SECTION 1. REVISIONS OF IRAN-IRAQ ARMS NON-PROLIFERATION ACT OF 1992.

    (a) Clarification of Policy.--Section 1602(a) of the Iran-Iraq Arms 
Non-Proliferation Act of 1992 (title XVI of Public Law 102-484; 50 
U.S.C. 1701 note) is amended by striking out ``chemical, biological, 
nuclear,'' and inserting in lieu thereof ``weapons of mass 
destruction''.
    (b) Sanctions Against Iran.--Section 1603 of such Act is amended by 
striking out ``paragraphs (1) through (4)'' and inserting in lieu 
thereof ``paragraphs (1) through (8)''.
    (c) Sanctions Against Certain Persons.--
            (1) Activities proscribed.--Subsection (a) of section 1604 
        of such Act is amended by inserting ``to acquire weapons of 
        mass destruction, or the means of their delivery, or'' before 
        ``to acquire''.
            (2) Additional sanctions.--Subsection (b) of such section 
        1604 is amended--
                    (A) in paragraph (1), ``, and shall provide for the 
                expeditious termination of any current contract for 
                goods or services,'' after ``goods or services'';
                    (B) in paragraph (2), by inserting ``, and shall 
                revoke any license issued,'' after ``shall not issue''; 
                and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(3) Migration sanction.--
                    ``(A) Individuals.--The sanctioned person shall be 
                ineligible to receive a visa for entry into the United 
                States and shall be excluded from admission into the 
                United States.
                    ``(B) Corporations.--In the case of a sanctioned 
                person that is a corporation, partnership, or other 
                form of association, the officers, directors, 
                employees, and agents of the corporation, partnership, 
                or association shall be ineligible to receive a visa 
                for entry into the United States and shall be excluded 
                from admission into the United States.
            ``(4) Financial institutions.--The President shall by order 
        prohibit any depository institution that is chartered by, or 
        that has its principal place of business within, a State, the 
        District of Columbia, or the United States from making any loan 
        or providing any credit to the sanctioned person, except for 
        loans or credits for the purpose of purchasing food or other 
        agricultural commodities.
            ``(5) Transiting united states territory.--(A) 
        Notwithstanding any other provision of law (other than a treaty 
        or other international agreement), no sanctioned person, no 
        item which is the product or manufacture of the sanctioned 
        person, and no technology developed by the sanctioned person 
        may transit any territory subject to the jurisdiction of the 
        United States.
            ``(B) The Secretary of Transportation may provide for such 
        exceptions from this paragraph as the Secretary considers 
        necessary to provide for emergencies in which the safety of an 
        aircraft or a vessel, or its crew or passengers, is 
        threatened.''.
            (3) Exceptions.--Such section 1604 is further amended by 
        adding at the end the following new subsection:
    ``(c) Exceptions.--The sanction described in subsection (b)(1) 
shall not apply in the case of procurement of defense articles or 
defense services--
            ``(1) under existing contracts or subcontracts, including 
        the exercise of options for production quantities to satisfy 
        operational military requirements essential to the national 
        security of the United States;
            ``(2) if the President determines that the person or other 
        entity 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
            ``(3) if the President determines that such articles or 
        services are essential to the national security under defense 
        coproduction agreements.''.
    (d) Sanctions Against Foreign Countries.--
            (1) Proscribed activities.--Subsection (a) of section 1605 
        of such Act is amended by inserting ``to acquire weapons of 
        mass destruction, or the means of their delivery, or'' before 
        ``to acquire''.
            (2) Mandatory sanctions.--Subsection (b) of such section 
        1605 is amended by adding at the end the following new 
        paragraph:
            ``(6) Additional sanctions.--The sanctions against Iraq 
        specified in paragraphs (1), (3), (4), (6), and (7) of section 
        586G(a) of the Iraq Sanctions Act of 1990 (50 U.S.C. 1701 note) 
        shall be applied to the same extent and in the same manner with 
        respect to a sanctioned country.''.
            (3) Discretionary sanctions.--Such section 1605 is further 
        amended--
                    (A) in subsection (a)(2), by striking out ``the 
                sanction'' and inserting in lieu thereof ``the 
                sanctions''; and
                    (B) by striking out subsection (c) and inserting in 
                lieu thereof the following new subsection (c):
    ``(c) Discretionary Sanctions.--The sanctions referred to in 
subsection (a)(2) are as follows:
            ``(1) Use of authorities of international emergency 
        economic powers act.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the President may exercise, in 
                accordance with the provisions of that Act, the 
                authorities of the International Emergency Economic 
                Powers Act (50 U.S.C. 1701 et seq.) with respect to the 
                sanctioned country.
                    ``(B) Exception.--Subparagraph (A) does not apply 
                with respect to urgent humanitarian assistance.
            ``(2) Prohibition on vessels that enter ports of sanctioned 
        countries to engage in trade.--
                    ``(A) In general.--Beginning on the 10th day after 
                a sanction is imposed under this title against a 
                country, a vessel which enters a port or place in the 
                sanctioned country to engage in the trade of goods or 
                services may not, if the President so requires, within 
                180 days after departure from such port or place in the 
                sanctioned country, load or unload any freight at any 
                place in the United States.
                    ``(B) Definition.--As used in this paragraph, the 
                term `vessel' includes every description of water craft 
                or other contrivance used, or capable of being used, as 
                a means of transportation in water, but does not 
                include aircraft.
            ``(3) Presidential action regarding aviation.--(A)(i) The 
        President may notify the government of the sanctioned country 
        of his intention to suspend the authority of foreign air 
        carriers owned or controlled by the government of that country 
        to engage in foreign air transportation to or from the United 
        States.
            ``(ii) The President may direct the Secretary of 
        Transportation to suspend at the earliest possible date the 
        authority of any foreign air carrier owned or controlled, 
        directly or indirectly, by that government to engage in foreign 
        air transportation to or from the United States, 
        notwithstanding any agreement relating to air services.
            ``(B)(i) The President may direct the Secretary of State to 
        terminate any air service agreement between the United States 
        and the sanctioned country in accordance with the provisions of 
        that agreement.
            ``(ii) Upon termination of an agreement under this 
        subparagraph, the Secretary of Transportation shall take such 
        steps as may be necessary to revoke at the earliest possible 
        date the right of any foreign air carrier owned, or controlled, 
        directly or indirectly, by the government of that country to 
        engage in foreign air transportation to or from the United 
        States.
            ``(C) The President shall direct the Secretary of 
        Transportation to provide for such exceptions from this 
        paragraph as the President considers necessary to provide for 
        emergencies in which the safety of an aircraft or its crew or 
        passengers is threatened.
            ``(D) For purposes of this paragraph, the terms `air 
        carrier', `air transportation', `aircraft', and `foreign air 
        carrier' have the meanings given such terms in paragraphs (2), 
        (5), (6), and (21) of section 40102 of title 49, United States 
        Code, respectively.''.
            (4) Additional sanction.--Such section 1605 is further 
        amended by adding at the end the following new subsection:
    ``(d) Sanction for Assisting Iran in Improving Rocket or Other 
Weapons Capability.--The sanction set forth in section 586I(a) of the 
Iraq Sanctions Act of 1990 (50 U.S.C. 1701 note) against governments 
that assist Iraq in improving its rocket technology or weapons of mass 
destruction capability shall be applied to the same extent and in the 
same manner with respect to governments that so assist Iran.''.
    (e) Termination of Sanctions Against Certain Persons.--Such Act is 
further amended--
            (1) in section 1604(b)--
                    (A) by striking out ``The sanctions'' in the matter 
                preceding paragraph (1) and inserting in lieu thereof 
                ``Subject to section 1606A, the sanctions''; and
                    (B) by striking out ``For a period of two years, 
                the United States'' in paragraphs (1) and (2) and 
                inserting in lieu thereof ``The United States'';
            (2) in section 1605--
                    (A) by striking out ``If'' in subsection (a) and 
                inserting in lieu thereof ``Subject to section 1606A, 
                if''; and
                    (B) in subsection (b)--
                            (i) by striking out ``, for a period of one 
                        year,'' in paragraphs (1), (3), and (4);
                            (ii) by striking out ``for a period of one 
                        year,'' in paragraph (2);
                            (iii) by striking out ``during that 
                        period'' in paragraph (4); and
                            (iv) by striking out ``for a period of one 
                        year'' in paragraph (5); and
            (3) by inserting after section 1606 the following new 
        section:

``SEC. 1606A. TERMINATION OF SANCTIONS.

    ``Except as otherwise provided in this title, the sanctions imposed 
pursuant to section 1604(a) or 1605(a) shall cease to apply to a 
sanctioned person or government 30 days after the President certifies 
to the Congress that reliable information indicates that the sanctioned 
person or government, as the case may be, has ceased to violate this 
title.''.
    (f) Rules and Regulations.--Such Act is further amended by adding 
after section 1607 the following new section:

``SEC. 1607A. RULES AND REGULATIONS.

    ``The President may prescribe such rules and regulations as the 
President requires to carry out this title.''.
    (g) Definitions.--Section 1608 of such Act is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``naval vessels with offensive 
                capabilities,'' after ``advanced military aircraft,'' 
                in subparagraph (A); and
                    (B) by striking out ``or enhance offensive 
                capabilities in destabilizing ways'' each place it 
                appears and inserting in lieu thereof ``, enhance 
                offensive capabilities in destabilizing ways, or 
                threaten international shipping''; and
            (2) by striking out paragraph (7) and inserting in lieu 
        thereof the following new paragraphs:
            ``(7) The term `United States assistance' means any 
        assistance under the Foreign Assistance Act of 1961 (22 U.S.C. 
        2151 et seq.), other than urgent humanitarian assistance or 
        medicine.
            ``(8) The term `goods or technology' includes any item of 
        the type that is listed on the Nuclear Referral List under 
        section 309(c) of the Nuclear Non-Proliferation Act of 1978, 
        the United States Munitions List (established in section 38 of 
        the Arms Export Control Act), or the MTCR Annex (as defined in 
        section 74(4) of the Arms Export Control Act) or any item that 
        is subject to licensing by the Nuclear Regulatory Commission.
            ``(9) The term `United States' includes territories and 
        possessions of the United States and the customs waters of the 
        United States, as defined in section 401 of the Tariff Act of 
        1930 (19 U.S.C. 1401).
            ``(10) The term `weapons of mass destruction' includes 
        nuclear, chemical, and biological weapons.''.
    (h) Conforming Amendments.--Such Act is further amended--
            (1) in section 1606, by striking out ``the Committees on 
        Armed Services and Foreign Affairs of the House of 
        Representatives'' and inserting in lieu thereof ``the 
        Committees on National Security and International Relations of 
        the House of Representatives ''; and
            (2) in section 1607, by striking out ``the Committees on 
        Armed Services and Foreign Affairs of the House of 
        Representatives'' each place it appears in subsections (a) and 
        (b) and inserting in lieu thereof ``the Committees on National 
        Security and International Relations of the House of 
        Representatives''.

SEC. 2. REVISIONS OF FOREIGN ASSISTANCE ACT OF 1961.

    Section 498A(b)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2295a(b)(3)) is amended by inserting ``and notwithstanding the 
compliance of such state with international agreements relating to 
weapons of mass destruction,'' before ``knowingly transferred'' in the 
matter preceding subparagraph (A).

SEC. 3. REVISION OF IRAQ SANCTIONS ACT OF 1990.

    Section 586I(a) of the Iraq Sanctions Act of 1990 (50 U.S.C. 1701 
note) is amended by striking out ``or chemical, biological, or nuclear 
weapons capability'' and inserting in lieu thereof ``its chemical, 
biological, or nuclear weapons capability, or its acquisition of 
destabilizing numbers and types of advanced conventional weapons''.
Amends the Iran-Iraq Arms Non-Proliferation Act of 1992 (the Act) to expand sanctions against Iran to include:  (1) U.S. opposition to assistance to Iran from international financial institutions; (2) Export-Import Bank assistance; and (3) foreign assistance under the Foreign Assistance Act of 1961, except for humanitarian assistance. (Such sanctions already apply to Iraq.) 
Provides for mandatory sanctions against persons or foreign countries that knowingly and materially contribute to efforts by Iran and Iraq to acquire weapons of mass destruction or the means of their delivery. 
Expands mandatory sanctions against persons who assist in such efforts to include the termination of any current contracts for goods or services and the revocation of existing export licenses. 
Makes sanctioned persons ineligible to receive visas for entry into the United States and excludes such persons from admission into the United States. 
Requires the President to prohibit depository institutions that are chartered by or have their principal place of business within the United States from making loans or providing credit to sanctioned persons, except those for purposes of purchasing food or agricultural commodities. 
Prohibits sanctioned persons, items which are the product or manufacture of such persons, or technology developed by such persons from transiting territory subject to U.S. jurisdiction. 
Provides for exceptions from sanctions with respect to the procurement of certain defense articles and services. 
Provides for the imposition of certain sanctions under the Iraq Sanctions Act of 1990 against countries sanctioned under this Act. 
Expands discretionary sanctions against sanctioned countries to include certain sanctions against vessels that engage in trade in sanctioned countries and the suspension of air flights to or from the United States. 
Denies funds for the approval of licenses for the export of supercomputers to countries that assist Iran in improving its rocket technology or weapons of mass destruction capability. (Such sanctions already apply to countries that so assist Iraq.) 
Removes termination dates for sanctions and makes sanctions inapplicable 30 days after the President certifies to the Congress that the sanctioned person or government has ceased to violate the Act.
A bill to amend the Iran-Iraq Arms Non-Proliferation Act of 1992 to revise the sanctions applicable to violations of that Act, and for other purposes.