaged in censorship or repression of the rights of 
     freedom of expression or assembly of Syria's citizens, and 
     impose sanctions under IEEPA on such persons. Requires 
     periodic updating of the list, and public access via the 
     websites of the Departments of State and Treasury.
     Sec. 705--Waiver
       Provides for Presidential national security interest waiver 
     for Syria provisions; requires a report to Congress on the 
     reasons for the waiver.
     Sec. 706--Termination
       Provides for termination of the Syria provisions if the 
     President certifies that the Government of Syria is 
     democratically elected and representative of the people of 
     Syria, or a legitimate transitional government of Syria is in 
     place. Certification required must stipulate that the 
     government of Syria has released political prisoners, ceased 
     the abuse of citizens engaged in peaceful political activity, 
     ceased the practice of procuring sensitive technology to 
     restrict the free expression rights of its citizens, ended 
     support for terrorist organizations, ceased development of 
     missile programs, is not engaged in the development or 
     acquisition of biological, chemical or nuclear weapons, and 
     agreed to allow the UN and international observers to verify 
     such claims. Provides for suspension of sanctions for 1 year 
     if a transitional government is in place, to provide time to 
     develop the more detailed certification above.

  I yield the floor.
  The PRESIDING OFFICER. The Senator from New Jersey.
  Mr. MENENDEZ. Madam President, first let me thank the majority leader 
for his doggedness in making sure we could come to an agreement that 
sends a clear message to Iran before the P5+1 talks take place this 
week. His commitment made the difference.
  I would also like to thank the chairman of the Banking Committee, 
Senator Johnson of South Dakota, who, in an agenda that is incredibly 
full with all of the challenges the Banking Committee is taking up, 
made sure the whole effort on Iran sanctions had a priority in the 
committee and worked to get the strong, bipartisan, unanimous vote that 
came out of the committee that gives us the foundation to move forward 
today. So I thank both of them.

[[Page 7512]]

  Today the Senate sends a clear message to Iran as it prepares for the 
P5+1 talks in Baghdad, and basically that message is: provide a real 
and verifiable plan for completely dismantling your nuclear weapons 
program or Washington will further tighten the economic noose. The 
Obama administration is moving forward with full implementation of the 
Menendez-Kirk Central Bank sanctions, and the U.S. Congress is ready 
with additional measures, such as sanctions on the National Iranian Oil 
Company and Iranian energy joint ventures that will further isolate the 
regime.
  I think Iran's Supreme Leader has a choice: Either come to Baghdad 
with a real plan to terminate Iran's nuclear program or we will make 
our own plan through sanctions and other necessary measures to ensure 
that Iran fails to achieve its nuclear ambitions.
  And lest anyone think this is necessary, Madam President, as 
negotiators head to Baghdad this week for the P5+1 talks, this bill is 
another tool that will demonstrate to Iran that the United States is 
not backing down and that buying time and just thinking that you can go 
and talk without substantive, meaningful concessions here is just not 
going to work.
  In case anyone has doubts as to the need for this legislation, the 
record is pretty clear. In recent weeks the International Atomic Energy 
Administration has been subject to Iranian delays and deception over 
access to the Parchin facility--a facility they claim has no connection 
to their nuclear program but which scientists believe may contain a 
blast chamber used to test explosives that can trigger a nuclear blast.
  Combine that information with Iran's continued enrichment of uranium 
to 20 percent, development of new enrichment facilities, conducting of 
high explosives testing and detonator development to set off a nuclear 
charge, computer modeling of a core of a nuclear warhead, and the 
August 2011 IAEA inspection that revealed 43.5 pounds of a component 
used to arm nuclear warheads was unaccounted for in Iran, and that Iran 
is working on an indigenous design for a nuclear payload small enough 
to fit on Iran's long-range Shahab-3 missile, a missile capable of 
reaching Israel, capable of reaching some of our allies in Europe which 
we are committed to NATO to defend, there is a pretty clear picture of 
why this is in the national interest and security of the United States 
and what is going on in Iran.
  The bill is intended to give Iran a pretty clear picture in return of 
what America's response to their posture would be. This includes 
sanctions on the national Iranian oil and tanker companies to terminate 
a work-around to the Central Bank sanctions; sanctions on satellite 
companies that provide satellite services to the Iranian regime but 
fail to prevent jamming by Iran of transmissions by other users of the 
same satellite service company; sanctions on financial messaging 
service companies that provide services to sanctioned Iranian financial 
institutions; imposition of liability on parent companies for actions 
of foreign subsidiaries; and sanctions on energy joint ventures with 
Iran related to the development of petroleum resources. Those are just 
some.
  This is perfecting legislation to CISADA and I am so thrilled we are 
seeing it today.
  Finally, I wish to also comment on one particular section of the bill 
to ensure there is no ambiguity about its intent. Section 503, as 
revised in the managers' amendment, preempts any conflicting Federal or 
State law, but only as they pertain to the eligibility for attachment 
and execution of certain blocked assets of the state of Iran, 
identified in the section, for judgments against Iran for the execution 
of terrorist acts, including the marine corps barracks bombing in 
Lebanon in 1983, which killed 241 U.S. servicemen, and the Khobar 
Towers bombing in Saudi Arabia in 1996 which killed 19 U.S. servicemen. 
Nothing in this legislation alters any other applicable law.
  As someone who authored these provisions, I wanted to be sure that 
there was understanding on the record that Iran, in addition to 
stopping its nuclear weapons program, which is in the national interest 
and security of the United States, should not be able to avoid having 
its assets attached and pursued and executed upon as they killed 
Americans and having been part of killing Americans abroad.
  With that, I yield the floor.
  The PRESIDING OFFICER. The Senator from New York.


                           Order of Procedure

  Mr. SCHUMER. Madam President, I ask unanimous consent to speak for 2 
minutes; immediately thereafter, the Senator from Ohio, Senator Brown, 
be permitted to speak for 5 minutes; and then the Senator from Kansas, 
Senator Moran, be permitted to speak for 5 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. SCHUMER. I will be brief. First, I wish to thank our chairman, 
Senator Johnson of South Dakota, for being so steadfast in bringing 
this bill to the floor. He worked in tandem with Senator Shelby, whom I 
thank as well. Senator Menendez has been a true leader on these issues 
and has been the lead sponsor of many of the pieces of legislation to 
tighten the economic noose on Iran. I wish to thank my friend and 
colleague Senator Graham from South Carolina as well for being so 
instructive on this issue.
  We have had a lot of divisions between Democrats and Republicans, but 
on the issue of making sure that Iran does not have a nuclear weapon, 
we are united. The threat, the specter of an Iranian nuclear weapon, 
will continue to bring Democrats and Republicans together. I hope the 
Iranian Government recognizes that, because we are going to continue to 
tighten and tighten and tighten restrictions so that Iran realizes that 
not just the United States but just about all of the civilized world is 
against her gaining a nuclear weapon. The Iranians can't talk about why 
they shouldn't have it when everyone else does. With the kind of saber 
rattling and verbiage that comes out of that regime about what they 
might do to Israel or other countries, it shows they are not a mature 
enough nation to be possessing this God-awful power.
  The point I wish to make here tonight is this is another step 
forward. We are further tightening the sanctions. We will continue to 
tighten them so that the answer for Iran, if they persist with moving 
forward on producing a nuclear weapon, is economic chaos for the 
Iranian leadership and, unfortunately, for many of the Iranian people.
  Let Iran beware. This is just another step. We will not stop. We are 
united as two parties, we are united as a Nation, and we are united as 
a family of nations to make sure we do everything we can to prevent 
Iran from becoming a nuclear power. That would represent a disaster to 
the nations of the world, and one we cannot tolerate.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Ohio.
  Mr. BROWN of Ohio. Madam President, I wish to reiterate and 
underscore the words of my colleague, the senior Senator from New York, 
about how important the tightening of the Iran sanctions are to Israel, 
to the United States of America, and to the stability of the world. 
Allowing nuclear weapons in the hands of a country as unstable as Iran 
and which is hostile to so many of our values and which is hostile to 
most people in the world--not just the United States, not just Israel, 
not just the democratic world--how problematic this is for the entire 
world. That is why I am pleased with the work Chairman Johnson did, 
along with Ranking Member Shelby, Senator Menendez, Senator Graham, and 
others, so that this continues to send an important message to Iran 
that we will continue to increasingly tighten sanctions threatening to 
Iran and the stability of its economy, and helping Iran to understand 
that this will create difficulties for that regime in having any 
support of its people with the economic consequences that could happen 
as we tighten sanctions.
  As Senator McCain said, we will take nothing off the table. We want a 
diplomatic solution with these sanctions. We want Iran to recognize it 
is in their interests not to have nuclear weapons.

[[Page 7513]]

That is the best thing for all of us, but, again, taking nothing off 
the table.

                          ____________________