IB 

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


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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. 

SA ́NCHEZ 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, 


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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. FORTUN ̃O, 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. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Act’’. 


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1 SEC. 2. TABLE OF CONTENTS. 

2 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 

3 TITLE I—CODIFICATION OF 

4 SANCTIONS AGAINST IRAN 

5 SEC. 101. CODIFICATION OF SANCTIONS. 

6 (a) CODIFICATION OF SANCTIONS.—United States 

7 sanctions, controls, and regulations with respect to Iran im8 posed pursuant to Executive Order 12957, Executive Order 

9 12959, and sections 2 and 3 of Executive Order 13059 (re10 lating to exports and certain other transactions with Iran) 


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1 as in effect on January 1, 2006, shall remain in effect until 

2 the President certifies to the Committee on International 

3 Relations of the House of Representatives and the Com4 mittee on Foreign Relations of the Senate that the Govern5 ment of Iran has verifiably dismantled its weapons of mass 

6 destruction programs. 

7 (b) NO EFFECT ON OTHER SANCTIONS RELATING TO

8 SUPPORT FOR ACTS OF INTERNATIONAL TERRORISM.— 

9 Subsection (a) shall have no effect on United States sanc10 tions, controls, and regulations relating to a determination 

11 under section 6(j)(1)(A) of the Export Administration Act 

12 of 1979 (50 U.S.C. App. 2405(j)(1)(A)), section 620A(a) of 

13 the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), or 

14 section 40(d) of the Arms Export Control Act (22 U.S.C. 

15 2780(d)) relating to support for acts of international ter16 rorism by the Government of Iran, as in effect on January 

17 1, 2006. 

18 SEC. 102. LIABILITY OF PARENT COMPANIES FOR VIOLA19 TIONS OF SANCTIONS BY FOREIGN ENTITIES. 

20 (a) IN GENERAL.—In any case in which an entity en21 gages in an act outside the United States which, if com22 mitted in the United States or by a United States person, 

23 would violate Executive Order 12959 of May 6, 1995, Exec24 utive Order 13059 of August 19, 1997, or any other prohibi25 tion on transactions with respect to Iran that is imposed 


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1 under the International Emergency Economic Powers Act 

2 (50 U.S.C. 1701 et seq.) and if that entity was created or 

3 availed of for the purpose of engaging in such an act, the 

4 parent company of that entity shall be subject to the pen5 alties for such violation to the same extent as if the parent 

6 company had engaged in that act. 

7 (b) DEFINITIONS.—In this section— 

8 (1) an entity is a ‘‘parent company’’ of another 

9 entity if it owns, directly or indirectly, more than 50 

10 percent of the equity interest in that other entity and 

11 is a United States person; and 

12 (2) the term ‘‘entity’’ means a partnership, asso13 ciation, trust, joint venture, corporation, or other or14 ganization. 

15 TITLE II—AMENDMENTS TO THE 

16 IRAN AND LIBYA SANCTIONS 

17 ACT OF 1996 AND OTHER PRO18 VISIONS RELATED TO INVEST19 MENT IN IRAN 

20 SEC. 201. MULTILATERAL REGIME. 

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

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

23 is amended to read as follows: 

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

25 months after the date of the enactment of the Iran Freedom 


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1 Support Act and every six months thereafter, the President 

2 shall submit to the appropriate congressional committees a 

3 report regarding specific diplomatic efforts undertaken pur4 suant to subsection (a), the results of those efforts, and a 

5 description of proposed diplomatic efforts pursuant to such 

6 subsection. Each report shall include— 

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

8 undertake measures to further the objectives of section 

9 3 with respect to Iran; 

10 ‘‘(2) a description of those measures, including— 

11 ‘‘(A) government actions with respect to 

12 public or private entities (or their subsidiaries) 

13 located in their territories, that are engaged in 

14 Iran; 

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

16 these countries to rescind or continue the provi17 sion of credits, guarantees, or other governmental 

18 assistance to these entities; and 

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

20 further the objectives of section 3; 

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

22 to undertake measures to further the objectives of sec23 tion 3 with respect to Iran, and the reasons therefor; 

24 and 


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1 ‘‘(4) a description of any memorandums of un2 derstanding, political understandings, or inter3 national agreements to which the United States has 

4 acceded which affect implementation of this section or 

5 section 5(a).’’. 

6 (b) WAIVER.—Section 4(c) of such Act (50 U.S.C. 1701 

7 note) is amended to read as follows: 

8 ‘‘(c) WAIVER.— 

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

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

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

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

13 certifies to the appropriate congressional committees 

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

15 that— 

16 ‘‘(A) such waiver is vital to the national se17 curity interests of the United States; and 

18 ‘‘(B) the country of the national has under19 taken substantial measures to prevent the acqui20 sition and development of weapons of mass de21 struction by the Government of Iran. 

22 ‘‘(2) SUBSEQUENT RENEWAL OF WAIVER.—If the 

23 President determines that, in accordance with para24 graph (1), such a waiver is appropriate, the President 

25 may, at the conclusion of the period of a waiver 


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1 under paragraph (1), renew such waiver for subse2 quent periods of not more than six months each.’’. 

3 (c) INVESTIGATIONS.—Section 4 of such Act (50 U.S.C. 

4 1701 note) is amended by adding at the end the following 

5 new subsection: 

6 ‘‘(f) INVESTIGATIONS.— 

7 ‘‘(1) IN GENERAL.—The President shall initiate 

8 an investigation into the possible imposition of sanc9 tions against a person upon receipt by the United 

10 States of credible information indicating that such 

11 person is engaged in activity related to investment in 

12 Iran as described in section 5(a). 

13 ‘‘(2) DETERMINATION AND NOTIFICATION.— 

14 ‘‘(A) IN GENERAL.—Not later than 180 

15 days after an investigation is initiated in ac16 cordance with paragraph (1), the President shall 

17 determine, pursuant to section 5(a), whether or 

18 not to impose sanctions against a person en19 gaged in activity related to investment in Iran 

20 as described in such section as a result of such 

21 activity and shall notify the appropriate con22 gressional committees of the basis for such deter23 mination. 

24 ‘‘(B) EXTENSION.—If the President is un25 able to make a determination under subparaVerDate Aug 31 2005 02:47 Apr 26, 2006 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H282.RH H282

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1 graph (A), the President shall notify the appro2 priate congressional committees and shall extend 

3 such investigation for a subsequent period, not to 

4 exceed 180 days, after which the President shall 

5 make the determination required under such sub6 paragraph and shall notify the appropriate con7 gressional committees of the basis for such deter8 mination in accordance with such subparagraph. 

9 ‘‘(3) DETERMINATIONS REGARDING PENDING IN10 VESTIGATIONS.—Not later than 90 days after the date 

11 of the enactment of this Act, the President shall, with 

12 respect to any investigation that was pending as of 

13 January 1, 2006, concerning a person engaged in ac14 tivity related to investment in Iran as described in 

15 section 5(a), determine whether or not to impose sanc16 tions against such person as a result of such activity 

17 and shall notify the appropriate congressional com18 mittees of the basis for such determination. 

19 ‘‘(4) PUBLICATION.—Not later than 10 days 

20 after the President notifies the appropriate congres21 sional committees under paragraphs (2) and (3), the 

22 President shall ensure publication in the Federal Reg23 ister of the identification of the persons against which 

24 the President has made a determination that the imVerDate Aug 31 2005 02:47 Apr 26, 2006 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\H282.RH H282

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1 position of sanctions is appropriate, together with an 

2 explanation for such determination.’’. 

3 SEC. 202. IMPOSITION OF SANCTIONS. 

4 (a) SANCTIONS WITH RESPECT TO DEVELOPMENT OF

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

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

7 amended— 

8 (1) in the heading, by striking ‘‘TO IRAN’’ and 

9 inserting ‘‘TO THE DEVELOPMENT OF PETROLEUM

10 RESOURCES OF IRAN’’; 

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

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

13 (b) SANCTIONS WITH RESPECT TO DEVELOPMENT OF

14 WEAPONS OF MASS DESTRUCTION OR OTHER MILITARY

15 CAPABILITIES.—Section 5(b) of such Act (50 U.S.C. 1701 

16 note) is amended to read as follows: 

17 ‘‘(b) MANDATORY SANCTIONS WITH RESPECT TO DE18 VELOPMENT OF WEAPONS OF MASS DESTRUCTION OR

19 OTHER MILITARY CAPABILITIES.—Notwithstanding any 

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

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

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

23 has, on or after the date of the enactment of this Act, ex24 ported, transferred, or otherwise provided to Iran any 

25 goods, services, technology, or other items knowing that the 


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1 provision of such goods, services, technology, or other items 

2 would contribute to the ability of Iran to— 

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

4 nuclear weapons or related technologies; or 

5 ‘‘(2) acquire or develop destabilizing numbers 

6 and types of advanced conventional weapons.’’. 

7 (c) PERSONS AGAINST WHICH THE SANCTIONS ARE

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

9 1701 note) is amended— 

10 (1) in subparagraph (B), by striking ‘‘, with ac11 tual knowledge,’’ and by striking ‘‘or’’ at the end; 

12 (2) in subparagraph (C), by striking ‘‘, with ac13 tual knowledge,’’ and by striking the period at the end 

14 and inserting ‘‘; or’’; and 

15 (3) by adding after subparagraph (C) the fol16 lowing new subparagraph: 

17 ‘‘(D) is a private or government lender, in18 surer, underwriter, or guarantor of the person 

19 referred to in paragraph (1) if that private or 

20 government lender, insurer, underwriter, or 

21 guarantor engaged in the activities referred to in 

22 paragraph (1).’’. 

23 (d) EFFECTIVE DATE.—The amendments made by this 

24 section shall apply with respect to actions taken on or after 

25 March 15, 2006. 


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1 SEC. 203. TERMINATION OF SANCTIONS. 

2 Section 8(a) of the Iran and Libya Sanctions Act of 

3 1996 (50 U.S.C. 1701 note) is amended— 

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

5 the end; 

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

7 the end and inserting ‘‘; and’’; and 

8 (3) by adding at the end the following new para9 graph: 

10 ‘‘(3) poses no significant threat to United States 

11 national security, interests, or allies.’’. 

12 SEC. 204. SUNSET. 

13 Section 13 of the Iran and Libya Sanctions Act of 

14 1996 (50 U.S.C. 1701 note) is amended— 

15 (1) in the section heading, by striking ‘‘; SUN16 SET’’; 

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

18 designation and heading; and 

19 (3) by striking subsection (b). 

20 SEC. 205. CLARIFICATION AND EXPANSION OF DEFINI21 TIONS. 

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

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

24 amended— 

25 (1) by inserting after ‘‘trust,’’ the following: ‘‘fi26 nancial institution, insurer, underwriter, guarantor, 


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1 any other business organization, including any for2 eign subsidiaries of the foregoing,’’; and 

3 (2) by inserting before the semicolon the fol4 lowing: ‘‘, such as an export credit agency’’. 

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

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

7 note) is amended by inserting after ‘‘petroleum’’ the second 

8 place it appears, the following: ‘‘, petroleum by-products,’’. 

9 SEC. 206. UNITED STATES PENSION PLANS. 

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

11 (1) The United States and the international 

12 community face no greater threat to their security 

13 than the prospect of rogue regimes who support inter14 national terrorism obtaining weapons of mass de15 struction, and particularly nuclear weapons. 

16 (2) Iran is the leading state sponsor of inter17 national terrorism and is close to achieving nuclear 

18 weapons capability but has paid no price for nearly 

19 twenty years of deception over its nuclear program. 

20 Foreign entities that have invested in Iran’s energy 

21 sector, despite Iran’s support of international ter22 rorism and its nuclear program, have afforded Iran 

23 a free pass while many United States entities have 

24 unknowingly invested in those same foreign entities. 


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

2 stake in preventing Iran from acquiring nuclear 

3 weapons. 

4 (4) United States investors can have considerable 

5 influence over the commercial decisions of the foreign 

6 entities in which they have invested. 

7 (b) PUBLICATION IN FEDERAL REGISTER.—Not later 

8 than six months after the date of the enactment of this Act 

9 and every six months thereafter, the President shall ensure 

10 publication in the Federal Register of a list of all United 

11 States and foreign entities that have invested more than 

12 $20,000,000 in Iran’s energy sector between August 5, 1996, 

13 and the date of such publication. Such list shall include 

14 an itemization of individual investments of each such enti15 ty, including the dollar value, intended purpose, and cur16 rent status of each such investment. 

17 (c) SENSE OF CONGRESS RELATING TO DIVESTITURE

18 FROM IRAN.—It is the sense of Congress that, upon publica19 tion of a list in the relevant Federal Register under sub20 section (b), managers of United States Government pension 

21 plans or thrift savings plans, managers of pension plans 

22 maintained in the private sector by plan sponsors in the 

23 United States, and managers of mutual funds sold or dis24 tributed in the United States should immediately initiate 


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1 efforts to divest all investments of such plans or funds in 

2 any entity included on the list. 

3 (d) SENSE OF CONGRESS RELATING TO PROHIBITION

4 ON FUTURE INVESTMENT.—It is the sense of Congress that, 

5 upon publication of a list in the relevant Federal Register 

6 under subsection (b), there should be no future investment 

7 in any entity included on the list by managers of United 

8 States Government pension plans or thrift savings plans, 

9 managers of pension plans maintained in the private sector 

10 by plan sponsors in the United States, and managers of 

11 mutual funds sold or distributed in the United States. 

12 (e) DISCLOSURE TO INVESTORS.— 

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

14 the date of publication of a list in the relevant Fed15 eral Register under subsection (b), managers of 

16 United States Government pension plans or thrift 

17 savings plans, managers of pension plans maintained 

18 in the private sector by plan sponsors in the United 

19 States, and managers of mutual funds sold or distrib20 uted in the United States shall notify investors that 

21 the funds of such investors are invested in an entity 

22 included on the list. Such notification shall contain 

23 the following information: 

24 (A) The name or other identification of the 

25 entity. 


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1 (B) The amount of the investment in the en2 tity. 

3 (C) The potential liability to the entity if 

4 sanctions are imposed by the United States on 

5 Iran or on the entity. 

6 (D) The potential liability to investors if 

7 such sanctions are imposed. 

8 (2) FOLLOW-UP NOTIFICATION.— 

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

10 subparagraph (C), in addition to the notification 

11 required under paragraph (1), such managers 

12 shall also include such notification in every pro13 spectus and in every regularly provided quar14 terly, semi-annual, or annual report provided to 

15 investors, if the funds of such investors are in16 vested in an entity included on the list. 

17 (B) CONTENTS OF NOTIFICATION.—The no18 tification described in subparagraph (A) shall be 

19 displayed prominently in any such prospectus or 

20 report and shall contain the information de21 scribed in paragraph (1). 

22 (C) GOOD-FAITH EXCEPTION.—If, upon 

23 publication of a list in the relevant Federal Reg24 ister under subsection (b), such managers 

25 verifiably divest all investments of such plans or 


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1 funds in any entity included on the list and such 

2 managers do not initiate any new investment in 

3 any other such entity, such managers shall not 

4 be required to include the notification described 

5 in subparagraph (A) in any prospectus or report 

6 provided to investors. 

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

8 Not later than 30 days after the date of publication 

9 of a list in the relevant Federal Register under section 

10 206(b), the Office of Global Security Risks within the Divi11 sion of Corporation Finance of the United States Securities 

12 and Exchange Commission shall issue a report containing 

13 a list of the United States and foreign entities identified 

14 in accordance with such section, a determination of whether 

15 or not the operations in Iran of any such entity constitute 

16 a political, economic, or other risk to the United States, 

17 and a determination of whether or not the entity faces 

18 United States litigation, sanctions, or similar cir19 cumstances that are reasonably likely to have a material 

20 adverse impact on the financial condition or operations of 

21 the entity. 

22 SEC. 208. TECHNICAL AND CONFORMING AMENDMENTS. 

23 (a) FINDINGS.—Section 2 of the Iran and Libya Sanc24 tions Act of 1996 (50 U.S.C. 1701 note) is amended by 

25 striking paragraph (4). 


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1 (b) DECLARATION OF POLICY.—Section 3 of the Iran 

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

3 is amended— 

4 (1) in subsection (a), by striking ‘‘(a) POLICY

5 WITH RESPECT TO IRAN.—’’; and 

6 (2) by striking subsection (b). 

7 (c) TERMINATION OF SANCTIONS.—Section 8 of the 

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

9 note) is amended— 

10 (1) in subsection (a), by striking ‘‘(a) IRAN.—’’; 

11 and 

12 (2) by striking subsection (b). 

13 (d) DURATION OF SANCTIONS; PRESIDENTIAL WAIV14 ER.—Section 9(c)(2)(C) of the Iran and Libya Sanctions 

15 Act of 1996 (50 U.S.C. 1701 note) is amended to read as 

16 follows: 

17 ‘‘(C) an estimate of the significance of the 

18 provision of the items described in section 5(a) 

19 or section 5(b) to Iran’s ability to, respectively, 

20 develop its petroleum resources or its weapons of 

21 mass destruction or other military capabilities; 

22 and’’. 

23 (e) REPORTS REQUIRED.—Section 10(b)(1) of the Iran 

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

25 is amended by striking ‘‘and Libya’’ each place it appears. 


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1 (f) DEFINITIONS.—Section 14 of the Iran and Libya 

2 Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended— 

3 (1) in paragraph (9)— 

4 (A) in the matter preceding subparagraph 

5 (A), by— 

6 (i) striking ‘‘, or with the Government 

7 of Libya or a nongovernmental entity in 

8 Libya,’’; and 

9 (ii) by striking ‘‘nongovenmental’’ and 

10 inserting ‘‘nongovernmental’’; and 

11 (B) in subparagraph (A), by striking ‘‘or 

12 Libya (as the case may be)’’; 

13 (2) by striking paragraph (12); and 

14 (3) by redesignating paragraphs (13), (14), (15), 

15 (16), and (17) as paragraphs (12), (13), (14), (15), 

16 and (16), respectively. 

17 (g) SHORT TITLE.— 

18 (1) IN GENERAL.—Section 1 of the Iran and 

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

20 is amended by striking ‘‘and Libya’’. 

21 (2) REFERENCES.—Any reference in any other 

22 provision of law, regulation, document, or other 

23 record of the United States to the ‘‘Iran and Libya 

24 Sanctions Act of 1996’’ shall be deemed to be a ref25 erence to the ‘‘Iran Sanctions Act of 1996’’. 


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1 TITLE III—DIPLOMATIC EF2 FORTS TO CURTAIL IRANIAN 

3 NUCLEAR PROLIFERATION 

4 AND SPONSORSHIP OF INTER5 NATIONAL TERRORISM 

6 SEC. 301. DIPLOMATIC EFFORTS. 

7 (a) SENSE OF CONGRESS RELATING TO UNITED NA8 TIONS SECURITY COUNCIL AND THE INTERNATIONAL ATOM9 IC ENERGY AGENCY.—It is the sense of Congress that the 

10 President should instruct the United States Permanent 

11 Representative to the United Nations to work to secure sup12 port at the United Nations Security Council for a resolution 

13 that would impose sanctions on Iran as a result of its re14 peated breaches of its nuclear nonproliferation obligations, 

15 to remain in effect until Iran has verifiably dismantled its 

16 weapons of mass destruction programs. 

17 (b) PROHIBITION ON ASSISTANCE TO COUNTRIES

18 THAT INVEST IN THE ENERGY SECTOR OF IRAN.— 

19 (1) WITHHOLDING OF ASSISTANCE.—If, on or 

20 after April 13, 2005, a foreign person (as defined in 

21 section 14 of the Iran Sanctions Act of 1996 (50 

22 U.S.C. 1701 note), as renamed pursuant to section 

23 208(g)(1)) or an agency or instrumentality of a for24 eign government has more than $20,000,000 invested 

25 in Iran’s energy sector, the President shall, until the 


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•HR 282 RH 

1 date on which such person or agency or instrumen2 tality of such government terminates such investment, 

3 withhold assistance under the Foreign Assistance Act 

4 of 1961 (22 U.S.C. 2151 et seq.) to the government of 

5 the country to which such person owes allegiance or 

6 to which control is exercised over such agency or in7 strumentality. 

8 (2) WAIVER.—Assistance prohibited by this sec9 tion may be furnished to the government of a foreign 

10 country described in subsection (a) if the President 

11 determines that furnishing such assistance is impor12 tant to the national security interests of the United 

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

14 not later that 15 days before obligating such assist15 ance, notifies the Committee on International Rela16 tions of the House of Representatives, the Committee 

17 on Foreign Relations of the Senate, the Committee on 

18 Appropriations of the House of Representatives, and 

19 the Committee on Appropriations of the Senate of 

20 such determination and submits to such committees a 

21 report that includes— 

22 (A) a statement of the determination; 

23 (B) a detailed explanation of the assistance 

24 to be provided; 


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1 (C) the estimated dollar amount of the as2 sistance; and 

3 (D) an explanation of how the assistance 

4 furthers United States national security inter5 ests. 

6 SEC. 302. STRENGTHENING THE NUCLEAR NONPROLIFERA7 TION TREATY. 

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

9 (1) Article IV of the Treaty on the Non-Prolifera10 tion of Nuclear Weapons (commonly referred to as the 

11 ‘‘Nuclear Nonproliferation Treaty’’ or ‘‘NPT’’) states 

12 that countries that are parties to the Treaty have the 

13 ‘‘inalienable right . . . to develop research, production 

14 and use of nuclear energy for peaceful purposes with15 out discrimination and in conformity with articles I 

16 and II of this Treaty.’’. 

17 (2) Iran has manipulated Article IV of the Nu18 clear Nonproliferation Treaty to acquire technologies 

19 needed to manufacture nuclear weapons under the 

20 guise of developing peaceful nuclear technology. 

21 (3) Legal authorities, diplomatic historians, and 

22 officials closely involved in the negotiation and ratifi23 cation of the Nuclear Nonproliferation Treaty state 

24 that the Treaty neither recognizes nor protects such a 

25 per se right to all nuclear technology, such as enrichVerDate Aug 31 2005 02:47 Apr 26, 2006 Jkt 049200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6203 E:\BILLS\H282.RH H282

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1 ment and reprocessing, but rather affirms that the 

2 right to the use of peaceful nuclear energy is quali3 fied. 

4 (b) DECLARATION OF CONGRESS REGARDING UNITED

5 STATES POLICY TO STRENGTHEN THE NUCLEAR NON6 PROLIFERATION TREATY.—Congress declares that it should 

7 be the policy of the United States to support diplomatic 

8 efforts to end the manipulation of Article IV of the Nuclear 

9 Nonproliferation Treaty, as undertaken by Iran, without 

10 undermining the Treaty itself. 

11 TITLE IV—DEMOCRACY IN IRAN 

12 SEC. 401. DECLARATION OF CONGRESS REGARDING UNITED 

13 STATES POLICY TOWARD IRAN. 

14 (a) IN GENERAL.—Congress declares that it should be 

15 the policy of the United States to support independent 

16 human rights and peaceful pro-democracy forces in Iran. 

17 (b) RULE OF CONSTRUCTION.—Nothing in this Act 

18 shall be construed as authorizing the use of force against 

19 Iran. 

20 SEC. 402. ASSISTANCE TO SUPPORT DEMOCRACY IN IRAN. 

21 (a) AUTHORIZATION.— 

22 (1) IN GENERAL.—The President is authorized to 

23 provide financial and political assistance (including 

24 the award of grants) to foreign and domestic individ25 uals, organizations, and entities that support democVerDate Aug 31 2005 02:47 Apr 26, 2006 Jkt 049200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6203 E:\BILLS\H282.RH H282

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1 racy and the promotion of democracy in Iran. Such 

2 assistance may include the award of grants to eligible 

3 independent pro-democracy radio and television 

4 broadcasting organizations that broadcast into Iran. 

5 (2) LIMITATION ON ASSISTANCE.—In accordance 

6 with the rule of construction described in subsection 

7 (b) of section 401, none of the funds authorized under 

8 this section shall be used to support the use of force 

9 against Iran. 

10 (b) ELIGIBILITY FOR ASSISTANCE.—Financial and po11 litical assistance under this section may be provided only 

12 to an individual, organization, or entity that— 

13 (1) officially opposes the use of violence and ter14 rorism and has not been designated as a foreign ter15 rorist organization under section 219 of the Immigra16 tion and Nationality Act (8 U.S.C. 1189) at any time 

17 during the preceding four years; 

18 (2) advocates the adherence by Iran to non19 proliferation regimes for nuclear, chemical, and bio20 logical weapons and materiel; 

21 (3) is dedicated to democratic values and sup22 ports the adoption of a democratic form of govern23 ment in Iran; 

24 (4) is dedicated to respect for human rights, in25 cluding the fundamental equality of women; 


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1 (5) works to establish equality of opportunity for 

2 people; and 

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

4 speech, freedom of association, and freedom of reli5 gion. 

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

7 under this section using— 

8 (1) funds available to the Middle East Partner9 ship Initiative (MEPI), the Broader Middle East and 

10 North Africa Initiative, and the Human Rights and 

11 Democracy Fund; and 

12 (2) amounts made available pursuant to the au13 thorization of appropriations under subsection (g). 

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

15 obligation of assistance under this section, and in accord16 ance with the procedures under section 634A of the Foreign 

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

18 shall notify the Committee on International Relations and 

19 the Committee on Appropriations of the House of Rep20 resentatives and the Committee on Foreign Relations and 

21 the Committee on Appropriations of the Senate. Such noti22 fication shall include, as practicable, the types of programs 

23 supported by such assistance and the recipients of such as24 sistance. 


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1 (e) SENSE OF CONGRESS REGARDING DIPLOMATIC AS2 SISTANCE.—It is the sense of Congress that— 

3 (1) contacts should be expanded with opposition 

4 groups in Iran that meet the criteria under subsection 

5 (b); 

6 (2) support for a transition to democracy in 

7 Iran should be expressed by United States representa8 tives and officials in all appropriate international 

9 fora; 

10 (3) efforts to bring a halt to the nuclear weapons 

11 program of Iran, including steps to end the supply of 

12 nuclear components or fuel to Iran, should be intensi13 fied, with particular attention focused on the coopera14 tion regarding such program— 

15 (A) between the Government of Iran and the 

16 Government of the Russian Federation; and 

17 (B) between the Government of Iran and in18 dividuals from China and Pakistan, including 

19 the network of Dr. Abdul Qadeer (A. Q.) Khan; 

20 and 

21 (4) officials and representatives of the United 

22 States should— 

23 (A) strongly and unequivocally support in24 digenous efforts in Iran calling for free, trans25 parent, and democratic elections; and 


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1 (B) draw international attention to viola2 tions by the Government of Iran of human 

3 rights, freedom of religion, freedom of assembly, 

4 and freedom of the press. 

5 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

6 authorized to be appropriated to the Department of State 

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

8 SEC. 403. WAIVER OF CERTAIN EXPORT LICENSE REQUIRE9 MENTS. 

10 The Secretary of State may, in consultation with the 

11 Secretary of Commerce, waive the requirement to obtain a 

12 license for the export to, or by, any person to whom the 

13 Department of State has provided a grant under a program 

14 to promote democracy or human rights abroad, any item 

15 which is commercially available in the United States with16 out government license or permit, to the extent that such 

17 export would be used exclusively for carrying out the pur18 poses of the grant. 


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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 

tion to democracy in Iran. its threatening behavior and to support a transiAPRIL 25, 2006 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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