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20–646PDF 2005

HOLDING THE CURRENT REGIME IN IRAN

ACCOUNTABLE FOR ITS THREATENING BEHAVIOR

AND SUPPORTING A TRANSITION TO

DEMOCRACY IN IRAN

MARKUP

BEFORE THE

SUBCOMMITTEE ON THE MIDDLE EAST 

AND CENTRAL ASIA

OF THE

COMMITTEE ON 

INTERNATIONAL RELATIONS 

HOUSE OF REPRESENTATIVES

ONE HUNDRED NINTH CONGRESS

FIRST SESSION

ON

H.R. 282

APRIL 13, 2005

Serial No. 109–51

Printed for the use of the Committee on International Relations

(

Available via the World Wide Web: http://www.house.gov/international—relations 

(II)

COMMITTEE ON INTERNATIONAL RELATIONS 

HENRY J. HYDE, Illinois, Chairman 

JAMES A. LEACH, Iowa 

CHRISTOPHER H. SMITH, New Jersey, 

Vice Chairman 

DAN BURTON, Indiana 

ELTON GALLEGLY, California 

ILEANA ROS-LEHTINEN, Florida 

DANA ROHRABACHER, California 

EDWARD R. ROYCE, California 

PETER T. KING, New York 

STEVE CHABOT, Ohio 

THOMAS G. TANCREDO, Colorado 

RON PAUL, Texas 

DARRELL ISSA, California 

JEFF FLAKE, Arizona 

JO ANN DAVIS, Virginia 

MARK GREEN, Wisconsin 

JERRY WELLER, Illinois 

MIKE PENCE, Indiana 

THADDEUS G. MCCOTTER, Michigan 

KATHERINE HARRIS, Florida 

JOE WILSON, South Carolina 

JOHN BOOZMAN, Arkansas 

J. GRESHAM BARRETT, South Carolina 

CONNIE MACK, Florida 

JEFF FORTENBERRY, Nebraska 

MICHAEL MCCAUL, Texas 

TED POE, Texas 

TOM LANTOS, California 

HOWARD L. BERMAN, California 

GARY L. ACKERMAN, New York 

ENI F.H. FALEOMAVAEGA, American 

Samoa 

DONALD M. PAYNE, New Jersey 

ROBERT MENENDEZ, New Jersey 

SHERROD BROWN, Ohio 

BRAD SHERMAN, California 

ROBERT WEXLER, Florida 

ELIOT L. ENGEL, New York 

WILLIAM D. DELAHUNT, Massachusetts 

GREGORY W. MEEKS, New York 

BARBARA LEE, California 

JOSEPH CROWLEY, New York 

EARL BLUMENAUER, Oregon 

SHELLEY BERKLEY, Nevada 

GRACE F. NAPOLITANO, California 

ADAM B. SCHIFF, California 

DIANE E. WATSON, California 

ADAM SMITH, Washington 

BETTY MCCOLLUM, Minnesota 

BEN CHANDLER, Kentucky 

DENNIS A. CARDOZA, California 

THOMAS E. MOONEY, SR., Staff Director/General Counsel 

ROBERT R. KING, Democratic Staff Director 

SUBCOMMITTEE ON THE MIDDLE EAST AND CENTRAL ASIA

ILEANA ROS-LEHTINEN, Florida, Chair 

STEVE CHABOT, Ohio, Vice Chair 

THADDEUS G. MCCOTTER, Michigan 

JOHN BOOZMAN, Arkansas 

CONNIE MACK, Florida 

JEFF FORTENBERRY, Nebraska 

JO ANN DAVIS, Virginia 

MIKE PENCE, Indiana 

KATHERINE HARRIS, Florida 

DARRELL ISSA, California 

GARY L. ACKERMAN, New York 

HOWARD L. BERMAN, California 

ELIOT L. ENGEL, New York 

JOSEPH CROWLEY, New York 

SHELLEY BERKLEY, Nevada 

ADAM B. SCHIFF, California 

BEN CHANDLER, Kentucky 

DENNIS A. CARDOZA, California 

YLEEM POBLETE, Subcommittee Staff Director 

MATT ZWEIG, Professional Staff Member 

DAVID ADAMS, Democratic Professional Staff Member 

(III)

C O N T E N T S 

Page

MARKUP OF 

H.R. 282, To hold the current regime in Iran accountable for its threatening 

behavior and to support a transition to democracy in Iran .............................. 2

Amendment to H.R. 282 offered by the Honorable Ileana Ros-Lehtinen, 

a Representative in Congress from the State of Florida, and Chair, Subcommittee on the Middle East and Central Asia ........................................... 22

(1)

HOLDING THE CURRENT REGIME IN IRAN 

ACCOUNTABLE FOR ITS THREATENING 

BEHAVIOR AND SUPPORTING A 

TRANSITION TO DEMOCRACY IN IRAN 

WEDNESDAY, APRIL 13, 2005

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON THE MIDDLE EAST

AND CENTRAL ASIA,

COMMITTEE ON INTERNATIONAL RELATIONS, 

Washington, DC. 

The Subcommittee met, pursuant to call, at 12:03 p.m. in room 

2255, Rayburn House Office Building, Hon. Ileana Ros-Lehtinen 

(Chair of the Subcommittee) presiding. 

Ms. ROS-LEHTINEN. This meeting will now come to order. Thank 

you so much, all of the Members, for being so great about coming. 

Pursuant to notice, I call up the bill, H.R. 282, a bill to hold the 

current regime in Iran accountable for its threatening behavior and 

to support a transition to democracy in Iran for purposes of markup and move its recommendation to the Full Committee. Without 

objection, the bill will be considered as read and open for amendments at any point. 

[The bill, H.R. 282, follows:]

2

1

I

109TH CONGRESS

1ST SESSION H. R. 282

To hold the current regime in Iran accountable for its threatening behavior

and to support a transition to democracy in Iran.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 2005

Ms. ROS-LEHTINEN (for herself, Mr. LANTOS, Mr. CHABOT, Mr. BERMAN,

Mr. CANTOR, Mr. ACKERMAN, Mr. ANDREWS, Mr. BACHUS, Ms. BERKLEY, Mrs. BIGGERT, Mr. BOEHLERT, Mr. BURTON of Indiana, Mr.

CHANDLER, Mr. COX, Mr. CROWLEY, Mrs. JO ANN DAVIS of Virginia,

Mr. LINCOLN DIAZ-BALART of Florida, Mr. MARIO DIAZ-BALART of

Florida, Mr. ENGEL, Mr. FALEOMAVAEGA, Mr. FOLEY, Mr. GARRETT of

New Jersey, Mr. GREEN of Wisconsin, Ms. HARRIS, Mr. ISRAEL, Mr.

JOHNSON of Illinois, Mr. KIRK, Mr. LARSEN of Washington, Mr.

MCCOTTER, Mr. MENENDEZ, Mr. MICA, Mrs. MYRICK, Mr. NADLER, Mr.

NORWOOD, Mr. NUNES, Mr. PENCE, Mr. PLATTS, Mr. PORTER, Mr.

ROTHMAN, Mr. ROHRABACHER, Mr. RYAN of Wisconsin, Mr. SAXTON,

Mr. SHERMAN, Mr. SHIMKUS, Mr. SMITH of New Jersey, Mr. SOUDER,

Mr. SULLIVAN, Mr. TANCREDO, Mr. WELLER, Mr. WEXLER, and Mr.

WILSON of South Carolina) introduced the following bill; which was referred to the Committee on International Relations

A BILL

To hold the current regime in Iran accountable for its threatening behavior and to support a transition to democracy

in Iran.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,


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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Iran Freedom Support

3 Act’’.

4 SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—CODIFICATION OF SANCTIONS AGAINST IRAN

Sec. 101. Codification of sanctions.

TITLE II—AMENDMENTS TO THE IRAN AND LIBYA SANCTIONS

ACT OF 1996

Sec. 201. Multilateral regime.

Sec. 202. Imposition of sanctions.

Sec. 203. Termination of sanctions.

Sec. 204. Sunset.

Sec. 205. Clarification and expansion of definitions.

TITLE III—DEMOCRACY IN IRAN

Sec. 301. Declaration of Congress regarding United States policy toward Iran.

Sec. 302. Assistance to support democracy in Iran.

Sec. 303. Sense of Congress regarding designation of democratic opposition organizations.

5 TITLE I—CODIFICATION OF

6 SANCTIONS AGAINST IRAN

7 SEC. 101. CODIFICATION OF SANCTIONS.

8 (a) CODIFICATION OF SANCTIONS RELATED TO

9 WEAPONS OF MASS DESTRUCTION.—United States sanc10 tions, controls, and regulations relating to weapons of

11 mass destruction with respect to Iran, as in effect on the

12 date of enactment of this Act, shall remain in effect, until

13 the President certifies to the Committee on International

14 Relations of the House of Representatives and the Com15 mittee on Foreign Relations of the Senate that the Gov16 ernment of Iran has permanently and verifiably dismanVerDate Mar 21 2002 14:13 Aug 24, 2005 Jkt 000000 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 F:\WORK\MECA\041305M\20646.000 HINTREL1 PsN: SHIRL

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•HR 282 IH

1 tled its weapons of mass destruction programs and has

2 committed to combating the proliferation of such weapons.

3 (b) NO EFFECT ON OTHER SANCTIONS RELATING TO

4 SUPPORT FOR ACTS OF INTERNATIONAL TERRORISM.—

5 Notwithstanding a certification by the President under

6 subsection (a), United States sanctions, controls, and reg7 ulations relating to a determination under section

8 6(j)(1)(A) of the Export Administration Act of 1979 (50

9 U.S.C. App. 2405(j)(1)(A)), section 620A(a) of the For10 eign Assistance Act of 1961 (22 U.S.C. 2371(a)), or sec11 tion 40(d) of the Arms Export Control Act (22 U.S.C.

12 2780(d)) relating to support for acts of international ter13 rorism by the Government of Iran, as in effect on the date

14 of the enactment of this Act, shall remain in effect.

15 TITLE II—AMENDMENTS TO THE

16 IRAN AND LIBYA SANCTIONS

17 ACT OF 1996

18 SEC. 201. MULTILATERAL REGIME.

19 (a) REPORTS TO CONGRESS.—Section 4(b) of the

20 Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701

21 note) is amended to read as follows:

22 ‘‘(b) REPORTS TO CONGRESS.—Not later than six

23 months after the date of the enactment of the Iran Free24 dom Support Act and every six months thereafter, the

25 President shall submit to the appropriate congressional


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•HR 282 IH

1 committees a report regarding specific diplomatic efforts

2 undertaken pursuant to subsection (a), the results of those

3 efforts, and a description of proposed diplomatic efforts

4 pursuant to such subsection. Each report shall include—

5 ‘‘(1) a list of the countries that have agreed to

6 undertake measures to further the objectives of sec7 tion 3 with respect to Iran;

8 ‘‘(2) a description of those measures,

9 including—

10 ‘‘(A) government actions with respect to

11 public or private entities (or their subsidiaries)

12 located in their territories, that are engaged in

13 Iran;

14 ‘‘(B) any decisions by the governments of

15 these countries to rescind or continue the provi16 sion of credits, guarantees, or other govern17 mental assistance to these entities; and

18 ‘‘(C) actions taken in international fora to

19 further the objectives of section 3;

20 ‘‘(3) a list of the countries that have not agreed

21 to undertake measures to further the objectives of

22 section 3 with respect to Iran, and the reasons

23 therefor; and

24 ‘‘(4) a description of any memorandums of un25 derstanding, political understandings, or interVerDate Mar 21 2002 14:13 Aug 24, 2005 Jkt 000000 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 F:\WORK\MECA\041305M\20646.000 HINTREL1 PsN: SHIRL

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1 national agreements to which the United States has

2 acceded which affect implementation of this section

3 or section 5(a).’’.

4 (b) WAIVER.—Section 4(c) of such Act (50 U.S.C.

5 1701 note) is amended to read as follows:

6 ‘‘(c) WAIVER.—

7 ‘‘(1) IN GENERAL.—The President may, on a

8 case by case basis, waive for a period of not more

9 than six months the application of section 5(a) with

10 respect to a national of a country, if the President

11 certifies to the appropriate congressional committees

12 at least 30 days before such waiver is to take effect

13 that—

14 ‘‘(A) such waiver is vital to the national se15 curity of the United States; and

16 ‘‘(B) the country of the national has un17 dertaken substantial measures to prevent the

18 acquisition and development of weapons of mass

19 destruction by the Government of Iran.

20 ‘‘(2) SUBSEQUENT RENEWAL OF WAIVER.—If

21 the President determines that such is appropriate,

22 the President may, at the conclusion of the period

23 of a waiver under paragraph (1), renew such waiver

24 for a subsequent period of not more than six

25 months.’’.


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•HR 282 IH

1 (c) INVESTIGATIONS.—Section 4 of such Act (50

2 U.S.C. 1701 note) is amended by adding at the end the

3 following new subsection:

4 ‘‘(f) INVESTIGATIONS.—

5 ‘‘(1) IN GENERAL.—Upon public or private dis6 closure of activity related to investment in Iran by

7 a person as described in this Act, the President shall

8 direct the Secretary of the Treasury to initiate an

9 investigation into the possible imposition of sanc10 tions against such person as a result of such activ11 ity, to notify such person of such investigation, and

12 to provide a recommendation to the President for

13 such purposes.

14 ‘‘(2) DETERMINATION AND NOTIFICATION.—

15 Not later than 90 days after the date of the disclo16 sure of the activity described in paragraph (1), the

17 President shall determine whether or not to impose

18 sanctions against such person as a result of such ac19 tivity and shall notify the appropriate congressional

20 committees of the basis for such determination.

21 ‘‘(3) PUBLICATION.—Not later than 10 days

22 after the President notifies the appropriate congres23 sional committees under paragraph (2), the Presi24 dent shall ensure publication in the Federal Register

25 of—


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•HR 282 IH

1 ‘‘(A) the identification of the persons

2 against which the President has made a deter3 mination that the imposition of sanctions is ap4 propriate, together with an explanation for such

5 determination; and

6 ‘‘(B) the identification of the persons

7 against which the President has made a deter8 mination that the imposition of sanctions is not

9 appropriate, together with an explanation for

10 such determination.’’.

11 SEC. 202. IMPOSITION OF SANCTIONS.

12 (a) SANCTIONS WITH RESPECT TO DEVELOPMENT

13 OF PETROLEUM RESOURCES.—Section 5(a) of the Iran

14 and Libya Sanctions Act of 1996 (50 U.S.C. 1701 note)

15 is amended—

16 (1) in the heading, by striking ‘‘to Iran’’ and

17 inserting ‘‘to the Development of Petroleum Re18 sources of Iran’’;

19 (2) by striking ‘‘(6)’’ and inserting ‘‘(5)’’; and

20 (3) by striking ‘‘with actual knowledge,’’.

21 (b) SANCTIONS WITH RESPECT TO DEVELOPMENT

22 OF WEAPONS OF MASS DESTRUCTION OR OTHER MILI23 TARY CAPABILITIES.—Section 5(b) of such Act (50 U.S.C.

24 1701 note) is amended to read as follows:


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1 ‘‘(b) MANDATORY SANCTIONS WITH RESPECT TO

2 DEVELOPMENT OF WEAPONS OF MASS DESTRUCTION OR

3 OTHER MILITARY CAPABILITIES.—Notwithstanding any

4 other provision of law, the President shall impose two or

5 more of the sanctions described in paragraphs (1) through

6 (5) of section 6 if the President determines that a person

7 has, on or after the date of the enactment of this Act,

8 exported, transferred, or otherwise provided to Iran any

9 goods, services, technology, or other items the provision

10 of which has contributed to the ability of Iran to—

11 ‘‘(1) acquire or develop chemical, biological, or

12 nuclear weapons or related technologies; or

13 ‘‘(2) acquire or develop destabilizing numbers

14 and types of advanced conventional weapons.’’.

15 (c) PERSONS AGAINST WHICH THE SANCTIONS ARE

16 TO BE IMPOSED.—Section 5(c)(2) of such Act (50 U.S.C.

17 1701 note) is amended—

18 (1) in subparagraph (B), by striking ‘‘or’’ at

19 the end;

20 (2) in subparagraph (C), by striking the period

21 at the end and inserting ‘‘; or’’; and

22 (3) by adding at the end the following new sub23 paragraph:

24 ‘‘(D) is a private or government lender, in25 surer, underwriter, re-insurer, or guarantor of


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•HR 282 IH

1 the person referred to in paragraph (1) if that

2 private or government lender, insurer, under3 writer, re-insurer, or guarantor, with actual

4 knowledge, engaged in the activities referred to

5 in paragraph (1).’’.

6 (d) EFFECTIVE DATE.—Sanctions imposed pursuant

7 to the amendments made by this section shall apply with

8 respect to investments made in Iran on or after the date

9 of the enactment of this Act.

10 SEC. 203. TERMINATION OF SANCTIONS.

11 (a) REMOVAL OF LIBYA.—Section 8 of the Iran and

12 Libya Sanctions Act 1996 (50 U.S.C. 1701 note) is

13 amended—

14 (1) in subsection (a), by striking the subsection

15 designation and heading; and

16 (2) by striking subsection (b).

17 (b) NO THREAT POSED.—Such section, as amended

18 by subsection (a), is further amended—

19 (1) in paragraph (1)(C), by striking ‘‘and’’ at

20 the end;

21 (2) in paragraph (2), by striking the period at

22 the end and inserting ‘‘; and’’; and

23 (3) by adding at the end the following new

24 paragraph:


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1 ‘‘(3) poses no threat to United States national

2 security, interests, or allies.’’.

3 SEC. 204. SUNSET.

4 Section 13 of the Iran and Libya Sanctions Act of

5 1996 (50 U.S.C. 1701 note) is amended—

6 (1) in the section heading, by striking ‘‘; SUN7 SET’’;

8 (2) in subsection (a), by striking the subsection

9 designation and heading; and

10 (3) by striking subsection (b).

11 SEC. 205. CLARIFICATION AND EXPANSION OF DEFINI12 TIONS.

13 (a) PERSON.—Section 14(14)(B) of the Iran and

14 Libya Sanctions Act of 1996 (50 U.S.C. 1701 note) is

15 amended—

16 (1) by inserting after ‘‘trust’’ the following:

17 ‘‘, financial institution, insurer, underwriter, re-in18 surer, guarantor’’; and

19 (2) by striking ‘‘operating as a business enter20 prise’’.

21 (b) PETROLEUM RESOURCES.—Section 14(15) of the

22 Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701

23 note) is amended by inserting after ‘‘petroleum’’ the fol24 lowing: ‘‘, petroleum by-products,’’.


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1 TITLE III—DEMOCRACY IN IRAN

2 SEC. 301. DECLARATION OF CONGRESS REGARDING

3 UNITED STATES POLICY TOWARD IRAN.

4 Congress declares that it should be the policy of the

5 United States to support independent human rights and

6 pro-democracy forces in Iran.

7 SEC. 302. ASSISTANCE TO SUPPORT DEMOCRACY IN IRAN.

8 (a) AUTHORIZATION.—The President is authorized to

9 provide financial and political assistance (including the

10 award of grants) to foreign and domestic individuals, orga11 nizations, and entities that support democracy and the

12 promotion of democracy in Iran and that are opposed to

13 the non-democratic Government of Iran. Such assistance

14 may include the award of grants to eligible independent

15 pro-democracy radio and television broadcasting organiza16 tions that broadcast into Iran.

17 (b) ELIGIBILITY FOR ASSISTANCE.—Financial and

18 political assistance under this section may be provided to

19 an individual, organization, or entity that—

20 (1) officially opposes the use of terrorism;

21 (2) advocates the adherence by Iran to non22 proliferation regimes for nuclear, chemical, and bio23 logical weapons and materiel;


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1 (3) is dedicated to democratic values and sup2 ports the adoption of a democratic form of govern3 ment in Iran;

4 (4) is dedicated to respect for human rights, in5 cluding the fundamental equality of women;

6 (5) works to establish equality of opportunity

7 for people; and

8 (6) supports freedom of the press, freedom of

9 speech, freedom of association, and freedom of reli10 gion.

11 (c) FUNDING.—The President may provide assistance

12 under this section using—

13 (1) funds available to the Middle East Partner14 ship Initiative (MEPI), the Broader Middle East

15 and North Africa Initiative, and the National En16 dowment for Democracy (NED); and

17 (2) amounts made available pursuant to the au18 thorization of appropriations under subsection (g).

19 (d) NOTIFICATION.—Not later than 15 days before

20 each obligation of assistance under this section, and in ac21 cordance with the procedures under section 634A of the

22 Foreign Assistance Act of 1961 (22 U.S.C. 2394–l), the

23 President shall notify the Committee on International Re24 lations and the Committee on Appropriations of the House


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1 of Representatives and the Committee on Foreign Rela2 tions and the Committee on Appropriations of the Senate.

3 (e) SENSE OF CONGRESS REGARDING COORDINA4 TION OF POLICY AND APPOINTMENT.—It is the sense of

5 Congress that in order to ensure maximum coordination

6 among Federal agencies, if the President provides the as7 sistance under this section, the President should appoint

8 an individual who shall—

9 (1) serve as special assistant to the President

10 on matters relating to Iran; and

11 (2) coordinate among the appropriate directors

12 of the National Security Council on issues regarding

13 such matters.

14 (f) SENSE OF CONGRESS REGARDING DIPLOMATIC

15 ASSISTANCE.—It is the sense of Congress that—

16 (1) contacts should be expanded with opposition

17 groups in Iran that meet the criteria under sub18 section (b);

19 (2) support for a transition to democracy in

20 Iran should be expressed by United States rep21 resentatives and officials in all appropriate inter22 national fora;

23 (3) representatives of the Government of Iran

24 should be denied access to all United States Govern25 ment buildings;


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1 (4) efforts to bring a halt to the nuclear weap2 ons program of Iran, including steps to end the sup3 ply of nuclear components or fuel to Iran, should be

4 intensified, with particular attention focused on the

5 cooperation regarding such program—

6 (A) between the Government of Iran and

7 the Government of the Russian Federation; and

8 (B) between the Government of Iran and

9 individuals from China, Malaysia, and Pakistan,

10 including the network of Dr. Abdul Qadeer (A.

11 Q.) Khan; and

12 (5) officials and representatives of the United

13 States should—

14 (A) strongly and unequivocally support in15 digenous efforts in Iran calling for free, trans16 parent, and democratic elections; and

17 (B) draw international attention to viola18 tions by the Government of Iran of human

19 rights, freedom of religion, freedom of assem20 bly, and freedom of the press.

21 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

22 authorized to be appropriated to the Department of State

23 such sums as may be necessary to carry out this section.


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1 SEC. 303. SENSE OF CONGRESS REGARDING DESIGNATION

2 OF DEMOCRATIC OPPOSITION ORGANIZA3 TIONS.

4 (a) INITIAL DESIGNATION.—It is the sense of Con5 gress that, not later than 90 days after the date of the

6 enactment of this Act, the President should designate at

7 least one democratic opposition organization as eligible to

8 receive assistance under section 302.

9 (b) NOTIFICATION REQUIREMENT.—Not later than

10 15 days before designating a democratic opposition orga11 nization as eligible to receive assistance under section 302,

12 the President shall notify the Committee on International

13 Relations and the Committee on Appropriations of the

14 House of Representatives and the Committee on Foreign

15 Relations and the Committee on Appropriations of the

16 Senate of the proposed designation. If the President deter17 mines that such is appropriate, such notification may be

18 in classified form.

Æ


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Ms. ROS-LEHTINEN. I am going to make some opening statements 

and recognize our Members for opening statements as well. I am 

going to talk fast and make it quick because folks have a busy 

schedule. 

Iran is the full ticket. It has medium- and long-range missile programs. It is believed to have chemical and biological weapons programs. It is pursuing nuclear capabilities. It remains the most active state sponsor of terrorism in the world. 

At a recent hearing of this Subcommittee entitled ‘‘Iran: A Quarter Century of State-Sponsored Terror,’’ we heard from victims of 

Iranian terror. Witnesses included Americans held hostage by the 

Iranians in 1979 and families of the victims of the 1983 Iran-sponsored terrorist attack against our Marine barracks in Beirut. 

Major Steven Kirtley, a former hostage in Iran, highlighted that 

inaction appears to only embolden the Iranian regime to further its 

actions and efforts. 

Ms. Lynn Smith Derbyshire, sister of Marine Captain Vince 

Smith, the highest ranking officer killed in the Beirut attack, stated that in order to deter more crimes of terrorism there must be 

serious consequences. We have not held them accountable for their 

crimes, she said, so they continue to build bombs, and they continue to murder and maim our loved ones. 

So, to address the Iranian threat, particularly its pursuit of more 

deadly weapons and its support of international terrorism, as well 

as to help further the efforts of dissidents and pro-democracy advocates in Iran, Mr. Ackerman and I introduced H.R. 282. 

We were joined in this endeavor by our distinguished colleagues, 

including Mr. Lantos, our Full Committee Ranking Member; Mr. 

Chabot, our Subcommittee Vice Chair; Mr. Cantor, the Deputy 

Chief Majority Whip; and our distinguished colleague on the Subcommittee, Mr. Berman. 

Mr. Ackerman and I are pleased to announce that our bill, H.R. 

282, enjoys the support of over 140 bipartisan co-sponsors, including a significant majority of Members of our International Relations Committee and virtually all of our Subcommittee membership. 

As you know, H.R. 282 codifies existing U.S. sanctions on the 

Iranian regime and with respect to Iran strengthens the Iran-Libya 

Sanctions Act, closes loopholes, expands definitions, tightens the 

enforcement provisions of the original bill. 

We will be offering a series of amendments en block. Those 

amendments that Mr. Ackerman and I have been working on include the input and recommendations from the lead co-sponsors of 

the bill. 

The amendments build on the introduced bill by requiring an immediate determination on any pending investigations of ILSA violations. They close the loophole on foreign subsidiaries of U.S. companies to ensure that the sanctions of all United States dealings 

with the Iranian regime apply to foreign subsidiaries. 

It expresses the sense of Congress that all U.S Government pension funds and other similar funds should divest from existing investment in companies subject to ILSA sanctions and should not 

enter into any future investment in such entities. 

18

The amendments require managers of these public and private 

pension plans and mutual funds to notify investors that the funds 

are invested in entities that are subject to ILSA sanctions because 

of their activities in Iran’s energy sector, and the amendments call 

for a series of public reports documenting all companies subject to 

ILSA sanctions since the enactment of the original ILSA in 1996. 

Lastly, it calls for a series of diplomatic efforts to curtail Iranian 

terrorism and proliferation activities, including a U.N. Security 

Council resolution requiring unrestricted access for inspectors from 

the International Atomic Energy Agency to Iran’s nuclear-related 

facilities, and if Iran does not comply, it calls for the U.S. permanent representative to the U.N. to seek support for a resolution 

calling for sanctions against the Iranian regime. 

The amendments also build on existing prohibitions in the Foreign Assistance Act regarding state sponsors of terrorism. They call 

for the withholding of U.S. assistance to countries that are directly, 

or through their commercial entities, helping Iran by investing in 

its energy sector. These investments run contrary to U.S. national 

security interests, provide the Iranian regime with much needed 

currency to support international terrorism, and develop its missile 

and unconventional weapons program. 

The en block amendment therefore defines investment in Iran’s 

energy sector as assistance to the Iranian regime and holds U.S. 

foreign aid recipients accountable for such efforts. Further, minor 

technical and conforming changes are included in the en block 

amendment. 

I would like to recognize Mr. Ackerman for his opening statement. Mr. Ackerman? 

Mr. ACKERMAN. Thank you very much, Madam Chair, for scheduling today’s markup and for the extraordinary bipartisan way in 

which you reach across the aisle to conduct the business of our 

Committee. 

As I said at the Subcommittee’s Iran hearing last February, it 

seems to me that Iran has long been a problem in search of a policy. The bill before us today speaks to the frustration that many 

of us have in our efforts to stop Iran’s nuclear program and its support of international terrorism, not to mention the oppression of its 

own people, have been largely unsuccessful. 

Since 1996, the Iran-Libya Sanctions Act has been law, although 

no one has ever been sanctioned under it. Instead, we have a grand 

bargain with our European and Japanese friends. If they will pretend to take our concerns about Iran seriously, we will pretend to 

enforce our laws. In the meantime, Iran inches ever closer to acquiring a nuclear weapon. 

The Iran Freedom Support Act makes a number of changes designed to put more teeth to ILSA. First, it codifies our current 

sanctions regime against Iran. Second, it requires more detailed reporting from the President regarding our efforts to establish a multilateral sanctions regime against Iran. 

Third, it raises the standard that the President must meet before 

he can waive sanctions. Fourth, it sets out a timeframe within 

which the Secretary of the Treasury must investigate suspected investment in Iran. And lastly, the bill provides assistance to groups 

that support democracy in Iran. 

19

All of these are worthwhile changes and, with luck, will force the 

President to actually make a determination the next time there is 

a suspected investment in Iran’s petroleum sector. 

I would like to draw our colleagues’ attention to a particular provision that the Chair has highlighted, and that will be the managers’ amendment offered by the Chair. The language regarding 

pension plans and mutual funds requires the managers of such 

funds to notify investors if any of the assets of a particular fund 

are invested in an entity which has invested in Iran and may be 

subject to the sanctions under ILSA. The President would be required to list in the Federal Register those entities that may be 

subject to ILSA sanctions. 

The provision does not require immediate divestment of those assets, but it does encourage fund managers to divest and further 

urges that no future investments be made in entities that invest 

in Iran’s petroleum sector. 

I think this is a reasonable provision that makes clear Congress’ 

concern that Americans, simply by contributing to their 401[k]s, 

may be unwittingly fueling Iran’s drive to acquire nuclear weapons. 

I want to again thank the Chair for the opportunity to work 

closely across the aisle and the way she has approached work on 

this amendment and the bill in general. And I urge all of our colleagues to support the amendment to be offered by the Chair, as 

well as the bill. 

Thank you, Madam Chair. 

Ms. ROS-LEHTINEN. Thank you. I know that so many Members 

have pressing items on their schedule, so I would encourage you to 

put your statements in the record, but I would not want to put a 

gag order on you. 

Mr. Engel? 

Mr. ENGEL. Thank you, Madam Chair. I will be very, very brief. 

I want to commend you and Mr. Ackerman for introducing this legislation. Just the way you and I have introduced legislation with 

regard to Syria, Iran is certainly another major threat in the region. 

If you look at Hezbollah in Lebanon, southern Lebanon, fighting 

a proxy war against Israel for the Syrian regime, that group, that 

terrorist organization, is funded by Iran. So Iran and Syria are 

arm-in-arm in terms of supporting terrorism in the Middle East, in 

support of destabilizing the Middle East, and if our European allies 

do not develop a backbone, we in the Congress will start the backbone and hopefully we will have it here strongly in the United 

States and it will spread throughout the world. 

So I want to just commend you and Mr. Ackerman for this legislation. 

Ms. ROS-LEHTINEN. Thank you so much. 

Mr. ENGEL. I strongly support it. 

Ms. ROS-LEHTINEN. Thank you, Mr. Engel. 

Mr. Issa? 

Mr. ISSA. Thank you, Madam Chair. I also want to commend you 

and the Ranking Member for putting forth this legislation. I support it. 

I have just recently spent the entire March recess break in the 

Middle East, and I can see the effects of democracy as they are 

20

fledgling, but beginning to come out. And it is this kind of effort 

and consistent pressure that will do so. 

Last, but not least, although I see and have been in Libya to see 

signs that there may be changes going on there, I would ask that 

we all think and remember on the record the statement of Ronald 

Reagan: ‘‘You trust, but verify.’’

Thank you, Madam Chair. 

Ms. ROS-LEHTINEN. Amen. Thank you. 

Mr. Berman? 

Mr. BERMAN. I will speak loudly. I want to congratulate you for 

putting together this bill, Madam Chair. I am happy to be a cosponsor of it. 

In the original ILSA we passed, we created this dynamic to essentially try and move to an extra-territorial level our sanctions. 

We have had sanctions on Iran for a very long time. This is not 

a debate about these sanctions, unilateral sanctions. ILSA is an effort to try and get other countries and entities in other countries 

to understand there is a price to pay for investing in Iran’s energy 

sector. 

Originally, when it passed, it had some positive effects. It killed 

some investments. There were some waivers, but at least the waivers were subject to discussion and controversy and the Administration has to think a lot about issuing a waiver simply [inaudible]. 

But then what happened is it started to happen in the previous 

Administration—this Administration has continued it—is they just 

do not go out and make any determinations, so, in effect, the Government never finds that these investments are made in the Iranian energy sector. And therefore, not having found them, there is 

no decision about imposing sanctions or providing a waiver. 

What you have done here with this bill is create a mechanism 

which forces the issue. It requires you to go make a determination 

when you have information you believe such investments in the energy sector are being made while the waiver authority continues, 

and then probably the Administration should have that flexibility, 

at least they have to confront the issue and get a——

Ms. ROS-LEHTINEN. And give an explanation. 

Mr. BERMAN [continuing]. Sense of how serious people really are. 

So, again, this is not unilateral sanctions. I know it is controversial because it is an effort to get subsidiaries of U.S. companies and 

other countries and entities in other countries who want to do business with the United States, and a lot of them, lucrative as investment in Iran may be, losing their chance to do business with U.S. 

companies may be a higher price to pay. This will have a deterrent 

effect. 

Then the only other issue I want to talk about is, it is well worth 

pursuing the negotiations track with the Ambassadors for the three 

European countries that have a verifiable [inaudible] the Iranian 

adverse development enrichment, uranium enrichment cycle, and 

then to that nuclear program. 

The sanctions approach will be the next step. So I think this has 

a complementary effect on the efforts of the Administration to try 

to make the Europeans to try to [inaudible]. 

Ms. ROS-LEHTINEN. Thank you, Howard. I agree. And it gives us 

the leverage that we need to get cooperation from our allies to 

21

make sure that we can put an end to Iranian terrorism and proliferation. 

If there are no other statements, we would like to move on to our 

markup. Thank you so much. 

We have a series of amendments at the desk which all of the 

Members have before them. I ask unanimous consent that they be 

considered en block and be considered as read. The clerk will designate the amendment. 

Mr. RICKMAN. Amendments offered by Ms. Ros-Lehtinen to H.R. 

282. 

[The information referred to follows:]

22

1

H.L.C.

AMENDMENT TO H.R. 282

OFFERED BY MS. ROS-LEHTINEN OF FLORIDA

(and Mr. Ackerman of New York)

Page 5, line 21, strike ‘‘such is appropriate’’ and insert ‘‘, in accordance with paragraph (1), such a waiver

is appropriate,’’.

Page 6, line 21, redesignate paragraph (3) as paragraph (4).

Page 6, beginning line 21, insert the following new

paragraph:

1 (3) DETERMINATIONS REGARDING PENDING IN2 VESTIGATIONS.—Not later than 90 days after the

3 date of the enactment of this Act, the President

4 shall, with respect to any pending investigation con5 cerning investment in Iran by a person described in

6 this Act, determine whether or not to impose sanc7 tions against such person as a result of such activity

8 and shall notify the appropriate congressional com9 mittees of the basis for such determination.

Page 6, line 23, strike ‘‘paragraph 2’’ and insert

‘‘paragraphs (2) and (3)’’.


20646b.AAB
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2

H.L.C.

Page 8, line 18, insert after ‘‘subparagraph (B)’’ the

following: ‘‘by striking ‘, with actual knowledge,’ and’’.

Page 8, line 20, insert after ‘‘subparagraph (C)’’ the

following: ‘‘by striking ‘, with actual knowledge,’ and’’.

Page 9, lines 3 through 4, strike ‘‘, with actual

knowledge,’’.

Page 9, strike lines 11 through 16.

Page 9, lines 17 through 18 are amended to read as

follows: ‘‘Section 8 of the Iran and Libya Sanctions Act

of 1996 (50 U.S.C. 1701 note) is amended––’’.

Page 10, line 18, insert after ‘‘guarantor’’ the following: ‘‘, any other business organization, including any

foreign subsidiaries of the foregoing, ’’.

Page 11, line 1, redesignate title III as title IV (and

conform the table of contents accordingly).

Page 11, beginning line 1, insert the following (and

conform the table of contents accordingly):

1 SEC. 206. UNITED STATES PENSION PLANS.

2 (a) FINDINGS.—Congress finds the following:

3 (1) The United States and the international

4 community face no greater threat to their security

5 than the prospect of rogue regimes who support


20646b.AAC
24

3

H.L.C.

1 international terrorism obtaining weapons of mass

2 destruction, and particularly nuclear weapons.

3 (2) Iran is the leading state sponsor of inter4 national terrorism and is close to achieving nuclear

5 weapons capability but has paid no price for nearly

6 twenty years of deception over its nuclear program.

7 Foreign entities that have invested in Iran’s energy

8 sector, despite Iran’s support of international ter9 rorism and its nuclear program, have afforded Iran

10 a free pass while many United States entities have

11 unknowingly invested in those same foreign entities.

12 (3) United States investors have a great deal at

13 stake in preventing Iran from acquiring nuclear

14 weapons.

15 (4) United States investors can have consider16 able influence over the commercial decisions of the

17 foreign entities in which they have invested.

18 (b) PUBLICATION IN FEDERAL REGISTER.—Not

19 later than six months after the date of the enactment of

20 this Act and every six months thereafter, the President

21 shall ensure publication in the Federal Register of a list

22 of all United States and foreign entities that have invested

23 more than $20,000,000 in Iran’s energy sector between

24 August 5, 1996, and the date of such publication. Such

25 list shall include an itemization of individual investments


20646b.AAD
25

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H.L.C.

1 of each such entity, including the dollar value, intended

2 purpose, and current status of each such investment.

3 (c) SENSE OF CONGRESS RELATING TO DIVESTI4 TURE FROM IRAN.—It is the sense of Congress that, upon

5 publication of a list in the relevant Federal Register under

6 subsection (b), managers of United States Government

7 pension plans or thrift savings plans, managers of pension

8 plans maintained in the private sector by plan sponsors

9 in the United States, and managers of mutual funds sold

10 or distributed in the United States should immediately ini11 tiate efforts to divest all investments of such plans or

12 funds in any entity included on the list.

13 (d) SENSE OF CONGRESS RELATING TO PROHIBI14 TION ON FUTURE INVESTMENT.—It is the sense of Con15 gress that, upon publication of a list in the relevant Fed16 eral Register under subsection (b), there should be no fu17 ture investment in any entity included on the list by man18 agers of United States Government pension plans or thrift

19 savings plans, managers of pension plans maintained in

20 the private sector by plan sponsors in the United States,

21 and managers of mutual funds sold or distributed in the

22 United States.

23 (e) DISCLOSURE TO INVESTORS.—

24 (1) IN GENERAL.—Not later than 30 days after

25 the date of publication of a list in the relevant FedVerDate Mar 21 2002 14:13 Aug 24, 2005 Jkt 000000 PO 00000 Frm 00029 Fmt 6633 Sfmt 6633 F:\WORK\MECA\041305M\20646.000 HINTREL1 PsN: SHIRL

20646b.AAE
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H.L.C.

1 eral Register under subsection (b), managers of

2 United States Government pension plans or thrift

3 savings plans, managers of pension plans maintained

4 in the private sector by plan sponsors in the United

5 States, and managers of mutual funds sold or dis6 tributed in the United States shall notify investors

7 that the funds of such investors are invested in an

8 entity included on the list. Such notification shall

9 contain the following information:

10 (A) The name or other identification of the

11 entity.

12 (B) The amount of the investment in the

13 entity.

14 (C) The potential liability to the entity if

15 sanctions are imposed by the United States on

16 Iran or on the entity.

17 (D) The potential liability to investors if

18 such sanctions are imposed.

19 (2) FOLLOW-UP NOTIFICATION.—

20 (A) IN GENERAL.—Except as provided in

21 subparagraph (C), in addition to the notifica22 tion required under paragraph (1), such man23 agers shall also include such notification in

24 every prospectus and in every regularly pro25 vided quarterly, semi-annual, or annual report


20646b.AAF
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H.L.C.

1 provided to investors, if the funds of such inves2 tors are invested in an entity included on the

3 list.

4 (B) CONTENTS OF NOTIFICATION.—The

5 notification described in subparagraph (A) shall

6 be displayed prominently in any such pro7 spectus or report and shall contain the informa8 tion described in paragraph (1).

9 (C) GOOD-FAITH EXCEPTION.—If, upon

10 publication of a list in the relevant Federal

11 Register under subsection (b), such managers

12 verifiably divest all investments of such plans or

13 funds in any entity included on the list and

14 such managers do not initiate any new invest15 ment in any other such entity, such managers

16 shall not be required to include the notification

17 described in subparagraph (A) in any pro18 spectus or report provided to investors.

19 SEC. 207. REPORT BY OFFICE OF GLOBAL SECURITY RISKS.

20 Not later than 30 days after the date of publication

21 of a list in the relevant Federal Register under section

22 206(b), the Office of Global Security Risks within the Di23 vision of Corporation Finance of the United States Securi24 ties and Exchange Commission shall issue a report con25 taining a list of the United States and foreign entities


20646b.AAG
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H.L.C.

1 identified in accordance with such section, a determination

2 of whether or not the operations in Iran of any such entity

3 constitute a political, economic, or other risk to the United

4 States, and a determination of whether or not the entity

5 faces United States litigation, sanctions, or similar cir6 cumstances that are reasonably likely to have a material

7 adverse impact on the financial condition or operations of

8 the entity.

9 TITLE III—DIPLOMATIC EF10 FORTS TO CURTAIL IRANIAN

11 NUCLEAR PROLIFERATION

12 AND SPONSORSHIP OF INTER13 NATIONAL TERRORISM

14 SEC. 301. DIPLOMATIC EFFORTS.

15 (a) UNITED NATIONS SECURITY COUNCIL AND THE

16 INTERNATIONAL ATOMIC ENERGY AGENCY.—The Presi17 dent shall instruct the United States Permanent Rep18 resentative to the United Nations to—

19 (1) work to secure immediate support at the

20 United Nations Security Council for a resolution—

21 (A) requiring Iran to provide unrestricted

22 access for inspectors from the International

23 Atomic Energy Agency to conduct inspections

24 of its nuclear facilities; and


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29

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H.L.C.

1 (B) providing greater authority to the

2 International Atomic Energy Agency to conduct

3 such inspections; and

4 (2) work to secure support at the United Na5 tions Security Council for a further resolution that

6 would call for the imposition of sanctions on Iran if

7 Iran fails to comply with the requirements specified

8 under paragraph (1).

9 (b) PROHIBITION ON ASSISTANCE TO COUNTRIES

10 THAT INVEST IN THE ENERGY SECTOR OF IRAN.—

11 (1) WITHOLDING OF ASSISTANCE.—If, on or

12 after April 13, 2005, an entity subject to the com13 mercial laws of a foreign country has more than

14 $20,000,000 invested in Iran’s energy sector, the

15 President shall, until the date on which such entity

16 terminates such investment, withhold assistance

17 under the Foreign Assistance Act of 1961 (22

18 U.S.C. 2151 et seq.) to the government of such

19 country.

20 (2) WAIVER.—Assistance prohibited by this sec21 tion may be furnished to the government of a for22 eign country described in subsection (a) if the Presi23 dent determines that furnishing such assistance is

24 vital to the national security interests of the United

25 States, furthers the goals described in this Act, and,


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H.L.C.

1 not later that 15 days before obligating such assist2 ance, notifies the Committee on International Rela3 tions of the House of Representatives, the Com4 mittee on Foreign Relations of the Senate, the Com5 mittee on Appropriations of the House of Represent6 atives, and the Committee on Appropriations of the

7 Senate of such determination and submits to such

8 committees a report that includes—

9 (A) a statement of the determination;

10 (B) a detailed explanation of the assistance

11 to be provided;

12 (C) the estimated dollar amount of the as13 sistance; and

14 (D) an explanation of how the assistance

15 furthers United States national security inter16 ests.

17 (3) DEFINITION.—For purposes of this sub18 section, the term ‘‘assistance’’ means assistance to

19 or for the benefit of a government of any foreign

20 country that is provided by grant, concessional sale,

21 guaranty, insurance, or by any other means on

22 terms more favorable than generally available in the

23 applicable market, whether in the form of a loan,

24 lease, credit, debt relief, or otherwise, including sub25 sidies for exports to such country and favorable tarVerDate Mar 21 2002 14:13 Aug 24, 2005 Jkt 000000 PO 00000 Frm 00034 Fmt 6633 Sfmt 6633 F:\WORK\MECA\041305M\20646.000 HINTREL1 PsN: SHIRL

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H.L.C.

1 iff treatment of articles that are the growth, prod2 uct, or manufacture of such country. Such term does

3 not include assistance of the type authorized under

4 chapter 9 of part 1 of the Foreign Assistance Act

5 of 1961 (22 U.S.C. 2292 et seq.) (relating to inter6 national disaster assistance).

Page 11, line 2, redesignate section 301 as section

401 (and conform the table of contents accordingly).

Page 11, line 7, redesignate section 302 as section

402 (and conform the table of contents accordingly).

Page 11, beginning line 12, strike ‘‘and that are opposed to the non-democratic Government of Iran’’.

Page 13, strike lines 23 through 25.

Page 15, line 1, redesignate section 303 as section

403 (and conform the table of contents accordingly).


20646b.AAK
32

Ms. ROS-LEHTINEN. Thank you. I have addressed the content, as 

well as Mr. Ackerman has, of the en block amendments in our 

opening remarks. The en block amendments include comments and 

recommendations the Subcommittee staff received from the Subcommittee Members. 

Are there any amendments to the amendment en block? 

Mr. BERMAN. I have one. 

Ms. ROS-LEHTINEN. Yes, Mr. Berman? Yes. 

Mr. BERMAN. Am I able to take the last word? 

Ms. ROS-LEHTINEN. Yes, sir. 

Mr. BERMAN. I have one question for staff. In this bill, we codified existing regulations and export controls. We give them the 

force of statute. 

Does that include controls that are generic and apply to a whole 

variety of countries including Iran, or is it just Iran specifically? I 

just wanted [inaudible]. 

Ms. POBLETE. If I may? 

Ms. ROS-LEHTINEN. Yes, Ms. Poblete. 

Ms. POBLETE. The codification with respect to the proliferation, 

which is [1][a] of the bill, codifies only those sanctions in effect with 

respect to Iran proliferation activities. 

Section [1][b], which refers to the Export Administration Act, the 

state sponsors of terrorism list, again, it is only those export controls that are in effect with respect to Iran, or that should be in 

effect with respect to Iran, because of its terrorism designation and 

its proliferation designation. 

Ms. ROS-LEHTINEN. Thank you, Ms. Poblete. I could not have 

said it better. 

The question occurs on the en block amendments. All in favor 

say aye. 

[Chorus of ayes.] 

Ms. ROS-LEHTINEN. All opposed, nay. 

[No response.] 

Ms. ROS-LEHTINEN. The ayes have it. 

Are there any other amendments? 

[No response.] 

Ms. ROS-LEHTINEN. Having heard of no amendments, the question occurs on the motion to report the bill, H.R. 282, favorably as 

amended. All in favor say aye. 

[Chorus of ayes.] 

Ms. ROS-LEHTINEN. All opposed, no. 

[No response.] 

Ms. ROS-LEHTINEN. The motion is approved, and the bill is reported favorably. 

Without objection, this bill will be reported favorably to the Full 

Committee in the form of a single amendment in the nature of a 

substitute incorporating the amendments adopted here today. 

Without objection, the staff is directed to make any technical and 

conforming amendments. 

Thank you. What a great Subcommittee. Thank you. 

Mr. CROWLEY. We will also have an opportunity to offer ours off 

the record? 

33

Ms. ROS-LEHTINEN. Absolutely. And if I did not say it clearly, I 

meant to. So the Members are encouraged to submit statements for 

the record. 

Mr. Ackerman, we want you to feel better. 

Mr. ACKERMAN. Thank you. 

Ms. ROS-LEHTINEN. Okay. Thank you. Thank you, ladies and 

gentlemen. Thank you, Subcommittee Members. You guys are 

great. 

[Whereupon, at 12:20 p.m. the Subcommittee was adjourned.]

Æ