    [United States Statutes at Large, Volume 124, 111th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 111-195
    111th Congress

    An Act

    To amend the Iran Sanctions Act of 1996 to enhance United States
    diplomatic efforts with respect to Iran by expanding economic sanctions
    against Iran. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <>
    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <>  Short Title.--This Act may be cited
    as the ``Comprehensive Iran Sanctions, Accountability, and Divestment
    Act of 2010''.

    (b) Table of Contents.--The table of contents for this Act is as
    follows:

    Sec. 1. Short title; table of contents.
    Sec. 2. Findings.
    Sec. 3. Sense of Congress regarding the need to impose additional
    sanctions with respect to Iran.

    TITLE I--SANCTIONS

    Sec. 101. Definitions.
    Sec. 102. Expansion of sanctions under the Iran Sanctions Act of 1996.
    Sec. 103. Economic sanctions relating to Iran.
    Sec. 104. Mandatory sanctions with respect to financial institutions
    that engage in certain transactions.
    Sec. 105. Imposition of sanctions on certain persons who are responsible
    for or complicit in human rights abuses committed against
    citizens of Iran or their family members after the June 12,
    2009, elections in Iran.
    Sec. 106. Prohibition on procurement contracts with persons that export
    sensitive technology to Iran.
    Sec. 107. Harmonization of criminal penalties for violations of
    sanctions.
    Sec. 108. Authority to implement United Nations Security Council
    resolutions imposing sanctions with respect to Iran.
    Sec. 109. Increased capacity for efforts to combat unlawful or terrorist
    financing.
    Sec. 110. Reports on investments in the energy sector of Iran.
    Sec. 111. Reports on certain activities of foreign export credit
    agencies and of the Export-Import Bank of the United States.
    Sec. 112. Sense of Congress regarding Iran's Revolutionary Guard Corps
    and its affiliates.
    Sec. 113. Sense of Congress regarding Iran and Hezbollah.
    Sec. 114. Sense of Congress regarding the imposition of multilateral
    sanctions with respect to Iran.
    Sec. 115. Report on providing compensation for victims of international
    terrorism.

    TITLE II--DIVESTMENT FROM CERTAIN COMPANIES THAT INVEST IN IRAN

    Sec. 201. Definitions.
    Sec. 202. Authority of State and local governments to divest from
    certain companies that invest in Iran.
    Sec. 203. Safe harbor for changes of investment policies by asset
    managers.
    Sec. 204. Sense of Congress regarding certain ERISA plan investments.
    Sec. 205. Technical corrections to Sudan Accountability and Divestment
    Act of 2007.

    TITLE III--PREVENTION OF DIVERSION OF CERTAIN GOODS, SERVICES, AND
    TECHNOLOGIES TO IRAN

    Sec. 301. Definitions.

    [[Page 1313]]

    Sec. 302. Identification of countries of concern with respect to the
    diversion of certain goods, services, and technologies to or
    through Iran.
    Sec. 303. Destinations of Diversion Concern.
    Sec. 304. Report on expanding diversion concern system to address the
    diversion of United States origin goods, services, and
    technologies to certain countries other than Iran.
    Sec. 305. Enforcement authority.

    TITLE IV--GENERAL PROVISIONS

    Sec. 401. General provisions.
    Sec. 402. Determination of budgetary effects.

    SEC. 2. <>  FINDINGS.

    Congress makes the following findings:
    (1) The illicit nuclear activities of the Government of
    Iran, combined with its development of unconventional weapons
    and ballistic missiles and its support for international
    terrorism, represent a threat to the security of the United
    States, its strong ally Israel, and other allies of the United
    States around the world.
    (2) The United States and other responsible countries have a
    vital interest in working together to prevent the Government of
    Iran from acquiring a nuclear weapons capability.
    (3) The International Atomic Energy Agency has repeatedly
    called attention to Iran's illicit nuclear activities and, as a
    result, the United Nations Security Council has adopted a range
    of sanctions designed to encourage the Government of Iran to
    suspend those activities and comply with its obligations under
    the Treaty on the Non-Proliferation of Nuclear Weapons, done at
    Washington, London, and Moscow July 1, 1968, and entered into
    force March 5, 1970 (commonly known as the ``Nuclear Non-
    Proliferation Treaty'').
    (4) The serious and urgent nature of the threat from Iran
    demands that the United States work together with its allies to
    do everything possible--diplomatically, politically, and
    economically--to prevent Iran from acquiring a nuclear weapons
    capability.
    (5) The United States and its major European allies,
    including the United Kingdom, France, and Germany, have
    advocated that sanctions be strengthened should international
    diplomatic efforts fail to achieve verifiable suspension of
    Iran's uranium enrichment program and an end to its nuclear
    weapons program and other illicit nuclear activities.
    (6) The Government of Iran continues to engage in serious,
    systematic, and ongoing violations of human rights, including
    suppression of freedom of expression and religious freedom,
    illegitimately prolonged detention, torture, and executions.
    Such violations have increased in the aftermath of the
    fraudulent presidential election in Iran on June 12, 2009.
    (7) The Government of Iran has been unresponsive to
    President Obama's unprecedented and serious efforts at
    engagement, revealing that the Government of Iran is not
    interested in a diplomatic resolution, as made clear, for
    example, by the following:
    (A) Iran's apparent rejection of the Tehran Research
    Reactor plan, generously offered by the United States
    and its partners, of potentially great benefit to the
    people of Iran, and endorsed by Iran's own negotiators
    in October 2009.

    [[Page 1314]]

    (B) Iran's ongoing clandestine nuclear program, as
    evidenced by its work on the secret uranium enrichment
    facility at Qom, its subsequent refusal to cooperate
    fully with inspectors from the International Atomic
    Energy Agency, and its announcement that it would build
    10 new uranium enrichment facilities.
    (C) Iran's official notification to the
    International Atomic Energy Agency that it would enrich
    uranium to the 20 percent level, followed soon
    thereafter by its providing to that Agency a laboratory
    result showing that Iran had indeed enriched some
    uranium to 19.8 percent.
    (D) A February 18, 2010, report by the International
    Atomic Energy Agency expressing ``concerns about the
    possible existence in Iran of past or current
    undisclosed activities related to the development of a
    nuclear payload for a missile. These alleged activities
    consist of a number of projects and sub-projects,
    covering nuclear and missile related aspects, run by
    military-related organizations.''.
    (E) A May 31, 2010, report by the International
    Atomic Energy Agency expressing continuing strong
    concerns about Iran's lack of cooperation with the
    Agency's verification efforts and Iran's ongoing
    enrichment activities, which are contrary to the
    longstanding demands of the Agency and the United
    Nations Security Council.
    (F) Iran's announcement in April 2010 that it had
    developed a new, faster generation of centrifuges for
    enriching uranium.
    (G) Iran's ongoing arms exports to, and support for,
    terrorists in direct contravention of United Nations
    Security Council resolutions.
    (H) Iran's July 31, 2009, arrest of 3 young citizens
    of the United States on spying charges.
    (8) There is an increasing interest by State governments,
    local governments, educational institutions, and private
    institutions, business firms, and other investors to
    disassociate themselves from companies that conduct business
    activities in the energy sector of Iran, since such business
    activities may directly or indirectly support the efforts of the
    Government of Iran to achieve a nuclear weapons capability.
    (9) Black market proliferation networks continue to flourish
    in the Middle East, allowing countries like Iran to gain access
    to sensitive dual-use technologies.
    (10) Economic sanctions imposed pursuant to the provisions
    of this Act, the Iran Sanctions Act of 1996, as amended by this
    Act, and the International Emergency Economic Powers Act (50
    U.S.C. 1701 et seq.), and other authorities available to the
    United States to impose economic sanctions to prevent Iran from
    developing nuclear weapons, are necessary to protect the
    essential security interests of the United States.
    SEC. 3. SENSE OF CONGRESS REGARDING THE NEED TO IMPOSE ADDITIONAL
    SANCTIONS WITH RESPECT TO IRAN.

    It is the sense of Congress that--
    (1) international diplomatic efforts to address Iran's
    illicit nuclear efforts and support for international terrorism
    are more likely to be effective if strong additional sanctions
    are imposed on the Government of Iran;

    [[Page 1315]]

    (2) the concerns of the United States regarding Iran are
    strictly the result of the actions of the Government of Iran;
    (3) the revelation in September 2009 that Iran is developing
    a secret uranium enrichment site on a base of Iran's
    Revolutionary Guard Corps near Qom, which appears to have no
    civilian application, highlights the urgency that Iran--
    (A) disclose the full nature of its nuclear program,
    including any other secret locations; and
    (B) provide the International Atomic Energy Agency
    unfettered access to its facilities pursuant to Iran's
    legal obligations under the Treaty on the Non-
    Proliferation of Nuclear Weapons, done at Washington,
    London, and Moscow July 1, 1968, and entered into force
    March 5, 1970 (commonly known as the ``Nuclear Non-
    Proliferation Treaty'') and Iran's safeguards agreement
    with the International Atomic Energy Agency;
    (4) because of the involvement of Iran's Revolutionary Guard
    Corps in Iran's nuclear program, international terrorism, and
    domestic human rights abuses, the President should impose the
    full range of applicable sanctions on--
    (A) any individual or entity that is an agent,
    alias, front, instrumentality, representative, official,
    or affiliate of Iran's Revolutionary Guard Corps; and
    (B) any individual or entity that has conducted any
    commercial transaction or financial transaction with an
    individual or entity described in subparagraph (A);
    (5) additional measures should be adopted by the United
    States to prevent the diversion of sensitive dual-use
    technologies to Iran;
    (6) the President should--
    (A) continue to urge the Government of Iran to
    respect the internationally recognized human rights and
    religious freedoms of its citizens;
    (B) identify the officials of the Government of Iran
    and other individuals who are responsible for continuing
    and severe violations of human rights and religious
    freedom in Iran; and
    (C) take appropriate measures to respond to such
    violations, including by--
    (i) prohibiting officials and other
    individuals the President identifies as being
    responsible for such violations from entry into
    the United States; and
    (ii) freezing the assets of the officials and
    other individuals described in clause (i);
    (7) additional funding should be provided to the Secretary
    of State to document, collect, and disseminate information about
    human rights abuses in Iran, including serious abuses that have
    taken place since the presidential election in Iran on June 12,
    2009;
    (8) with respect to nongovernmental organizations based in
    the United States--
    (A) many of such organizations are essential to
    promoting human rights and humanitarian goals around the
    world;
    (B) it is in the national interest of the United
    States to allow responsible nongovernmental
    organizations based in the United States to establish
    and carry out operations

    [[Page 1316]]

    in Iran to promote civil society and foster humanitarian
    goodwill among the people of Iran; and
    (C) the United States should ensure that the
    organizations described in subparagraph (B) are not
    unnecessarily hindered from working in Iran to provide
    humanitarian, human rights, and people-to-people
    assistance, as appropriate, to the people of Iran;
    (9) the United States should not issue a license pursuant to
    an agreement for cooperation (as defined in section 11 b. of the
    Atomic Energy Act of 1954 (42 U.S.C. 2014(b))) for the export of
    nuclear material, facilities, components, or other goods,
    services, or technology that are or would be subject to such an
    agreement to a country that is providing similar nuclear
    material, facilities, components, or other goods, services, or
    technology to another country that is not in full compliance
    with its obligations under the Nuclear Non-Proliferation Treaty,
    including its obligations under the safeguards agreement between
    that country and the International Atomic Energy Agency, unless
    the President determines that the provision of such similar
    nuclear material, facilities, components, or other goods,
    services, or technology to such other country does not undermine
    the nonproliferation policies and objectives of the United
    States; and
    (10) the people of the United States--
    (A) have feelings of friendship for the people of
    Iran;
    (B) regret that developments in recent decades have
    created impediments to that friendship; and
    (C) hold the people of Iran, their culture, and
    their ancient and rich history in the highest esteem.

    TITLE I--SANCTIONS

    SEC. 101. <>  DEFINITIONS.

    In this title:
    (1) Agricultural commodity.--The term ``agricultural
    commodity'' has the meaning given that term in section 102 of
    the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
    (2) Appropriate congressional committees.--The term
    ``appropriate congressional committees'' has the meaning given
    that term in section 14 of the Iran Sanctions Act of 1996
    (Public Law 104-172; 50 U.S.C. 1701 note), as amended by section
    102 of this Act.
    (3) Executive agency.--The term ``executive agency'' has the
    meaning given that term in section 4 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 403).
    (4) Family member.--The term ``family member'' means, with
    respect to an individual, a spouse, child, parent, sibling,
    grandchild, or grandparent of the individual.
    (5) Iranian diplomats and representatives of other
    government and military or quasi-governmental institutions of
    iran.--The term ``Iranian diplomat or representative of another
    government or military or quasi-governmental institution of
    Iran'' means any of the Iranian diplomats and representatives of
    other government and military or quasi-governmental institutions
    of Iran (as that term is defined in

    [[Page 1317]]

    section 14 of the Iran Sanctions Act of 1996 (Public Law 104-
    172; 50 U.S.C. 1701 note)).
    (6) Knowingly.--The term ``knowingly'', with respect to
    conduct, a circumstance, or a result, means that a person has
    actual knowledge, or should have known, of the conduct, the
    circumstance, or the result.
    (7) Medical device.--The term ``medical device'' has the
    meaning given the term ``device'' in section 201 of the Federal
    Food, Drug, and Cosmetic Act (21 U.S.C. 321).
    (8) Medicine.--The term ``medicine'' has the meaning given
    the term ``drug'' in section 201 of the Federal Food, Drug, and
    Cosmetic Act (21 U.S.C. 321).
    (9) State.--The term ``State'' means each of the several
    States, the District of Columbia, the Commonwealth of Puerto
    Rico, the Commonwealth of the Northern Mariana Islands, American
    Samoa, Guam, the United States Virgin Islands, and any other
    territory or possession of the United States.
    (10) United states person.--The term ``United States
    person'' means--
    (A) a natural person who is a citizen or resident of
    the United States or a national of the United States (as
    defined in section 101(a) of the Immigration and
    Nationality Act (8 U.S.C. 1101(a)); and
    (B) an entity that is organized under the laws of
    the United States or any State.
    SEC. 102. <>  EXPANSION OF
    SANCTIONS UNDER THE IRAN SANCTIONS ACT OF
    1996.

    (a) In General.--Section 5 of the Iran Sanctions Act of 1996 (Public
    Law 104-172; 50 U.S.C. 1701 note) is amended--
    (1) by striking subsection (a) and inserting the following:

    ``(a) Sanctions With Respect to the Development of Petroleum
    Resources of Iran, Production of Refined Petroleum Products in Iran, and
    Exportation of Refined Petroleum Products to Iran.--
    ``(1) Development of petroleum resources of iran.--
    ``(A) In general.--Except as provided in subsection
    (f), the President shall impose 3 or more of the
    sanctions described in section 6(a) with respect to a
    person if the President determines that the person
    knowingly, on or after the date of the enactment of the
    Comprehensive Iran Sanctions, Accountability, and
    Divestment Act of 2010--
    ``(i) makes an investment described in
    subparagraph (B) of $20,000,000 or more; or
    ``(ii) makes a combination of investments
    described in subparagraph (B) in a 12-month period
    if each such investment is of at least $5,000,000
    and such investments equal or exceed $20,000,000
    in the aggregate.
    ``(B) Investment described.--An investment described
    in this subparagraph is an investment that directly and
    significantly contributes to the enhancement of Iran's
    ability to develop petroleum resources.
    ``(2) Production of refined petroleum products.--
    ``(A) In general.--Except as provided in subsection
    (f), the President shall impose 3 or more of the
    sanctions described in section 6(a) with respect to a
    person if the President determines that the person
    knowingly, on or

    [[Page 1318]]

    after the date of the enactment of the Comprehensive
    Iran Sanctions, Accountability, and Divestment Act of
    2010, sells, leases, or provides to Iran goods,
    services, technology, information, or support described
    in subparagraph (B)--
    ``(i) any of which has a fair market value of
    $1,000,000 or more; or
    ``(ii) that, during a 12-month period, have an
    aggregate fair market value of $5,000,000 or more.
    ``(B) Goods, services, technology, information, or
    support described.--Goods, services, technology,
    information, or support described in this subparagraph
    are goods, services, technology, information, or support
    that could directly and significantly facilitate the
    maintenance or expansion of Iran's domestic production
    of refined petroleum products, including any direct and
    significant assistance with respect to the construction,
    modernization, or repair of petroleum refineries.
    ``(3) Exportation of refined petroleum products to iran.--
    ``(A) In general.--Except as provided in subsection
    (f), the President shall impose 3 or more of the
    sanctions described in section 6(a) with respect to a
    person if the President determines that the person
    knowingly, on or after the date of the enactment of the
    Comprehensive Iran Sanctions, Accountability, and
    Divestment Act of 2010--
    ``(i) sells or provides to Iran refined
    petroleum products--
    ``(I) that have a fair market value
    of $1,000,000 or more; or
    ``(II) that, during a 12-month
    period, have an aggregate fair market
    value of $5,000,000 or more; or
    ``(ii) sells, leases, or provides to Iran
    goods, services, technology, information, or
    support described in subparagraph (B)--
    ``(I) any of which has a fair market
    value of $1,000,000 or more; or
    ``(II) that, during a 12-month
    period, have an aggregate fair market
    value of $5,000,000 or more.
    ``(B) Goods, services, technology, information, or
    support described.--Goods, services, technology,
    information, or support described in this subparagraph
    are goods, services, technology, information, or support
    that could directly and significantly contribute to the
    enhancement of Iran's ability to import refined
    petroleum products, including--
    ``(i) except as provided in subparagraph (C),
    underwriting or entering into a contract to
    provide insurance or reinsurance for the sale,
    lease, or provision of such goods, services,
    technology, information, or support;
    ``(ii) financing or brokering such sale,
    lease, or provision; or
    ``(iii) providing ships or shipping services
    to deliver refined petroleum products to Iran.
    ``(C) Exception for underwriters and insurance
    providers exercising due diligence.--The President may
    not impose sanctions under this paragraph with respect

    [[Page 1319]]

    to a person that provides underwriting services or
    insurance or reinsurance if the President determines
    that the person has exercised due diligence in
    establishing and enforcing official policies,
    procedures, and controls to ensure that the person does
    not underwrite or enter into a contract to provide
    insurance or reinsurance for the sale, lease, or
    provision of goods, services, technology, information,
    or support described in subparagraph (B).'';
    (2) in subsection (b)--
    (A) by redesignating paragraphs (1) and (2) as
    subparagraphs (A) and (B), respectively, and moving such
    subparagraphs, as so redesignated, 2 ems to the right;
    (B) by striking ``The President shall impose'' and
    inserting the following:
    ``(1) In general.--The President shall impose''; and
    (C) in paragraph (1), as redesignated by
    subparagraph (B) of this paragraph, by striking ``two or
    more'' and all that follows through ``of this Act'' and
    inserting ``3 or more of the sanctions described in
    section 6(a) if the President determines that a person
    has, on or after the date of the enactment of the
    Comprehensive Iran Sanctions, Accountability, and
    Divestment Act of 2010''; and
    (D) by adding at the end the following:
    ``(2) Additional mandatory sanctions relating to transfer of
    nuclear technology.--
    ``(A) In general.--Except as provided in
    subparagraphs (B) and (C), in any case in which a person
    is subject to sanctions under paragraph (1) because of
    an activity described in that paragraph that relates to
    the acquisition or development of nuclear weapons or
    related technology or of missiles or advanced
    conventional weapons that are designed or modified to
    deliver a nuclear weapon, no license may be issued for
    the export, and no approval may be given for the
    transfer or retransfer, directly or indirectly, to the
    country the government of which has primary jurisdiction
    over the person, of any nuclear material, facilities,
    components, or other goods, services, or technology that
    are or would be subject to an agreement for cooperation
    between the United States and that government.
    ``(B) <>  Exception.--The
    sanctions described in subparagraph (A) shall not apply
    with respect to a country the government of which has
    primary jurisdiction over a person that engages in an
    activity described in that subparagraph if the President
    determines and notifies the appropriate congressional
    committees that the government of the country--
    ``(i) does not know or have reason to know
    about the activity; or
    ``(ii) has taken, or is taking, all reasonable
    steps necessary to prevent a recurrence of the
    activity and to penalize the person for the
    activity.
    ``(C) Individual approval.--Notwithstanding
    subparagraph (A), the President may, on a case-by-case
    basis, approve the issuance of a license for the export,
    or approve the transfer or retransfer, of any nuclear
    material, facilities, components, or other goods,
    services, or technology

    [[Page 1320]]

    that are or would be subject to an agreement for
    cooperation, to a person in a country to which
    subparagraph (A) applies (other than a person that is
    subject to the sanctions under paragraph (1)) if the
    President--
    ``(i) determines that such approval is vital
    to the national security interests of the United
    States; and
    ``(ii) <>  not later than 15
    days before issuing such license or approving such
    transfer or retransfer, submits to the Committee
    on Foreign Affairs of the House of Representatives
    and the Committee on Foreign Relations of the
    Senate the justification for approving such
    license, transfer, or retransfer.
    ``(D) <>  Construction.--The
    restrictions in subparagraph (A) shall apply in addition
    to all other applicable procedures, requirements, and
    restrictions contained in the Atomic Energy Act of 1954
    and other related laws.
    ``(E) Definition.--In this paragraph, the term
    `agreement for cooperation' has the meaning given that
    term in section 11 b. of the Atomic Energy Act of 1954
    (42 U.S.C. 2014(b)).
    ``(F) Applicability.--The sanctions under
    subparagraph (A) shall apply only in a case in which a
    person is subject to sanctions under paragraph (1)
    because of an activity described in that paragraph in
    which the person engages on or after the date of the
    enactment of the Comprehensive Iran Sanctions,
    Accountability, and Divestment Act of 2010.'';
    (3) in subsection (c)--
    (A) by striking ``(b)'' each place it appears and
    inserting ``(b)(1)''; and
    (B) by striking paragraph (2) and inserting the
    following:
    ``(2) any person that--
    ``(A) is a successor entity to the person referred
    to in paragraph (1);
    ``(B) owns or controls the person referred to in
    paragraph (1), if the person that owns or controls the
    person referred to in paragraph (1) had actual knowledge
    or should have known that the person referred to in
    paragraph (1) engaged in the activities referred to in
    that paragraph; or
    ``(C) is owned or controlled by, or under common
    ownership or control with, the person referred to in
    paragraph (1), if the person owned or controlled by, or
    under common ownership or control with (as the case may
    be), the person referred to in paragraph (1) knowingly
    engaged in the activities referred to in that
    paragraph.''; and
    (4) in subsection (f)--
    (A) in the matter preceding paragraph (1), by
    striking ``(b)'' and inserting ``(b)(1)''; and
    (B) in paragraph (2), by striking ``section
    301(b)(1) of that Act (19 U.S.C. 2511(b)(1))'' and
    inserting ``section 301(b) of that Act (19 U.S.C.
    2511(b))''.

    (b) Description of Sanctions.--Section 6 of such Act <>  is amended--
    (1) by striking ``The sanctions to be imposed'' and
    inserting the following:

    [[Page 1321]]

    ``(a) In General.--The sanctions to be imposed'';
    (2) in subsection (a), as redesignated by paragraph (1)--
    (A) by redesignating paragraph (6) as paragraph (9);
    and
    (B) by inserting after paragraph (5) the following:
    ``(6) Foreign exchange.--The President may, pursuant to such
    regulations as the President may prescribe, prohibit any
    transactions in foreign exchange that are subject to the
    jurisdiction of the United States and in which the sanctioned
    person has any interest.
    ``(7) Banking transactions.--The President may, pursuant to
    such regulations as the President may prescribe, prohibit any
    transfers of credit or payments between financial institutions
    or by, through, or to any financial institution, to the extent
    that such transfers or payments are subject to the jurisdiction
    of the United States and involve any interest of the sanctioned
    person.
    ``(8) Property transactions.--The President may, pursuant to
    such regulations as the President may prescribe, prohibit any
    person from--
    ``(A) acquiring, holding, withholding, using,
    transferring, withdrawing, transporting, importing, or
    exporting any property that is subject to the
    jurisdiction of the United States and with respect to
    which the sanctioned person has any interest;
    ``(B) dealing in or exercising any right, power, or
    privilege with respect to such property; or
    ``(C) conducting any transaction involving such
    property.''; and
    (3) by adding at the end the following:

    ``(b) Additional Measure Relating to Government Contracts.--
    ``(1) Modification of federal acquisition regulation.--Not
    later <>  than 90 days after the date of the
    enactment of the Comprehensive Iran Sanctions, Accountability,
    and Divestment Act of 2010, the Federal Acquisition Regulation
    issued pursuant to section 25 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 421) shall be revised to
    require a certification from each person that is a prospective
    contractor that the person, and any person owned or controlled
    by the person, does not engage in any activity for which
    sanctions may be imposed under section 5.
    ``(2) Remedies.--
    ``(A) In general.--If the head of an executive
    agency determines that a person has submitted a false
    certification under paragraph (1) on or after the date
    on which the revision of the Federal Acquisition
    Regulation required by this subsection becomes
    effective, the head of that executive agency shall
    terminate a contract with such person or debar or
    suspend such person from eligibility for Federal
    contracts for a period of not more than 3
    years. <>  Any such debarment or
    suspension shall be subject to the procedures that apply
    to debarment and suspension under the Federal
    Acquisition Regulation under subpart 9.4 of part 9 of
    title 48, Code of Federal Regulations.

    [[Page 1322]]

    ``(B) Inclusion on list of parties excluded from
    federal procurement and nonprocurement programs.--The
    Administrator of General Services shall include on the
    List of Parties Excluded from Federal Procurement and
    Nonprocurement Programs maintained by the Administrator
    under part 9 of the Federal Acquisition Regulation
    issued pursuant to section 25 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 421) each person that
    is debarred, suspended, or proposed for debarment or
    suspension by the head of an executive agency on the
    basis of a determination of a false certification under
    subparagraph (A).
    ``(3) Clarification regarding certain products.--The
    remedies set forth in paragraph (2) shall not apply with respect
    to the procurement of eligible products, as defined in section
    308(4) of the Trade Agreements Act of 1974 (19 U.S.C. 2518(4)),
    of any foreign country or instrumentality designated under
    section 301(b) of that Act (19 U.S.C. 2511(b)).
    ``(4) Rule of construction.--This subsection shall not be
    construed to limit the use of other remedies available to the
    head of an executive agency or any other official of the Federal
    Government on the basis of a determination of a false
    certification under paragraph (1).
    ``(5) <>  Waivers.--The President may
    on a case-by-case basis waive the requirement that a person make
    a certification under paragraph (1) if the President determines
    and certifies in writing to the appropriate congressional
    committees, the Committee on Armed Services of the Senate, and
    the Committee on Armed Services of the House of Representatives,
    that it is in the national interest of the United States to do
    so.
    ``(6) Executive agency defined.--In this subsection, the
    term `executive agency' has the meaning given that term in
    section 4 of the Office of Federal Procurement Policy Act (41
    U.S.C. 403).
    ``(7) Applicability.--The revisions to the Federal
    Acquisition Regulation required under paragraph (1) shall apply
    with respect to contracts for which solicitations are issued on
    or after the date that is 90 days after the date of the
    enactment of the Comprehensive Iran Sanctions, Accountability,
    and Divestment Act of 2010.''.

    (c) Presidential Waiver.--Section 9 of such Act <>  is amended--
    (1) in subsection (a), by striking ``5(b)'' each place it
    appears and inserting ``5(b)(1)''; and
    (2) in subsection (c)--
    (A) by striking ``section 5(a) or (b)'' each place
    it appears and inserting ``section 5(a) or 5(b)(1)'';
    (B) in paragraph (1), by striking ``important to the
    national interest'' and inserting ``necessary to the
    national interest''; and
    (C) in paragraph (2), by striking subparagraph (C)
    and inserting the following:
    ``(C) an estimate of the significance of the conduct
    of the person in contributing to the ability of Iran to,
    as the case may be--
    ``(i) develop petroleum resources, produce
    refined petroleum products, or import refined
    petroleum products; or

    [[Page 1323]]

    ``(ii) acquire or develop--
    ``(I) chemical, biological, or
    nuclear weapons or related technologies;
    or
    ``(II) destabilizing numbers and
    types of advanced conventional weapons;
    and''.

    (d) <>  Reports on Global Trade Relating to
    Iran.--Section 10 of such Act is amended by adding at the end the
    following:

    ``(d) Reports on Global Trade Relating to Iran.--Not later than 90
    days after the date of the enactment of the Comprehensive Iran
    Sanctions, Accountability, and Divestment Act of 2010, and annually
    thereafter, the President shall submit to the appropriate congressional
    committees a report, with respect to the most recent 12-month period for
    which data are available, on the dollar value amount of trade, including
    in the energy sector, between Iran and each country maintaining
    membership in the Group of 20 Finance Ministers and Central Bank
    Governors.''.
    (e) Extension of Iran Sanctions Act of 1996.--Section 13(b) of such
    Act <>  is amended by striking ``December 31,
    2011'' and inserting ``December 31, 2016''.

    (f) Clarification and Expansion of Definitions.--Section 14 of such
    Act <>  is amended--
    (1) in paragraph (2), by striking ``the Committee on Banking
    and Financial Services, and the Committee on International
    Relations'' and inserting ``the Committee on Financial Services,
    and the Committee on Foreign Affairs'';
    (2) in paragraph (9), in the flush text following
    subparagraph (C), by striking ``The term `investment' does not
    include'' and all that follows through ``technology.'';
    (3) by redesignating paragraphs (12), (13), (14), (15), and
    (16) as paragraphs (13), (14), (15), (17), and (18),
    respectively;
    (4) by inserting after paragraph (11) the following:
    ``(12) <>  Knowingly.--The term
    `knowingly', with respect to conduct, a circumstance, or a
    result, means that a person has actual knowledge, or should have
    known, of the conduct, the circumstance, or the result.'';
    (5) in paragraph (14), as redesignated by paragraph (3) of
    this subsection--
    (A) by redesignating subparagraphs (A), (B), and (C)
    as clauses (i), (ii), and (iii), respectively, and
    moving such clauses, as so redesignated, 2 ems to the
    right;
    (B) by striking ``The term `person' means--'' and
    inserting the following:
    ``(A) In general.--The term `person' means--'';
    (C) in subparagraph (A), as redesignated by this
    paragraph--
    (i) in clause (ii), by inserting ``financial
    institution, insurer, underwriter, guarantor, and
    any other business organization,'' after
    ``trust,''; and
    (ii) in clause (iii), by striking
    ``subparagraph (B)'' and inserting ``clause
    (ii)''; and
    (D) by adding at the end the following:
    ``(B) Application to governmental entities.--The
    term `person' does not include a government or
    governmental entity that is not operating as a business
    enterprise.'';
    (6) in paragraph (15), as redesignated by paragraph (3) of
    this subsection, by striking ``petroleum and natural gas

    [[Page 1324]]

    resources'' and inserting ``petroleum, refined petroleum
    products, oil or liquefied natural gas, natural gas resources,
    oil or liquefied natural gas tankers, and products used to
    construct or maintain pipelines used to transport oil or
    liquefied natural gas''; and
    (7) by inserting after paragraph (15), as so redesignated,
    the following:
    ``(16) <>  Refined petroleum products.--
    The term `refined petroleum products' means diesel, gasoline,
    jet fuel (including naphtha-type and kerosene-type jet fuel),
    and aviation gasoline.''.

    (g) Waiver for Certain Persons in Certain Countries; Mandatory
    Investigations and Reporting; Conforming Amendments.--Section 4 of such
    Act <>  is amended--
    (1) in subsection (b)(2), by striking ``(in addition to that
    provided in subsection (d))'';
    (2) in subsection (c)--
    (A) in paragraph (1)--
    (i) by striking ``The President may'' and
    inserting the following:
    ``(A) General waiver.--The President may''; and
    (ii) by adding at the end the following:
    ``(B) Waiver with respect to persons in countries
    that cooperate in multilateral efforts with respect to
    iran.--The President may, on a case by case basis, waive
    for a period of not more than 12 months the application
    of section 5(a) with respect to a person if the
    President, at least 30 days before the waiver is to take
    effect--
    ``(i) <>  certifies to
    the appropriate congressional committees that--
    ``(I) the government with primary
    jurisdiction over the person is closely
    cooperating with the United States in
    multilateral efforts to prevent Iran
    from--
    ``(aa) acquiring or
    developing chemical, biological,
    or nuclear weapons or related
    technologies; or
    ``(bb) acquiring or
    developing destabilizing numbers
    and types of advanced
    conventional weapons; and
    ``(II) such a waiver is vital to the
    national security interests of the
    United States; and
    ``(ii) submits to the appropriate
    congressional committees a report identifying--
    ``(I) the person with respect to
    which the President waives the
    application of sanctions; and
    ``(II) the actions taken by the
    government described in clause (i)(I) to
    cooperate in multilateral efforts
    described in that clause.''; and
    (B) by striking paragraph (2) and inserting the
    following:
    ``(2) Subsequent renewal of waiver.--At the conclusion of
    the period of a waiver under subparagraph (A) or (B) of
    paragraph (1), the President may renew the waiver--
    ``(A) if the President determines, in accordance
    with subparagraph (A) or (B) of that paragraph (as the
    case may be), that the waiver is appropriate; and

    [[Page 1325]]

    ``(B)(i) in the case of a waiver under subparagraph
    (A) of paragraph (1), for subsequent periods of not more
    than six months each; and
    ``(ii) in the case of a waiver under subparagraph
    (B) of paragraph (1), for subsequent periods of not more
    than 12 months each.'';
    (3) by striking subsection (d);
    (4) by redesignating subsections (e) and (f) as subsections
    (d) and (e), respectively; and
    (5) in subsection (e), as redesignated by paragraph (4) of
    this subsection--
    (A) in paragraph (1)--
    (i) by striking ``should initiate'' and
    inserting ``shall initiate''; and
    (ii) by striking ``investment activity in Iran
    as'' and inserting ``an activity'';
    (B) in paragraph (2)--
    (i) by striking ``should determine'' and
    inserting ``shall (unless paragraph (3) applies)
    determine''; and
    (ii) by striking ``investment activity in Iran
    as'' and inserting ``an activity''; and
    (C) by adding at the end the following:
    ``(3) <>  Special rule.--The President
    need not initiate an investigation, and may terminate an
    investigation, under this subsection if the President certifies
    in writing to the appropriate congressional committees that--
    ``(A) the person whose activity was the basis for
    the investigation is no longer engaging in the activity
    or has taken significant verifiable steps toward
    stopping the activity; and
    ``(B) the President has received reliable assurances
    that the person will not knowingly engage in an activity
    described in section 5(a) in the future.''.

    (h) <>  Effective Date.--
    (1) In general.--The amendments made by this section shall--
    (A) take effect on the date of the enactment of this
    Act; and
    (B) except as provided in this subsection or section
    6(b)(7) of the Iran Sanctions Act of 1996, as amended by
    subsection (b) of this section, apply with respect to an
    investment or activity described in subsection (a) or
    (b) of section 5 of the Iran Sanctions Act of 1996, as
    amended by this section, that is commenced on or after
    such date of enactment.
    (2) Applicability to ongoing investments prohibited under
    prior law.--A person that makes an investment described in
    section 5(a) of the Iran Sanctions Act of 1996, as in effect on
    the day before the date of the enactment of this Act, that is
    commenced before such date of enactment and continues on or
    after such date of enactment, shall, except as provided in
    paragraph (4), be subject to the provisions of the Iran
    Sanctions Act of 1996, as in effect on the day before such date
    of enactment.
    (3) Applicability to ongoing activities relating to
    chemical, biological, or nuclear weapons or related

    [[Page 1326]]

    technologies.--A person that, before the date of the enactment
    of this Act, commenced an activity described in section 5(b) of
    the Iran Sanctions Act of 1996, as in effect on the day before
    such date of enactment, and continues the activity on or after
    such date of enactment, shall be subject to the provisions of
    the Iran Sanctions Act of 1996, as amended by this Act.
    (4) Applicability of mandatory investigations to
    investments.--The amendments made by subsection (g)(5) of this
    section shall apply on and after the date of the enactment of
    this Act--
    (A) with respect to an investment described in
    section 5(a)(1) of the Iran Sanctions Act of 1996, as
    amended by subsection (a) of this section, that is
    commenced on or after such date of enactment; and
    (B) with respect to an investment described in
    section 5(a) of the Iran Sanctions Act of 1996, as in
    effect on the day before the date of the enactment of
    this Act, that is commenced before such date of
    enactment and continues on or after such date of
    enactment.
    (5) Applicability of mandatory investigations to activities
    relating to petroleum.--
    (A) In general.--Except as provided in subparagraph
    (B), the amendments made by subsection (g)(5) of this
    section shall apply on and after the date that is 1 year
    after the date of the enactment of this Act with respect
    to an activity described in paragraph (2) or (3) of
    section 5(a) of the Iran Sanctions Act of 1996, as
    amended by subsection (a) of this section, that is
    commenced on or after the date that is 1 year after the
    date of the enactment of this Act or the date on which
    the President fails to submit a certification that is
    required under subparagraph (B) (whichever is
    applicable).
    (B) Special rule for delay of effective date.--
    (i) Reporting requirement.--Not later than 30
    days before the date that is 1 year after the date
    of the enactment of this Act, the President shall
    submit to the appropriate congressional committees
    a report describing--
    (I) the diplomatic and other efforts
    of the President--
    (aa) to dissuade foreign
    persons from engaging in
    activities described in
    paragraph (2) or (3) of section
    5(a) of the Iran Sanctions Act
    of 1996, as amended by
    subsection (a) of this section;
    and
    (bb) to encourage other
    governments to dissuade persons
    over which those governments
    have jurisdiction from engaging
    in such activities;
    (II) the successes and failures of
    the efforts described in subclause (I);
    and
    (III) each investigation under
    section 4(e) of the Iran Sanctions Act
    of 1996, as amended by subsection (g)(5)
    of this section and as in effect
    pursuant to subparagraph (C) of this
    paragraph, or any other review of an
    activity described in

    [[Page 1327]]

    paragraph (2) or (3) of section 5(a) of
    the Iran Sanctions Act of 1996, as
    amended by subsection (a) of this
    section, that is initiated or ongoing
    during the period beginning on the date
    of the enactment of this Act and ending
    on the date on which the President is
    required to submit the report.
    (ii) <>  Certification.--
    If the President submits to the appropriate
    congressional committees, with the report required
    by clause (i), a certification that there was a
    substantial reduction in activities described in
    paragraphs (2) and (3) of section 5(a) of the Iran
    Sanctions Act of 1996, as amended by subsection
    (a) of this section, during the period described
    in clause (i)(III), the effective date provided
    for in subparagraph (A) shall be delayed for a
    180-day period beginning after the date provided
    for in that subparagraph.
    (iii) <>  Subsequent
    reports and delays.--The effective date provided
    for in subparagraph (A) shall be delayed for
    additional 180-day periods occurring after the end
    of the 180-day period provided for under clause
    (ii), if, not later than 30 days before the 180-
    day period preceding such additional 180-day
    period expires, the President submits to the
    appropriate congressional committees--
    (I) a report containing the matters
    required in the report under clause (i)
    for the period beginning on the date on
    which the preceding report was required
    to be submitted under clause (i) or this
    clause (as the case may be) and ending
    on the date on which the President is
    required to submit the most recent
    report under this clause; and
    (II) a certification that, during
    the period described in subclause (I),
    there was (as compared to the period for
    which the preceding report was submitted
    under this subparagraph) a progressive
    reduction in activities described in
    paragraphs (2) and (3) of section 5(a)
    of the Iran Sanctions Act of 1996, as
    amended by subsection (a) of this
    section.
    (iv) Consequence of failure to certify.--If
    the President does not make a certification at a
    time required by this subparagraph--
    (I) the amendments made by
    subsection (g)(5) of this section shall
    apply on and after the date on which the
    certification was required to be
    submitted by this subparagraph, with
    respect to an activity described in
    paragraph (2) or (3) of section 5(a) of
    the Iran Sanctions Act of 1996, as
    amended by subsection (a) of this
    section, that--
    (aa) is referenced in the
    most recent report required to
    be submitted under this
    subparagraph; or
    (bb) is commenced on or
    after the date on which such
    most recent report is required
    to be submitted; and

    [[Page 1328]]

    (II) not later than 45 days after
    the date on which the certification was
    required to be submitted by this
    subparagraph, the President shall make a
    determination under paragraph (2) or (3)
    of section 5(a) of the Iran Sanctions
    Act of 1996 (as the case may be), as
    amended by subsection (a) of this
    section, with respect to relevant
    activities described in subclause
    (I)(aa).
    (C) <>  Applicability of
    permissive investigations.--During the 1-year period
    beginning on the date of the enactment of this Act and
    during any 180-day period during which the effective
    date provided for in subparagraph (A) is delayed
    pursuant to subparagraph (B), section 4(e) of the Iran
    Sanctions Act of 1996, as amended by subsection (g)(5)
    of this section, shall be applied, with respect to an
    activity described in paragraph (2) or (3) of section
    5(a) of the Iran Sanctions Act of 1996, as amended by
    subsection (a) of this section, by substituting
    ``should'' for ``shall'' each place it appears.
    (6) Waiver authority.--The amendments made by subsection (c)
    shall not be construed to affect any exercise of the authority
    under section 9(c) of the Iran Sanctions Act of 1996, as in
    effect on the day before the date of the enactment of this Act.
    SEC. 103. <>  ECONOMIC SANCTIONS RELATING TO
    IRAN.

    (a) <>  In General.--
    Notwithstanding section 101 of the Iran Freedom Support Act (Public Law
    109-293; 120 Stat. 1344), and in addition to any other sanction in
    effect, beginning on the date that is 90 days after the date of the
    enactment of this Act, the economic sanctions described in subsection
    (b) shall apply with respect to Iran.

    (b) Sanctions.--The sanctions described in this subsection are the
    following:
    (1) Prohibition on imports.--
    (A) In general.--Except as provided in subparagraph
    (B), no good or service of Iranian origin may be
    imported directly or indirectly into the United States.
    (B) Exceptions.--The exceptions provided for in
    section 203(b) of the International Emergency Economic
    Powers Act (50 U.S.C. 1702(b)), including the exception
    for information and informational materials, shall apply
    to the prohibition in subparagraph (A) of this paragraph
    to the same extent that such exceptions apply to the
    authority provided under section 203(a) of that Act.
    (2) Prohibition on exports.--
    (A) In general.--Except as provided in subparagraph
    (B), no good, service, or technology of United States
    origin may be exported to Iran from the United States or
    by a United States person, wherever located.
    (B) Exceptions.--
    (i) Personal communications; articles to
    relieve human suffering; information and
    informational materials; transactions incident to
    travel. <> --The exceptions
    provided for in section 203(b) of the
    International Emergency Economic Powers Act (50
    U.S.C. 1702(b)), including the exception for

    [[Page 1329]]

    information and informational materials, shall
    apply to the prohibition in subparagraph (A) of
    this paragraph to the same extent that such
    exceptions apply to the authority provided under
    section 203(a) of that Act.
    (ii) Food; medicine; humanitarian
    assistance.--The prohibition in subparagraph (A)
    shall not apply to the exportation of--
    (I) agricultural commodities, food,
    medicine, or medical devices; or
    (II) articles exported to Iran to
    provide humanitarian assistance to the
    people of Iran.
    (iii) Internet communications.--The
    prohibition in subparagraph (A) shall not apply to
    the exportation of--
    (I) services incident to the
    exchange of personal communications over
    the Internet or software necessary to
    enable such services, as provided for in
    section 560.540 of title 31, Code of
    Federal Regulations (or any
    corresponding similar regulation or
    ruling);
    (II) hardware necessary to enable
    such services; or
    (III) hardware, software, or
    technology necessary for access to the
    Internet.
    (iv)  Goods, services, or technologies
    necessary to ensure the safe operation of
    commercial aircraft.--The prohibition in
    subparagraph (A) shall not apply to the
    exportation of goods, services, or technologies
    necessary to ensure the safe operation of
    commercial aircraft produced in the United States
    or commercial aircraft into which aircraft
    components produced in the United States are
    incorporated, if the exportation of such goods,
    services, or technologies is approved by the
    Secretary of the Treasury, in consultation with
    the Secretary of Commerce, pursuant to regulations
    issued by the Secretary of the Treasury regarding
    the exportation of such goods, services, or
    technologies, if appropriate.
    (v) Goods, services, or technologies exported
    to support international organizations.--The
    prohibition in subparagraph (A) shall not apply to
    the exportation of goods, services, or
    technologies that--
    (I) are provided to the
    International Atomic Energy Agency and
    are necessary to support activities of
    that Agency in Iran; or
    (II) are necessary to support
    activities, including the activities of
    nongovernmental organizations, relating
    to promoting democracy in Iran.
    (vi) <>
    Exports in the national interest.--The prohibition
    in subparagraph (A) shall not apply to the
    exportation of goods, services, or technologies if
    the President determines the exportation of such
    goods, services, or technologies to be in the
    national interest of the United States.
    (3) <>  Freezing assets.--

    [[Page 1330]]

    (A) In general.--At such time as the President
    determines that a person in Iran, including an Iranian
    diplomat or representative of another government or
    military or quasi-governmental institution of Iran
    (including Iran's Revolutionary Guard Corps and its
    affiliates), satisfies the criteria for designation with
    respect to the imposition of sanctions under the
    authority of the International Emergency Economic Powers
    Act (50 U.S.C. 1701 et seq.), the President shall take
    such action as may be necessary to freeze, as soon as
    possible--
    (i) the funds and other assets belonging to
    that person; and
    (ii) any funds or other assets that person
    transfers, on or after the date on which the
    President determines the person satisfies such
    criteria, to any family member or associate acting
    for or on behalf of the person.
    (B) Reports to the office of foreign assets
    control.--The action described in subparagraph (A)
    includes requiring any United States financial
    institution that holds funds or assets of a person
    described in that subparagraph or funds or assets that
    person transfers to a family member or associate
    described in that subparagraph to report promptly to the
    Office of Foreign Assets Control information regarding
    such funds and assets.
    (C) Reports to congress.--Not later than 14 days
    after a decision is made to freeze the funds or assets
    of any person under subparagraph (A), the President
    shall report the name of the person to the appropriate
    congressional committees. Such a report may contain a
    classified annex.
    (D) Termination.--The President shall release assets
    or funds frozen under subparagraph (A) if the person to
    which the assets or funds belong or the person that
    transfers the assets or funds as described in
    subparagraph (A)(ii) (as the case may be) no longer
    satisfies the criteria for designation with respect to
    the imposition of sanctions under the authority of the
    International Emergency Economic Powers Act (50 U.S.C.
    1701 et seq.).
    (E) United states financial institution defined.--In
    this paragraph, the term ``United States financial
    institution'' means a financial institution (as defined
    in section 14 of the Iran Sanctions Act of 1996 (Public
    Law 104-172; 50 U.S.C. 1701 note)) that is a United
    States person.

    (c) <>  Penalties.--The penalties provided for
    in subsections (b) and (c) of section 206 of the International Emergency
    Economic Powers Act (50 U.S.C. 1705) shall apply to a person that
    violates, attempts to violate, conspires to violate, or causes a
    violation of this section or regulations prescribed under this section
    to the same extent that such penalties apply to a person that commits an
    unlawful act described in section 206(a) of that Act.

    (d) Regulatory Authority.--
    (1) In general.--The President shall prescribe regulations
    to carry out this section, which may include regulatory
    exceptions to the sanctions described in subsection (b).
    (2) Applicability of certain regulations.--No exception to
    the prohibition under subsection (b)(1) may be made for

    [[Page 1331]]

    the commercial importation of an Iranian origin good described
    in section 560.534(a) of title 31, Code of Federal Regulations
    (as in effect on the day before the date of the enactment of
    this Act), unless the President--
    (A) prescribes a regulation providing for such an
    exception on or after the date of the enactment of this
    Act; and
    (B) submits to the appropriate congressional
    committees--
    (i) <>  a certification
    in writing that the exception is in the national
    interest of the United States; and
    (ii) <>  a report describing
    the reasons for the exception.
    SEC. 104. <>  MANDATORY SANCTIONS WITH RESPECT
    TO FINANCIAL INSTITUTIONS THAT ENGAGE IN
    CERTAIN TRANSACTIONS.

    (a) Findings.--Congress makes the following findings:
    (1) The Financial Action Task Force is an intergovernmental
    body whose purpose is to develop and promote national and
    international policies to combat money laundering and terrorist
    financing.
    (2) Thirty-three countries, plus the European Commission and
    the Cooperation Council for the Arab States of the Gulf, belong
    to the Financial Action Task Force. The member countries of the
    Financial Action Task Force include the United States, Canada,
    most countries in western Europe, Russia, the People's Republic
    of China, Japan, South Korea, Argentina, and Brazil.
    (3) In 2008 the Financial Action Task Force extended its
    mandate to include addressing ``new and emerging threats such as
    proliferation financing'', meaning the financing of the
    proliferation of weapons of mass destruction, and published
    ``guidance papers'' for members to assist them in implementing
    various United Nations Security Council resolutions dealing with
    weapons of mass destruction, including United Nations Security
    Council Resolutions 1737 (2006) and 1803 (2008), which deal
    specifically with proliferation by Iran.
    (4) The Financial Action Task Force has repeatedly called on
    members--
    (A) to advise financial institutions in their
    jurisdictions to give special attention to business
    relationships and transactions with Iran, including
    Iranian companies and financial institutions;
    (B) to apply effective countermeasures to protect
    their financial sectors from risks relating to money
    laundering and financing of terrorism that emanate from
    Iran;
    (C) to protect against correspondent relationships
    being used by Iran and Iranian companies and financial
    institutions to bypass or evade countermeasures and
    risk-mitigation practices; and
    (D) to take into account risks relating to money
    laundering and financing of terrorism when considering
    requests by Iranian financial institutions to open
    branches and subsidiaries in their jurisdictions.
    (5) At a February 2010 meeting of the Financial Action Task
    Force, the Task Force called on members to apply countermeasures
    ``to protect the international financial system from

    [[Page 1332]]

    the ongoing and substantial money laundering and terrorist
    financing (ML/TF) risks'' emanating from Iran.

    (b) Sense of Congress Regarding the Imposition of Sanctions on the
    Central Bank of Iran.--Congress--
    (1) acknowledges the efforts of the United Nations Security
    Council to impose limitations on transactions involving Iranian
    financial institutions, including the Central Bank of Iran; and
    (2) urges the President, in the strongest terms, to consider
    immediately using the authority of the President to impose
    sanctions on the Central Bank of Iran and any other Iranian
    financial institution engaged in proliferation activities or
    support of terrorist groups.

    (c) Prohibitions and Conditions With Respect to Certain Accounts
    Held by Foreign Financial Institutions.--
    (1) <>  In general.--Not later
    than 90 days after the date of the enactment of this Act, the
    Secretary of the Treasury shall prescribe regulations to
    prohibit, or impose strict conditions on, the opening or
    maintaining in the United States of a correspondent account or a
    payable-through account by a foreign financial institution that
    the Secretary finds knowingly engages in an activity described
    in paragraph (2).
    (2) Activities described.--A foreign financial institution
    engages in an activity described in this paragraph if the
    foreign financial institution--
    (A) facilitates the efforts of the Government of
    Iran (including efforts of Iran's Revolutionary Guard
    Corps or any of its agents or affiliates)--
    (i) to acquire or develop weapons of mass
    destruction or delivery systems for weapons of
    mass destruction; or
    (ii) to provide support for organizations
    designated as foreign terrorist organizations
    under section 219(a) of the Immigration and
    Nationality Act (8 U.S.C. 1189(a)) or support for
    acts of international terrorism (as defined in
    section 14 of the Iran Sanctions Act of 1996
    (Public Law 104-172; 50 U.S.C. 1701 note));
    (B) facilitates the activities of a person subject
    to financial sanctions pursuant to United Nations
    Security Council Resolution 1737 (2006), 1747 (2007),
    1803 (2008), or 1929 (2010), or any other resolution
    that is agreed to by the Security Council and imposes
    sanctions with respect to Iran;
    (C) engages in money laundering to carry out an
    activity described in subparagraph (A) or (B);
    (D) facilitates efforts by the Central Bank of Iran
    or any other Iranian financial institution to carry out
    an activity described in subparagraph (A) or (B); or
    (E) facilitates a significant transaction or
    transactions or provides significant financial services
    for--
    (i) Iran's Revolutionary Guard Corps or any of
    its agents or affiliates whose property or
    interests in property are blocked pursuant to the
    International Emergency Economic Powers Act (50
    U.S.C. 1701 et seq.); or
    (ii) a financial institution whose property or
    interests in property are blocked pursuant to that
    Act in connection with--

    [[Page 1333]]

    (I) Iran's proliferation of weapons
    of mass destruction or delivery systems
    for weapons of mass destruction; or
    (II) Iran's support for
    international terrorism.
    (3) <>  Penalties.--The penalties
    provided for in subsections (b) and (c) of section 206 of the
    International Emergency Economic Powers Act (50 U.S.C. 1705)
    shall apply to a person that violates, attempts to violate,
    conspires to violate, or causes a violation of regulations
    prescribed under paragraph (1) of this subsection to the same
    extent that such penalties apply to a person that commits an
    unlawful act described in section 206(a) of that Act.

    (d) Penalties for Domestic Financial Institutions for Actions of
    Persons Owned or Controlled by Such Financial Institutions.--
    (1) <>  In general.--Not later
    than 90 days after the date of the enactment of this Act, the
    Secretary of the Treasury shall prescribe regulations to
    prohibit any person owned or controlled by a domestic financial
    institution from knowingly engaging in a transaction or
    transactions with or benefitting Iran's Revolutionary Guard
    Corps or any of its agents or affiliates whose property or
    interests in property are blocked pursuant to the International
    Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
    (2) <>  Penalties.--The penalties
    provided for in section 206(b) of the International Emergency
    Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a
    domestic financial institution to the same extent that such
    penalties apply to a person that commits an unlawful act
    described in section 206(a) of that Act if--
    (A) a person owned or controlled by the domestic
    financial institution violates, attempts to violate,
    conspires to violate, or causes a violation of
    regulations prescribed under paragraph (1) of this
    subsection; and
    (B) the domestic financial institution knew or
    should have known that the person violated, attempted to
    violate, conspired to violate, or caused a violation of
    such regulations.

    (e) Requirements for Financial Institutions Maintaining Accounts for
    Foreign Financial Institutions.--
    (1) <>  In general.--The Secretary of
    the Treasury shall prescribe regulations to require a domestic
    financial institution maintaining a correspondent account or
    payable-through account in the United States for a foreign
    financial institution to do one or more of the following:
    (A) Perform an audit of activities described in
    subsection (c)(2) that may be carried out by the foreign
    financial institution.
    (B) Report to the Department of the Treasury with
    respect to transactions or other financial services
    provided with respect to any such activity.
    (C) Certify, to the best of the knowledge of the
    domestic financial institution, that the foreign
    financial institution is not knowingly engaging in any
    such activity.
    (D) Establish due diligence policies, procedures,
    and controls, such as the due diligence policies,
    procedures, and controls described in section 5318(i) of
    title 31, United States Code, reasonably designed to
    detect whether the

    [[Page 1334]]

    Secretary of the Treasury has found the foreign
    financial institution to knowingly engage in any such
    activity.
    (2) <>  Penalties.--The penalties
    provided for in sections 5321(a) and 5322 of title 31, United
    States Code, shall apply to a person that violates a regulation
    prescribed under paragraph (1) of this subsection, in the same
    manner and to the same extent as such penalties would apply to
    any person that is otherwise subject to such section 5321(a) or
    5322.

    (f) <>  Waiver.--The Secretary of the
    Treasury may waive the application of a prohibition or condition imposed
    with respect to a foreign financial institution pursuant to subsection
    (c) or the imposition of a penalty under subsection (d) with respect to
    a domestic financial institution on and after the date that is 30 days
    after the Secretary--
    (1) <>  determines that such a waiver
    is necessary to the national interest of the United States; and
    (2) <>  submits to the appropriate
    congressional committees a report describing the reasons for the
    determination.

    (g) Procedures for Judicial Review of Classified Information.--
    (1) In general.--If a finding under subsection (c)(1), a
    prohibition, condition, or penalty imposed as a result of any
    such finding, or a penalty imposed under subsection (d), is
    based on classified information (as defined in section 1(a) of
    the Classified Information Procedures Act (18 U.S.C. App.)) and
    a court reviews the finding or the imposition of the
    prohibition, condition, or penalty, the Secretary of the
    Treasury may submit such information to the court ex parte and
    in camera.
    (2) Rule of construction.--Nothing in this subsection shall
    be construed to confer or imply any right to judicial review of
    any finding under subsection (c)(1), any prohibition, condition,
    or penalty imposed as a result of any such finding, or any
    penalty imposed under subsection (d).

    (h) Consultations in Implementation of Regulations.--In implementing
    this section and the regulations prescribed under this section, the
    Secretary of the Treasury--
    (1) shall consult with the Secretary of State; and
    (2) may, in the sole discretion of the Secretary of the
    Treasury, consult with such other agencies and departments and
    such other interested parties as the Secretary considers
    appropriate.

    (i) Definitions.--
    (1) In general.--In this section:
    (A) Account; correspondent account; payable-through
    account.--The terms ``account'', ``correspondent
    account'', and ``payable-through account'' have the
    meanings given those terms in section 5318A of title 31,
    United States Code.
    (B) Agent.--The term ``agent'' includes an entity
    established by a person for purposes of conducting
    transactions on behalf of the person in order to conceal
    the identity of the person.
    (C) Financial institution.--The term ``financial
    institution'' means a financial institution specified in
    subparagraph (A), (B), (C), (D), (E), (F), (G), (H),
    (I), (J), (M), or (Y) of section 5312(a)(2) of title 31,
    United States Code.

    [[Page 1335]]

    (D) Foreign financial institution; domestic
    financial institution.--The terms ``foreign financial
    institution'' and ``domestic financial institution''
    shall have the meanings of those terms as determined by
    the Secretary of the Treasury.
    (E) Money laundering.--The term ``money laundering''
    means the movement of illicit cash or cash equivalent
    proceeds into, out of, or through a country, or into,
    out of, or through a financial institution.
    (2) Other definitions.--The Secretary of the Treasury may
    further define the terms used in this section in the regulations
    prescribed under this section.
    SEC. 105. <>  IMPOSITION OF
    SANCTIONS ON CERTAIN PERSONS WHO ARE
    RESPONSIBLE FOR OR COMPLICIT IN HUMAN
    RIGHTS ABUSES COMMITTED AGAINST CITIZENS
    OF IRAN OR THEIR FAMILY MEMBERS AFTER THE
    JUNE 12, 2009, ELECTIONS IN IRAN.

    (a) In General.--The President shall impose sanctions described in
    subsection (c) with respect to each person on the list required by
    subsection (b).
    (b) List of Persons Who Are Responsible for or Complicit in Certain
    Human Rights Abuses.--
    (1) <>  In general.--Not later than 90 days
    after the date of the enactment of this Act, the President shall
    submit to the appropriate congressional committees a list of
    persons who are officials of the Government of Iran or persons
    acting on behalf of that Government (including members of
    paramilitary organizations such as Ansar-e-Hezbollah and Basij-e
    Mostaz'afin), that the President determines, based on credible
    evidence, are responsible for or complicit in, or responsible
    for ordering, controlling, or otherwise directing, the
    commission of serious human rights abuses against citizens of
    Iran or their family members on or after June 12, 2009,
    regardless of whether such abuses occurred in Iran.
    (2) Updates of list.--The President shall submit to the
    appropriate congressional committees an updated list under
    paragraph (1)--
    (A) <>  not later than 270 days
    after the date of the enactment of this Act and every
    180 days thereafter; and
    (B) as new information becomes available.
    (3) Form of report; public availability.--
    (A) Form.--The list required by paragraph (1) shall
    be submitted in unclassified form but may contain a
    classified annex.
    (B) <>  Public availability.--
    The unclassified portion of the list required by
    paragraph (1) shall be made available to the public and
    posted on the websites of the Department of the Treasury
    and the Department of State.
    (4) Consideration of data from other countries and
    nongovernmental organizations.--In preparing the list required
    by paragraph (1), the President shall consider credible data
    already obtained by other countries and nongovernmental
    organizations, including organizations in Iran, that monitor the
    human rights abuses of the Government of Iran.

    (c) Sanctions Described.--The sanctions described in this subsection
    are ineligibility for a visa to enter the United States and

    [[Page 1336]]

    sanctions pursuant to the International Emergency Economic Powers Act
    (50 U.S.C. 1701 et seq.), including blocking of property and
    restrictions or prohibitions on financial transactions and the
    exportation and importation of property, subject to such regulations as
    the President may prescribe, including regulatory exceptions to permit
    the United States to comply with the Agreement between the United
    Nations and the United States of America regarding the Headquarters of
    the United Nations, signed June 26, 1947, and entered into force
    November 21, 1947, and other applicable international obligations.
    (d) <>  Termination of
    Sanctions.--The provisions of this section shall terminate on the date
    on which the President determines and certifies to the appropriate
    congressional committees that the Government of Iran has--
    (1) unconditionally released all political prisoners,
    including the citizens of Iran detained in the aftermath of the
    June 12, 2009, presidential election in Iran;
    (2) ceased its practices of violence, unlawful detention,
    torture, and abuse of citizens of Iran while engaging in
    peaceful political activity;
    (3) conducted a transparent investigation into the killings,
    arrests, and abuse of peaceful political activists that occurred
    in the aftermath of the June 12, 2009, presidential election in
    Iran and prosecuted the individuals responsible for such
    killings, arrests, and abuse; and
    (4) made public commitments to, and is making demonstrable
    progress toward--
    (A) establishing an independent judiciary; and
    (B) respecting the human rights and basic freedoms
    recognized in the Universal Declaration of Human Rights.
    SEC. 106. <>  PROHIBITION ON PROCUREMENT
    CONTRACTS WITH PERSONS THAT EXPORT
    SENSITIVE TECHNOLOGY TO IRAN.

    (a) In General.--Except as provided in subsection (b), and pursuant
    to such regulations as the President may prescribe, the head of an
    executive agency may not enter into or renew a contract, on or after the
    date that is 90 days after the date of the enactment of this Act, for
    the procurement of goods or services with a person that exports
    sensitive technology to Iran.
    (b) <>  Authorization to Exempt Certain
    Products.--The President is authorized to exempt from the prohibition
    under subsection (a) only eligible products, as defined in section
    308(4) of the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)), of any
    foreign country or instrumentality designated under section 301(b) of
    that Act (19 U.S.C. 2511(b)).

    (c) Sensitive Technology Defined.--
    (1) In general.--The term ``sensitive technology'' means
    hardware, software, telecommunications equipment, or any other
    technology, that the President determines is to be used
    specifically--
    (A) to restrict the free flow of unbiased
    information in Iran; or
    (B) to disrupt, monitor, or otherwise restrict
    speech of the people of Iran.
    (2) Exception.--The term ``sensitive technology'' does not
    include information or informational materials the exportation
    of which the President does not have the authority to regulate

    [[Page 1337]]

    or prohibit pursuant to section 203(b)(3) of the International
    Emergency Economic Powers Act (50 U.S.C. 1702(b)(3)).

    (d) Government Accountability Office Report on Effect of Procurement
    Prohibition.--Not later than 1 year after the date of the enactment of
    this Act, the Comptroller General of the United States shall submit to
    the appropriate congressional committees, the Committee on Armed
    Services of the Senate, and the Committee on Armed Services of the House
    of Representatives, a report assessing the extent to which executive
    agencies would have entered into or renewed contracts for the
    procurement of goods or services with persons that export sensitive
    technology to Iran if the prohibition under subsection (a) were not in
    effect.
    SEC. 107. HARMONIZATION OF CRIMINAL PENALTIES FOR VIOLATIONS OF
    SANCTIONS.

    (a) In General.--
    (1) Violations of united nations security council
    resolutions imposing sanctions.--Section 5(b) of the United
    Nations Participation Act of 1945 (22 U.S.C. 287c(b)) is
    amended--
    (A) by striking ``find not more than $10,000'' and
    inserting ``fined not more than $1,000,000''; and
    (B) by striking ``ten years'' and all that follows
    and inserting ``20 years, or both.''.
    (2) Violations of controls on exports and imports of defense
    articles and defense services.--Section 38(c) of the Arms Export
    Control Act (22 U.S.C. 2778(c)) is amended by striking ``ten
    years'' and inserting ``20 years''.
    (3) Violations of prohibition on transactions with countries
    that support acts of international terrorism.--Section 40(j) of
    the Arms Export Control Act (22 U.S.C. 2780(j)) is amended by
    striking ``10 years'' and inserting ``20 years''.
    (4) Violations of the trading with the enemy act.--Section
    16(a) of the Trading with the enemy Act (50 U.S.C. App. 16(a))
    is amended by striking ``if a natural person'' and all that
    follows and inserting ``if a natural person, be imprisoned for
    not more than 20 years, or both.''.

    (b) <>  Study by United States Sentencing
    Commission.--Not later than 1 year after the date of the enactment of
    this Act, the United States Sentencing Commission, pursuant to the
    authority under sections 994 and 995 of title 28, United States Code,
    and the responsibility of the United States Sentencing Commission to
    advise Congress on sentencing policy under section 995(a)(20) of title
    28, United States Code, shall study and submit to Congress a report on
    the impact and advisability of imposing a mandatory minimum sentence for
    violations of--
    (1) section 5(a) of the United Nations Participation Act of
    1945 (22 U.S.C. 287c(a));
    (2) sections 38, 39, and 40 of the Arms Export Control Act
    (22 U.S.C. 2778, 2779, and 2780); and
    (3) the Trading with the enemy Act (50 U.S.C. App. 1 et
    seq.).
    SEC. 108. <>  AUTHORITY TO IMPLEMENT UNITED
    NATIONS SECURITY COUNCIL RESOLUTIONS
    IMPOSING SANCTIONS WITH RESPECT TO IRAN.

    In addition to any other authority of the President with respect to
    implementing resolutions of the United Nations Security Council,

    [[Page 1338]]

    the President may prescribe such regulations as may be necessary to
    implement a resolution that is agreed to by the United Nations Security
    Council and imposes sanctions with respect to Iran.
    SEC. 109. <>  INCREASED CAPACITY FOR EFFORTS
    TO COMBAT UNLAWFUL OR TERRORIST FINANCING.

    (a) Findings.--Congress finds the following:
    (1) The work of the Office of Terrorism and Financial
    Intelligence of the Department of the Treasury, which includes
    the Office of Foreign Assets Control and the Financial Crimes
    Enforcement Network, is critical to ensuring that the
    international financial system is not used for purposes of
    supporting terrorism and developing weapons of mass destruction.
    (2) The Secretary of the Treasury has designated, including
    most recently on June 16, 2010, various Iranian individuals and
    banking, military, energy, and shipping entities as
    proliferators of weapons of mass destruction pursuant to
    Executive Order 13382 (50 U.S.C. 1701 note), thereby blocking
    transactions subject to the jurisdiction of the United States by
    those individuals and entities and their supporters.
    (3) The Secretary of the Treasury has also identified an
    array of entities in the insurance, petroleum, and
    petrochemicals industries that the Secretary has determined to
    be owned or controlled by the Government of Iran and added those
    entities to the list contained in Appendix A to part 560 of
    title 31, Code of Federal Regulations (commonly known as the
    ``Iranian Transactions Regulations''), thereby prohibiting
    transactions between United States persons and those entities.

    (b) Authorization of Appropriations for Office of Terrorism and
    Financial Intelligence.--There are authorized to be appropriated to the
    Secretary of the Treasury for the Office of Terrorism and Financial
    Intelligence--
    (1) $102,613,000 for fiscal year 2011; and
    (2) such sums as may be necessary for each of the fiscal
    years 2012 and 2013.

    (c) Authorization of Appropriations for the Financial Crimes
    Enforcement Network.--Section 310(d)(1) of title 31, United States Code,
    is amended by striking ``such sums as may be necessary for fiscal years
    2002, 2003, 2004, and 2005'' and inserting ``$100,419,000 for fiscal
    year 2011 and such sums as may be necessary for each of the fiscal years
    2012 and 2013''.
    (d) Authorization of Appropriations for Bureau of Industry and
    Security of the Department of Commerce.--There are authorized to be
    appropriated to the Secretary of Commerce for the Bureau of Industry and
    Security of the Department of Commerce--
    (1) $113,000,000 for fiscal year 2011; and
    (2) such sums as may be necessary for each of the fiscal
    years 2012 and 2013.
    SEC. 110. <>  REPORTS ON
    INVESTMENTS IN THE ENERGY SECTOR OF IRAN.

    (a) Initial Report.--
    (1) In general.--Not later than 90 days after the date of
    the enactment of this Act, the President shall submit to the
    appropriate congressional committees a report--

    [[Page 1339]]

    (A) on investments in the energy sector of Iran that
    were made during the period described in paragraph (2);
    and
    (B) that contains--
    (i) an estimate of the volume of energy-
    related resources (other than refined petroleum),
    including ethanol, that Iran imported during the
    period described in paragraph (2); and
    (ii) a list of all significant known energy-
    related joint ventures, investments, and
    partnerships located outside Iran that involve
    Iranian entities in partnership with entities from
    other countries, including an identification of
    the entities from other countries; and
    (iii) an estimate of--
    (I) the total value of each such
    joint venture, investment, and
    partnership; and
    (II) the percentage of each such
    joint venture, investment, and
    partnership owned by an Iranian entity.
    (2) Period described.--The period described in this
    paragraph is the period beginning on January 1, 2006, and ending
    on the date that is 60 days after the date of the enactment of
    this Act.

    (b) <>  Updated Reports.--Not later than 180
    days after submitting the report required by subsection (a), and every
    180 days thereafter, the President shall submit to the appropriate
    congressional committees a report containing the matters required in the
    report under subsection (a)(1) for the 180-day period beginning on the
    date that is 30 days before the date on which the preceding report was
    required to be submitted by this section.
    SEC. 111. <>  REPORTS ON CERTAIN ACTIVITIES OF
    FOREIGN EXPORT CREDIT AGENCIES AND OF THE
    EXPORT-IMPORT BANK OF THE UNITED STATES.

    (a) <>  Report on Certain Activities of Export
    Credit Agencies of Foreign Countries.--
    (1) In general.--Not later than 90 days after the date of
    the enactment of this Act, the President shall submit to the
    appropriate congressional committees a report on any activity of
    an export credit agency of a foreign country that is an activity
    comparable to an activity described in subsection (a) or (b) of
    section 5 of the Iran Sanctions Act of 1996, as amended by
    section 102 of this Act.
    (2) Updates.--The President shall update the report required
    by paragraph (1) as new information becomes available with
    respect to the activities of export credit agencies of foreign
    countries.

    (b) Report on Certain Financing by the Export-Import Bank of the
    United States.--Not later than 30 days (or, in extraordinary
    circumstances, not later than 15 days) before the Export-Import Bank of
    the United States approves cofinancing (including loans, guarantees,
    other credits, insurance, and reinsurance) in which an export credit
    agency of a foreign country identified in the report required by
    subsection (a) will participate, the President shall submit to the
    appropriate congressional committees a report identifying--
    (1) the export credit agency of the foreign country; and

    [[Page 1340]]

    (2) the beneficiaries of the financing.
    SEC. 112. SENSE OF CONGRESS REGARDING IRAN'S REVOLUTIONARY GUARD
    CORPS AND ITS AFFILIATES.

    It is the sense of Congress that the United States should--
    (1) persistently target Iran's Revolutionary Guard Corps and
    its affiliates with economic sanctions for its support for
    terrorism, its role in proliferation, and its oppressive
    activities against the people of Iran;
    (2) identify, as soon as possible--
    (A) any foreign individual or entity that is an
    agent, alias, front, instrumentality, official, or
    affiliate of Iran's Revolutionary Guard Corps;
    (B) any individual or entity that--
    (i) has provided material support to any
    individual or entity described in subparagraph
    (A); or
    (ii) has conducted any financial or commercial
    transaction with any such individual or entity;
    and
    (C) any foreign government that--
    (i) provides material support to any such
    individual or entity; or
    (ii) conducts any commercial transaction or
    financial transaction with any such individual or
    entity; and
    (3) immediately impose sanctions, including travel
    restrictions, sanctions authorized pursuant to this Act or the
    Iran Sanctions Act of 1996, as amended by section 102 of this
    Act, and the full range of sanctions available to the President
    under the International Emergency Economic Powers Act (50 U.S.C.
    1701 et seq.), on the individuals, entities, and governments
    described in paragraph (2).
    SEC. 113. SENSE OF CONGRESS REGARDING IRAN AND HEZBOLLAH.

    It is the sense of Congress that the United States should--
    (1) continue to counter support received by Hezbollah from
    the Government of Iran and other foreign governments in response
    to Hezbollah's terrorist activities and the threat Hezbollah
    poses to Israel, the democratic sovereignty of Lebanon, and the
    national security interests of the United States;
    (2) impose the full range of sanctions available to the
    President under the International Emergency Economic Powers Act
    (50 U.S.C. 1701 et seq.) on Hezbollah, affiliates and supporters
    of Hezbollah designated for the imposition of sanctions under
    that Act, and persons providing Hezbollah with commercial,
    financial, or other services;
    (3) urge the European Union, individual countries in Europe,
    and other countries to classify Hezbollah as a terrorist
    organization to facilitate the disruption of Hezbollah's
    operations; and
    (4) renew international efforts to disarm Hezbollah and
    disband its militias in Lebanon, as called for by United Nations
    Security Council Resolutions 1559 (2004) and 1701 (2006).
    SEC. 114. SENSE OF CONGRESS REGARDING THE IMPOSITION OF
    MULTILATERAL SANCTIONS WITH RESPECT TO
    IRAN.

    It is the sense of Congress that--

    [[Page 1341]]

    (1) in general, effective multilateral sanctions are
    preferable to unilateral sanctions in order to achieve desired
    results from countries such as Iran; and
    (2) the President should continue to work with allies of the
    United States to impose such sanctions as may be necessary to
    prevent the Government of Iran from acquiring a nuclear weapons
    capability.
    SEC. 115. REPORT ON PROVIDING COMPENSATION FOR VICTIMS OF
    INTERNATIONAL TERRORISM.

    Not later than 180 days after the date of the enactment of this Act,
    the President shall submit to the appropriate congressional committees a
    report on equitable methods for providing compensation on a
    comprehensive basis to victims of acts of international terrorism who
    are citizens or residents of the United States or nationals of the
    United States (as defined in section 101(a) of the Immigration and
    Nationality Act (8 U.S.C. 1101(a)).

    TITLE II--DIVESTMENT FROM CERTAIN COMPANIES THAT INVEST IN IRAN

    SEC. 201. <>  DEFINITIONS.

    In this title:
    (1) Energy sector of iran.--The term ``energy sector of
    Iran'' refers to activities to develop petroleum or natural gas
    resources or nuclear power in Iran.
    (2) Financial institution.--The term ``financial
    institution'' has the meaning given that term in section 14 of
    the Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C.
    1701 note).
    (3) Iran.--The term ``Iran'' includes the Government of Iran
    and any agency or instrumentality of Iran.
    (4) Person.--The term ``person'' means--
    (A) a natural person, corporation, company, business
    association, partnership, society, trust, or any other
    nongovernmental entity, organization, or group;
    (B) any governmental entity or instrumentality of a
    government, including a multilateral development
    institution (as defined in section 1701(c)(3) of the
    International Financial Institutions Act (22 U.S.C.
    262r(c)(3))); and
    (C) any successor, subunit, parent entity, or
    subsidiary of, or any entity under common ownership or
    control with, any entity described in subparagraph (A)
    or (B).
    (5) State.--The term ``State'' means each of the several
    States, the District of Columbia, the Commonwealth of Puerto
    Rico, the Commonwealth of the Northern Mariana Islands, American
    Samoa, Guam, the United States Virgin Islands, and any other
    territory or possession of the United States.
    (6) State or local government.--The term ``State or local
    government'' includes--
    (A) any State and any agency or instrumentality
    thereof;
    (B) any local government within a State, and any
    agency or instrumentality thereof;
    (C) any other governmental instrumentality of a
    State or locality; and

    [[Page 1342]]

    (D) any public institution of higher education
    within the meaning of the Higher Education Act of 1965
    (20 U.S.C. 1001 et seq.).
    SEC. 202. <>  AUTHORITY OF STATE AND LOCAL
    GOVERNMENTS TO DIVEST FROM CERTAIN
    COMPANIES THAT INVEST IN IRAN.

    (a) Sense of Congress.--It is the sense of Congress that the United
    States should support the decision of any State or local government that
    for moral, prudential, or reputational reasons divests from, or
    prohibits the investment of assets of the State or local government in,
    a person that engages in investment activities in the energy sector of
    Iran, as long as Iran is subject to economic sanctions imposed by the
    United States.
    (b) Authority to Divest.--Notwithstanding any other provision of
    law, a State or local government may adopt and enforce measures that
    meet the requirements of subsection (d) to divest the assets of the
    State or local government from, or prohibit investment of the assets of
    the State or local government in, any person that the State or local
    government determines, using credible information available to the
    public, engages in investment activities in Iran described in subsection
    (c).
    (c) Investment Activities Described.--A person engages in investment
    activities in Iran described in this subsection if the person--
    (1) has an investment of $20,000,000 or more in the energy
    sector of Iran, including in a person that provides oil or
    liquified natural gas tankers, or products used to construct or
    maintain pipelines used to transport oil or liquified natural
    gas, for the energy sector of Iran; or
    (2) is a financial institution that extends $20,000,000 or
    more in credit to another person, for 45 days or more, if that
    person will use the credit for investment in the energy sector
    of Iran.

    (d) Requirements.--Any measure taken by a State or local government
    under subsection (b) shall meet the following requirements:
    (1) Notice.--The State or local government shall provide
    written notice to each person to which a measure is to be
    applied.
    (2) Timing.-- <> The
    measure shall apply to a person not earlier than the date that
    is 90 days after the date on which written notice is provided to
    the person under paragraph (1).
    (3) Opportunity for hearing.--The State or local government
    shall provide an opportunity to comment in writing to each
    person to which a measure is to be applied. If the person
    demonstrates to the State or local government that the person
    does not engage in investment activities in Iran described in
    subsection (c), the measure shall not apply to the person.
    (4) Sense of congress on avoiding erroneous targeting.--It
    is the sense of Congress that a State or local government should
    not adopt a measure under subsection (b) with respect to a
    person unless the State or local government has made every
    effort to avoid erroneously targeting the person and has
    verified that the person engages in investment activities in
    Iran described in subsection (c).

    (e) Notice to Department of Justice.-- <> Not later
    than 30 days after adopting a measure pursuant to subsection (b), a
    State

    [[Page 1343]]

    or local government shall submit written notice to the Attorney General
    describing the measure.

    (f) Nonpreemption.--A measure of a State or local government
    authorized under subsection (b) or (i) is not preempted by any Federal
    law or regulation.
    (g) Definitions.--In this section:
    (1) Assets.--
    (A) In general.--Except as provided in subparagraph
    (B), the term ``assets'' refers to public monies and
    includes any pension, retirement, annuity, or endowment
    fund, or similar instrument, that is controlled by a
    State or local government.
    (B) Exception.--The term ``assets'' does not include
    employee benefit plans covered by title I of the
    Employee Retirement Income Security Act of 1974 (29
    U.S.C. 1001 et seq.).
    (2) Investment.--The ``investment'' includes--
    (A) a commitment or contribution of funds or
    property;
    (B) a loan or other extension of credit; and
    (C) the entry into or renewal of a contract for
    goods or services.

    (h) <>  Effective Date.--
    (1) In general.--Except as provided in paragraph (2) or
    subsection (i), this section applies to measures adopted by a
    State or local government before, on, or after the date of the
    enactment of this Act.
    (2) Notice requirements.--Except as provided in subsection
    (i), subsections (d) and (e) apply to measures adopted by a
    State or local government on or after the date of the enactment
    of this Act.

    (i) Authorization for Prior Enacted Measures.--
    (1) In general.--Notwithstanding any other provision of this
    section or any other provision of law, a State or local
    government may enforce a measure (without regard to the
    requirements of subsection (d), except as provided in paragraph
    (2)) adopted by the State or local government before the date of
    the enactment of this Act that provides for the divestment of
    assets of the State or local government from, or prohibits the
    investment of the assets of the State or local government in,
    any person that the State or local government determines, using
    credible information available to the public, engages in
    investment activities in Iran (determined without regard to
    subsection (c)) or other business activities in Iran that are
    identified in the measure.
    (2) Application of notice requirements.-- <> A measure described in paragraph (1) shall be subject to
    the requirements of paragraphs (1) and (2) and the first
    sentence of paragraph (3) of subsection (d) on and after the
    date that is 2 years after the date of the enactment of this
    Act.
    SEC. 203. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY ASSET
    MANAGERS.

    (a) In General.--Section 13(c)(1) of the Investment Company Act of
    1940 (15 U.S.C. 80a-13(c)(1)) is amended to read as follows:
    ``(1) In general.--Notwithstanding any other provision of
    Federal or State law, no person may bring any civil, criminal,

    [[Page 1344]]

    or administrative action against any registered investment
    company, or any employee, officer, director, or investment
    adviser thereof, based solely upon the investment company
    divesting from, or avoiding investing in, securities issued by
    persons that the investment company determines, using credible
    information available to the public--
    ``(A) conduct or have direct investments in business
    operations in Sudan described in section 3(d) of the
    Sudan Accountability and Divestment Act of 2007 (50
    U.S.C. 1701 note); or
    ``(B) engage in investment activities in Iran
    described in section 202(c) of the Comprehensive Iran
    Sanctions, Accountability, and Divestment Act of
    2010.''.

    (b) SEC Regulations.-- <> Not
    later than 120 days after the date of the enactment of this Act, the
    Securities and Exchange Commission shall issue any revisions the
    Commission determines to be necessary to the regulations requiring
    disclosure by each registered investment company that divests itself of
    securities in accordance with section 13(c) of the Investment Company
    Act of 1940 to include divestments of securities in accordance with
    paragraph (1)(B) of such section, as added by subsection (a) of this
    section.
    SEC. 204. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN
    INVESTMENTS.

    It is the sense of Congress that a fiduciary of an employee benefit
    plan, as defined in section 3(3) of the Employee Retirement Income
    Security Act of 1974 (29 U.S.C. 1002(3)), may divest plan assets from,
    or avoid investing plan assets in, any person the fiduciary determines
    engages in investment activities in Iran described in section 202(c) of
    this Act, without breaching the responsibilities, obligations, or duties
    imposed upon the fiduciary by subparagraph (A) or (B) of section
    404(a)(1) of the Employee Retirement Income Security Act of 1974 (29
    U.S.C. 1104(a)(1)), if--
    (1) the fiduciary makes such determination using credible
    information that is available to the public; and
    (2) the fiduciary prudently determines that the result of
    such divestment or avoidance of investment would not be expected
    to provide the employee benefit plan with--
    (A) a lower rate of return than alternative
    investments with commensurate degrees of risk; or
    (B) a higher degree of risk than alternative
    investments with commensurate rates of return.
    SEC. 205. TECHNICAL CORRECTIONS TO SUDAN ACCOUNTABILITY AND
    DIVESTMENT ACT OF 2007.

    (a) ERISA Plan Investments.--Section 5 of the Sudan Accountability
    and Divestment Act of 2007 (Public Law 110-174; 50 U.S.C. 1701 note) is
    amended--
    (1) by striking ``section 404 of the Employee Retirement
    Income Security Act of 1974 (29 U.S.C. 1104)'' and inserting
    ``subparagraph (A) or (B) of section 404(a)(1) of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)(1))'';
    and
    (2) by striking paragraph (2) and inserting the following:
    ``(2) the fiduciary prudently determines that the result of
    such divestment or avoidance of investment would not be expected
    to provide the employee benefit plan with--

    [[Page 1345]]

    ``(A) a lower rate of return than alternative
    investments with commensurate degrees of risk; or
    ``(B) a higher degree of risk than alternative
    investments with commensurate rates of return.''.

    (b) Safe Harbor for Changes of Investment Policies by Asset
    Managers.--
    (1) In general.--Section 13(c)(2)(A) of the Investment
    Company Act of 1940 (15 U.S.C. 80a-13(c)(2)(A)) is amended to
    read as follows:
    ``(A) Rule of construction.--Nothing in paragraph
    (1) shall be construed to create, imply, diminish,
    change, or affect in any way whether or not a private
    right of action exists under subsection (a) or any other
    provision of this Act.''.
    (2) <>  Applicability.--The
    amendment made by paragraph (1) shall apply as if included in
    the Sudan Accountability and Divestment Act of 2007 (Public Law
    110-174; 50 U.S.C. 1701 note).

    TITLE III--PREVENTION OF DIVERSION OF CERTAIN GOODS, SERVICES, AND
    TECHNOLOGIES TO IRAN

    SEC. 301. <>  DEFINITIONS.

    In this title:
    (1) Allow.--The term ``allow'', with respect to the
    diversion through a country of goods, services, or technologies,
    means the government of the country knows or has reason to know
    that the territory of the country is being used for such
    diversion.
    (2) Appropriate congressional committees.--The term
    ``appropriate congressional committees'' means--
    (A) the Committee on Banking, Housing, and Urban
    Affairs, the Committee on Foreign Relations, and the
    Select Committee on Intelligence of the Senate; and
    (B) the Committee on Foreign Affairs and the
    Permanent Select Committee on Intelligence of the House
    of Representatives.
    (3) Commerce control list.--The term ``Commerce Control
    List'' means the list maintained pursuant to part 774 of the
    Export Administration Regulations (or any corresponding similar
    regulation or ruling).
    (4) Divert; diversion.--The terms ``divert'' and
    ``diversion'' refer to the transfer or release, directly or
    indirectly, of a good, service, or technology to an end-user or
    an intermediary that is not an authorized recipient of the good,
    service, or technology.
    (5) End-user.--The term ``end-user'', with respect to a
    good, service, or technology, means the person that receives and
    ultimately uses the good, service, or technology.
    (6) Export administration regulations.--The term ``Export
    Administration Regulations'' means subchapter C of chapter VII
    of title 15, Code of Federal Regulations (or any corresponding
    similar regulation or ruling).
    (7) Government.--The term ``government'' includes any agency
    or instrumentality of a government.

    [[Page 1346]]

    (8) Intermediary.--The term ``intermediary'' means a person
    that receives a good, service, or technology while the good,
    service, or technology is in transit to the end-user of the
    good, service, or technology.
    (9) International traffic in arms regulations.--The term
    ``International Traffic in Arms Regulations'' means subchapter M
    of chapter I of title 22, Code of Federal Regulations (or any
    corresponding similar regulation or ruling).
    (10) Iran.--The term ``Iran'' includes the Government of
    Iran and any agency or instrumentality of Iran.
    (11) Iranian end-user.--The term ``Iranian end-user'' means
    an end-user that is the Government of Iran or a person in, or an
    agency or instrumentality of, Iran.
    (12) Iranian intermediary.--The term ``Iranian
    intermediary'' means an intermediary that is the Government of
    Iran or a person in, or an agency or instrumentality of, Iran.
    (13) State sponsor of terrorism.--The term ``state sponsor
    of terrorism'' means any country the government of which the
    Secretary of State has determined has repeatedly provided
    support for acts of international terrorism pursuant to--
    (A) section 6(j)(1)(A) of the Export Administration
    Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)) (or any
    successor thereto);
    (B) section 40(d) of the Arms Export Control Act (22
    U.S.C. 2780(d)); or
    (C) section 620A(a) of the Foreign Assistance Act of
    1961 (22 U.S.C. 2371(a)).
    (14) United states munitions list.--The term ``United States
    Munitions List'' means the list maintained pursuant to part 121
    of the International Traffic in Arms Regulations (or any
    corresponding similar regulation or ruling).
    SEC. 302. <>  IDENTIFICATION OF COUNTRIES OF
    CONCERN WITH RESPECT TO THE DIVERSION OF
    CERTAIN GOODS, SERVICES, AND TECHNOLOGIES
    TO OR THROUGH IRAN.

    (a) In General.-- <> Not later than 180
    days after the date of the enactment of this Act, the Director of
    National Intelligence shall submit to the President, the Secretary of
    Defense, the Secretary of Commerce, the Secretary of State, the
    Secretary of the Treasury, and the appropriate congressional committees
    a report that identifies each country the government of which the
    Director believes, based on all information available to the Director,
    is allowing the diversion through the country of goods, services, or
    technologies described in subsection (b) to Iranian end-users or Iranian
    intermediaries.

    (b) Goods, Services, and Technologies Described.--Goods, services,
    or technologies described in this subsection are goods, services, or
    technologies--
    (1) that--
    (A) originated in the United States;
    (B) would make a material contribution to Iran's--
    (i) development of nuclear, chemical, or
    biological weapons;
    (ii) ballistic missile or advanced
    conventional weapons capabilities; or
    (iii) support for international terrorism; and

    [[Page 1347]]

    (C) are--
    (i) items on the Commerce Control List or
    services related to those items; or
    (ii) defense articles or defense services on
    the United States Munitions List; or
    (2) that are prohibited for export to Iran under a
    resolution of the United Nations Security Council.

    (c) Updates.--The Director of National Intelligence shall update the
    report required by subsection (a)--
    (1) as new information becomes available; and
    (2) not less frequently than annually.

    (d) Form.--The report required by subsection (a) and the updates
    required by subsection (c) may be submitted in classified form.
    SEC. 303. <>  DESTINATIONS OF
    DIVERSION CONCERN.

    (a) Designation.--
    (1) In general.--The President shall designate a country as
    a Destination of Diversion Concern if the President determines
    that the government of the country allows substantial diversion
    of goods, services, or technologies described in section 302(b)
    through the country to Iranian end-users or Iranian
    intermediaries.
    (2) Determination of substantial.--For purposes of paragraph
    (1), the President shall determine whether the government of a
    country allows substantial diversion of goods, services, or
    technologies described in section 302(b) through the country to
    Iranian end-users or Iranian intermediaries based on criteria
    that include--
    (A) the volume of such goods, services, and
    technologies that are diverted through the country to
    such end-users or intermediaries;
    (B) the inadequacy of the export controls of the
    country;
    (C) the unwillingness or demonstrated inability of
    the government of the country to control the diversion
    of such goods, services, and technologies to such end-
    users or intermediaries; and
    (D) the unwillingness or inability of the government
    of the country to cooperate with the United States in
    efforts to interdict the diversion of such goods,
    services, or technologies to such end-users or
    intermediaries.

    (b) Report on Designation.--Upon designating a country as a
    Destination of Diversion Concern under subsection (a), the President
    shall submit to the appropriate congressional committees a report--
    (1) notifying those committees of the designation of the
    country; and
    (2) containing a list of the goods, services, and
    technologies described in section 302(b) that the President
    determines are diverted through the country to Iranian end-users
    or Iranian intermediaries.

    (c) Licensing Requirement.-- <> Not later than 45
    days after submitting a report required by subsection (b) with respect
    to a country designated as a Destination of Diversion Concern under
    subsection (a), the President shall require a license under the Export
    Administration Regulations or the International Traffic in Arms
    Regulations (whichever is applicable) to export to that country

    [[Page 1348]]

    a good, service, or technology on the list required under subsection
    (b)(2), with the presumption that any application for such a license
    will be denied.

    (d) Delay of Imposition of Licensing Requirement.--
    (1) In general.-- <> The
    President may delay the imposition of the licensing requirement
    under subsection (c) with respect to a country designated as a
    Destination of Diversion Concern under subsection (a) for a 12-
    month period if the President--
    (A) determines that the government of the country is
    taking steps--
    (i) to institute an export control system or
    strengthen the export control system of the
    country;
    (ii) to interdict the diversion of goods,
    services, or technologies described in section
    302(b) through the country to Iranian end-users or
    Iranian intermediaries; and
    (iii) to comply with and enforce United
    Nations Security Council Resolutions 1696 (2006),
    1737 (2006), 1747 (2007), 1803 (2008), and 1929
    (2010), and any other resolution that is agreed to
    by the Security Council and imposes sanctions with
    respect to Iran;
    (B) determines that it is appropriate to carry out
    government-to-government activities to strengthen the
    export control system of the country; and
    (C) <>  submits to the appropriate
    congressional committees a report describing the steps
    specified in subparagraph (A) being taken by the
    government of the country.
    (2) Additional 12-month periods.--The President may delay
    the imposition of the licensing requirement under subsection (c)
    with respect to a country designated as a Destination of
    Diversion Concern under subsection (a) for additional 12-month
    periods after the 12-month period referred to in paragraph (1)
    if the President, for each such 12-month period--
    (A) makes the determinations described in
    subparagraphs (A) and (B) of paragraph (1) with respect
    to the country; and
    (B) submits to the appropriate congressional
    committees an updated version of the report required by
    subparagraph (C) of paragraph (1).
    (3) <>  Strengthening export control
    systems.--If the President determines under paragraph (1)(B)
    that is it appropriate to carry out government-to-government
    activities to strengthen the export control system of a country
    designated as a Destination of Diversion Concern under
    subsection (a), the United States shall initiate government-to-
    government activities that may include--
    (A) cooperation by agencies and departments of the
    United States with counterpart agencies and departments
    in the country--
    (i) to develop or strengthen the export
    control system of the country;
    (ii) to strengthen cooperation among agencies
    of the country and with the United States and
    facilitate enforcement of the export control
    system of the country; and

    [[Page 1349]]

    (iii) to promote information and data
    exchanges among agencies of the country and with
    the United States;
    (B) training officials of the country to strengthen
    the export control systems of the country--
    (i) to facilitate legitimate trade in goods,
    services, and technologies; and
    (ii) to prevent terrorists and state sponsors
    of terrorism, including Iran, from obtaining
    nuclear, biological, and chemical weapons, defense
    technologies, components for improvised explosive
    devices, and other defense articles; and
    (C) encouraging the government of the country to
    participate in the Proliferation Security Initiative,
    such as by entering into a ship boarding agreement
    pursuant to the Initiative.

    (e) Termination of
    Designation. <> --The designation
    of a country as a Destination of Diversion Concern under subsection (a)
    shall terminate on the date on which the President determines, and
    certifies to the appropriate congressional committees, that the country
    has adequately strengthened the export control system of the country to
    prevent the diversion of goods, services, and technologies described in
    section 302(b) to Iranian end-users or Iranian intermediaries.

    (f) Form of Reports.--A report required by subsection (b) or (d) may
    be submitted in classified form.
    SEC. 304. REPORT ON EXPANDING DIVERSION CONCERN SYSTEM TO ADDRESS
    THE DIVERSION OF UNITED STATES ORIGIN
    GOODS, SERVICES, AND TECHNOLOGIES TO
    CERTAIN COUNTRIES OTHER THAN IRAN.

    (a) In General. <> --Not later than 1 year after
    the date of the enactment of this Act, the President shall submit to the
    appropriate congressional committees a report that--
    (1) <>  identifies any country that
    the President determines is allowing the diversion, in violation
    of United States law, of items on the Commerce Control List or
    services related to those items, or defense articles or defense
    services on the United States Munitions List, that originated in
    the United States to another country if such other country--
    (A) is seeking to obtain nuclear, biological, or
    chemical weapons, or ballistic missiles; or
    (B) provides support for acts of international
    terrorism; and
    (2) assesses the feasability and advisability of expanding
    the system established under section 303 for designating
    countries as Destinations of Diversion Concern to include
    countries identified under paragraph (1).

    (b) Form.--The report required by subsection (a) may be submitted in
    classified form.
    SEC. 305. <>  ENFORCEMENT AUTHORITY.

    The Secretary of Commerce may designate any employee of the Office
    of Export Enforcement of the Department of Commerce to conduct
    activities specified in clauses (i), (ii), and (iii) of section
    12(a)(3)(B) of the Export Administration Act of 1979 (50 U.S.C. App.
    2411(a)(3)(B)) when the employee is carrying out activities to enforce--

    [[Page 1350]]

    (1) the provisions of the Export Administration Act of 1979
    (50 U.S.C. App. 2401 et seq.) (as in effect pursuant to the
    International Emergency Economic Powers Act (50 U.S.C. 1701 et
    seq.));
    (2) the provisions of this title, or any other provision of
    law relating to export controls, with respect to which the
    Secretary of Commerce has enforcement responsibility; or
    (3) any license, order, or regulation issued under--
    (A) the Export Administration Act of 1979 (50 U.S.C.
    App. 2401 et seq.) (as in effect pursuant to the
    International Emergency Economic Powers Act (50 U.S.C.
    1701 et seq.)); or
    (B) a provision of law referred to in paragraph (2).

    TITLE IV--GENERAL PROVISIONS

    SEC. 401. <>  GENERAL PROVISIONS.

    (a) Sunset.-- <> The provisions of
    this Act (other than sections 105 and 305 and the amendments made by
    sections 102, 107, 109, and 205) shall terminate, and section
    13(c)(1)(B) of the Investment Company Act of 1940, as added by section
    203(a), shall cease to be effective, on the date that is 30 days after
    the date on which the President certifies to Congress that--
    (1) the Government of Iran has ceased providing support for
    acts of international terrorism and no longer satisfies the
    requirements for designation as a state sponsor of terrorism (as
    defined in section 301) under--
    (A) section 6(j)(1)(A) of the Export Administration
    Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)) (or any
    successor thereto);
    (B) section 40(d) of the Arms Export Control Act (22
    U.S.C. 2780(d)); or
    (C) section 620A(a) of the Foreign Assistance Act of
    1961 (22 U.S.C. 2371(a)); and
    (2) Iran has ceased the pursuit, acquisition, and
    development of nuclear, biological, and chemical weapons and
    ballistic missiles and ballistic missile launch technology.

    (b) Presidential Waivers.--
    (1) In general. <> --The President may
    waive the application of sanctions under section 103(b), the
    requirement to impose or maintain sanctions with respect to a
    person under section 105(a), the requirement to include a person
    on the list required by section 105(b), the application of the
    prohibition under section 106(a), or the imposition of the
    licensing requirement under section 303(c) with respect to a
    country designated as a Destination of Diversion Concern under
    section 303(a), if the President determines that such a waiver
    is in the national interest of the United States.
    (2) Reports.--
    (A) In general.--If the President waives the
    application of a provision pursuant to paragraph (1),
    the President shall submit to the appropriate
    congressional committees a report describing the reasons
    for the waiver.
    (B) Special rule for report on waiving imposition of
    licensing requirement under section 303(c).--In any case
    in which the President waives, pursuant to paragraph

    [[Page 1351]]

    (1), the imposition of the licensing requirement under
    section 303(c) with respect to a country designated as a
    Destination of Diversion Concern under section 303(a),
    the President shall include in the report required by
    subparagraph (A) of this paragraph an assessment of
    whether the government of the country is taking the
    steps described in subparagraph (A) of section
    303(d)(1).

    (c) Authorizations of Appropriations.--
    (1) Authorization of appropriations for the department of
    state and the department of the treasury.--There are authorized
    to be appropriated to the Secretary of State and to the
    Secretary of the Treasury such sums as may be necessary to
    implement the provisions of, and amendments made by, titles I
    and III of this Act.
    (2) Authorization of appropriations for the department of
    commerce.--There are authorized to be appropriated to the
    Secretary of Commerce such sums as may be necessary to carry out
    title III.
    SEC. 402. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying with
    the Statutory Pay-As-You-Go-Act of 2010, shall be determined by
    reference to the latest statement titled ``Budgetary Effects of PAYGO
    Legislation'' for this Act, jointly submitted for printing in the
    Congressional Record by the Chairmen of the House and Senate Budget
    Committees, provided that such statement has been submitted prior to the
    vote on passage in the House acting first on this conference report or
    amendment between the Houses.

    Approved July 1, 2010.

    LEGISLATIVE HISTORY--H.R. 2194:
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 111-342, Pt. 1 (Comm. on Foreign Affairs) and 111-
    512 (Comm. of Conference).
    CONGRESSIONAL RECORD:
    Vol. 155 (2009):
    Dec. 15, considered and passed
    House.
    Vol. 156 (2010):
    Mar. 11, considered and passed
    Senate, amended.
    June 24, Senate and House agreed to
    conference report.
    DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010):
    July 1, Presidential remarks.