To encourage democratic reform in Iran and to strengthen United States policy toward the current Government of Iran.

Summary: Iran Freedom and Democracy Support Act - Declares it to be U.S. policy to: (1) support democracy and freedom in Iran; (2) support an internationally-monitored referendum by which the Iranian people can peacefully change the system of government in Iran; and (3) help the Iranian people achieve a free press and a free, democratic society.

Directs the Broadcasting Board of Governors to: (1) require the head of Radio Farda to develop programming in consultation with Iranian exiles who support such a referendum and with the Middle East Partnership Initiative (MEPI) and the Bureau of Educational and Cultural Affairs (ECA) at the Department of State; and (2) ensure that a significant percentage of Radio Farda programming discusses democratic change in Iran.

Requires the MEPI and ECA to provide grants for the translation and distribution of materials on democracy for the Iranian people.

Authorizes the MEPI and ECA to award grants to fund programs and activities to promote a democratic referendum in Iran.

Prohibits the importation of any textile or food article from Iran until the President certifies that Iran has shown substantial progress in respecting human rights, ceased its support for international terrorism, and terminated its nuclear weapons program.

Authorizes the reduction in amounts available for U.S. contributions to international financial institutions that provide assistance to Iran in an amount equal to such assistance, and the reallocation of such contributions to the U.S. Agency for International Development for child survival and HIV/AIDS programs, until the President provides the certification referenced above.

Requires the President to report to Congress on the presence of al Qaeda elements in Iran.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Freedom and Democracy Support 
Act''.

SEC. 2. FINDINGS.

            (1) The Government of Iran is currently seeking to develop 
        nuclear weapons and other weapons of mass destruction and has 
        an active and successful ballistic missile program.
            (2) Recent revelations have shown that Iran is further 
        along than previously believed in enriching uranium and 
        developing nuclear weapons, and may only be months away from 
        developing the capability to manufacture nuclear weapons.
            (3) There is currently not a democratic government in Iran. 
        Iran is an ideological dictatorship presided over by an 
        unelected ``Supreme Leader'' with limitless veto power, an 
        unelected Expediency Council, a Council of Guardians capable of 
        eviscerating any reforms, and a President elected only after 
        the Council disqualified 234 other candidates for being too 
        liberal, reformist, or secular.
            (4) The April 2003 Department of State report on terrorism 
        indicates that Iran remained the most active state sponsor of 
        terrorism in 2002.
            (5) That report also states that Iran continues to provide 
        funding, safehaven, training, and weapons to known terrorist 
        groups, notably Hizballah, HAMAS, the Palestine Islamic Jihad, 
        and the Popular Front for the Liberation of Palestine.
            (6) Human rights have failed to improve in Iran under the 
        pseudo-reformers. Torture, executions after unfair trials, and 
        censorship of all media remain rampant throughout the country. 
        Stoning and beheading are used as methods of punishment.
            (7) While the Government of Iran remains overtly hostile to 
        the United States, the people of Iran have demonstrated that 
        they wish for improved relations with the United States.
            (8) The people of Iran have demonstrated their desire for a 
        democratically-elected, more secular government, committed to 
        protecting the human rights of all of its citizens. The people 
        of Iran have also demonstrated their desire to see such changes 
        come about through an internationally-monitored referendum.

SEC. 3. POLICY.

    It is the policy of the United States to--
            (1) support transparent, full democracy in Iran;
            (2) support an internationally-monitored referendum in Iran 
        by which the Iranian people can peacefully change the system of 
        government in Iran;
            (3) support the aspirations of the Iranian people to live 
        in freedom; and
            (4) help the Iranian people achieve a free press and build 
        an open, democratic, and free society.

SEC. 4. RADIO FARDA REFORM.

    (a) In General.--The Broadcasting Board of Governors shall--
            (1) require the head of Radio Farda to develop programming 
        for Radio Farda, after consulting with--
                    (A) Iranian-Americans and other Iranian exiles 
                who--
                            (i) support a referendum described in 
                        section 3(2); and
                            (ii) oppose the current Government of Iran; 
                        and
                    (B) the Middle East Partnership Initiative (MEPI) 
                at the Department of State and the Bureau of 
                Educational and Cultural Affairs (ECA) at the 
                Department of State; and
            (2) ensure that a significant percentage of the programming 
        on Radio Farda is devoted to discussing democratic change in 
        Iran including an internationally-monitored democratic 
        referendum in Iran as described in section 3(2).
    (b) Translations of Written and Video Materials for the Iranian 
People.--
            (1) Requirement.--The MEPI and ECA shall provide grants to 
        appropriate entities to create and maintain websites, translate 
        and distribute books, videos, documents, and other materials on 
        democracy, rule of law free market economics, and related 
        topics.
            (2) Consultation.--The MEPI and ECA shall consult with 
        nongovernmental entities and with Iranian-American opposition 
        groups that support the holding of an internationally-monitored 
        referendum in Iran as described in section 3(2) to select 
        materials to be translated into Persian.
    (c) Iran Democracy Support Initiative.--
            (1) Authority.--Notwithstanding any other provision of law, 
        the MEPI and ECA are authorized to award grants to an eligible 
        entity for the purpose of funding programs and activities to 
        promote a democratic referendum in Iran.
            (2) Eligible entity.--The following persons are eligible 
        for grants under paragraph (1):
                    (A) A person who provides radio or television 
                broadcasting into Iran that includes programming 
                intended to promote an internationally-monitored 
                democratic referendum in Iran.
                    (B) A person who is working to promote the holding 
                of an internationally-monitored referendum in Iran, as 
                described in section 3(2).
    (d) Authorization of Appropriations.--Notwithstanding any other 
provision of law, not less than 5 percent of the funds appropriated to 
the International Broadcasting Operations account for fiscal year 2004 
shall be made available to carry out the provisions of this Act.

SEC. 5. IMMEDIATELY ENDING THE UNITED STATES IMPORTATION OF IRANIAN 
              GOODS.

    Notwithstanding any other provision of law and except as provided 
in section 6, no textile or food article that is produced, grown, or 
manufactured in Iran shall enter or be imported into the United States.

SEC. 6. CONDITIONS FOR THE RESUMPTION OF UNITED STATES IMPORTATION OF 
              IRANIAN GOODS.

    The President may waive the prohibition on the importation of 
Iranian goods to the United States beginning on or after the date on 
which the President transmits to Congress a certification stating 
that--
            (1) Iran has shown substantial progress in respecting 
        generally recognized human rights standards including due 
        process under law;
            (2) Iran has ceased its support for international 
        terrorism; and
            (3) Iran has terminated its program to develop nuclear 
        weapons.

SEC. 7. TRANSFER OF FUNDS TO USAID.

    (a) Transfer.--If, beginning on or after the date of the enactment 
of this Act, an international financial institution to which the United 
States is a member provides a loan, guarantee, grant, or other form of 
assistance to Iran, then, notwithstanding any other provision of law, 
an amount equal to the amount of such assistance may, from amounts 
available for United States contributions to the international 
financial institution involved, be made available to the United States 
Agency for International Development for programs to promote child 
survival and to combat HIV/AIDS.
    (b) Rule of Construction.--For purposes of subsection (a), the 
various international financial institutions of the World Bank Group 
shall be considered to comprise a single international financial 
institution.
    (c) Termination.--The authority of this section shall terminate on 
the date on which the President transmits to Congress a certification 
under section 6.

SEC. 8. REPORTS ON AL QAEDA PRESENCE IN IRAN.

    Not later than 90 days after the date of the enactment of this Act, 
and not later than 1 year thereafter, the President shall transmit to 
Congress report on the presence of elements of the al Qaeda terrorist 
organization on the territory of Iran and the posture of the Government 
of Iran toward these elements.