[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.