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H.R. 1905 (112th): Iran Threat Reduction and Syria Human Rights Act of 2012


The text of the bill below is as of Dec 14, 2011 (Passed the House).


I

112th CONGRESS

1st Session

H. R. 1905

IN THE HOUSE OF REPRESENTATIVES

AN ACT

To strengthen Iran sanctions laws for the purpose of compelling Iran to abandon its pursuit of nuclear weapons and other threatening activities, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Iran Threat Reduction Act of 2011.

(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. Statement of policy.

Title I—Iran energy sanctions

Sec. 101. Findings.

Sec. 102. Sense of Congress.

Sec. 103. Declaration of policy.

Sec. 104. Multilateral regime.

Sec. 105. Imposition of sanctions.

Sec. 106. Description of sanctions.

Sec. 107. Advisory opinions.

Sec. 108. Termination of sanctions.

Sec. 109. Duration of sanctions.

Sec. 110. Reports required.

Sec. 111. Determinations not reviewable.

Sec. 112. Definitions.

Sec. 113. Effective date.

Sec. 114. Repeal.

Title II—Iran freedom support

Sec. 201. Codification of sanctions.

Sec. 202. Liability of parent companies for violations of sanctions by foreign subsidiaries.

Sec. 203. Declaration of Congress regarding United States policy toward Iran.

Sec. 204. Assistance to support democracy in Iran.

Sec. 205. 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. 206. Clarification of sensitive technologies for purposes of procurement ban.

Sec. 207. Comprehensive strategy to promote internet freedom and access to information in Iran.

Title III—Iran regime and Iran’s Islamic Revolutionary Guard Corps accountability

Sec. 301. Iran’s Islamic Revolutionary Guard Corps.

Sec. 302. Additional export sanctions against Iran.

Sec. 303. Sanctions against affiliates of Iran’s Islamic Revolutionary Guard Corps.

Sec. 304. Measures against foreign persons or entities supporting Iran’s Islamic Revolutionary Guard Corps.

Sec. 305. Special measures against foreign countries supporting Iran’s Islamic Revolutionary Guard Corps.

Sec. 306. Authority of State and local governments to restrict contracts or licenses for certain sanctionable persons.

Sec. 307. Iranian activities in Iraq and Afghanistan.

Sec. 308. United States policy toward Iran.

Sec. 309. Definitions.

Sec. 310. Rule of construction.

Title IV—Iran financial sanctions; divestment from certain companies that invest in Iran; and prevention of diversion of certain goods, services, and technologies to Iran

Sec. 401. Iran financial sanctions.

Sec. 402. Divestment from certain companies that invest in Iran.

Sec. 403. Prevention of diversion of certain goods, services, and technologies to Iran.

Title V—Securities and Exchange Commission

Sec. 501. Disclosures to the Securities and Exchange Commission relating to sanctionable activities.

Title VI—General provisions

Sec. 601. Denial of visas for certain persons of the Government of Iran.

Sec. 602. Inadmissibility of certain aliens who engage in certain activities with respect to Iran.

Sec. 603. Amendments to civil and criminal penalties provisions under the International Emergency Economic Powers Act.

Sec. 604. Exclusion of certain activities.

Sec. 605. Regulatory authority.

Sec. 606. Sunset.

2.

Findings

Congress makes the following findings:

(1)

Successive administrations have clearly identified the unacceptability of the Iranian regime’s pursuit of nuclear weapons capabilities and the danger that pursuit presents to the United States, to our friends and allies, and to global security.

(2)

In May 1995, President Clinton stated that The specter of an Iran armed with weapons of mass destruction and the missiles to deliver them haunts not only Israel but the entire Middle East and ultimately all the rest of us as well. The United States and, I believe, all the Western nations have an overriding interest in containing the threat posed by Iran..

(3)

In the 2006 State of the Union Address, President Bush stated that The Iranian government is defying the world with its nuclear ambitions, and the nations of the world must not permit the Iranian regime to gain nuclear weapons. America will continue to rally the world to confront these threats..

(4)

In February 2009, President Obama committed the Administration to developing a strategy to use all elements of American power to prevent Iran from developing a nuclear weapon.

(5)

Iran is a major threat to United States national security interests, not only exemplified by Tehran’s nuclear program but also by its material assistance to armed groups in Iraq and Afghanistan, to the Palestinian group Hamas, to Lebanese Hezbollah, the Government of Syria, and to other extremists that seek to undermine regional stability. These capabilities provide the regime with potential asymmetric delivery vehicles and mechanisms for nuclear or other unconventional weapons.

(6)

Iran’s growing inventory of ballistic missile and other destabilizing types of conventional weapons provides the regime the capabilities to enhance its power projection throughout the region and undermine the national security interests of the United States and its friends and allies.

(7)

Were Iran to achieve a nuclear weapons capability, it would, inter alia—

(A)

likely lead to the proliferation of such weapons throughout the region, where several states have already indicated interest in nuclear programs, and would dramatically undercut 60 years of United States efforts to stop the spread of nuclear weapons;

(B)

greatly increase the threat of nuclear terrorism;

(C)

significantly expand Iran’s already-growing influence in the region;

(D)

insulate the regime from international pressure, giving it wider scope further to oppress its citizens and pursue aggression regionally and globally;

(E)

embolden all Iranian-supported terrorist groups, including Hamas and Hezbollah; and

(F)

directly threaten several United States friends and allies, especially Israel, whose very right to exist has been denied successively by every leader of the Islamic Republic of Iran and which Iranian President Ahmadinejad says should be wiped off the map.

(8)

Successive Congresses have clearly recognized the threat that the Iranian regime and its policies present to the United States, to our friends and allies, and to global security, and responded with successive bipartisan legislative initiatives.

(9)

The extent of the Iranian threat is greater today than when the Iran and Libya Sanctions Act of 1996 was signed into law, now known as the Iran Sanctions Act of 1996. That landmark legislation imposed sanctions on foreign companies investing in Iran’s energy infrastructure in an effort to undermine the strategic threat from Iran, by cutting off investment in its petroleum sector and thereby denying the regime its economic lifeline and its ability to pursue a nuclear program.

(10)

Laws such as the Iran and Libya Sanctions Act of 1996, which was retitled the Iran Sanctions Act of 1996, paved the way for the enactment of similar laws, such as the Iran, North Korea and Syria Nonproliferation Act, the Iran-Iraq Arms Non-Proliferation Act of 1992, the Iran Freedom Support Act, and the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010.

(11)

United States sanctions on Iran have hindered Iran’s ability to attract capital, material, and technical support for its petroleum sector, creating financial difficulties for the regime.

(12)

In the Joint Explanatory Statement of the Committee of Conference to the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195; 50 U.S.C. 1701 note) issued on June 23, 2010, the Members of the Committee of Conference noted that Although [the Iran Sanctions Act] was enacted more than a decade ago, no Administration has sanctioned a foreign entity for investing $20 million or more in Iran’s energy sector, despite a number of such investments. Indeed, on only one occasion, in 1998, did the Administration make a determination regarding a sanctions-triggering investment, but the Administration waived sanctions against the offending persons. Conferees believe that the lack of enforcement of relevant enacted sanctions may have served to encourage rather than deter Iran’s efforts to pursue nuclear weapons..

(13)

The Joint Explanatory Statement also noted that The effectiveness of this Act will depend on its forceful implementation. The Conferees urge the President to vigorously impose the sanctions provided for in this Act..

(14)

The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 mandates among other provisions that the President initiate investigations of potentially sanctionable activity under the Iran Sanctions Act of 1996. Although more than 16 months have passed since enactment of this legislation, Congress has not received notice of the imposition of sanctions on any entities that do significant business in the United States, despite multiple reports of potentially sanctionable activity by such entities. Although, in accordance with the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, some potentially sanctionable entities have been persuaded to wind down and end their involvement in Iran, others have not.

(15)

It is unlikely that Iran can be compelled to abandon its pursuit of nuclear weapons unless sanctions are fully and effectively implemented.

3.

Statement of policy

It shall be the policy of the United States to—

(1)

prevent Iran from—

(A)

acquiring or developing nuclear weapons and associated delivery capabilities;

(B)

developing its unconventional weapons and ballistic missile capabilities; and

(C)

continuing its support for foreign terrorist organizations and other activities aimed at undermining and destabilizing its neighbors and other nations; and

(2)

fully implement all multilateral and bilateral sanctions against Iran in order to deprive the Government of Iran of necessary resources and to compel the Government of Iran to—

(A)

abandon and verifiably dismantle its nuclear capabilities;

(B)

abandon and verifiably dismantle its ballistic missile and unconventional weapons programs; and

(C)

cease all support for foreign terrorist organizations and other activities aimed at undermining and destabilizing its neighbors and other nations.

I

Iran energy sanctions

101.

Findings

Congress makes the following findings:

(1)

The efforts of the Government of Iran to achieve nuclear weapons capability and to acquire other unconventional weapons and the means to deliver them, both through ballistic missile and asymmetric means, and its support for foreign terrorist organizations and other extremists endanger the national security and foreign policy interests of the United States and those countries with which the United States shares common strategic and foreign policy objectives.

(2)

The objectives of preventing the proliferation of nuclear and other unconventional weapons and countering the activities of foreign terrorist organizations and other extremists through existing multilateral and bilateral initiatives require further efforts to deny Iran the financial means to sustain its nuclear, chemical, biological, and missile weapons programs and its active support for terrorism.

(3)

The Government of Iran uses its diplomatic facilities and quasi-governmental institutions outside of Iran to support foreign terrorist organizations and other extremists, and assist its unconventional weapons and missile programs, including its nuclear program.

102.

Sense of Congress

It is the sense of Congress that the goal of compelling Iran to abandon its pursuit of nuclear weapons and other threatening activities can be achieved most effectively through full implementation of all sanctions enacted into law, including those sanctions set out in this title.

103.

Declaration of policy

Congress declares that it is the policy of the United States to deny Iran the ability to support acts of foreign terrorist organizations and extremists and develop unconventional weapons and ballistic missiles. A critical means of achieving that goal is sanctions that limit Iran’s ability to develop its energy resources, including its ability to explore for, extract, refine, and transport by pipeline its hydrocarbon resources, in order to limit the funds Iran has available for pursuing its objectionable activities.

104.

Multilateral regime

(a)

Multilateral negotiations

In order to further the objectives of section 103 of this Act, Congress urges the President immediately to initiate diplomatic efforts, both in appropriate international fora such as the United Nations, and bilaterally with allies of the United States, to expand the multilateral sanctions regime regarding Iran, including—

(1)

qualitatively expanding the United Nations Security Council sanctions regime against Iran;

(2)

qualitatively expanding the range of sanctions by the European Union, South Korea, Japan, Australia, and other key United States allies;

(3)

further efforts to limit Iran’s development of petroleum resources and import of refined petroleum; and

(4)

initiatives aimed at increasing non-Iranian crude oil product output for current purchasers of Iranian petroleum and petroleum byproducts.

(b)

Reports to congress

Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the President shall submit to the appropriate congressional committees a report on the extent to which diplomatic efforts described in subsection (a) have been successful. Each report shall include—

(1)

the countries that have agreed to undertake measures to further the objectives of section 103 of this Act with respect to Iran, and a description of those measures; and

(2)

the countries that have not agreed to measures described in paragraph (1), and, with respect to those countries, other measures the President recommends that the United States take to further the objectives of section 103 of this Act with respect to Iran.

(c)

Interim report on multilateral sanctions; monitoring

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—

(1)

the countries that have established legislative or administrative standards providing for the imposition of trade sanctions on persons or their affiliates that conduct business or have investments in Iran;

(2)

the extent and duration of each instance of the application of such sanctions; and

(3)

the disposition of any decision with respect to such sanctions by the World Trade Organization or its predecessor organization.

(d)

Investigations

(1)

In general

The President shall initiate an investigation into the possible imposition of sanctions under section 105 of this Act against a person upon receipt by the United States of credible information indicating that such person is engaged in an activity described in such section.

(2)

Determination and notification

Not later than 180 days after the date on which an investigation is initiated under paragraph (1), the President shall (unless paragraph (6) applies) determine, pursuant to section 105 of this Act, if a person has engaged in an activity described in such section and shall notify the appropriate congressional committees of the basis for any such determination.

(3)

Briefing

(A)

In general

Not later than 30 days after the date of the enactment of this Act, and at the end of every 3-month period thereafter, the President, acting through the Secretary of State, shall brief the appropriate congressional committees regarding investigations initiated under this subsection.

(B)

Form

The briefings required under subparagraph (A) shall be provided in unclassified form, but may be provided in classified form.

(4)

Submission of information

(A)

In general

The Secretary of State shall, in accordance with section 15(b) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2680(b)), provide to the appropriate congressional committees all requested information relating to investigations or reviews initiated under this title, including the number, scope, and dates of such investigations or reviews.

(B)

Form

The information required under subparagraph (A) shall be provided in unclassified form, but may contain a classified annex.

(5)

Termination

Subject to paragraph (6), the President may, on a case-by-case basis, terminate an investigation of a person initiated under this subsection.

(6)

Special rule

(A)

In general

The President need not initiate an investigation, and may terminate an investigation, on a case-by-case basis under this subsection if the President certifies in writing to the appropriate congressional committees 15 days prior to the determination that—

(i)

the person whose activity was the basis for the investigation is no longer engaging in the activity or is divesting all holdings and terminating the activity within one year from the date of the certification; and

(ii)

the President has received reliable assurances that the person will not knowingly engage in an activity described in section 105(a) of this Act in the future.

(B)

Application of sanctions

The President shall apply the sanctions described in section 106(a) of this Act in accordance with section 105(a) of this Act to a person described in subparagraph (A) if—

(i)

the person fails to verifiably divest all holdings and terminate the activity described in subparagraph (A) of this paragraph within one year from the date of certification of the President under subparagraph (A); or

(ii)

the person has been previously designated pursuant to section 4(e)(3) of the Iran Sanctions Act of 1996, as in effect on the day before the date of the enactment of this Act, and fails to verifiably divest all holdings and terminate the activity described in subparagraph (A) within 180 days from the date of enactment of this Act.

(C)

Report

Not later than 90 days after the date of enactment of this Act, the President shall transmit to the appropriate congressional committees a report on the actions taken by persons previously designated pursuant to section 4(e)(3) of the Iran Sanctions Act of 1996, as in effect on the day before the date of the enactment of this Act, to verifiably divest all holdings and terminate the activity described in subparagraph (A).

105.

Imposition of sanctions

(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 a majority of the sanctions described in section 106(a) of this Act with respect to a person if the President determines that the person knowingly, on or after the date of the enactment of this Act—

(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 a majority of the sanctions described in section 106(a) of this Act with respect to a person if the President determines that the person knowingly, on or after the date of the enactment this Act, 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 or associated infrastructure, including construction of port facilities, railways, and roads, the primary use of which is to support the delivery of refined petroleum products.

(3)

Exportation of refined petroleum products to Iran

(A)

In general

Except as provided in subsection (f), the President shall impose a majority of the sanctions described in section 106(a) of this Act with respect to a person if the President determines that the person knowingly, on or after the date of the enactment of this Act—

(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, service contracts, technology, information, or support;

(ii)

financing or brokering such sale, lease, or provision;

(iii)

bartering or contracting by which the parties exchange goods for goods, including the insurance or reinsurance of such exchanges;

(iv)

purchasing, subscribing to, or facilitating the issuance of sovereign debt of the Government of Iran, including governmental bonds; or

(v)

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 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).

(4)

Purchase, subscription to, or facilitation of the issuance of Iranian sovereign debt

Except as provided in subsection (f), the President shall impose a majority of the sanctions described in section 106(a) of this Act with respect to a person if the President determines that the person knowingly, on or after the date of the enactment of this Act, purchases, subscribes to, or facilitates the issuance of—

(A)

sovereign debt of the Government of Iran, including governmental bonds; or

(B)

debt of any entity owned or controlled by the Government of Iran, including bonds.

(b)

Mandatory sanctions with respect to development of weapons of mass destruction or other military capabilities

(1)

In general

The President shall impose a majority of the sanctions described in section 106(a) of this Act if the President determines that a person, on or after the date of the enactment of this Act, has knowingly exported, transferred, permitted, hosted, or otherwise facilitated transshipment that may have enabled a person to export, transfer, or transship to Iran or otherwise provided to Iran any goods, services, technology, or other items that would contribute materially to the ability of Iran to—

(A)

acquire or develop chemical, biological, or nuclear weapons or related technologies; or

(B)

acquire or develop destabilizing numbers and types of advanced conventional weapons.

(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 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 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 described in 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 such paragraph in which such person engages on or after the date of the enactment of this Act.

(c)

Persons against which the sanctions are to be imposed

The sanctions described in subsections (a) and (b)(1) shall be imposed on—

(1)

any person the President determines has carried out the activities described in subsection (a) or (b), respectively; and

(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.

For purposes of this title, any person or entity described in this subsection shall be referred to as a sanctioned person.
(d)

Publication in federal register

The President shall cause to be published in the Federal Register a current list of persons and entities on whom sanctions have been imposed under this title. The removal of persons or entities from, and the addition of persons and entities to, the list, shall also be so published.

(e)

Publication of projects

The President shall cause to be published in the Federal Register a list of all significant projects that have been publicly tendered in the oil and gas sector in Iran.

(f)

Exceptions

The President shall not be required to apply or maintain the sanctions under subsection (a) or (b)—

(1)

in the case of procurement of defense articles or defense services—

(A)

under existing contracts or subcontracts, including the exercise of options for production quantities to satisfy requirements essential to the national security of the United States;

(B)

if the President determines in writing that the person to which the sanctions would otherwise be applied is a sole source supplier of the defense articles or services, that the defense articles or services are essential, and that alternative sources are not readily or reasonably available; or

(C)

if the President determines in writing that such articles or services are essential to the national security under defense coproduction agreements;

(2)

in the case of procurement, to 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));

(3)

to products, technology, or services provided under contracts entered into before the date on which the President publishes in the Federal Register the name of the person on whom the sanctions are to be imposed;

(4)

to—

(A)

spare parts which are essential to United States products or production;

(B)

component parts, but not finished products, essential to United States products or production; or

(C)

routine servicing and maintenance of products, to the extent that alternative sources are not readily or reasonably available;

(5)

to information and technology essential to United States products or production; or

(6)

to medicines, medical supplies, or other humanitarian items.

106.

Description of sanctions

(a)

In general

The sanctions to be imposed on a sanctioned person under section 105 of this Act are as follows:

(1)

Export-import bank assistance for exports to sanctioned persons

The President may direct the Export-Import Bank of the United States to not give approval to for the issuance of any guarantee, insurance, extension of credit, or participation in the extension of credit in connection with the export of any goods or services to any sanctioned person.

(2)

Export sanction

The President may order the United States Government not to issue any specific license and not to grant any other specific permission or authority to export any goods or technology to a sanctioned person under—

(A)

the Export Administration Act of 1979 (as continued in effect pursuant to the International Emergency Economic Powers Act);

(B)

the Arms Export Control Act;

(C)

the Atomic Energy Act of 1954; or

(D)

any other law that requires the prior review and approval of the United States Government as a condition for the export or reexport of goods or services.

(3)

Loans from united states financial institutions

The United States Government may prohibit any United States financial institution from making loans or providing credits to any sanctioned person totaling more than $10,000,000 in any 12-month period unless such person is engaged in activities to relieve human suffering and the loans or credits are provided for such activities.

(4)

Prohibitions on financial institutions

The following prohibitions may be imposed against a sanctioned person that is a financial institution:

(A)

Prohibition on designation as primary dealer

Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, such financial institution as a primary dealer in United States Government debt instruments.

(B)

Prohibition on service as a repository of government funds

Such financial institution may not serve as agent of the United States Government or serve as repository for United States Government funds.

The imposition of either sanction under subparagraph (A) or (B) shall be treated as one sanction for purposes of section 105 of this Act, and the imposition of both such sanctions shall be treated as 2 sanctions for purposes of section 105 of this Act.
(5)

Procurement sanction

The United States Government may not procure, or enter into any contract for the procurement of, any goods or services from a sanctioned person.

(6)

Foreign exchange

The President may 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 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 prohibit any person from—

(A)

acquiring, holding, withholding, using, transferring, withdrawing, transporting, or exporting any property that is subject to the jurisdiction of the United States and with respect to which a 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.

(9)

Grounds for exclusion

The Secretary of State may deny a visa to, and the Secretary of Homeland Security may deny admission into the United States to, any alien whom the Secretary of State determines is an alien who, on or after the date of the enactment of this Act, is a—

(A)

corporate officer, principal, or shareholder with a controlling interest of a person against whom sanctions have been imposed under subsection (a) or (b);

(B)

corporate officer, principal, or shareholder with a controlling interest of a successor entity to or a parent or subsidiary of such a sanctioned person;

(C)

corporate officer, principal, or shareholder with a controlling interest of an affiliate of such a sanctioned person, if such affiliate engaged in a sanctionable activity described in subsection (a) or (b) and if such affiliate is controlled in fact by such sanctioned person; or

(D)

spouse, minor child, or agent of a person inadmissible under subparagraph (A), (B), or (C).

(10)

Sanctions on principal executive officers

The President may impose on the principal executive officer or officers of any sanctioned person, or on persons performing similar functions and with similar authorities as such officer or officers, any of the sanctions under this subsection. The President shall include on the list published under section 105(d) of this Act the name of any person against whom sanctions are imposed under this paragraph.

(11)

Additional sanctions

The President may impose additional sanctions, as appropriate, in accordance with the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

(b)

Additional measure relating to government contracts

(1)

Modification of federal acquisition regulation

The Federal Acquisition Regulation issued pursuant to section 1303 of title 41, United States Code, shall require a certification from each person that is a prospective contractor that such person and any person owned or controlled by the person does not engage in any activity for which sanctions may be imposed under section 105 or section 304 of this Act.

(2)

Remedies

(A)

In general

If the head of an executive agency determines that a person has submitted a false certification under paragraph (1) after the date on which the Federal Acquisition Regulation is revised to implement the requirements of this subsection, 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 less than 2 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.

(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 1303 of title 41, United States Code, 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 specified 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 such 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)

Waiver

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 that failure to exercise such waiver authority would pose an unusual and extraordinary threat to the vital national security interests of the United States.

(6)

Executive agency defined

In this subsection, the term executive agency has the meaning given such term in section 133 of title 41, United States Code.

(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 this Act.

107.

Advisory opinions

The Secretary of State may, upon the request of any person, issue an advisory opinion to such person as to whether a proposed activity by such person would subject such person to sanctions under this title. Any person who relies in good faith on such an advisory opinion which states that such proposed activity would not subject such person to such sanctions, and any such person who thereafter engages in such activity, shall not be made subject to such sanctions on account of such activity.

108.

Termination of sanctions

(a)

Certification

The requirement under section 105 of this Act to impose sanctions shall no longer have force or effect with respect to Iran if the President determines and certifies to the appropriate congressional committees that Iran—

(1)

has ceased and verifiably dismantled 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)

no longer provides support for acts of international terrorism; and

(3)

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

(b)

Notification

The President shall notify the appropriate congressional committees not later than 15 days before making the certification described in subsection (a).

109.

Duration of sanctions

(a)

Delay of sanctions

(1)

Consultations

If the President makes a determination described in section 105 of this Act with respect to a foreign person, Congress urges the President to initiate consultations immediately with the government with primary jurisdiction over such foreign person with respect to the imposition of sanctions under such section.

(2)

Actions by government of jurisdiction

In order to pursue consultations under paragraph (1) with the government concerned, the President may delay for up to 90 days the imposition of sanctions under section 105 of this Act. Following such consultations, the President shall immediately impose on the foreign person referred to in paragraph (1) such sanctions unless the President determines and certifies to Congress that the government has taken specific and effective actions, including, as appropriate, the imposition of appropriate penalties to terminate the involvement of the foreign person in the activities that resulted in the determination by the President under section 105 of this Act concerning such foreign person and the foreign person is no longer engaged in such activities.

(b)

Duration of sanctions

A sanction imposed under section 105 of this Act shall remain in effect—

(1)

for a period of not less than 2 years beginning on the date on which such sanction is imposed; or

(2)

until such time as the President determines and certifies to Congress that the person whose activities were the basis for imposing such sanction is no longer engaging in such activities and that the President has received reliable assurances that such person will not knowingly engage in such activities in the future, except that such sanction shall remain in effect for a period of at least one year.

(c)

Waiver

(1)

Authorization

(A)

In general

The President may waive the requirements in section 105(a) or 105(b)(2) of this Act to impose a sanction or sanctions, and may waive, on a case-by-case basis, the continued imposition of a sanction or sanctions under subsection (b) of this section, if the President determines and so reports to the appropriate congressional committees 15 days prior to the exercise of waiver authority that failure to exercise such waiver authority would pose an unusual and extraordinary threat to the vital national security interests of the United States.

(B)

Contents of report

Any report under subparagraph (A) shall provide a specific and detailed rationale for a determination made pursuant to such paragraph, including—

(i)

a description of the conduct that resulted in the determination under section 105(a) or section 105(b)(2) of this Act, as the case may be;

(ii)

in the case of a foreign person, an explanation of the efforts to secure the cooperation of the government with primary jurisdiction over such person to terminate or, as appropriate, penalize the activities that resulted in the determination under section 105(a) or 105(b)(2) of this Act, as the case may be;

(iii)

an estimate of the significance of the conduct of the person concerned in contributing to the ability of Iran to develop petroleum resources, produce refined petroleum products, or import refined petroleum products; and

(iv)

a statement as to the response of the United States in the event that the person concerned engages in other activities that would be subject to a sanction or sanctions under section 105(a) or 105(b)(2) of this Act, as the case may be.

(2)

Waiver with respect to persons in countries that cooperate in multilateral efforts with respect to Iran

(A)

In general

The President may, on a case-by-case basis, waive for a period of not more than 12 months the application of section 105(a) of this Act 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.

(B)

Subsequent renewal of waiver

At the conclusion of the period of a waiver under subparagraph (A), the President may renew the waiver—

(i)

if the President determines, in accordance with subparagraph (A), that the waiver is appropriate; and

(ii)

for subsequent periods of not more than 12 months each.

(3)

Publication in the Federal Register

Not later than 15 days after any waiver authority is exercised pursuant to paragraph (1) or (2) of this subsection, the name of the person or entity with respect to which sanctions are being waived shall be published in the Federal Register.

110.

Reports required

(a)

Report on certain international initiatives

Not later than 180 days after the date of the enactment of this Act and every 180 days thereafter, the President shall transmit to the appropriate congressional committees a report describing—

(1)

the efforts of the President to mount a multilateral campaign to persuade all countries to pressure Iran to cease its nuclear, chemical, biological, and missile weapons programs and its support of acts of international terrorism;

(2)

the efforts of the President to persuade other governments to ask Iran to reduce in the countries of such governments the presence of Iranian diplomats and representatives of other government and military or quasi-governmental institutions of Iran, and to withdraw any such diplomats or representatives who participated in the takeover of the United States Embassy in Tehran, Iran, on November 4, 1979, or the subsequent holding of United States hostages for 444 days;

(3)

the extent to which the International Atomic Energy Agency has established regular inspections of all nuclear facilities in Iran, including those facilities presently under construction; and

(4)

Iran’s use of Iranian diplomats and representatives of other government and military or quasi-governmental institutions of Iran to promote acts of international terrorism or to develop or sustain Iran’s nuclear, chemical, biological, or missile weapons programs.

(b)

Report on effectiveness of actions under this act

Not later than 180 days after the date of the enactment of this Act and annually thereafter, the President shall transmit to Congress a report that describes—

(1)

the extent to which actions relating to trade taken pursuant to this title have—

(A)

been effective in achieving the policy objective described in section 103 of this Act and any other foreign policy or national security objectives of the United States with respect to Iran; and

(B)

affected humanitarian interests in Iran, the country in which a sanctioned person is located, or in other countries; and

(2)

the impact of actions relating to trade taken pursuant to this title on other national security, economic, and foreign policy interests of the United States, including relations with countries friendly to the United States, and on the United States economy.

The President may include in such reports the President’s recommendation on whether or not this Act should be terminated or modified.
(c)

Other reports

The President shall ensure the continued transmittal to Congress of reports describing—

(1)

the nuclear and other military capabilities of Iran, as required under section 601(a) of the Nuclear Non-Proliferation Act of 1978 and section 1607 of the National Defense Authorization Act for Fiscal Year 1993; and

(2)

the support provided by Iran for acts of international terrorism, as part of the Department of State’s annual reports on international terrorism.

(d)

Reports on global trade relating to iran

Not later than 180 days after the date of the enactment of the this Act and annually thereafter, the President shall transmit 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.

111.

Determinations not reviewable

A determination to impose sanctions under this title shall not be reviewable in any court.

112.

Definitions

In this title:

(1)

Act of international terrorism

The term act of international terrorism has the meaning given such term in section 2331 of title 18, United States Code.

(2)

Appropriate congressional committees

The term appropriate congressional committees means—

(A)

the Committee on Ways and Means, the Committee on Banking and Financial Services, the Committee on Financial Services, and the Committee on Foreign Affairs of the House of Representatives; and

(B)

the Committee on Finance, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Foreign Relations of the Senate.

(3)

Component part

The term component part has the meaning given such term in section 11A(e)(1) of the Export Administration Act of 1979 (50 U.S.C. App. 2410a(e)(1)).

(4)

Credible information

The term credible information means, with respect to a person, such person’s public announcement of an investment described in section 105 of this Act, Iranian governmental announcements of such an investment, reports to stockholders, annual reports, industry reports, Government Accountability Office products, State and local government reports, and trade publications.

(5)

Develop and development

The terms develop and development mean the exploration for, or the extraction, refining, or transportation by pipeline of, petroleum resources.

(6)

Financial institution

The term financial institution includes—

(A)

a depository institution (as defined in section 3(c)(1) of the Federal Deposit Insurance Act), including a branch or agency of a foreign bank (as defined in section 1(b)(7) of the International Banking Act of 1978);

(B)

a credit union;

(C)

a securities firm, including a broker or dealer;

(D)

an insurance company, including an agency or underwriter; and

(E)

any other company that provides financial services including joint ventures with Iranian entities both inside and outside of Iran and partnerships or investments with Iranian government-controlled entities or affiliated entities.

(7)

Finished product

The term finished product has the meaning given such term in section 11A(e)(2) of the Export Administration Act of 1979 (50 U.S.C. App. 2410a(e)(2)).

(8)

Foreign person

The term foreign person means—

(A)

an individual who is not a United States person or an alien lawfully admitted for permanent residence into the United States; or

(B)

a corporation, partnership, joint venture, cooperative venture, or other nongovernmental entity which is not a United States person.

(9)

Foreign terrorist organization

The term foreign terrorist organization means an organization designated by the Secretary of State as a foreign terrorist organization in accordance with section 219(a) of the Immigration and Nationality Act (8 U.S.C. 1189(a)).

(10)

Goods and technology

The terms goods and technology have the meanings given such terms in section 16 of the Export Administration Act of 1979 (50 U.S.C. App. 2415).

(11)

Investment

The term investment means any of the following activities if any of such activities is undertaken pursuant to an agreement, or pursuant to the exercise of rights under such an agreement, that is entered into with the Government of Iran or a nongovernmental entity in Iran, on or after the date of the enactment of this Act:

(A)

The entry into a contract that includes responsibility for the development of petroleum resources located in Iran, or the entry into a contract providing for the general supervision and guarantee of another person’s performance of such a contract.

(B)

The purchase of a share of ownership, including an equity interest, in the development described in subparagraph (A).

(C)

The entry into a contract providing for the participation in royalties, earnings, or profits in the development described in subparagraph (A), without regard to the form of such participation.

(D)

The provision of goods, services, or technology related to petroleum resources.

(12)

Iran

The term Iran includes any agency or instrumentality of Iran.

(13)

Iranian diplomats and representatives of other government and military or quasi-governmental institutions of iran

The term Iranian diplomats and representatives of other government and military or quasi-governmental institutions of Iran includes employees, representatives, or affiliates of Iran’s—

(A)

Foreign Ministry;

(B)

Ministry of Intelligence and Security;

(C)

Revolutionary Guard Corps and affiliated entities;

(D)

Crusade for Reconstruction;

(E)

Qods (Jerusalem) Forces;

(F)

Interior Ministry;

(G)

Foundation for the Oppressed and Disabled;

(H)

Prophet’s Foundation;

(I)

June 5th Foundation;

(J)

Martyr’s Foundation;

(K)

Islamic Propagation Organization; and

(L)

Ministry of Islamic Guidance.

(14)

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 of such conduct, circumstance, or result.

(15)

Nuclear explosive device

The term nuclear explosive device means any device, whether assembled or disassembled, that is designed to produce an instantaneous release of an amount of nuclear energy from special nuclear material (as defined in section 11(aa) of the Atomic Energy Act of 1954 (42 U.S.C. 2014(aa))) that is greater than the amount of energy that would be released from the detonation of one pound of trinitrotoluene (TNT).

(16)

Person

(A)

In general

The term person means—

(i)

a natural person;

(ii)

a corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, or any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and

(iii)

any successor to any entity described in clause (ii).

(B)

Exclusion

The term person does not include a government or governmental entity that is not operating as a business enterprise.

(17)

Petroleum resources

The term petroleum resources includes petroleum and natural gas resources, refined petroleum products, oil or liquefied natural gas, oil or liquefied natural gas tankers, and products used to construct or maintain pipelines used to transport oil or liquefied natural gas.

(18)

Refined petroleum products

The term refined petroleum products means diesel, gasoline, jet fuel (including naphtha-type and kerosene-type jet fuel), and aviation gasoline.

(19)

United states or state

The terms United States and State mean 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.

(20)

United states person

The term United States person means—

(A)

a natural person who is a citizen of the United States or who owes permanent allegiance to the United States; and

(B)

a corporation or other legal entity that is organized under the laws of the United States or any State if a natural person described in subparagraph (A) owns more than 50 percent of the outstanding capital stock or other beneficial interest in such corporation or legal entity.

113.

Effective date

This title shall take effect on the date of the enactment of this Act and shall apply with respect to an investment or activity described in subsection (a) or (b) of section 105 of this Act that is commenced on or after such date of enactment.

114.

Repeal

(a)

In general

The Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is repealed.

(b)

Conforming amendments

The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 8501 et seq.) is amended—

(1)

in section 103(b)(3)(E), by striking section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) and inserting section 112 of the Iran Threat Reduction Act of 2011;

(2)

in section 111(a)(1), by striking section 5 of the Iran Sanctions Act of 1996, as amended by section 102 of this Act and inserting section 105 of the Iran Threat Reduction Act of 2011;

(3)

in section 112(3), by striking Iran Sanctions Act of 1996, as amended by section 102 of this Act, and inserting Iran Threat Reduction Act of 2011; and

(4)

in section 201(2), by striking section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) and inserting section 112 of the Iran Threat Reduction Act of 2011.

(c)

References

Any reference in a law, regulation, document, or other record of the United States to the Iran Sanctions Act of 1996 shall be deemed to be a reference to this title.

(d)

Federal acquisition regulation

Notwithstanding the repeal made by subsection (a), the modification to the Federal Acquisition Regulation made pursuant to section 6(b)(1) of the Iran Sanctions Act of 1996 shall continue in effect until the modification to such Regulation that is made pursuant to section 106(b)(1) of this Act takes effect.

II

Iran freedom support

201.

Codification of sanctions

United States sanctions with respect to Iran imposed pursuant to—

(1)

sections 1 and 3 of Executive Order No. 12957;

(2)

sections 1(e), 1(g), and 3 of Executive Order No. 12959;

(3)

sections 2, 3, and 5 of Executive Order No. 13059;

(4)

sections 1, 5, 6, 7, and 8 of Executive Order No. 13553; or

(5)

sections 1, 2, and 5 of Executive Order No. 13574,

as in effect on September 1, 2011, shall remain in effect until the President certifies to the appropriate congressional committees, at least 90 days before the removal of such sanctions, that the Government of Iran has verifiably dismantled its nuclear weapons program, its biological and chemical weapons programs, its ballistic missile development programs, and ceased its support for international terrorism.
202.

Liability of parent companies for violations of sanctions by foreign subsidiaries

(a)

Definitions

In this section:

(1)

Entity

The term entity means a partnership, association, trust, joint venture, corporation, or other organization.

(2)

Own or control

The term own or control means, with respect to an entity—

(A)

to hold more than 50 percent of the equity interest by vote or value in the entity;

(B)

to hold a majority of seats on the board of directors of the entity; or

(C)

to otherwise control the actions, policies, or personnel decisions of the entity.

(3)

Subsidiary

The term subsidiary means an entity that is owned or controlled by a United States person.

(4)

United states person

The term United States person means—

(A)

a natural person who is a citizen, resident, or national of the United States; and

(B)

an entity that is organized under the laws of the United States, any State or territory thereof, or the District of Columbia, if natural persons described in subparagraph (A) own or control the entity.

(b)

In general

A United States person shall be subject to a penalty for a violation of the provisions of Executive Order No. 12959 (50 U.S.C. 1701 note) or Executive Order No. 13059 (50 U.S.C. 1701 note), or any other prohibition on transactions with respect to Iran imposed under the authority of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), if the President determines that a subsidiary of the United States person that is established or maintained outside the United States engages in an act that, if committed in the United States or by a United States person, would violate such provisions.

(c)

Effective date

(1)

In general

Subsection (b) shall take effect on the date of the enactment of this Act and apply with respect to acts described in subsection (b)(2) that are—

(A)

commenced on or after the date of the enactment of this Act; or

(B)

except as provided in paragraph (2), commenced before such date of enactment, if such acts continue on or after such date of enactment.

(2)

Exception

Subsection (b) shall not apply with respect to an act described in paragraph (1)(B) by a subsidiary owned or controlled by a United States person if the United States person divests or terminates its business with the subsidiary not later than 90 days after the date of the enactment of this Act.

203.

Declaration of Congress regarding United States policy toward Iran

It shall be the policy of the United States to support those individuals in Iran seeking a free, democratic government that respects the rule of law and protects the rights of all citizens.

204.

Assistance to support democracy in Iran

(a)

Assistance authorized

The President is authorized to provide financial and political assistance (including the award of grants) to foreign and domestic individuals, organizations, and entities that support democracy and the promotion of democracy in Iran. Such assistance may include the award of grants to eligible independent prodemocracy broadcasting organizations and new media that broadcast into Iran.

(b)

Eligibility for assistance

Financial and political assistance authorized under this section shall be provided only to an individual, organization, or entity that—

(1)

officially opposes the use of violence and terrorism and has not been designated as a foreign terrorist organization under section 219(a) of the Immigration and Nationality Act (8 U.S.C. 1189(a)) at any time during the preceding 4 years;

(2)

advocates the adherence by Iran to nonproliferation regimes for nuclear, chemical, and biological weapons and materiel;

(3)

is dedicated to democratic values and supports the adoption of a democratic form of Government in Iran;

(4)

is dedicated to respect for human rights, including the fundamental equality of women;

(5)

works to establish equality of opportunity for all people; and

(6)

supports freedom of the press, freedom of speech, freedom of association, and freedom of religion.

(c)

Funding

Financial and political assistance authorized under this section may only be provided using funds available to the Middle East Partnership Initiative (MEPI), the Broader Middle East and North Africa Initiative, the Human Rights and Democracy Fund, and the Near East Regional Democracy Fund.

(d)

Notification

Not later than 15 days before each obligation of assistance under this section, and in accordance with the procedures under section 634A of the Foreign Assistance Act of 1961 (22 U.S.C. 2394–l), the President shall notify the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate of such obligation of assistance. Such notification shall include, as practicable, a description of the types of programs supported by such assistance and an identification of the recipients of such assistance.

(e)

Sense of congress regarding diplomatic assistance

It is the sense of Congress that—

(1)

contacts should be expanded with opposition groups in Iran that meet the criteria for eligibility for assistance under subsection (b);

(2)

support for those individuals seeking democracy in Iran should be expressed by United States representatives and officials in all appropriate international fora; and

(3)

officials and representatives of the United States should—

(A)

strongly and unequivocally support indigenous efforts in Iran calling for free, transparent, and democratic elections; and

(B)

draw international attention to violations by the Government of Iran of human rights, freedom of religion, freedom of assembly, and freedom of the press.

205.

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)

List of persons who are responsible for or complicit in certain human rights abuses; sanctions on such persons

(1)

In general

Not later than 90 days after the date of the enactment of this Act, the President shall transmit to the appropriate congressional committees a list of all persons who are senior officials of the Government of Iran, including the Supreme Leader, the President, Members of the Cabinet, Members of the Assembly of Experts, Members of the Ministry of Intelligence Services, or any Member of the Iranian Revolutionary Guard Corps with the rank of brigadier general and above, including members of paramilitary organizations such as Ansar-e-Hezbollah and Basij-e Mostaz’afin.

(2)

Certification

The President shall impose on the persons specified in the list under paragraph (1) the sanctions described in subsection (b). The President shall exempt any such person from such imposition if the President determines and certifies to the appropriate congressional committees that such person, based on credible evidence, is not 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.

(3)

Updates of list

The President shall transmit to the appropriate congressional committees an updated list under paragraph (1)—

(A)

not later than every 60 days beginning after the date of the initial transmittal under such paragraph; and

(B)

as new information becomes available.

(4)

Form of report; public availability

(A)

Form

The list required under paragraph (1) shall be submitted in unclassified form but may contain a classified annex.

(B)

Public availability

The unclassified portion of the list required under paragraph (1) shall be made available to the public and posted on the Web sites of the Department of the Treasury and the Department of State.

(5)

Consideration of data from other countries and nongovernmental organizations

In preparing the list required under 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.

(b)

Sanctions described

The sanctions described in this subsection are ineligibility for a visa to enter the United States and sanctions described in section 106 of this Act, 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

(c)

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—

(1)

has unconditionally released all political prisoners, including the citizens of Iran detained in the aftermath of the June 12, 2009, presidential election in Iran;

(2)

has ceased its practices of violence, unlawful detention, torture, and abuse of citizens of Iran while engaging in peaceful political activity;

(3)

has 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)

has—

(A)

established an independent judiciary; and

(B)

is respecting the human rights and basic freedoms recognized in the Universal Declaration of Human Rights.

206.

Clarification of sensitive technologies for purposes of procurement ban

The Secretary of State shall—

(1)

not later than 90 days after the date of the enactment of this Act, issue guidelines to further describe the goods, services, and technologies that will be considered sensitive technologies for purposes of section 106 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8515), and publish those guidelines in the Federal Register;

(2)

determine the types of goods, services, and technologies that enable any indigenous capabilities that Iran has to disrupt and monitor information and communications in that country, and consider adding descriptions of those items to the guidelines; and

(3)

periodically review, but in no case less than once each year, the guidelines and, if necessary, amend the guidelines on the basis of technological developments and new information regarding transfers of goods, services, and technologies to Iran and the development of Iran’s indigenous capabilities to disrupt and monitor information and communications in Iran.

207.

Comprehensive strategy to promote internet freedom and access to information in Iran

(a)

In general

Not later than 90 days after the date of the enactment of this Act and annually thereafter, the Secretary of State shall submit to the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate a comprehensive strategy to—

(1)

help the people of Iran produce, access, and share information freely and safely via the Internet, including in Farsi and regional languages;

(2)

support the development of counter-censorship technologies that enable the citizens of Iran to undertake Internet activities without interference from the Government of Iran;

(3)

increase the capabilities and availability of secure mobile communications among human rights and democracy activists in Iran;

(4)

provide resources for digital safety training for media, unions, and academic and civil society organizations in Iran;

(5)

increase the amount of accurate Internet content in local languages in Iran;

(6)

increase emergency resources for the most vulnerable human rights advocates seeking to organize, share information, and support human rights in Iran;

(7)

expand surrogate radio, television, live stream, and social network communications inside Iran, including by assisting United States telecommunications and software companies to comply with the United States export licensing process for such purposes;

(8)

expand activities to safely assist and train human rights, civil society, and union activists in Iran to operate effectively and securely;

(9)

defeat all attempts by the Government of Iran to jam or otherwise deny international satellite broadcasting signals, including by identifying foreign providers of jamming technology;

(10)

expand worldwide United States embassy and consulate programming for and outreach to Iranian dissident communities;

(11)

expand access to proxy servers for democracy activists in Iran; and

(12)

discourage telecommunication and software companies from facilitating Internet censorship by the Government of Iran.

(b)

Eligibility for assistance

Assistance authorized under the comprehensive stategy required under subsection (a) shall be provided only to an individual, organization, or entity that meets the eligibility criteria in section 204(b) of this Act for financial and political assistance authorized under section section 204(a) of this Act.

(c)

Form

The comprehensive strategy required under subsection (a) shall be submitted in unclassified form and may include a classified annex.

III

Iran regime and Iran’s Islamic Revolutionary Guard Corps accountability

301.

Iran’s Islamic Revolutionary Guard Corps

(a)

Transactions with Iran’s Islamic Revolutionary Guard Corps

No United States person shall knowingly conduct any commercial transaction or financial transaction with, or make any investment in—

(1)

any person or entity owned or controlled by Iran’s Islamic Revolutionary Guard Corps;

(2)

any instrumentality, subsidiary, affiliate, or agent of Iran’s Islamic Revolutionary Guard Corps; or

(3)

any project, activity, or business owned or controlled by Iran’s Islamic Revolutionary Guard Corps.

(b)

Transactions with certain foreign persons

No United States person shall knowingly conduct any commercial transaction or financial transaction with, or make any investment in, any foreign person or foreign entity that conducts any transaction with or makes any investment with Iran’s Islamic Revolutionary Guard Corps, which, if conducted or made by a United States person, would constitute a violation of subsection (a).

(c)

Penalties

Any United States person who violates subsection (a) or (b) shall be subject to 1 or more of the criminal penalties under the authority of section 206(c) of the International Emergency Economic Powers Act (50 U.S.C. 1705).

(d)

Waiver

(1)

In general

The President is authorized to waive the restrictions in subsection (a) or (b) on a case-by-case basis if the President determines and notfies the appropriate congressional committees that failure to exercise such waiver authority would pose an unusual and extraordinary threat to the national security interests of the United States.

(2)

Publication in the Federal Register

Not later than 15 days after any waiver authority is exercised pursuant to paragraph (1) of this subsection, the name of the person with respect to which sanctions are being waived shall be published in the Federal Register.

(e)

Amendments to Code of Federal Regulations

Not later than 30 days after the date of the enactment of this Act, the President shall amend part 544 of title 31, Code of Federal Regulations (Weapons of Mass Destruction Proliferators Sanctions Regulations), to incorporate the provisions of this section.

(f)

Definitions

In this section, the terms foreign person, knowingly, and United States person have the meanings given such terms in section 112 of this Act.

302.

Additional export sanctions against Iran

(a)

In general

Notwithstanding section 103(b)(2)(B)(iv) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 8512(b)(2)(B)(iv)) or section 1606 of the Iran-Iraq Arms Non-Proliferation Act of 1992 (Public Law 102–484; 50 U.S.C. 1701 note) or any other provision of law, effective on the date of the enactment of this Act—

(1)

licenses to export or reexport goods, services, or technology for the repair or maintenance of aircraft of United States origin to Iran 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 to Iran.

(b)

Rule of construction

Nothing in this section shall be construed to repeal or otherwise supersede the requirements of section 740.15(d)(4) of title 15, Code of Federal Regulations (relating to reexports of vessels subject to the Export Adminstration Regulations).

303.

Sanctions against affiliates of Iran’s Islamic Revolutionary Guard Corps

(a)

In general

Not later than 90 days after the date of the enactment of this Act, and as appropriate thereafter, the President shall identify in, and, in the case of a foreign person or foreign entity not already so designated, shall designate for inclusion in the Annex to Executive Order No. 13382 (70 Fed. Reg. 38567; relating to blocking property of weapons of mass destruction proliferators and their supporters) and shall apply all applicable sanctions of the United States pursuant to Executive Order No. 13382 to each foreign person or foreign entity for which there is a reasonable basis for determining that the person or entity is as an agent, alias, front, instrumentality, official, or affiliate of Iran’s Islamic Revolutionary Guard Corps or is an individual serving as a representative of Iran’s Islamic Revolutionary Guard Corps.

(b)

Priority for investigation

In carrying out this section, the President shall give priority to investigating foreign persons and foreign entities identified under section 560.304 of title 31, Code of Federal Regulations (relating to the definition of the Government of Iran) and foreign persons and foreign entities for which there is a reasonable basis to suspect that the person or entity has conducted or attempted to conduct one or more sensitive transactions or activities described in subsection (c).

(c)

Sensitive transaction or activity

A sensitive transaction or activity referred to in subsection (b) is—

(1)

a transaction to facilitate the manufacture, import, export, or transfer of items needed for the development of nuclear, chemical, biological, or advanced conventional weapons, including ballistic missiles;

(2)

an attempt to interfere in the internal affairs of Iraq or Afghanistan, or equip or train, or encourage violence by, individuals or groups opposed to the governments of those countries;

(3)

a transaction relating to the manufacture, procurement, or sale of goods, services, and technology relating to Iran’s energy sector, including the development of the energy resources of Iran, export of petroleum products, and import of refined petroleum and refining capacity available to Iran;

(4)

a transaction relating to the procurement of sensitive technologies (as defined in section 106(c) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 8515(c)); or

(5)

a financial transaction or series of transactions valued at more than $1,000,000 in the aggregate in any 12-month period involving a non-Iranian financial institution.

(d)

Inadmissiblity to United States

The Secretary of State shall deny a visa to, and the Secretary of Homeland Security shall deny admission into the United States to, any alien who, on or after the date of the enactment of this Act, is a foreign person designated for inclusion in the Annex to Executive Order No. 13382 pursuant to subsection (a).

(e)

Rule of construction

Nothing in this section shall be construed to remove any sanction of the United States in force against Iran’s Islamic Revolutionary Guard Corps as of the date of the enactment of this Act by reason of the fact that Iran’s Islamic Revolutionary Guard Corps is an entity of the Government of Iran.

304.

Measures against foreign persons or entities supporting Iran’s Islamic Revolutionary Guard Corps

(a)

Identification and notification

The President shall notify the appropriate congressional committees in any case in which the President determines that there is credible information indicating that a foreign person or foreign entity, on or after the date of the enactment of this Act, knowingly—

(1)

provides material support to Iran’s Islamic Revolutionary Guard Corps or any foreign person or foreign entity that is identified pursuant to section 303(a) of this Act as an agent, alias, front, instrumentality, official, or affiliate of Iran’s Islamic Revolutionary Guard Corps or an individual serving as a representative of Iran’s Islamic Revolutionary Guard Corps; or

(2)

conducts any commercial transaction or financial transaction with Iran’s Islamic Revolutionary Guard Corps or any such person or entity.

(b)

Waiver

(1)

In general

Notwithstanding any other provision of this title and subject to paragraph (2), the President is not required to make any identification or designation of or determination with respect to a foreign person or foreign entity for purposes of this title if doing so would cause damage to the national security of the United States through the divulgence of sources and methods of intelligence or other critical classified information.

(2)

Notice to Congress

The President shall notify Congress of any exercise of the authority of paragraph (1) and shall include in the notification an identification of the foreign person or foreign entity, including a description of the activity or transaction that would have caused the identification, designation, or determination for purposes of this title.

(c)

Sanctions

(1)

In general

The President shall apply to each foreign person or foreign entity identified in a notice under subsection (a) for a period determined by the President a majority of the sanctions described in section 106(a) of this Act.

(2)

Termination

The President may terminate the sanctions applied to a foreign person or foreign entity pursuant to paragraph (1) if the President determines that the person or entity no longer engages in the activity or activities for which the sanctions were imposed and has provided assurances to the United States Government that it will not engage in the activity or activities in the future.

(d)

IEEPA sanctions

The President may exercise the authorities provided under subparagraphs (A) and (C) of section 203(a)(1) of the International Emergency Economic Powers Act (50 U.S.C. 1702(a)(1)) to impose additional sanctions on each foreign person or foreign entity identified pursuant to subsection (a), for such time as the President may determine, without regard to section 202 of that Act.

(e)

Waiver

The President may waive the application of any measure described in subsection (c) with respect to a foreign person or foreign entity if the President—

(1)
(A)

determines that the person or entity has ceased the activity that resulted in the notification under subsection (a) with respect to the person or entity (as the case may be) and has taken measures to prevent its recurrence; or

(B)

determines and so reports to the appropriate congressional committees 15 days prior to the exercise of waiver authority that failure to exercise such waiver authority would pose an unusual and extraordinary threat to the vital national security interests of the United States; and

(2)

submits to the appropriate congressional committees a report that contains the reasons for the determination.

(f)

Foreign person defined

In this section, the term foreign person has the meaning given the term in section 112 of this Act.

305.

Special measures against foreign countries supporting Iran’s Islamic Revolutionary Guard Corps

(a)

Sanctions

With respect to any foreign entity identified pursuant to section 304(a) of this Act that is an agency of the government of a foreign country, the President shall, in addition to applying to the entity the sanctions described in section 304(c) of this Act, apply to the agency of the government of the foreign country the following measures:

(1)

No assistance shall be provided to the agency of the government of the foreign country under the Foreign Assistance Act of 1961, or any successor Act, or the Arms Export Control Act, or any successor Act, other than assistance that is intended to benefit the people of the foreign country directly and that is not provided through governmental agencies or entities of the foreign country.

(2)

The United States shall oppose any loan or financial or technical assistance to the agency of the government of the foreign country by international financial institutions in accordance with section 701 of the International Financial Institutions Act (22 U.S.C. 262d).

(3)

The United States shall deny to the agency of the government of the foreign country any credit or financial assistance by any department, agency, or instrumentality of the United States Government.

(4)

The United States Government shall not approve the sale to the agency of the government of the foreign country any defense articles or defense services or issue any license for the export of items on the United States Munitions List.

(5)

No exports to the agency of the government of the foreign country shall be permitted of any goods or technologies controlled for national security reasons under the Export Administration Regulations.

(6)

At the earliest practicable date, the Secretary of State shall terminate, in a manner consistent with international law, the authority of any air carrier that is controlled in fact by the agency of the government of the foreign country to engage in air transportation (as defined in section 40102(5) of title 49, United States Code).

(7)

Additional restrictions may be imposed in accordance with the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

(b)

Termination

The President may terminate the sanctions applied to an entity or government of a foreign country pursuant to subsection (a) if the President determines that the entity or government, as the case may be, no longer engages in the activity or activities for which the sanctions were imposed and has provided assurances to the United States Government that it will not engage in the activity or activities in the future.

(c)

Waiver

The President may waive the application of any measure described in subsection (a) with respect to an entity or government of a foreign country if the President—

(1)
(A)

determines that the entity or government, as the case may be, has ceased the activity that resulted in the notification under section 304(a) of this Act with respect to the entity or government and has taken measures to prevent its recurrence; or

(B)

determines and so reports to the appropriate congressional committees 15 days prior to the exercise of waiver authority that failure to exercise such waiver authority would pose an unusual and extraordinary threat to the vital national security interests of the United States; and

(2)

submits to the appropriate congressional committees a report that contains the reasons for the determination.

306.

Authority of State and local governments to restrict contracts or licenses for certain sanctionable persons

Notwithstanding any other provision of law, a State or local government may adopt and enforce measures to prohibit the State or local government, as the case may be, from entering into or renewing any contract with, or granting to or renewing any license for persons that conduct business operations in Iran described in section 309 of this Act.

307.

Iranian activities in Iraq and Afghanistan

(a)

Freezing of assets

In accordance with subsection (b), all property and interests in property of the foreign persons described in Executive Order No. 13382 and Executive Order No. 13224, or their affiliates, that are in the United States, that on or after the date of the enactment of this Act come within the United States, or that on or after the date of the enactment of this Act come within the possession or control of United States persons, are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in with respect to any such person determined by the Secretary of State, in consultation with the Secretary of the Treasury and the Secretary of Defense to—

(1)

have committed, or to pose a significant risk of committing, an act or acts of violence that have the purpose or effect of threatening United States efforts to promote security and stability in Iraq and Afghanistan;

(2)

have knowingly and materially assisted, sponsored, or provided financial, material, logistical, or technical support for, or goods or services in support of, such an act or acts of violence or any person or entity whose property and interests in property are blocked pursuant this subsection; or

(3)

be owned or controlled by, or to have acted or purported to act for or on behalf of any person whose property and interests in property are blocked pursuant to this subsection.

(b)

Description of prohibitions

The prohibitions described in subsection (a) include—

(1)

the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked; and

(2)

the receipt of any contribution or provision of funds, goods, or services from any such person.

(c)

Findings

Congress finds that—

(1)

an increase in both the quantity and quality of Iranian arms shipments and technological expertise to the Iraqi insurgents, the Taliban, other terrorist organizations and criminal elements has the potential to significantly change the battlefield in both Iraq and Afghanistan, and lead to a large increase in United States, International Security Assistance Force, Coalition and Iraqi and Afghan casualties; and

(2)

an increase in Iranian activity and influence in Iraq threatens the safety and welfare of the residents of Camp Ashraf.

(d)

Statement of policy

It shall be the policy of the United States to urge the Government of Iraq to—

(1)

uphold its commitments to the United States to ensure the continued well-being of those individuals living in Camp Ashraf;

(2)

prevent the involuntary return of such individuals to Iran in accordance with the United States Embassy Statement on Transfer of Security Responsibility for Camp Ashraf of December 28, 2008; and

(3)

not close Camp Ashraf until the United Nations High Commission for Refugees can complete its process, recognize as political refugees the residents of Camp Ashraf who do not wish to go back to Iran, and resettle them in third countries.

(e)

Definitions

In this section, the terms foreign person and United States person have the meanings given such terms in section 112 of this Act.

308.

United States policy toward Iran

(a)

National strategy required

The President shall develop a strategy, to be known as the National Strategy to Counter Iran, that provides strategic guidance for activities that support the objective of addressing, countering, and containing the threats posed by Iran.

(b)

Annual report

(1)

In general

Not later than January 30 of each year, the President shall transmit to the appropriate congressional committees a report on the current and future strategy of the United States toward Iran, and the implementation of the National Strategy to Counter Iran required under subsection (a).

(2)

Form

If the President considers it appropriate, the report required under this subsection, or appropriate parts thereof, may be transmitted in classified form.

(c)

Matters to be included

The report required under subsection (b) shall include a description of the security posture and objectives of Iran, including at least the following:

(1)

A description and assessment of Iranian grand strategy and security strategy, including—

(A)

the goals of Iran’s grand strategy and security strategy, and strategic objectives; and

(B)

Iranian strategy to achieve such objectives in the Middle East, Europe, Africa, Western Hemisphere, and Asia.

(2)

An assessment of the capabilities of Iran’s conventional forces and Iran’s unconventional forces, including—

(A)

the size and capabilities of Iran’s conventional forces and Iran’s unconventional forces;

(B)

an analysis of the formal and informal national command authority for Iran’s conventional forces and Iran’s unconventional forces;

(C)

the size and capability of Iranian foreign and domestic intelligence and special operations units, including the Iranian Revolutionary Guard Corps-Quds Force;

(D)

a description and analysis of Iranian military doctrine;

(E)

the types and amount of support, including funding, lethal and nonlethal supplies, and training, provided to groups designated by the United States as foreign terrorist organizations and regional militant groups; and

(F)

an estimate of the levels of funding and funding and procurement sources by Iran to develop and support Iran’s conventional forces and Iran’s unconventional forces.

(3)

An assessment of Iranian strategy and capabilities related to nuclear, unconventional, and missile forces development, including—

(A)

a summary and analysis of nuclear weapons capabilities;

(B)

an estimate of the amount and sources of funding expended by, and an analysis of procurement networks utilized by, Iran to develop its nuclear weapons capabilities;

(C)

a summary of the capabilities of Iran’s unconventional weapons and Iran’s ballistic missile forces and Iran’s cruise missile forces, including developments in the preceding year, the size of Iran’s ballistic missile forces and Iran’s cruise missile forces, and the locations of missile launch sites;

(D)

a detailed analysis of the effectiveness of Iran’s unconventional weapons and Iran’s ballistic missile forces and Iran’s cruise missile forces; and

(E)

an estimate of the amount and sources of funding expended by, and an analysis of procurement networks utilized by, Iran on programs to develop a capability to develop unconventional weapons and Iran’s ballistic missile forces and Iran’s cruise missile forces.

(4)

The Government of Iran’s economic strategy, including—

(A)

sources of funding for the activities of the Government of Iran described in this section;

(B)

the role of the Government of Iran in the formal and informal sector of the domestic Iranian economy;

(C)

evasive and other efforts by the Government of Iran to circumvent international and bilateral sanctions regimes;

(D)

the effect of bilateral and multilateral sanctions on the ability of Iran to implement its grand strategy and security strategy described in paragraph (1); and

(E)

Iran’s strategy and efforts to leverage economic and political influence, cooperation, and activities in the Middle East Europe, Africa, Western Hemisphere, and Asia.

(5)

Key vulnerabilities identified in paragraph (1), and an implementation plan for the National Strategy to Counter Iran required under subsection (a).

(6)

The United States strategy to—

(A)

address and counter the capabilities of Iran’s conventional forces and Iran’s unconventional forces;

(B)

disrupt and deny Iranian efforts to develop or augment capabilities related to nuclear, unconventional, and missile forces development;

(C)

address the Government of Iran’s economic strategy to enable the objectives described in this subsection; and

(D)

exploit key vulnerabilities identified in this subsection.

(7)

An implementation plan for United States strategy described in under paragraph (6).

(d)

Classified annex

The reports required under subsection (b) shall be in unclassified form to the greatest extent possible, and may include a classified annex where necessary.

(e)

Appropriate congressional committees

In this section, the term appropriate congressional committees means—

(1)

the Committee on Foreign Affairs, the Committee on Armed Services, the Committee on Appropriations, the Committee on Ways and Means, and the Permanent Select Committee on Intelligence of the House of Representatives; and

(2)

the Committee on Foreign Relations, the Committee on Armed Services, the Committee on Appropriations, the Committee on Finance, and the Permanent Select Committee on Intelligence of the Senate.

309.

Definitions

Except as otherwise provided, in this title:

(1)

Appropriate congressional committees

The term appropriate congressional committees means—

(A)

the Committee on Foreign Affairs, the Committee on Appropriations, the Committee on Ways and Means, and the Permanent Select Committee on Intelligence of the House of Representatives; and

(B)

the Committee on Foreign Relations, the Committee on Appropriations, the Committee on Finance, and the Permanent Select Committee on Intelligence of the Senate.

(2)

Iran’s ballistic missile forces

The term Iran’s ballistic missile forces includes ballistic missiles, goods, and associated equipment and those elements of the Government of Iran that employ such ballistic missiles, goods, and associated equipment.

(3)

Iran’s ballistic missile and unconventional weapons

The term Iran’s ballistic missile and unconventional weapons means Iran’s ballistic missile forces and chemical, biological, and radiological weapons programs.

(4)

Iran’s cruise missile forces

The term Iran’s cruise missile forces includes cruise missile forces, goods, and associated equipment and those elements of the Government of Iran that employ such cruise missiles capable of flights less than 500 kilometers, goods, and associated equipment.

(5)

Iran’s conventional forces

The term Iran’s conventional forces

(A)

means military forces of Iran designed to conduct operations on sea, air, or land, other than Iran’s unconventional forces and Iran’s ballistic missile forces and Iran’s cruise missile forces; and

(B)

includes Iran’s Army, Air Force, Navy, domestic law enforcement, and elements of the Iran’s Islamic Revolutionary Guard Corps, other than Iran’s Islamic Revolutionary Guard Corps-Quds Force.

(6)

Iran’s unconventional forces

The term Iran’s unconventional forces

(A)

means forces of Iran that carry out missions typically associated with special operations forces; and

(B)

includes—

(i)

the Iran’s Islamic Revolutionary Guard Corps-Quds Force;

(ii)

paramilitary organizations;

(iii)

formal and informal intelligence agencies and entities; and

(iv)

any organization that—

(I)

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

(II)

receives assistance from Iran; and

(III)

is assessed—

(aa)

as being willing in some or all cases of carrying out attacks on behalf of Iran; or

(bb)

as likely to carry out attacks in response to an attack by another country on Iran or its interests.

(7)

Affiliate

The term affiliate means any individual or entity that controls, is controlled by, or is under common control with, the company, including without limitation direct and indirect subsidiaries of the company.

(8)

Business operations

The term business operations means—

(A)

carrying out any of the activities described in section 105(a) and (b) of this Act that are sanctionable under such section;

(B)

providing sensitive technology (as defined in section 106(c) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 8515(c))) to the Government of Iran; and

(C)

carrying out any of the activities described in section 304(a) of this Act .

(9)

Company

The term company means—

(A)

a sole proprietorship, organization, association, corporation, partnership, limited liability company, venture, or other entity, its subsidiary or affiliate; and

(B)

includes a company owned or controlled by the government of a foreign country, that is established or organized under the laws of, or has its principal place of business in, such foreign country and includes United States subsidiaries of the same.

(10)

Entity

The term entity means a sole proprietorship, a partnership, limited liability corporation, association, trust, joint venture, corporation, or other organization.

(11)

Executive agency

The term executive agency has the meaning given the term in section 133 of title 41, United States Code.

(12)

Government of iran

The term Government of Iran includes the Government of Iran, any political subdivision, agency, or instrumentality thereof, and any person owned or controlled by, or acting for or on behalf of, the Government of Iran.

(13)

Petroleum resources

The term petroleum resources has the meaning given the term in section 112 of this Act.

(14)

Sensitive technology

The term sensitive technology has the meaning given the term in section 106(c) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 8515(c)).

310.

Rule of construction

Nothing in this title shall be construed to limit the authority of the President to otherwise designate foreign persons or foreign entities for inclusion in the Annex to Executive Order No. 13382 (70 Fed. Reg. 38567; relating to blocking property of weapons of mass destruction proliferators and their supporters).

IV

Iran financial sanctions; divestment from certain companies that invest in Iran; and prevention of diversion of certain goods, services, and technologies to Iran

401.

Iran financial sanctions

(a)

Financial institution certification

Section 104(e) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 8513(e)) is amended by adding at the end the following new paragraph:

(3)

Certification

Not later than 90 days after the date of the enactment of this paragraph, the Secretary of the Treasury shall prescribe regulations to require any person wholly owned or controlled by a domestic financial institution to provide positive certification to the Secretary if such person is engaged in corresponding relations or business activity with a foreign person or financial institution that facilitates transactions from persons and domestic financial institutions described in subsection (d).

.

(b)

Central Bank of Iran

Section 104(c) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513(a)) is amended by adding at the end the following:

(4)

Central bank of iran

(A)

Determination

Not later than 30 days after the date of the enactment of this paragraph, the President shall determine whether the Central Bank of Iran has—

(i)

provided financial services in support of, or otherwise facilitated, the ability of Iran to—

(I)

acquire or develop chemical, biological or nuclear weapons, or related technologies;

(II)

construct, equip, operate, or maintain nuclear enrichment facilities; or

(III)

acquire or develop ballistic missiles, cruise missiles, or destabilizing types and amounts of conventional weapons; or

(ii)

facilitated a transaction or provided financial services for—

(I)

Iran’s Islamic Revolutionary Guard Corps; or

(II)

a financial institution whose property or interests in property are subject to sanctions imposed pursuant to the International Emergency Economic Powers Act—

(aa)

in connection with Iran’s proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction; or

(bb)

Iran’s support for acts of international terrorism.

(B)

Submission to congress

The President shall submit the determination made under subparagraph (A) in writing to the Congress, together with the reasons therefor.

(C)

Imposition of sanctions

(i)

In general

If the President determines under subparagraph (A) that the Central Bank of Iran has engaged in any of the activities described in that paragraph, the President shall apply to the Central Bank of Iran sanctions pursuant to the International Economic Powers Act (50 U.S.C. 1701 et seq.), including blocking of property and restrictions or prohibitions on financial transactions and the exportation of property.

(ii)

Effective period of designation

The President shall maintain the sanctions imposed under clause (i) until such time as the President determines and certifies in writing to the Congress that the Central Bank of Iran is no longer engaged in any of the activities described in subparagraph (A).

.

(c)

Continuation in effect

Sections 104, 106, 107, 108, 109, 110, 111, and 115 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 shall remain in effect until the President makes the certification described in section 606(a) of this Act.

402.

Divestment from certain companies that invest in Iran

Title II of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 shall remain in effect until the President makes the certification described in section 606(a) of this Act.

403.

Prevention of diversion of certain goods, services, and technologies to Iran

Title III of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 shall remain in effect until the President makes the certification described in section 606(a) of this Act.

V

Securities and Exchange Commission

501.

Disclosures to the Securities and Exchange Commission relating to sanctionable activities

(a)

In General

Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended by adding at the end the following new subsection:

(r)

Disclosure of certain activities relating to Iran, terrorism, and the proliferation of weapons of mass destruction

(1)

In general

The Commission shall, by rule, require any issuer described in paragraph (2) to disclose on a quarterly basis a detailed description of each activity described in paragraph (2) engaged in by the issuer or its affiliates during the period covered by the report, including—

(A)

the nature and extent of the activity;

(B)

the revenues, if any, attributable to the activity; and

(C)

whether the issuer or the affiliate of the issuer (as the case may be) intends to continue the activity.

(2)

Issuer described

An issuer is described in this paragraph if the issuer is required to file reports with the Commission under subsection (a) and the issuer or any of its affiliates has, during the period covered by the report—

(A)

engaged in an activity described in section 105 of the Iran Threat Reduction Act of 2011 for which sanctions may be imposed;

(B)

knowingly engaged in an activity described in subsection (c)(2) of section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 8513) or knowingly violated regulations prescribed under subsection (d)(1) or (e)(1) of such section 104; or

(C)

knowingly conducted any transaction or dealing with—

(i)

any person the property and interests in property of which are blocked pursuant to Executive Order No. 13224 (66 Fed. Reg. 49079; relating to blocking property and prohibiting transacting with persons who commit, threaten to commit, or support terrorism);

(ii)

any person the property and interests in property of which are blocked pursuant to Executive Order No. 13382 (70 Fed. Reg. 38567; relating to blocking of property of weapons of mass destruction proliferators and their supporters); or

(iii)

any person on the list contained in Appendix A to part 560 of title 31, Code of Federal Regulations (commonly known as the Iranian Transactions Regulations).

(3)

Sunset

The provisions of this subsection and the rules issued by the Commission under paragraph (1) shall terminate on the date that is 30 days after the date on which the President makes the certification described in section 401(a) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8551(a)).

(4)

Investigation of disclosures

When an issuer reports, pursuant to this subsection, that it or any of its affiliates has engaged in any activity described in paragraph (2), the President shall—

(A)

initiate an investigation into the possible imposition of sanctions under the Iran Threat Reduction Act of 2011, section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513), the Executive orders or regulations specified in paragraph (2)(C), or any other provision of law; and

(B)

not later than 180 days after initiating such an investigation, make a determination with respect to whether sanctions should be imposed with respect to the issuer or the affiliate of the issuer (as the case may be).

.

(b)

Effective date

The amendment made by subsection (a) shall take effect with respect to reports required to be filed with the Securities and Exchange Commission after the date that is 90 days after the date of the enactment of this Act.

VI

General provisions

601.

Denial of visas for certain persons of the Government of Iran

(a)

In general

Except as necessary to meet United States obligations under 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 treaty obligations, the Secretary of State shall deny a visa to, and the Secretary of Homeland Security shall deny admission into the United States to, a person of the Government of Iran pursuant to section 6(j)(1)(A) of the Export Administration Act of 1979 (as in effect pursuant to the International Emergency Economic Powers Act; 50 U.S.C. 1701 et seq.), section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)), and section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371), including a person who is a senior official of the Government of Iran who is specified in the list under section 205(a)(1), if the Secretary determines that such person—

(1)

is an agent, instrumentality, or official of, is affiliated with, or is serving as a representative of the Government of Iran; and

(2)

presents a threat to the United States or is affiliated with terrorist organizations.

(b)

Restriction on movement

The Secretary of State shall restrict in Washington, D.C., and at the United Nations in New York City, the travel to only within a 25-mile radius of Washington, D.C., or the United Nations headquarters building, respectively, of any person identified in subsection (a).

(c)

Restriction on contact

No person employed with the United States Government may contact in an official or unofficial capacity any person that—

(1)

is an agent, instrumentality, or official of, is affiliated with, or is serving as a representative of the Government of Iran; and

(2)

presents a threat to the United States or is affiliated with terrorist organizations.

(d)

Waiver

The President may waive the requirements of subsection (c) if the President determines and so reports to the appropriate congressional committees 15 days prior to the exercise of waiver authority that failure to exercise such waiver authority would pose an unusual and extraordinary threat to the vital national security interests of the United States.

602.

Inadmissibility of certain aliens who engage in certain activities with respect to Iran

(a)

In general

Section 212(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)) is amended by adding at the end the following:

(H)

Individuals who engage in certain activities with respect to Iran

(i)

In general

Subject to clause (iii), any alien described in clause (ii) is inadmissible.

(ii)

Aliens described

An alien described in this clause is an alien who the Secretary of State determines—

(I)

engages in—

(aa)

an activity for which sanctions may be imposed pursuant to section 105(a) of the Iran Threat Reduction Act of 2011;

(bb)

an activity—

(AA)

relating to the proliferation by Iran of weapons of mass destruction or the means of delivery of such weapons; and

(BB)

for which sanctions may be imposed pursuant to Executive Order No. 13382 (70 Fed. Reg. 38567) (or any successor thereto);

(cc)

an activity—

(AA)

relating to support for international terrorism by the Government of Iran; and

(BB)

for which sanctions may be imposed pursuant to Executive Order No. 13224 (66 Fed. Reg. 49079) (or any successor thereto); or

(dd)

any other activity with respect to Iran for which sanctions may be imposed pursuant to any other provision of law;

(II)

is the chief executive officer, president, or other individual in charge of overall management of, a member of the board of directors of, or a shareholder with a controlling interest in, an entity that engages in an activity described in subclause (I); or

(III)

is a spouse or minor child of—

(aa)

an alien who engages in an activity described in subclause (I); or

(bb)

the chief executive officer, president, or other individual in charge of overall management of, a member of the board of directors of, or a shareholder with a controlling interest in, an entity that engages in an activity described in subclause (I).

(iii)

Notice; waiver with respect to certain entities

(I)

Notice

The Secretary of State may notify an alien the Secretary determines may be inadmissible under this subparagraph—

(aa)

that the alien may be inadmissible; and

(bb)

of the reason for the inadmissibility of the alien.

(II)

Waiver

The President may waive the application of this subparagraph and admit an alien to the United States if—

(aa)

the alien is described in subclause (II) or (III)(bb) of clause (ii);

(bb)

the entity that engaged in the activity that would otherwise result in the inadmissibility of the alien under this subparagraph is no longer engaging the activity or has taken significant steps toward stopping the activity; and

(cc)

the President has received reliable assurances that the entity will not knowingly engage in an activity described in clause (ii)(I) again.

.

(b)

Regulations

Section 428 of the Homeland Security Act of 2002 (6 U.S.C. 236) is amended by adding at the end the following:

(j)

Regulations with respect to inadmissibility of aliens who engage in certain transactions with iran

Not later than 180 days after the date of the enactment of this subsection, the Secretary shall issue regulations and guidelines for interpreting and enforcing the prohibition under subparagraph (H) of section 212(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)) on the admissibility of aliens who engage in certain sanctionable activities with respect to Iran.

.

603.

Amendments to civil and criminal penalties provisions under the International Emergency Economic Powers Act

(a)

In general

Section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) is amended—

(1)

in subsection (a), by striking attempt to violate, conspire to violate and inserting attempt or conspire to violate;

(2)

in subsection (b), by striking not to exceed and all that follows and inserting that is not less than twice the value of the transaction that is the basis of the violation.; and

(3)

in subsection (c) to read as follows:

(c)

Criminal penalties

A person who willfully commits, attempts or conspires to commit, or aids or abets in the commission of, an unlawful act described in subsection (a) shall be fined not less than $1,000,000, imprisoned for not more than 20 years, or both. A person other than a natural person shall be fined in an amount not less than the greater of half of the value of the transaction that is the basis of the violation or $10,000,000.

.

(b)

Effective date

The amendments made by this section take effect on the date of the enactment of this Act and apply with respect to any violation of section 206(a) of the International Emergency Economic Powers Act (50 U.S.C. 1705(a)) that occurs on or after such date of enactment.

604.

Exclusion of certain activities

Nothing in this Act or any amendment made by this Act shall apply to—

(1)

activities subject to the reporting requirements of title V of the National Security Act of 1947; or

(2)

involving a natural gas development and pipeline project initiated prior to the date of enactment of this Act—

(A)

to bring gas from Azerbaijan to Europe and Turkey;

(B)

in furtherance of a production sharing agreement or license awarded by a sovereign government, other than the Iranian government, before the date of enactment of this Act; and

(C)

for the purpose of providing energy security and independence from Russia and other governments engaged in activities subject to sanctions under this Act.

605.

Regulatory authority

(a)

In general

The President shall, not later than 90 days after the date of the enactment of this Act, promulgate regulations as necessary for the implementation of this Act and the amendments made by this Act.

(b)

Consultation with congress

Not less than 10 days prior to the promulgation of regulations under subsection (a), the President shall notify the appropriate congressional committees of the proposed regulations and the provisions of this Act and the amendments made by this Act that the regulations are implementing.

606.

Sunset

(a)

Sunset

The provisions of this Act and the amendments made by this Act shall terminate, and shall cease to be effective, on the date that is 30 days after the date on which the President certifies to Congress that Iran—

(1)

has ceased and verifiably dismantled 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)

no longer provides support for acts of international terrorism; and

(3)

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

(b)

Notification

The President shall notify the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate not later than 15 days before making a certification described in subsection (a).

Passed the House of Representatives December 14, 2011.

Karen L. Haas,

Clerk.