`[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 282 Reported in House (RH)]







                                                 Union Calendar No. 226
109th CONGRESS
  2d Session
                                H. R. 282

                          [Report No. 109-417]

  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

                             April 25, 2006

  Additional sponsors: Mr. Pickering, Mr. Doolittle, Mrs. Kelly, Mr. 
Walsh, Mr. Renzi, Mr. Emanuel, Mr. Lipinski, Mr. Gordon, Mr. Dent, Mr. 
     Kline, Ms. Schwartz of Pennsylvania, Mr. McCaul of Texas, Ms. 
Schakowsky, Mr. Issa, Mr. Bonilla, Mr. Stearns, Mr. McNulty, Mr. Baker, 
  Mr. Davis of Illinois, Mr. Pallone, Mr. Butterfield, Mrs. Miller of 
  Michigan, Mrs. Bono, Mr. Meek of Florida, Mr. Clay, Mr. McHugh, Mr. 
  Waxman, Mr. Shaw, Ms. Loretta Sanchez of California, Mr. Mack, Ms. 
    Bean, Mr. McHenry, Mr. LoBiondo, Mr. Sensenbrenner, Mr. Cole of 
  Oklahoma, Mrs. McCarthy, Mr. Boozman, Mr. Cardoza, Mr. Edwards, Mr. 
 Costa, Mr. Ferguson, Mr. Jindal, Mr. Pombo, Mr. Gene Green of Texas, 
 Mr. Kuhl of New York, Mr. Herger, Mr. Melancon, Ms. Ginny Brown-Waite 
 of Florida, Mr. Van Hollen, Mr. Alexander, Mr. Sessions, Mr. Carter, 
Mr. Simpson, Mr. Knollenberg, Mr. Cuellar, Mr. Gutierrez, Mr. Scott of 
  Georgia, Mr. Davis of Alabama, Mr. Reynolds, Mr. Wynn, Mr. Lewis of 
Georgia, Mr. Davis of Kentucky, Ms. Linda T. Sanchez of California, Mr. 
  Boustany, Mr. Bonner, Mr. Baca, Mr. Weiner, Mr. Poe, Mr. Terry, Ms. 
Wasserman Schultz, Mr. Aderholt, Mr. Schiff, Mr. Bass, Mr. Michaud, Mr. 
Visclosky, Ms. Matsui, Mr. Rogers of Michigan, Mr. Davis of Tennessee, 
   Mr. Murphy, Mr. Cunningham, Mr. Upton, Mr. McCrery, Mr. Weldon of 
Florida, Mr. Shays, Mr. Coble, Ms. Hart, Mr. Inglis of South Carolina, 
 Mr. Bradley of New Hampshire, Mr. Rush, Mrs. Maloney, Mr. Filner, Mr. 
Kennedy of Minnesota, Mr. Fitzpatrick of Pennsylvania, Mrs. Drake, Ms. 
Harman, Mr. Price of Georgia, Mr. Doyle, Mr. Miller of North Carolina, 
Ms. Herseth, Mr. Evans, Mr. Hayes, Mr. George Miller of California, Mr. 
  Shadegg, Mr. Matheson, Mr. Jefferson, Mr. Hastings of Florida, Mr. 
Putnam, Mrs. Northup, Mr. King of Iowa, Mr. Barrow, Miss McMorris, Mrs. 
Lowey, Mr. Culberson, Ms. Eshoo, Mr. Holt, Mr. Lewis of California, Mr. 
  Boswell, Mr. Ford, Mr. Wamp, Mr. Udall of Colorado, Mr. Peterson of 
  Pennsylvania, Mr. Cardin, Mr. Reichert, Mr. Boyd, Mr. Skelton, Mr. 
  Boren, Mr. Pascrell, Mrs. Napolitano, Mr. Marshall, Mr. Hastings of 
Washington, Mr. Hensarling, Mr. Inslee, Mr. Bilirakis, Mr. Ramstad, Mr. 
Tiberi, Mr. Kind, Mr. Brady of Pennsylvania, Ms. Solis, Mr. Owens, Mr. 
 Wu, Mr. Bishop of Georgia, Mr. Turner, Mr. Conaway, Mr. Gerlach, Mr. 
  Costello, Mr. Kingston, Mr. Rehberg, Mr. Cooper, Mr. Gonzalez, Mr. 
 Barrett of South Carolina, Mr. Brown of South Carolina, Mr. Davis of 
    Florida, Ms. Slaughter, Mr. Beauprez, Mr. Reyes, Mr. Jackson of 
 Illinois, Mr. Rogers of Alabama, Mr. Grijalva, Mr. Higgins, Mr. Meeks 
of New York, Mr. Franks of Arizona, Mr. Kildee, Mr. Gingrey, Mr. Hoyer, 
   Mr. Young of Florida, Mr. Cleaver, Ms. DeGette, Mr. Chocola, Mr. 
Simmons, Mr. Rangel, Mr. Feeney, Mr. Bartlett of Maryland, Mr. Keller, 
  Mr. Wicker, Mr. Cramer, Mr. Linder, Mr. Thompson of California, Mr. 
  Meehan, Mr. Hayworth, Ms. Foxx, Mr. Smith of Texas, Mr. Tanner, Ms. 
  DeLauro, Mr. Berry, Mrs. Musgrave, Mr. Weldon of Pennsylvania, Mr. 
Ross, Ms. Woolsey, Mr. Honda, Mr. Moore of Kansas, Mr. Strickland, Mr. 
Kennedy of Rhode Island, Mr. Carnahan, Mr. Cummings, Mr. Marchant, Mr. 
  Miller of Florida, Mrs. Cubin, Mr. Ryun of Kansas, Mr. Gohmert, Mr. 
 Neal of Massachusetts, Mr. Graves, Mr. Manzullo, Mr. Levin, Mr. Jones 
of North Carolina, Ms. Pelosi, Mr. Gilchrest, Mr. Smith of Washington, 
  Mr. Salazar, Mr. Daniel E. Lungren of California, Mr. Burgess, Mr. 
Lynch, Ms. Eddie Bernice Johnson of Texas, Mr. Clyburn, Mr. Baird, Mr. 
 Pearce, Mr. Al Green of Texas, Mr. LaTourette, Mr. Farr, Mr. Cannon, 
  Mr. Frelinghuysen, Mr. Ryan of Ohio, Mr. Forbes, Mr. Bishop of New 
   York, Mr. Radanovich, Mr. Scott of Virginia, Ms. Corrine Brown of 
Florida, Mr. Case, Mrs. Emerson, Mr. Hefley, Mr. Camp of Michigan, Ms. 
   Zoe Lofgren of California, Mr. Lucas, Mr. Lewis of Kentucky, Mrs. 
 Blackburn, Mr. Larson of Connecticut, Mr. Crenshaw, Mr. Langevin, Mr. 
Shuster, Mr. Sodrel, Mrs. Capito, Mr. Goode, Mr. Hulshof, Mr. Calvert, 
    Mrs. Wilson of New Mexico, Mr. Sanders, Mr. Brown of Ohio, Mr. 
 Gallegly, Mr. Akin, Mr. English of Pennsylvania, Mr. Taylor of North 
 Carolina, Mr. LaHood, Mr. Allen, Mr. Tiahrt, Mr. Schwarz of Michigan, 
      Ms. Pryce of Ohio, Ms. Moore of Wisconsin, Mr. Gibbons, Mr. 
   Ruppersberger, Mr. Rogers of Kentucky, Mr. King of New York, Ms. 
  Baldwin, Mr. Pomeroy, Ms. Jackson-Lee of Texas, Mr. Neugebauer, Mr. 
    Fortuno, Mr. Stupak, Mr. Fortenberry, Mr. Walden of Oregon, Mr. 
    Boehner, Mr. Westmoreland, Mr. Oxley, Mr. Otter, Mrs. Davis of 
California, Mr. Fattah, Mr. Wolf, Mrs. Tauscher, Ms. Roybal-Allard, Mr. 
   Sweeney, Mr. McIntyre, Mr. Hall, Mr. Thompson of Mississippi, Mr. 
Everett, Mr. Bishop of Utah, Mr. Frank of Massachusetts, Mrs. Jones of 
 Ohio, Mr. Fossella, Mr. Blunt, Mr. Etheridge, Mr. Holden, Mr. Deal of 
Georgia, Mr. Olver, Mr. Osborne, Mr. Peterson of Minnesota, Mr. Markey, 
Mr. Payne, Mr. Dicks, Mr. Pastor, Mr. Campbell of California, Mr. Udall 
of New Mexico, Mrs. Schmidt, Mr. Nussle, Ms. Lee, Mr. Royce, Mr. Towns, 
  Mr. McKeon, Ms. Bordallo, Mr. Gary G. Miller of California, Mr. Tom 
         Davis of Virginia, Mr. Young of Alaska, and Ms. Watson

                             April 25, 2006

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on January 
                                6, 2005]

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title
Sec. 2. Table of contents

            TITLE I--CODIFICATION OF SANCTIONS AGAINST IRAN

Sec. 101. Codification of sanctions
Sec. 102. Liability of parent companies for violations of sanctions by 
                            foreign entities

 TITLE II--AMENDMENTS TO THE IRAN AND LIBYA SANCTIONS ACT OF 1996 AND 
             OTHER PROVISIONS RELATED TO INVESTMENT IN IRAN

Sec. 201. Multilateral regime
Sec. 202. Imposition of sanctions
Sec. 203. Termination of sanctions
Sec. 204. Sunset
Sec. 205. Clarification and expansion of definitions
Sec. 206. United States pension plans
Sec. 207. Report by Office of Global Security Risks
Sec. 208. Technical and conforming amendments

TITLE III--DIPLOMATIC EFFORTS TO CURTAIL IRANIAN NUCLEAR PROLIFERATION 
               AND SPONSORSHIP OF INTERNATIONAL TERRORISM

Sec. 301. Diplomatic efforts
Sec. 302. Strengthening the Nuclear Nonproliferation Treaty

                      TITLE IV--DEMOCRACY IN IRAN

Sec. 401. Declaration of Congress regarding United States policy toward 
                            Iran
Sec. 402. Assistance to support democracy in Iran
Sec. 403. Waiver of certain export license requirements

            TITLE I--CODIFICATION OF SANCTIONS AGAINST IRAN

SEC. 101. CODIFICATION OF SANCTIONS.

    (a) Codification of Sanctions.--United States sanctions, controls, 
and regulations with respect to Iran imposed pursuant to Executive 
Order 12957, Executive Order 12959, and sections 2 and 3 of Executive 
Order 13059 (relating to exports and certain other transactions with 
Iran) as in effect on January 1, 2006, shall remain in effect until the 
President certifies to the Committee on International Relations of the 
House of Representatives and the Committee on Foreign Relations of the 
Senate that the Government of Iran has verifiably dismantled its 
weapons of mass destruction programs.
    (b) No Effect on Other Sanctions Relating to Support for Acts of 
International Terrorism.--Subsection (a) shall have no effect on United 
States sanctions, controls, and regulations relating to a determination 
under section 6(j)(1)(A) of the Export Administration Act of 1979 (50 
U.S.C. App. 2405(j)(1)(A)), section 620A(a) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2371(a)), or section 40(d) of the Arms Export 
Control Act (22 U.S.C. 2780(d)) relating to support for acts of 
international terrorism by the Government of Iran, as in effect on 
January 1, 2006.

SEC. 102. LIABILITY OF PARENT COMPANIES FOR VIOLATIONS OF SANCTIONS BY 
              FOREIGN ENTITIES.

    (a) In General.--In any case in which an entity engages in an act 
outside the United States which, if committed in the United States or 
by a United States person, would violate Executive Order 12959 of May 
6, 1995, Executive Order 13059 of August 19, 1997, or any other 
prohibition on transactions with respect to Iran that is imposed under 
the International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) and if that entity was created or availed of for the purpose of 
engaging in such an act, the parent company of that entity shall be 
subject to the penalties for such violation to the same extent as if 
the parent company had engaged in that act.
    (b) Definitions.--In this section--
            (1) an entity is a ``parent company'' of another entity if 
        it owns, directly or indirectly, more than 50 percent of the 
        equity interest in that other entity and is a United States 
        person; and
            (2) the term ``entity'' means a partnership, association, 
        trust, joint venture, corporation, or other organization.

 TITLE II--AMENDMENTS TO THE IRAN AND LIBYA SANCTIONS ACT OF 1996 AND 
             OTHER PROVISIONS RELATED TO INVESTMENT IN IRAN

SEC. 201. MULTILATERAL REGIME.

    (a) Reports to Congress.--Section 4(b) of the Iran and Libya 
Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended to read as 
follows:
    ``(b) Reports to Congress.--Not later than six months after the 
date of the enactment of the Iran Freedom Support Act and every six 
months thereafter, the President shall submit to the appropriate 
congressional committees a report regarding specific diplomatic efforts 
undertaken pursuant to subsection (a), the results of those efforts, 
and a description of proposed diplomatic efforts pursuant to such 
subsection. Each report shall include--
            ``(1) a list of the countries that have agreed to undertake 
        measures to further the objectives of section 3 with respect to 
        Iran;
            ``(2) a description of those measures, including--
                    ``(A) government actions with respect to public or 
                private entities (or their subsidiaries) located in 
                their territories, that are engaged in Iran;
                    ``(B) any decisions by the governments of these 
                countries to rescind or continue the provision of 
                credits, guarantees, or other governmental assistance 
                to these entities; and
                    ``(C) actions taken in international fora to 
                further the objectives of section 3;
            ``(3) a list of the countries that have not agreed to 
        undertake measures to further the objectives of section 3 with 
        respect to Iran, and the reasons therefor; and
            ``(4) a description of any memorandums of understanding, 
        political understandings, or international agreements to which 
        the United States has acceded which affect implementation of 
        this section or section 5(a).''.
    (b) Waiver.--Section 4(c) of such Act (50 U.S.C. 1701 note) is 
amended to read as follows:
    ``(c) Waiver.--
            ``(1) In general.--The President may, on a case by case 
        basis, waive for a period of not more than six months the 
        application of section 5(a) with respect to a national of a 
        country, if the President certifies to the appropriate 
        congressional committees at least 30 days before such waiver is 
        to take effect that--
                    ``(A) such waiver is vital to the national security 
                interests of the United States; and
                    ``(B) the country of the national has undertaken 
                substantial measures to prevent the acquisition and 
                development of weapons of mass destruction by the 
                Government of Iran.
            ``(2) Subsequent renewal of waiver.--If the President 
        determines that, in accordance with paragraph (1), such a 
        waiver is appropriate, the President may, at the conclusion of 
        the period of a waiver under paragraph (1), renew such waiver 
        for subsequent periods of not more than six months each.''.
    (c) Investigations.--Section 4 of such Act (50 U.S.C. 1701 note) is 
amended by adding at the end the following new subsection:
    ``(f) Investigations.--
            ``(1) In general.--The President shall initiate an 
        investigation into the possible imposition of sanctions against 
        a person upon receipt by the United States of credible 
        information indicating that such person is engaged in activity 
        related to investment in Iran as described in section 5(a).
            ``(2) Determination and notification.--
                    ``(A) In general.--Not later than 180 days after an 
                investigation is initiated in accordance with paragraph 
                (1), the President shall determine, pursuant to section 
                5(a), whether or not to impose sanctions against a 
                person engaged in activity related to investment in 
                Iran as described in such section as a result of such 
                activity and shall notify the appropriate congressional 
                committees of the basis for such determination.
                    ``(B) Extension.--If the President is unable to 
                make a determination under subparagraph (A), the 
                President shall notify the appropriate congressional 
                committees and shall extend such investigation for a 
                subsequent period, not to exceed 180 days, after which 
                the President shall make the determination required 
                under such subparagraph and shall notify the 
                appropriate congressional committees of the basis for 
                such determination in accordance with such 
                subparagraph.
            ``(3) Determinations regarding pending investigations.--Not 
        later than 90 days after the date of the enactment of this Act, 
        the President shall, with respect to any investigation that was 
        pending as of January 1, 2006, concerning a person engaged in 
        activity related to investment in Iran as described in section 
        5(a), determine whether or not to impose sanctions against such 
        person as a result of such activity and shall notify the 
        appropriate congressional committees of the basis for such 
        determination.
            ``(4) Publication.--Not later than 10 days after the 
        President notifies the appropriate congressional committees 
        under paragraphs (2) and (3), the President shall ensure 
        publication in the Federal Register of the identification of 
        the persons against which the President has made a 
        determination that the imposition of sanctions is appropriate, 
        together with an explanation for such determination.''.

SEC. 202. IMPOSITION OF SANCTIONS.

    (a) Sanctions With Respect to Development of Petroleum Resources.--
Section 5(a) of the Iran and Libya Sanctions Act of 1996 (50 U.S.C. 
1701 note) is amended--
            (1) in the heading, by striking ``to Iran'' and inserting 
        ``to the Development of Petroleum Resources of Iran'';
            (2) by striking ``(6)'' and inserting ``(5)''; and
            (3) by striking ``with actual knowledge,''.
    (b) Sanctions With Respect to Development of Weapons of Mass 
Destruction or Other Military Capabilities.--Section 5(b) of such Act 
(50 U.S.C. 1701 note) is amended to read as follows:
    ``(b) Mandatory Sanctions With Respect to Development of Weapons of 
Mass Destruction or Other Military Capabilities.--Notwithstanding any 
other provision of law, the President shall impose two or more of the 
sanctions described in paragraphs (1) through (5) of section 6 if the 
President determines that a person has, on or after the date of the 
enactment of this Act, exported, transferred, or otherwise provided to 
Iran any goods, services, technology, or other items knowing that the 
provision of such goods, services, technology, or other items would 
contribute to the ability of Iran to--
            ``(1) acquire or develop chemical, biological, or nuclear 
        weapons or related technologies; or
            ``(2) acquire or develop destabilizing numbers and types of 
        advanced conventional weapons.''.
    (c) Persons Against Which the Sanctions Are to Be Imposed.--Section 
5(c)(2) of such Act (50 U.S.C. 1701 note) is amended--
            (1) in subparagraph (B), by striking ``, with actual 
        knowledge,'' and by striking ``or'' at the end;
            (2) in subparagraph (C), by striking ``, with actual 
        knowledge,'' and by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding after subparagraph (C) the following new 
        subparagraph:
                    ``(D) is a private or government lender, insurer, 
                underwriter, or guarantor of the person referred to in 
                paragraph (1) if that private or government lender, 
                insurer, underwriter, or guarantor engaged in the 
                activities referred to in paragraph (1).''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to actions taken on or after March 15, 2006.

SEC. 203. TERMINATION OF SANCTIONS.

    Section 8(a) of the Iran and Libya Sanctions Act of 1996 (50 U.S.C. 
1701 note) is amended--
            (1) in paragraph (1)(C), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) poses no significant threat to United States national 
        security, interests, or allies.''.

SEC. 204. SUNSET.

    Section 13 of the Iran and Libya Sanctions Act of 1996 (50 U.S.C. 
1701 note) is amended--
            (1) in the section heading, by striking ``; sunset'';
            (2) in subsection (a), by striking the subsection 
        designation and heading; and
            (3) by striking subsection (b).

SEC. 205. CLARIFICATION AND EXPANSION OF DEFINITIONS.

    (a) Person.--Section 14(14)(B) of the Iran and Libya Sanctions Act 
of 1996 (50 U.S.C. 1701 note) is amended--
            (1) by inserting after ``trust,'' the following: 
        ``financial institution, insurer, underwriter, guarantor, any 
        other business organization, including any foreign subsidiaries 
        of the foregoing,''; and
            (2) by inserting before the semicolon the following: ``, 
        such as an export credit agency''.
    (b) Petroleum Resources.--Section 14(15) of the Iran and Libya 
Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by inserting 
after ``petroleum'' the second place it appears, the following: ``, 
petroleum by-products,''.

SEC. 206. UNITED STATES PENSION PLANS.

    (a) Findings.--Congress finds the following:
            (1) The United States and the international community face 
        no greater threat to their security than the prospect of rogue 
        regimes who support international terrorism obtaining weapons 
        of mass destruction, and particularly nuclear weapons.
            (2) Iran is the leading state sponsor of international 
        terrorism and is close to achieving nuclear weapons capability 
        but has paid no price for nearly twenty years of deception over 
        its nuclear program. Foreign entities that have invested in 
        Iran's energy sector, despite Iran's support of international 
        terrorism and its nuclear program, have afforded Iran a free 
        pass while many United States entities have unknowingly 
        invested in those same foreign entities.
            (3) United States investors have a great deal at stake in 
        preventing Iran from acquiring nuclear weapons.
            (4) United States investors can have considerable influence 
        over the commercial decisions of the foreign entities in which 
        they have invested.
    (b) Publication in Federal Register.--Not later than six months 
after the date of the enactment of this Act and every six months 
thereafter, the President shall ensure publication in the Federal 
Register of a list of all United States and foreign entities that have 
invested more than $20,000,000 in Iran's energy sector between August 
5, 1996, and the date of such publication. Such list shall include an 
itemization of individual investments of each such entity, including 
the dollar value, intended purpose, and current status of each such 
investment.
    (c) Sense of Congress Relating to Divestiture From Iran.--It is the 
sense of Congress that, upon publication of a list in the relevant 
Federal Register under subsection (b), managers of United States 
Government pension plans or thrift savings plans, managers of pension 
plans maintained in the private sector by plan sponsors in the United 
States, and managers of mutual funds sold or distributed in the United 
States should immediately initiate efforts to divest all investments of 
such plans or funds in any entity included on the list.
    (d) Sense of Congress Relating to Prohibition on Future 
Investment.--It is the sense of Congress that, upon publication of a 
list in the relevant Federal Register under subsection (b), there 
should be no future investment in any entity included on the list by 
managers of United States Government pension plans or thrift savings 
plans, managers of pension plans maintained in the private sector by 
plan sponsors in the United States, and managers of mutual funds sold 
or distributed in the United States.
    (e) Disclosure to Investors.--
            (1) In general.--Not later than 30 days after the date of 
        publication of a list in the relevant Federal Register under 
        subsection (b), managers of United States Government pension 
        plans or thrift savings plans, managers of pension plans 
        maintained in the private sector by plan sponsors in the United 
        States, and managers of mutual funds sold or distributed in the 
        United States shall notify investors that the funds of such 
        investors are invested in an entity included on the list. Such 
        notification shall contain the following information:
                    (A) The name or other identification of the entity.
                    (B) The amount of the investment in the entity.
                    (C) The potential liability to the entity if 
                sanctions are imposed by the United States on Iran or 
                on the entity.
                    (D) The potential liability to investors if such 
                sanctions are imposed.
            (2) Follow-up notification.--
                    (A) In general.--Except as provided in subparagraph 
                (C), in addition to the notification required under 
                paragraph (1), such managers shall also include such 
                notification in every prospectus and in every regularly 
                provided quarterly, semi-annual, or annual report 
                provided to investors, if the funds of such investors 
                are invested in an entity included on the list.
                    (B) Contents of notification.--The notification 
                described in subparagraph (A) shall be displayed 
                prominently in any such prospectus or report and shall 
                contain the information described in paragraph (1).
                    (C) Good-faith exception.--If, upon publication of 
                a list in the relevant Federal Register under 
                subsection (b), such managers verifiably divest all 
                investments of such plans or funds in any entity 
                included on the list and such managers do not initiate 
                any new investment in any other such entity, such 
                managers shall not be required to include the 
                notification described in subparagraph (A) in any 
                prospectus or report provided to investors.

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

    Not later than 30 days after the date of publication of a list in 
the relevant Federal Register under section 206(b), the Office of 
Global Security Risks within the Division of Corporation Finance of the 
United States Securities and Exchange Commission shall issue a report 
containing a list of the United States and foreign entities identified 
in accordance with such section, a determination of whether or not the 
operations in Iran of any such entity constitute a political, economic, 
or other risk to the United States, and a determination of whether or 
not the entity faces United States litigation, sanctions, or similar 
circumstances that are reasonably likely to have a material adverse 
impact on the financial condition or operations of the entity.

SEC. 208. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Findings.--Section 2 of the Iran and Libya Sanctions Act of 
1996 (50 U.S.C. 1701 note) is amended by striking paragraph (4).
    (b) Declaration of Policy.--Section 3 of the Iran and Libya 
Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended--
            (1) in subsection (a), by striking ``(a) Policy With 
        Respect to Iran.--''; and
            (2) by striking subsection (b).
    (c) Termination of Sanctions.--Section 8 of the Iran and Libya 
Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended--
            (1) in subsection (a), by striking ``(a) Iran.--''; and
            (2) by striking subsection (b).
    (d) Duration of Sanctions; Presidential Waiver.--Section 9(c)(2)(C) 
of the Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701 note) is 
amended to read as follows:
                    ``(C) an estimate of the significance of the 
                provision of the items described in section 5(a) or 
                section 5(b) to Iran's ability to, respectively, 
                develop its petroleum resources or its weapons of mass 
                destruction or other military capabilities; and''.
    (e) Reports Required.--Section 10(b)(1) of the Iran and Libya 
Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by striking 
``and Libya'' each place it appears.
    (f) Definitions.--Section 14 of the Iran and Libya Sanctions Act of 
1996 (50 U.S.C. 1701 note) is amended--
            (1) in paragraph (9)--
                    (A) in the matter preceding subparagraph (A), by--
                            (i) striking ``, or with the Government of 
                        Libya or a nongovernmental entity in Libya,''; 
                        and
                            (ii) by striking ``nongovenmental'' and 
                        inserting ``nongovernmental''; and
                    (B) in subparagraph (A), by striking ``or Libya (as 
                the case may be)'';
            (2) by striking paragraph (12); and
            (3) by redesignating paragraphs (13), (14), (15), (16), and 
        (17) as paragraphs (12), (13), (14), (15), and (16), 
        respectively.
    (g) Short Title.--
            (1) In general.--Section 1 of the Iran and Libya Sanctions 
        Act of 1996 (50 U.S.C. 1701 note) is amended by striking ``and 
        Libya''.
            (2) References.--Any reference in any other provision of 
        law, regulation, document, or other record of the United States 
        to the ``Iran and Libya Sanctions Act of 1996'' shall be deemed 
        to be a reference to the ``Iran Sanctions Act of 1996''.

TITLE III--DIPLOMATIC EFFORTS TO CURTAIL IRANIAN NUCLEAR PROLIFERATION 
               AND SPONSORSHIP OF INTERNATIONAL TERRORISM

SEC. 301. DIPLOMATIC EFFORTS.

    (a) Sense of Congress Relating to United Nations Security Council 
and the International Atomic Energy Agency.--It is the sense of 
Congress that the President should instruct the United States Permanent 
Representative to the United Nations to work to secure support at the 
United Nations Security Council for a resolution that would impose 
sanctions on Iran as a result of its repeated breaches of its nuclear 
nonproliferation obligations, to remain in effect until Iran has 
verifiably dismantled its weapons of mass destruction programs.
    (b) Prohibition on Assistance to Countries That Invest in the 
Energy Sector of Iran.--
            (1) Withholding of assistance.--If, on or after April 13, 
        2005, a foreign person (as defined in section 14 of the Iran 
        Sanctions Act of 1996 (50 U.S.C. 1701 note), as renamed 
        pursuant to section 208(g)(1)) or an agency or instrumentality 
        of a foreign government has more than $20,000,000 invested in 
        Iran's energy sector, the President shall, until the date on 
        which such person or agency or instrumentality of such 
        government terminates such investment, withhold assistance 
        under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
        seq.) to the government of the country to which such person 
        owes allegiance or to which control is exercised over such 
        agency or instrumentality.
            (2) Waiver.--Assistance prohibited by this section may be 
        furnished to the government of a foreign country described in 
        subsection (a) if the President determines that furnishing such 
        assistance is important to the national security interests of 
        the United States, furthers the goals described in this Act, 
        and, not later that 15 days before obligating such assistance, 
        notifies the Committee on International Relations of the House 
        of Representatives, the Committee on Foreign Relations of the 
        Senate, the Committee on Appropriations of the House of 
        Representatives, and the Committee on Appropriations of the 
        Senate of such determination and submits to such committees a 
        report that includes--
                    (A) a statement of the determination;
                    (B) a detailed explanation of the assistance to be 
                provided;
                    (C) the estimated dollar amount of the assistance; 
                and
                    (D) an explanation of how the assistance furthers 
                United States national security interests.

SEC. 302. STRENGTHENING THE NUCLEAR NONPROLIFERATION TREATY.

    (a) Findings.--Congress finds the following:
            (1) Article IV of the Treaty on the Non-Proliferation of 
        Nuclear Weapons (commonly referred to as the ``Nuclear 
        Nonproliferation Treaty'' or ``NPT'') states that countries 
        that are parties to the Treaty have the ``inalienable right . . 
        . to develop research, production and use of nuclear energy for 
        peaceful purposes without discrimination and in conformity with 
        articles I and II of this Treaty.''.
            (2) Iran has manipulated Article IV of the Nuclear 
        Nonproliferation Treaty to acquire technologies needed to 
        manufacture nuclear weapons under the guise of developing 
        peaceful nuclear technology.
            (3) Legal authorities, diplomatic historians, and officials 
        closely involved in the negotiation and ratification of the 
        Nuclear Nonproliferation Treaty state that the Treaty neither 
        recognizes nor protects such a per se right to all nuclear 
        technology, such as enrichment and reprocessing, but rather 
        affirms that the right to the use of peaceful nuclear energy is 
        qualified.
    (b) Declaration of Congress Regarding United States Policy to 
Strengthen the Nuclear Nonproliferation Treaty.--Congress declares that 
it should be the policy of the United States to support diplomatic 
efforts to end the manipulation of Article IV of the Nuclear 
Nonproliferation Treaty, as undertaken by Iran, without undermining the 
Treaty itself.

                      TITLE IV--DEMOCRACY IN IRAN

SEC. 401. DECLARATION OF CONGRESS REGARDING UNITED STATES POLICY TOWARD 
              IRAN.

    (a) In General.--Congress declares that it should be the policy of 
the United States to support independent human rights and peaceful pro-
democracy forces in Iran.
    (b) Rule of Construction.--Nothing in this Act shall be construed 
as authorizing the use of force against Iran.

SEC. 402. ASSISTANCE TO SUPPORT DEMOCRACY IN IRAN.

    (a) Authorization.--
            (1) In general.--The President is authorized to provide 
        financial and political assistance (including the award of 
        grants) to foreign and domestic individuals, organizations, and 
        entities that support democracy and the promotion of democracy 
        in Iran. Such assistance may include the award of grants to 
        eligible independent pro-democracy radio and television 
        broadcasting organizations that broadcast into Iran.
            (2) Limitation on assistance.--In accordance with the rule 
        of construction described in subsection (b) of section 401, 
        none of the funds authorized under this section shall be used 
        to support the use of force against Iran.
    (b) Eligibility for Assistance.--Financial and political assistance 
under this section may be provided only to an individual, organization, 
or entity that--
            (1) officially opposes the use of violence and terrorism 
        and has not been designated as a foreign terrorist organization 
        under section 219 of the Immigration and Nationality Act (8 
        U.S.C. 1189) at any time during the preceding four years;
            (2) advocates the adherence by Iran to nonproliferation 
        regimes for nuclear, chemical, and biological weapons and 
        materiel;
            (3) is dedicated to democratic values and supports the 
        adoption of a democratic form of government in Iran;
            (4) is dedicated to respect for human rights, including the 
        fundamental equality of women;
            (5) works to establish equality of opportunity for people; 
        and
            (6) supports freedom of the press, freedom of speech, 
        freedom of association, and freedom of religion.
    (c) Funding.--The President may provide assistance under this 
section using--
            (1) funds available to the Middle East Partnership 
        Initiative (MEPI), the Broader Middle East and North Africa 
        Initiative, and the Human Rights and Democracy Fund; and
            (2) amounts made available pursuant to the authorization of 
        appropriations under subsection (g).
    (d) Notification.--Not later than 15 days before each obligation of 
assistance under this section, and in accordance with the procedures 
under section 634A of the Foreign Assistance Act of 1961 (22 U.S.C. 
2394-l), the President shall notify the Committee on International 
Relations and the Committee on Appropriations of the House of 
Representatives and the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate. Such notification shall 
include, as practicable, the types of programs supported by such 
assistance and the recipients of such assistance.
    (e) Sense of Congress Regarding Diplomatic Assistance.--It is the 
sense of Congress that--
            (1) contacts should be expanded with opposition groups in 
        Iran that meet the criteria under subsection (b);
            (2) support for a transition to democracy in Iran should be 
        expressed by United States representatives and officials in all 
        appropriate international fora;
            (3) efforts to bring a halt to the nuclear weapons program 
        of Iran, including steps to end the supply of nuclear 
        components or fuel to Iran, should be intensified, with 
        particular attention focused on the cooperation regarding such 
        program--
                    (A) between the Government of Iran and the 
                Government of the Russian Federation; and
                    (B) between the Government of Iran and individuals 
                from China and Pakistan, including the network of Dr. 
                Abdul Qadeer (A. Q.) Khan; and
            (4) officials and representatives of the United States 
        should--
                    (A) strongly and unequivocally support indigenous 
                efforts in Iran calling for free, transparent, and 
                democratic elections; and
                    (B) draw international attention to violations by 
                the Government of Iran of human rights, freedom of 
                religion, freedom of assembly, and freedom of the 
                press.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Department of State such sums as may be necessary 
to carry out this section.

SEC. 403. WAIVER OF CERTAIN EXPORT LICENSE REQUIREMENTS.

    The Secretary of State may, in consultation with the Secretary of 
Commerce, waive the requirement to obtain a license for the export to, 
or by, any person to whom the Department of State has provided a grant 
under a program to promote democracy or human rights abroad, any item 
which is commercially available in the United States without government 
license or permit, to the extent that such export would be used 
exclusively for carrying out the purposes of the grant.
                                                 Union Calendar No. 226

109th CONGRESS

  2d Session

                               H. R. 282

                          [Report No. 109-417]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             April 25, 2006

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed`