Quarantining the Ayatollah's State-Sponsored Aggression and Militancy (QASSAM) Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Quarantining the Ayatollah's State-
Sponsored Aggression and Militancy (QASSAM) Act''.

    TITLE I--IRAN'S REVOLUTIONARY GUARD CORPS WATCH LIST AND REPORT

SEC. 101. FINDINGS.

    Congress finds the following:
            (1) Iran's Revolutionary Guard Corps (IRGC) threatens the 
        national security of the United States and United States 
        allies.
            (2) The IRGC provides direct sponsorship and support to 
        numerous foreign terrorist organizations, including Hamas and 
        Hezbollah, and maintains support for the Bashar al-Assad regime 
        in Syria which is responsible for hundreds of thousands of 
        deaths.
            (3) The United States holds the IRGC responsible for severe 
        and continuing human rights violations against the Iranian 
        people, including unlawful arrests, torture, and harassment.
            (4) The United States currently upholds sanctions against 
        the IRGC for its support of terrorism and human rights abuses.
            (5) The Office of Foreign Assets Control of the Department 
        of the Treasury currently includes the IRGC on the list of 
        specially designated nationals and blocked persons maintained 
        by the Office of Foreign Assets Control of the Department of 
        the Treasury (in this section referred to as the ``SDN list'').
            (6) The Office of Foreign Assets Control of the Department 
        of the Treasury includes on the SDN list entities in which the 
        IRGC owns a 50 percent or greater interest. The inclusion of an 
        entity on the SDN list results in the blocking of all assets 
        and property of such entity. This regulation, commonly termed 
        the ``50 percent rule'', is codified in section 561.405 of 
        title 31, Code of Federal Regulations, and is the standard used 
        by the Office of Foreign Assets Control when determining 
        ownership of entities owned or controlled by blocked or 
        sanctioned persons.
            (7) The IRGC maintains a powerful and expansive presence 
        throughout Iran's financial, commercial, and oil sectors, 
        owning, controlling, operating, and influencing Iranian 
        entities while producing revenues estimated in the billions of 
        dollars. According to the Department of the Treasury, ``The 
        IRGC has a growing presence in Iran's financial and commercial 
        sectors and extensive economic interests in the defense 
        production, construction, and oil industries, controlling 
        billions of dollars in corporate business.''.
            (8) The IRGC has continuously practiced sanctions evasion 
        and deceptive business practices to conceal its ownership over 
        Iranian entities, owning numerous Iranian entities which are 
        not on the SDN list because IRGC ownership is below 50 percent, 
        leaving such entities unsanctioned and open to business.
            (9) As sanctions are lifted and Iran becomes more open to 
        international commerce, the international community must be 
        aware of any and all entities that are IRGC-owned, -controlled, 
        -operated, or influenced, including those entities that do not 
        make the threshold to be included on the SDN list.

SEC. 102. IMPOSITION OF SANCTIONS AGAINST ENTITIES OWNED IN WHOLE OR IN 
              PART BY IRGC.

    (a) In General.--The President shall impose the sanctions described 
in subsection (b) against any entity with respect to which Iran's 
Revolutionary Guard Corps owns, directly or indirectly, a 20 percent or 
greater interest in the entity, regardless of whether the entity itself 
is included on the list of specially designated nationals and blocked 
persons maintained by the Office of Foreign Assets Control of the 
Department of the Treasury.
    (b) Sanctions Described.--
            (1) In general.--The blocking, in accordance with the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.), of all transactions in all property and interests in 
        property of an entity if such property and interests in 
        property are in the United States, come within the United 
        States, or are or come within the possession or control of a 
        United States person.
            (2) Inapplicability of national emergency requirement.--The 
        requirements of section 202 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1701) shall not apply for 
        purposes of this section.
    (c) Definitions.--In this section:
            (1) Person.--The term ``person'' means an individual or 
        entity.
            (2) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States; 
                or
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity.

SEC. 103. IRGC WATCH LIST AND REPORT.

    (a) In General.--The Secretary of the Treasury shall establish, 
maintain, and publish in the Federal Register a list of each entity 
with respect to which Iran's Revolutionary Guard Corps--
            (1) owns, directly or indirectly, any interest that is less 
        than 20 percent in the entity; or
            (2) does not own any interest in the entity but maintains a 
        presence on the board of directors of the entity or otherwise 
        influences the actions, policies, or personnel decisions of the 
        entity.
    (b) Report.--Not later than 90 days after the date of the enactment 
of the Act, and annually thereafter, the Secretary of the Treasury 
shall submit to Congress a report on any changes to the list required 
by subsection (a).
    (c) Reference.--The list required by subsection (a) shall be known 
as the ``IRGC Watch List''.

SEC. 104. DEFINITIONS.

    Except as otherwise provided, in this title:
            (1) Entity.--The term ``entity'' means any corporation, 
        business association, partnership, trust, society, or any other 
        entity.
            (2) IRGC.--The term ``IRGC'' means Iran's Revolutionary 
        Guard Corps.

                       TITLE II--OTHER PROVISIONS

SEC. 201. AUTHORITY OF STATES AND LOCAL GOVERNMENTS TO DIVEST FROM 
              CERTAIN COMPANIES THAT ENGAGE IN INVESTMENT OR BUSINESS 
              ACTIVITIES WITH IRAN'S REVOLUTIONARY GUARD CORPS.

    (a) In General.--Subtitle B of title III of the Iran Threat 
Reduction and Syria Human Rights Act of 2012 (Public Law 112-158; 126 
Stat. 1247), is amended by adding at the end the following:

``SEC. 313. AUTHORITY OF STATES AND LOCAL GOVERNMENTS TO DIVEST FROM 
              PERSONS THAT ENGAGE IN INVESTMENT OR BUSINESS ACTIVITIES 
              WITH IRAN'S REVOLUTIONARY GUARD CORPS.

    ``(a) Sense of Congress.--It is the sense of Congress that the 
United States should support the decision of any State or local 
government that for moral, prudential, or reputational reasons divests 
from, or prohibits the investment of assets of the State or local 
government in, a person that engages in investment or business 
activities with Iran's Revolutionary Guard Corps or Iran's 
Revolutionary Guard Corps-related companies, as long as Iran's 
Revolutionary Guard Corps is subject to economic sanctions imposed by 
the United States.
    ``(b) Authority To Divest.--Notwithstanding any other provision of 
law, a State or local government may adopt and enforce measures that 
meet the requirements of subsection (d) to divest the assets of the 
State or local government from, or prohibit investment of the assets of 
the State or local government in, any person that the State or local 
government determines, using credible information available to the 
public, engages in investment or business activities with Iran's 
Revolutionary Guard Corps or Iran's Revolutionary Guard Corps-related 
companies described in subsection (c).
    ``(c) Investment or Business Activities Described.--A person 
engages in investment or business activities with Iran's Revolutionary 
Guard Corps or Iran's Revolutionary Guard Corps-related companies if 
the person--
            ``(1) has a financial investment in Iran's Revolutionary 
        Guard Corps or an Iran's Revolutionary Guard Corps-related 
        company;
            ``(2) owns, in whole or in part, an Iran's Revolutionary 
        Guard Corps-related company; or
            ``(3) is a financial institution that extends credit or 
        financing to another person, for 45 days or more, if that 
        person will use the credit or financing for investment in an 
        Iran's Revolutionary Guard Corps-related company.
    ``(d) Requirements.--Any measure taken by a State or local 
government under subsection (b) shall meet the following requirements:
            ``(1) Notice.--The State or local government shall provide 
        written notice to each person to which a measure is to be 
        applied.
            ``(2) Timing.--The measure shall apply to a person not 
        earlier than the date that is 90 days after the date on which 
        written notice is provided to the person under paragraph (1).
            ``(3) Opportunity for hearing.--The State or local 
        government shall provide an opportunity to comment in writing 
        to each person to which a measure is to be applied. If the 
        person demonstrates to the State or local government that the 
        person does not engage in investment or business activities 
        with Iran's Revolutionary Guard Corps or Iran's Revolutionary 
        Guard Corps-related companies described in subsection (c), the 
        measure shall not apply to the person.
            ``(4) Sense of congress on avoiding erroneous targeting.--
        It is the sense of Congress that a State or local government 
        should not adopt a measure under subsection (b) with respect to 
        a person unless the State or local government has made every 
        effort to avoid erroneously targeting the person and has 
        verified that the person engages in business or investment 
        activities with Iran's Revolutionary Guard Corps or Iran's 
        Revolutionary Guard Corps-related companies described in 
        subsection (c).
    ``(e) Notice to Department of Justice.--Not later than 30 days 
after adopting a measure pursuant to subsection (b), a State or local 
government shall submit written notice to the Attorney General 
describing the measure.
    ``(f) Nonpreemption.--A measure of a State or local government 
authorized under subsection (b) or (i) is not preempted by any Federal 
law or regulation.
    ``(g) Definitions.--In this section:
            ``(1) Assets.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `assets' refers to public 
                monies and includes any pension, retirement, annuity, 
                or endowment fund, or similar instrument, that is 
                controlled by a State or local government.
                    ``(B) Exception.--The term `assets' does not 
                include employee benefit plans covered by title I of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1001 et seq.).
            ``(2) Investment.--The `investment' includes--
                    ``(A) a commitment or contribution of funds or 
                property;
                    ``(B) a loan or other extension of credit; and
                    ``(C) the entry into or renewal of a contract for 
                goods or services.
    ``(h) Effective Date.--
            ``(1) In general.--Except as provided in paragraph (2) or 
        subsection (i), this section applies to measures adopted by a 
        State or local government before, on, or after the date of the 
        enactment of this Act.
            ``(2) Notice requirements.--Except as provided in 
        subsection (i), subsections (d) and (e) apply to measures 
        adopted by a State or local government on or after the date of 
        the enactment of this Act.
    ``(i) Authorization for Prior Enacted Measures.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section or any other provision of law, a State or local 
        government may enforce a measure (without regard to the 
        requirements of subsection (d), except as provided in paragraph 
        (2)) adopted by the State or local government before the date 
        of this section that provides for the divestment of assets of 
        the State or local government from, or prohibits the investment 
        of the assets of the State or local government in, any person 
        that the State or local government determines, using credible 
        information available to the public, engages in business or 
        investment activities with Iran's Revolutionary Guard Corps or 
        Iran's Revolutionary Guard Corps-related companies (determined 
        without regard to subsection (c)) or other business or 
        investment activities that are identified in the measure.
            ``(2) Application of notice requirements.--A measure 
        described in paragraph (1) shall be subject to the requirements 
        of paragraphs (1) and (2) and the first sentence of paragraph 
        (3) of subsection (d) on and after the date that is 2 years 
        after the date of the enactment of this Act.
    ``(j) Rule of Construction.--Nothing in this section or any other 
provision of law authorizing sanctions with respect to Iran shall be 
construed to abridge the authority of a State to issue and enforce 
rules governing the safety, soundness, and solvency of a financial 
institution subject to its jurisdiction or the business of insurance 
pursuant to the Act of March 9, 1945 (15 U.S.C. 1011 et seq.) (commonly 
known as the `McCarran-Ferguson Act').''.
    (b) Clerical Amendment.--The table of contents for the Iran Threat 
Reduction and Syria Human Rights Act of 2012 is amended by adding after 
the item relating to section 312 the following:

``Sec. 313. Authority of States and local governments to divest from 
                            certain companies that engage in investment 
                            or business activities with Iran's 
                            Revolutionary Guard Corps.''.

                         TITLE III--TERMINATION

SEC. 301. TERMINATION.

    This Act and the amendments made by this Act 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)).

Summary: Quarantining the Ayatollah's State-Sponsored Aggression and Militancy (QASSAM) Act This bill directs the President to block all property and property interest transactions of an entity that is U. S-located or controlled by a US person if it is at least 20 owned by Iran's Revolutionary Guard Corps (IRGC), regardless of whether the entity itself is included on the list of specially designated nationals and blocked persons maintained by the Department of the Treasury Office of Foreign Assets Control. Treasury shall establish and publish in the Federal Register a list of each entity with respect to which the IRGC: owns any interest that is less than 20. Or does not own any interest but maintains a presence on the board of directors or otherwise influences the entity's actions, policies, or personnel decisions. The Iran Threat Reduction and Syria Human Rights Act of 2012 is amended to express the sense of Congress that the United States should support any state or local government that for moral, prudential, or reputational reasons divests from, or prohibits the investment of its assets in, any person that engages in investment or business activities with the IRGC or IRGC-related companies, as long as the IRGC is subject to US economic sanctions. A state or local government may adopt and enforce specified divestment or investment prohibition measures. It is the sense of Congress that a state or local government should not adopt such a measure against a person unless it has made every effort to avoid erroneously targeting such person.