H.R. 1400 (110th): Iran Counter-Proliferation Act of 2007

110th Congress, 2007–2009. Text as of Sep 26, 2007 (Referred to Senate Committee).

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IIB

110th CONGRESS

1st Session

H. R. 1400

IN THE SENATE OF THE UNITED STATES

September 26, 2007

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT

To enhance United States diplomatic efforts with respect to Iran by imposing additional economic sanctions against Iran, and for other purposes.

1.

Short title and table of contents

(a)

Short title

This Act may be cited as the Iran Counter-Proliferation Act of 2007.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. United States policy toward Iran.

Title I—Support for diplomatic efforts relating to preventing Iran from acquiring nuclear weapons

Sec. 101. Support for international diplomatic efforts.

Sec. 102. Peaceful efforts by the United States.

Title II—Additional bilateral sanctions against Iran

Sec. 201. Application to subsidiaries.

Sec. 202. Additional import sanctions against Iran.

Sec. 203. Additional export sanctions against Iran.

Sec. 204. Temporary increase in fee for certain consular services.

Title III—Amendments to the Iran Sanctions Act of 1996

Sec. 301. Multilateral regime.

Sec. 302. Mandatory sanctions.

Sec. 303. Authority to impose sanctions on principal executive officers.

Sec. 304. United States efforts to prevent investment.

Sec. 305. Clarification and expansion of definitions.

Sec. 306. Removal of waiver authority.

Sec. 307. Clarification of authority.

Sec. 308. Applicability of certain amendments.

Title IV—Additional Measures

Sec. 401. Additions to terrorism and other lists.

Sec. 402. Increased capacity for efforts to combat unlawful or terrorist financing.

Sec. 403. Exchange programs with the people of Iran.

Sec. 404. Reducing contributions to the World Bank.

Sec. 405. Restrictions on nuclear cooperation with countries assisting the nuclear program of Iran.

Title V—Miscellaneous Provisions

Sec. 501. Termination.

2.

United States policy toward Iran

(a)

Findings

Congress finds the following:

(1)

The prospect of the Islamic Republic of Iran achieving nuclear arms represents a grave threat to the United States and its allies in the Middle East, Europe, and globally.

(2)

The nature of this threat is manifold, ranging from the vastly enhanced political influence extremist Iran would wield in its region, including the ability to intimidate its neighbors, to, at its most nightmarish, the prospect that Iran would attack its neighbors and others with nuclear arms. This concern is illustrated by the statement of Hashemi Rafsanjani, former president of Iran and currently a prominent member of two of Iran’s most important decisionmaking bodies, of December 14, 2001, when he said that it is not irrational to contemplate the use of nuclear weapons.

(3)

The theological nature of the Iranian regime creates a special urgency in addressing Iran’s efforts to acquire nuclear weapons.

(4)

Iranian regime leaders have persistently denied Israel’s right to exist. Current President Mahmoud Ahmadinejad has called for Israel to be wiped off the map and the Government of Iran has displayed inflammatory symbols that express similar intent.

(5)

The nature of the Iranian threat makes it critical that the United States and its allies do everything possible—diplomatically, politically, and economically—to prevent Iran from acquiring nuclear-arms capability and persuade the Iranian regime to halt its quest for nuclear arms.

(b)

Sense of Congress

It is the sense of the Congress that—

(1)

Iranian President Ahmadinejad’s persistent denials of the Holocaust and his repeated assertions that Israel should be wiped off the map may constitute a violation of the Convention on the Prevention and Punishment of the Crime of Genocide and should be brought before an appropriate international tribunal for the purpose of declaring Iran in breach of the Genocide Convention;

(2)

the United States should increase use of its important role in the international financial sector to isolate Iran;

(3)

Iran should be barred from entering the World Trade Organization (WTO) until all issues related to its nuclear program are resolved;

(4)

all future free trade agreements entered into by the United States should be conditioned on the requirement that the parties to such agreements pledge not to invest and not to allow companies based in its territory or controlled by its citizens to invest in Iran’s energy sector or otherwise to make significant investment in Iran;

(5)

United Nations Security Council Resolutions 1737 (December 23, 2006) and 1747 (March 24, 2007), which were passed unanimously and mandate an immediate and unconditional suspension of Iran’s nuclear enrichment program, represent a critical gain in the worldwide campaign to prevent Iran’s acquisition of nuclear arms and should be fully respected by all nations;

(6)

the United Nations Security Council should take further measures beyond Resolutions 1737 and 1747 to tighten sanctions on Iran, including preventing new investment in Iran’s energy sector, as long as Iran fails to comply with the international community’s demand to halt its nuclear enrichment campaign;

(7)

the United States should encourage foreign governments to direct state-owned entities to cease all investment in Iran’s energy sector and all exports of refined petroleum products to Iran and to persuade, and, where possible, require private entities based in their territories to cease all investment in Iran’s energy sector and all exports of refined petroleum products to Iran;

(8)

moderate Arab states have a vital and perhaps existential interest in preventing Iran from acquiring nuclear arms, and therefore such states, particularly those with large oil deposits, should use their economic leverage to dissuade other nations, including the Russian Federation and the People’s Republic of China, from assisting Iran’s nuclear program directly or indirectly and to persuade other nations, including Russia and China, to be more forthcoming in supporting United Nations Security Council efforts to halt Iran’s nuclear program;

(9)

the United States should take all possible measures to discourage and, if possible, prevent foreign banks from providing export credits to foreign entities seeking to invest in the Iranian energy sector;

(10)

the United States should oppose any further activity by the International Bank for Reconstruction and Development with respect to Iran, or the adoption of a new Country Assistance Strategy for Iran, including by seeking the cooperation of other countries;

(11)

the United States should extend its program of discouraging foreign banks from accepting Iranian state banks as clients;

(12)

the United States should prohibit all Iranian state banks from using the United States banking system;

(13)

State and local government pension plans should divest themselves of all non-United States companies investing more than $20,000,000 in Iran’s energy sector;

(14)

the United States should designate the Iranian Islamic Revolutionary Guards Corps, which purveys terrorism throughout the Middle East and plays an important role in the Iranian economy, as a foreign terrorist organization under section 219 of the Immigration and Nationality Act, place the Iranian Islamic Revolutionary Guards Corps on the list of specially designated global terrorists, and place the Iranian Islamic Revolutionary Guards Corps on the list of weapons of mass destruction proliferators and their supporters;

(15)

United States concerns regarding Iran are strictly the result of actions of the Government of Iran; and

(16)

the American people have feelings of friendship for the Iranian people, regret that developments of recent decades have created impediments to that friendship, and hold the Iranian people, their culture, and their ancient and rich history in the highest esteem.

I

Support for diplomatic efforts relating to preventing Iran from acquiring nuclear weapons

101.

Support for international diplomatic efforts

It is the sense of the Congress that—

(1)

the United States should use diplomatic and economic means to resolve the Iranian nuclear problem;

(2)

the United States should continue to support efforts in the International Atomic Energy Agency and the United Nations Security Council to bring about an end to Iran’s uranium enrichment program and its nuclear weapons program; and

(3)
(A)

United Nations Security Council Resolution 1737 was a useful first step toward pressing Iran to end its nuclear weapons program; and

(B)

in light of Iran’s continued defiance of the international community, the United Nations Security Council should adopt additional measures against Iran, including measures to prohibit investments in Iran’s energy sector.

102.

Peaceful efforts by the United States

Nothing in this Act shall be construed as authorizing the use of force or the use of the United States Armed Forces against Iran.

II

Additional bilateral sanctions against Iran

201.

Application to subsidiaries

(a)

In General

Except as provided in subsection (b), in any case in which an entity engages in an act outside the United States which, if committed in the United States or by a United States person, would violate Executive Order No. 12959 of May 6, 1995, Executive Order No. 13059 of August 19, 1997, or any other prohibition on transactions with respect to Iran that is imposed under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) and if that entity was created or availed of for the purpose of engaging in such an act, the parent company of that entity shall be subject to the penalties for such violation to the same extent as if the parent company had engaged in that act.

(b)

Exception

Subsection (a) shall not apply to any act carried out under a contract or other obligation of any entity if—

(1)

the contract or obligation existed on May 22, 2007, unless such contract or obligation is extended in time in any manner or expanded to cover additional activities beyond the terms of the contract or other obligation as it existed on May 22, 2007; or

(2)

the parent company acquired that entity not knowing, and not having reason to know, that such contract or other obligation existed, unless such contract or other obligation is extended in time in any manner or expanded to cover additional activities beyond the terms of such contract or other obligation as it existed at the time of such acquisition.

(c)

Construction

Nothing in this section shall be construed as prohibiting the issuance of regulations, orders, directives, or licenses under the Executive orders described in subsection (a) or as being inconsistent with the authorities under the International Emergency Economic Powers Act.

(d)

Definitions

In this section—

(1)

the term entity means a partnership, association, trust, joint venture, corporation, or other organization;

(2)

an entity is a parent company of another entity if it controls, directly or indirectly, that other entity and is a United States person; and

(3)

the term United States person means any United States citizen, any alien lawfully admitted for permanent residence to the United States, any entity organized under the laws of the United States, or any person in the United States.

202.

Additional import sanctions against Iran

Effective 120 days after the date of the enactment of this Act—

(1)

goods of Iranian origin that are otherwise authorized to be imported under section 560.534 of title 31, Code of Federal Regulations, as in effect on March 5, 2007, may not be imported into the United States under such section; and

(2)

activities otherwise authorized by section 560.535 of title 31, Code of Federal Regulations, as in effect on March 5, 2007, are no longer authorized under such section.

203.

Additional export sanctions against Iran

Effective on the date of the enactment of this Act—

(1)

licenses to export or reexport goods, services, or technology relating to civil aviation that are otherwise authorized by section 560.528 of title 31, Code of Federal Regulations, as in effect on March 5, 2007, may not be issued, and any such license issued before such date of enactment is no longer valid; and

(2)

goods, services, or technology described in paragraph (1) may not be exported or reexported.

204.

Temporary increase in fee for certain consular services

(a)

Increase in fee

Notwithstanding any other provision of law, not later than 120 days after the date of the enactment of this Act, the Secretary of State shall increase by $1.00 the fee or surcharge assessed under section 140(a) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103–236; 8 U.S.C. 1351 note) for processing machine readable nonimmigrant visas and machine readable combined border crossing identification cards and nonimmigrant visas.

(b)

Deposit of amounts

Fees collected under the authority of subsection (a) shall be deposited in the Treasury.

(c)

Duration of increase

The fee increase authorized under subsection (a) shall terminate on the date that is one year after the date on which such fee is first collected.

III

Amendments to the Iran Sanctions Act of 1996

301.

Multilateral regime

Section 4(b) of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended to read as follows:

(b)

Reports to Congress

Not later than 6 months after the date of the enactment of the Iran Counter-Proliferation Act of 2007 and every six months thereafter, the President shall transmit to the appropriate congressional committees a report regarding specific diplomatic efforts undertaken pursuant to subsection (a), the results of those efforts, and a description of proposed diplomatic efforts pursuant to such subsection. Each report shall include—

(1)

a list of the countries that have agreed to undertake measures to further the objectives of section 3 with respect to Iran;

(2)

a description of those measures, including—

(A)

government actions with respect to public or private entities (or their subsidiaries) located in their territories, that are engaged in Iran;

(B)

any decisions by the governments of these countries to rescind or continue the provision of credits, guarantees, or other governmental assistance to these entities; and

(C)

actions taken in international fora to further the objectives of section 3;

(3)

a list of the countries that have not agreed to undertake measures to further the objectives of section 3 with respect to Iran, and the reasons therefor; and

(4)

a description of any memorandums of understanding, political understandings, or international agreements to which the United States has acceded which affect implementation of this section or section 5(a).

.

302.

Mandatory sanctions

Section 5(a) of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by striking 2 or more of the sanctions described in paragraphs (1) through (6) of section 6 and inserting the sanction described in paragraph (5) of section 6 and, in addition, one or more of the sanctions described in paragraphs (1), (2), (3), (4), and (6) of such section.

303.

Authority to impose sanctions on principal executive officers

Section 5 of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by adding at the end the following:

(g)

Authority to impose sanctions on principal executive officers

(1)

Sanctions under section 6

In addition to the sanctions imposed under subsection (a), the President may impose any of the sanctions under section 6 on the principal executive officer or officers of any sanctioned person, or on persons performing similar functions as such officer or officers. The President shall include on the list published under subsection (d) the name of any person on whom sanctions are imposed under this paragraph.

(2)

Additional sanctions

In addition to the sanctions imposed under paragraph (1), the President may block the property of any person described in paragraph (1), and prohibit transactions in such property, to the same extent as the property of a foreign person determined to have committed acts of terrorism for purposes of Executive Order No. 13224 of September 23, 2001 (50 U.S.C. 1701 note).

.

304.

United States efforts to prevent investment

Section 5 of the Iran Sanctions Act of 1996 is amended by adding the following new subsection at the end:

(h)

United States efforts to address planned investment

(1)

Reports on investment activity

Not later than January 30, 2008, and every 6 months thereafter, the President shall transmit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a report on investment and pre-investment activity, by any person or entity, that could contribute to the enhancement of Iran’s ability to develop petroleum resources in Iran. For each such activity, the President shall provide a description of the activity, any information regarding when actual investment may commence, and what steps the United States has taken to respond to such activity.

(2)

Definition

In this subsection—

(A)

the term investment includes the extension by a financial institution of credit or other financing to a person for that person’s investment; and

(B)

the term pre-investment activity means any activity indicating an intent to make an investment, including a memorandum of understanding among parties indicating such an intent.

305.

Clarification and expansion of definitions

(a)

Person

Section 14(13)(B) of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended to read as follows:

(B)
(i)

a corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization;

(ii)

any foreign subsidiary of any entity described in clause (i); and

(iii)

any government entity operating as a business enterprise, such as an export credit agency; and

.

(b)

Development and investment

Section 14 of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended—

(1)

in paragraph (4), by inserting tanker or after transportation by; and

(2)

in paragraph (9)—

(A)

by inserting after subparagraph (C) the following:

(D)

The sale of an oil tanker or liquefied natural gas tanker.

; and

(B)

in the second sentence, by inserting , other than a sale described in subparagraph (D) after goods, service, or technology.

306.

Removal of waiver authority

(a)

Six-month waiver authority

Section 4 of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended—

(1)

in subsection (d)(1), by striking except those with respect to which the President has exercised the waiver authority of subsection (c);

(2)

by striking subsection (c); and

(3)

by redesignating subsections (d), (e), and (f) as subsections (c), (d), and (e), respectively.

(b)

General waiver authority

Section 9 of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by striking subsection (c).

307.

Clarification of authority

Section 6(6) of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by inserting the authorities under after in accordance with.

308.

Applicability of certain amendments

The amendments made by sections 302, 305, and 306 shall apply with respect to acts done on or after August 3, 2007.

IV

Additional Measures

401.

Additions to terrorism and other lists

(a)

Determinations and report

Not later than 120 days after the date of the enactment of this Act, the President shall—

(1)

determine whether the Iranian Islamic Revolutionary Guards Corps (in this section referred to as IRGC) should be—

(A)

designated as a foreign terrorist organization under section 219 of the Immigration and Nationality Act (8 U.S.C. 1189);

(B)

placed on the list of specially designated global terrorists; and

(C)

placed on the list of weapons of mass destruction proliferators and their supporters; and

(2)

report the determinations under paragraph (1) to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate, including, if the President determines that such Corps should not be so designated or placed on either such list, the justification for the President’s determination.

(b)

Extension of authority

The President may block all property and interests in property of the following persons, to the same extent as property and interests in property of a foreign person determined to have committed acts of terrorism for purposes of Executive Order No. 13224 of September 21, 2001 (50 U.S.C. 1701 note) may be blocked:

(1)

Persons who assist or provide financial, material, or technological support for, or financial or other services to or in support of, the IRGC or entities owned or effectively controlled by the IRGC.

(2)

Persons otherwise associated with the IRGC or entities referred to in paragraph (1).

(c)

Definitions

In this section—

(1)

the term specially designated global terrorist means any person included on the Annex to Executive Order No. 13224, of September 23, 2001, and any other person identified under section 1 of that Executive order whose property and interests in property are blocked by that section; and

(2)

the term weapons of mass destruction proliferators and their supporters means any person included on the Annex to Executive Order No. 13382, of June 28, 2005, and any other person identified under section 1 of that Executive order whose property and interests in property are blocked by that section.

402.

Increased capacity for efforts to combat unlawful or terrorist financing

(a)

Findings

The work of the Office of Terrorism and Financial Intelligence of the Department of Treasury, which includes the Office of Foreign Assets Control and the Financial Crimes Enforcement Center, is critical to ensuring that the international financial system is not used for purposes of supporting terrorism and developing weapons of mass destruction.

(b)

Authorization

There is authorized for the Secretary of the Treasury $59,466,000 for fiscal year 2008 and such sums as may be necessary for each of the fiscal years 2009 and 2010 for the Office of Terrorism and Financial Intelligence.

(c)

Authorization amendment

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 $85,844,000 for fiscal year 2008 and such sums as may be necessary for each of the fiscal years 2009 and 2010.

403.

Exchange programs with the people of Iran

(a)

Sense of Congress

It is the sense of the Congress that the United States should seek to enhance its friendship with the people of Iran, particularly by identifying young people of Iran to come to the United States under United States exchange programs.

(b)

Exchange programs authorized

The President is authorized to carry out exchange programs with the people of Iran, particularly the young people of Iran. Such programs shall be carried out to the extent practicable in a manner consistent with the eligibility for assistance requirements specified in section 302(b) of the Iran Freedom Support Act (Public Law 109–293).

(c)

Authorization

Of the amounts available to the Department of State for Educational and Cultural Exchanges to carry out the Mutual Educational and Cultural Exchange Act of 1961, there is authorized to be appropriated to the President to carry out this section the sum of $10,000,000 for fiscal year 2008.

404.

Reducing contributions to the World Bank

The President of the United States shall reduce the total amount otherwise payable on behalf of the United States to the International Bank for Reconstruction and Development for each fiscal year by the percentage represented by—

(1)

the total of the amounts provided by the Bank to entities in Iran, or for projects and activities in Iran, in the then-preceding fiscal year; divided by

(2)

the total of the amounts provided by the Bank to all entities, or for all projects and activities, in the then-preceding fiscal year.

405.

Restrictions on nuclear cooperation with countries assisting the nuclear program of Iran

(a)

In general

(1)

Restriction

Notwithstanding any other provision of law or any international agreement—

(A)

no agreement for cooperation between the United States and the government of any country that is assisting the nuclear program of Iran or transferring advanced conventional weapons or missiles to Iran may be submitted to the President or to Congress pursuant to section 123 of the Atomic Energy Act of 1954 (42 U.S.C. 2153),

(B)

no such agreement may enter into force with such country,

(C)

no license may be issued for export directly or indirectly to such country of any nuclear material, facilities, components, or other goods, services, or technology that would be subject to such agreement, and

(D)

no approval may be given for the transfer or retransfer directly or indirectly to such country of any nuclear material, facilities, components, or other goods, services, or technology that would be subject to such agreement,

until the President makes the determination and report under paragraph (2).
(2)

Determination and report

The determination and report referred to in paragraph (1) are a determination and report by the President, submitted to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives, that—

(A)

Iran has ceased its efforts to design, develop, or acquire a nuclear explosive device or related materials or technology; or

(B)

the government of the country that is assisting the nuclear program of Iran or transferring advanced conventional weapons or missiles to Iran—

(i)

has suspended all nuclear assistance to Iran and all transfers of advanced conventional weapons and missiles to Iran; and

(ii)

is committed to maintaining that suspension until Iran has implemented measures that would permit the President to make the determination described in subparagraph (A).

(b)

Construction

The restrictions in subsection (a)—

(1)

shall apply in addition to all other applicable procedures, requirements, and restrictions contained in the Atomic Energy Act of 1954 and other laws; and

(2)

shall not be construed as affecting the validity of agreements for cooperation that are in effect on the date of the enactment of this Act.

(c)

Definitions

In this section:

(1)

Agreement for cooperation

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)).

(2)

Assisting the nuclear program of Iran

The term assisting the nuclear program of Iran means the intentional transfer to Iran by a government, or by a person subject to the jurisdiction of a government with the knowledge and acquiescence of that government, of goods, services, or technology listed on the Nuclear Suppliers Group Guidelines for the Export of Nuclear Material, Equipment and Technology (published by the International Atomic Energy Agency as Information Circular INFCIRC/254/Rev. 3/Part 1, and subsequent revisions), or the Nuclear Suppliers Group Guidelines for Transfers of Nuclear-Related Dual-Use Equipment, Material, and Related Technology (published by the International Atomic Energy Agency as Information Circular INFCIR/254/Rev. 3/Part 2, and subsequent revisions).

(3)

Country that is assisting the nuclear program of Iran or transferring advanced conventional weapons or missiles to Iran

The term country that is assisting the nuclear program of Iran or transferring advanced conventional weapons or missiles to Iran means—

(A)

the Russian Federation; and

(B)

any other country determined by the President to be assisting the nuclear program of Iran or transferring advanced conventional weapons or missiles to Iran.

(4)

Transferring advanced conventional weapons or missiles to Iran

The term transferring advanced conventional weapons or missiles to Iran means the intentional transfer to Iran by a government, or by a person subject to the jurisdiction of a government with the knowledge and acquiescence of that government, of goods, services, or technology listed on—

(A)

the Wassenaar Arrangement list of Dual Use Goods and Technologies and Munitions list of July 12, 1996, and subsequent revisions; or

(B)

the Missile Technology Control Regime Equipment and Technology Annex of June 11, 1996, and subsequent revisions.

(d)

Effective date

The amendment made by subsection (a) shall apply to expense paid or incurred on or after January 1, 2007.

V

Miscellaneous Provisions

501.

Termination

(a)

Termination

The restrictions provided in sections 203, 404, and 405 shall cease to be effective with respect to Iran on the date on which the President determines and certifies to the appropriate congressional committees that Iran—

(1)

has ceased its efforts to design, develop, manufacture, or acquire—

(A)

a nuclear explosive device or related materials and technology;

(B)

chemical and biological weapons; and

(C)

ballistic missiles and ballistic missile launch technology;

(2)

has been removed from the list of countries the governments of which have been determined, for purposes of section 6(j) of the Export Administration Act of 1979 (50 U.S.C. 2405(j)), section 620A of the Foreign Assistance Act of 1961, section 40 of the Arms Export Control Act, or any other provision of law, to have repeatedly provided support for acts of international terrorism; and

(3)

poses no significant threat to United States national security, interests, or allies.

(b)

Definition

In subsection (a), the term appropriate congressional committees means the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate.

Passed the House of Representatives September 25, 2007.

Lorraine C. Miller,

Clerk.