Calendar No. 450

104TH CONGRESS

2D SESSION H. R. 3107

AN ACT

To impose sanctions on persons making certain insources, and for other purposes. hance Libya’s ability to develop its petroleum re- Libya’s weapons or aviation capabilities or en- persons exporting certain items that enhance Libya to develop its petroleum resources, and on to the enhancement of the ability of Iran or vestments directly and significantly contributing

JUNE 20, 1996

Received; read twice and placed on the calendar
II

Calendar No. 450

104TH CONGRESS

2D SESSION H. R. 3107

IN THE SENATE OF THE UNITED STATES

JUNE 20, 1996

Received; read twice and placed on the calendar

AN ACT

To impose sanctions on persons making certain investments

directly and significantly contributing to the enhancement of the ability of Iran or Libya to develop its petroleum resources, and on persons exporting certain items

that enhance Libya’s weapons or aviation capabilities

or enhance Libya’s ability to develop its petroleum resources, and for other purposes.
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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 and Libya Sanc5 tions Act of 1996’’.

6 SEC. 2. FINDINGS.

7 The Congress makes the following findings:

8 (1) The efforts of the Government of Iran to

9 acquire weapons of mass destruction and the means

10 to deliver them and its support of acts of inter11 national terrorism endanger the national security

12 and foreign policy interests of the United States and

13 those countries with which the United States shares

14 common strategic and foreign policy objectives.

15 (2) The objective of preventing the proliferation

16 of weapons of mass destruction and acts of inter17 national terrorism through existing multilateral and

18 bilateral initiatives requires additional efforts to

19 deny Iran the financial means to sustain its nuclear,

20 chemical, biological, and missile weapons programs.

21 (3) The Government of Iran uses its diplomatic

22 facilities and quasi-governmental institutions outside

23 of Iran to promote acts of international terrorism

24 and assist its nuclear, chemical, biological, and mis25 sile weapons programs.
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1 (4) The failure of the Government of Libya to

2 comply with Resolutions 731, 748, and 883 of the

3 Security Council of the United Nations, its support

4 of international terrorism, and its efforts to acquire

5 weapons of mass destruction constitute a threat to

6 international peace and security that endangers the

7 national security and foreign policy interests of the

8 United States and those countries with which it

9 shares common strategic and foreign policy objec10 tives.

11 SEC. 3. DECLARATION OF POLICY.

12 (a) POLICY WITH RESPECT TO IRAN.—The Congress

13 declares that it is the policy of the United States to deny

14 Iran the ability to support acts of international terrorism

15 and to fund the development and acquisition of weapons

16 of mass destruction and the means to deliver them by lim17 iting the development of Iran’s ability to explore for, ex18 tract, refine, or transport by pipeline petroleum resources

19 of Iran.

20 (b) POLICY WITH RESPECT TO LIBYA.—The Con21 gress further declares that it is the policy of the United

22 States to seek full compliance by Libya with its obligations

23 under Resolutions 731, 748, and 883 of the Security

24 Council of the United Nations, including ending all sup-
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1 port for acts of international terrorism and efforts to de2 velop or acquire weapons of mass destruction.

3 SEC. 4. MULTILATERAL REGIME.

4 (a) MULTILATERAL NEGOTIATIONS.—In order to

5 further the objectives of section 3, the Congress urges the

6 President to commence immediately diplomatic efforts,

7 both in appropriate international fora such as the United

8 Nations, and bilaterally with allies of the United States,

9 to establish a multilateral sanctions regime against Iran,

10 including provisions limiting the development of petroleum

11 resources, that will inhibit Iran’s efforts to carry out ac12 tivities described in section 2.

13 (b) REPORTS TO CONGRESS.—The President shall re14 port to the appropriate congressional committees, not later

15 than 1 year after the date of the enactment of this Act,

16 and periodically thereafter, on the extent that diplomatic

17 efforts described in subsection (a) have been successful.

18 Each report shall include—

19 (1) the countries that have agreed to undertake

20 measures to further the objectives of section 3 with

21 respect to Iran, and a description of those measures;

22 and

23 (2) the countries that have not agreed to meas24 ures described in paragraph (1), and, with respect to

25 those countries, other measures (in addition to that
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1 provided in subsection (d)) the President rec2 ommends that the United States take to further the

3 objectives of section 3 with respect to Iran.

4 (c) WAIVER.—The President may waive the applica5 tion of section 5(a) with respect to nationals of a country

6 if—

7 (1) that country has agreed to undertake sub8 stantial measures, including economic sanctions,

9 that will inhibit Iran’s efforts to carry out activities

10 described in section 2 and information required by

11 subsection (b)(1) has been included in a report sub12 mitted under subsection (b); and

13 (2) the President, at least 30 days before the

14 waiver takes effect, notifies the appropriate congres15 sional committees of his intention to exercise the

16 waiver.

17 (d) ENHANCED SANCTION.—

18 (1) SANCTION.—With respect to nationals of

19 countries except those with respect to which the

20 President has exercised the waiver authority of sub21 section (c), at any time after the first report is re22 quired to be submitted under subsection (b), section

23 5(a) shall be applied by substituting ‘‘$20,000,000’’

24 for ‘‘$40,000,000’’ each place it appears, and by

25 substituting ‘‘$5,000,000’’ for ‘‘$10,000,000’’.
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1 (2) REPORT TO CONGRESS.—The President

2 shall report to the appropriate congressional commit3 tees any country with respect to which paragraph

4 (1) applies.

5 (e) INTERIM REPORT ON MULTILATERAL SANC6 TIONS; MONITORING.—The President, not later than 90

7 days after the date of the enactment of this Act, shall re8 port to the appropriate congressional committees on—

9 (1) whether the member states of the European

10 Union, the Republic of Korea, Australia, Israel, or

11 Japan have legislative or administrative standards

12 providing for the imposition of trade sanctions on

13 persons or their affiliates doing business or having

14 investments in Iran or Libya;

15 (2) the extent and duration of each instance of

16 the application of such sanctions; and

17 (3) the disposition of any decision with respect

18 to such sanctions by the World Trade Organization

19 or its predecessor organization.

20 SEC. 5. IMPOSITION OF SANCTIONS.

21 (a) SANCTIONS WITH RESPECT TO IRAN.—Except as

22 provided in subsection (f), the President shall impose 2

23 or more of the sanctions described in paragraphs (1)

24 through (6) of section 6 if the President determines that

25 a person has, with actual knowledge, on or after the date
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1 of the enactment of this Act, made an investment of

2 $40,000,000 or more (or any combination of investments

3 of at least $10,000,000 each, which in the aggregate

4 equals or exceeds $40,000,000 in any 12-month period),

5 that directly and significantly contributed to the enhance6 ment of Iran’s ability to develop petroleum resources of

7 Iran.

8 (b) SANCTIONS WITH RESPECT TO LIBYA.—

9 (1) TRIGGER OF MANDATORY SANCTIONS.—Ex10 cept as provided in subsection (f), the President

11 shall impose 2 or more of the sanctions described in

12 paragraphs (1) through (6) of section 6 if the Presi13 dent determines that a person has, with actual

14 knowledge, on or after the date of the enactment of

15 this Act, exported, transferred, or otherwise provided

16 to Libya any goods, services, technology, or other

17 items the provision of which is prohibited under

18 paragraph 4(b) or 5 of Resolution 748 of the Secu19 rity Council of the United Nations, adopted March

20 31, 1992, or under paragraph 5 or 6 of Resolution

21 883 of the Security Council of the United Nations,

22 adopted November 11, 1993, if the provision of such

23 items significantly and materially—

24 (A) contributed to Libya’s ability to ac25 quire chemical, biological, or nuclear weapons
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1 or destabilizing numbers and types of advanced

2 conventional weapons or enhanced Libya’s mili3 tary or paramilitary capabilities;

4 (B) contributed to Libya’s ability to de5 velop its petroleum resources; or

6 (C) contributed to Libya’s ability to main7 tain its aviation capabilities.

8 (2) TRIGGER OF DISCRETIONARY SANCTIONS.—

9 Except as provided in subsection (f), the President

10 may impose 1 or more of the sanctions described in

11 paragraphs (1) through (6) of section 6 if the Presi12 dent determines that a person has, with actual

13 knowledge, on or after the date of the enactment of

14 this Act, made an investment of $40,000,000 or

15 more (or any combination of investments of at least

16 $10,000,000 each, which in the aggregate equals or

17 exceeds $40,000,000 in any 12-month period), that

18 directly and significantly contributed to the enhance19 ment of Libya’s ability to develop its petroleum re20 sources.

21 (c) PERSONS AGAINST WHICH THE SANCTIONS ARE

22 TO BE IMPOSED.—The sanctions described in subsections

23 (a) and (b) shall be imposed on—
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1 (1) any person the President determines has

2 carried out the activities described in subsection (a)

3 or (b); and

4 (2) any person the President determines—

5 (A) is a successor entity to the person re6 ferred to in paragraph (1);

7 (B) is a parent or subsidiary of the person

8 referred to in paragraph (1) if that parent or

9 subsidiary, with actual knowledge, engaged in

10 the activities referred to in paragraph (1); or

11 (C) is an affiliate of the person referred to

12 in paragraph (1) if that affiliate, with actual

13 knowledge, engaged in the activities referred to

14 in paragraph (1) and if that affiliate is con15 trolled in fact by the person referred to in para16 graph (1).

17 For purposes of this Act, any person or entity described

18 in this subsection shall be referred to as a ‘‘sanctioned

19 person’’.

20 (d) PUBLICATION IN FEDERAL REGISTER.—The

21 President shall cause to be published in the Federal Reg22 ister a current list of persons and entities on whom sanc23 tions have been imposed under this Act. The removal of

24 persons or entities from, and the addition of persons and

25 entities to, the list, shall also be so published.
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1 (e) PUBLICATION OF PROJECTS.—The President

2 shall cause to be published in the Federal Register a list

3 of all significant projects which have been publicly ten4 dered in the oil and gas sector in Iran.

5 (f) EXCEPTIONS.—The President shall not be re6 quired to apply or maintain the sanctions under subsection

7 (a) or (b)—

8 (1) in the case of procurement of defense arti9 cles or defense services—

10 (A) under existing contracts or sub11 contracts, including the exercise of options for

12 production quantities to satisfy requirements

13 essential to the national security of the United

14 States;

15 (B) if the President determines in writing

16 that the person to which the sanctions would

17 otherwise be applied is a sole source supplier of

18 the defense articles or services, that the defense

19 articles or services are essential, and that alter20 native sources are not readily or reasonably

21 available; or

22 (C) if the President determines in writing

23 that such articles or services are essential to the

24 national security under defense coproduction

25 agreements;
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1 (2) in the case of procurement, to eligible prod2 ucts, as defined in section 308(4) of the Trade

3 Agreements Act of 1979 (19 U.S.C. 2518(4)), of

4 any foreign country or instrumentality designated

5 under section 301(b)(1) of that Act (19 U.S.C.

6 2511(b)(1));

7 (3) to products, technology, or services provided

8 under contracts entered into before the date on

9 which the President publishes in the Federal Reg10 ister the name of the person on whom the sanctions

11 are to be imposed;

12 (4) to—

13 (A) spare parts which are essential to

14 United States products or production;

15 (B) component parts, but not finished

16 products, essential to United States products or

17 production; or

18 (C) routine servicing and maintenance of

19 products, to the extent that alternative sources

20 are not readily or reasonably available;

21 (6) to information and technology essential to

22 United States products or production; or

23 (7) to medicines, medical supplies, or other hu24 manitarian items.
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1 SEC. 6. DESCRIPTION OF SANCTIONS.

2 The sanctions to be imposed on a sanctioned person

3 under section 5 are as follows:

4 (1) EXPORT-IMPORT BANK ASSISTANCE FOR

5 EXPORTS TO SANCTIONED PERSONS.—The President

6 may direct the Export-Import Bank of the United

7 States not to give approval to the issuance of any

8 guarantee, insurance, extension of credit, or partici9 pation in the extension of credit in connection with

10 the export of any goods or services to any sanctioned

11 person.

12 (2) EXPORT SANCTION.—The President may

13 order the United States Government not to issue

14 any specific license and not to grant any other spe15 cific permission or authority to export any goods or

16 technology to a sanctioned person under—

17 (i) the Export Administration Act of 1979;

18 (ii) the Arms Export Control Act;

19 (iii) the Atomic Energy Act of 1954; or

20 (iv) any other statute that requires the

21 prior review and approval of the United States

22 Government as a condition for the export or re23 export of goods or services.

24 (3) LOANS FROM UNITED STATES FINANCIAL

25 INSTITUTIONS.—The United States Government

26 may prohibit any United States financial institution
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1 from making loans or providing credits to any sanc2 tioned person totaling more than $10,000,000 in

3 any 12-month period unless such person is engaged

4 in activities to relieve human suffering and the loans

5 or credits are provided for such activities.

6 (4) PROHIBITIONS ON FINANCIAL INSTITU7 TIONS.—The following prohibitions may be imposed

8 against a sanctioned person that is a financial insti9 tution:

10 (A) PROHIBITION ON DESIGNATION AS

11 PRIMARY DEALER.—Neither the Board of Gov12 ernors of the Federal Reserve System nor the

13 Federal Reserve Bank of New York may des14 ignate, or permit the continuation of any prior

15 designation of, such financial institution as a

16 primary dealer in United States Government

17 debt instruments.

18 (B) PROHIBITION ON SERVICE AS A RE19 POSITORY OF GOVERNMENT FUNDS.—Such fi20 nancial institution may not serve as agent of

21 the United States Government or serve as re22 pository for United States Government funds.

23 The imposition of either sanction under subpara24 graph (A) or (B) shall be treated as 1 sanction for

25 purposes of section 5, and the imposition of both
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1 such sanctions shall be treated as 2 sanctions for

2 purposes of section 5.

3 (5) PROCUREMENT SANCTION.—The United

4 States Government may not procure, or enter into

5 any contract for the procurement of, any goods or

6 services from a sanctioned person.

7 (6) ADDITIONAL SANCTIONS.—The President

8 may impose sanctions, as appropriate, to restrict im9 ports with respect to a sanctioned person, in accord10 ance with the International Emergency Economic

11 Powers Act (50 U.S.C. 1701 and following).

12 SEC. 7. ADVISORY OPINIONS.

13 The Secretary of State may, upon the request of any

14 person, issue an advisory opinion to that person as to

15 whether a proposed activity by that person would subject

16 that person to sanctions under this Act. Any person who

17 relies in good faith on such an advisory opinion which

18 states that the proposed activity would not subject a per19 son to such sanctions, and any person who thereafter en20 gages in such activity, will not be made subject to such

21 sanctions on account of such activity.

22 SEC. 8. TERMINATION OF SANCTIONS.

23 (a) IRAN.—The requirement under section 5(a) to

24 impose sanctions shall no longer have force or effect with
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1 respect to Iran if the President determines and certifies

2 to the appropriate congressional committees that Iran—

3 (1) has ceased its efforts to design, develop,

4 manufacture, or acquire—

5 (A) a nuclear explosive device or related

6 materials and technology;

7 (B) chemical and biological weapons; and

8 (C) ballistic missiles and ballistic missile

9 launch technology; and

10 (2) has been removed from the list of countries

11 the governments of which have been determined, for

12 purposes of section 6(j) of the Export Administra13 tion Act of 1979, to have repeatedly provided sup14 port for acts of international terrorism.

15 (b) LIBYA.—The requirement under section 5(b) to

16 impose sanctions shall no longer have force or effect with

17 respect to Libya if the President determines and certifies

18 to the appropriate congressional committees that Libya

19 has fulfilled the requirements of United Nations Security

20 Council Resolution 731, adopted January 21, 1992, Unit21 ed Nations Security Council Resolution 748, adopted

22 March 31, 1992, and United Nations Security Council

23 Resolution 883, adopted November 11, 1993.

24 SEC. 9. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.

25 (a) DELAY OF SANCTIONS.—
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1 (1) CONSULTATIONS.—If the President makes a

2 determination described in section 5(a) or 5(b) with

3 respect to a foreign person, the Congress urges the

4 President to initiate consultations immediately with

5 the government with primary jurisdiction over that

6 foreign person with respect to the imposition of

7 sanctions under this Act.

8 (2) ACTIONS BY GOVERNMENT OF JURISDIC9 TION.—In order to pursue consultations under para10 graph (1) with the government concerned, the Presi11 dent may delay imposition of sanctions under this

12 Act for up to 90 days. Following such consultations,

13 the President shall immediately impose sanctions un14 less the President determines and certifies to the

15 Congress that the government has taken specific and

16 effective actions, including, as appropriate, the impo17 sition of appropriate penalties, to terminate the in18 volvement of the foreign person in the activities that

19 resulted in the determination by the President under

20 section 5(a) or 5(b) concerning such person.

21 (3) ADDITIONAL DELAY IN IMPOSITION OF

22 SANCTIONS.—The President may delay the imposi23 tion of sanctions for up to an additional 90 days if

24 the President determines and certifies to the Con25 gress that the government with primary jurisdiction
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1 over the person concerned is in the process of taking

2 the actions described in paragraph (2).

3 (4) REPORT TO CONGRESS.—Not later than 90

4 days after making a determination under section

5 5(a) or 5(b), the President shall submit to the ap6 propriate congressional committees a report on the

7 status of consultations with the appropriate foreign

8 government under this subsection, and the basis for

9 any determination under paragraph (3).

10 (b) DURATION OF SANCTIONS.—A sanction imposed

11 under section 5 shall remain in effect—

12 (1) for a period of not less than 2 years from

13 the date on which it is imposed; or

14 (2) until such time as the President determines

15 and certifies to the Congress that the person whose

16 activities were the basis for imposing the sanction is

17 no longer engaging in such activities and that the

18 President has received reliable assurances that such

19 person will not knowingly engage in such activities

20 in the future, except that such sanction shall remain

21 in effect for a period of at least 1 year.

22 (c) PRESIDENTIAL WAIVER.—

23 (1) AUTHORITY.—The President may waive the

24 requirement in section 5 to impose a sanction or

25 sanctions on a person described in section 5(c), and
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1 may waive the continued imposition of a sanction or

2 sanctions under subsection (b) of this section, 30

3 days or more after the President determines and so

4 reports to the appropriate congressional committees

5 that it is important to the national interest of the

6 United States to exercise such waiver authority.

7 (2) CONTENTS OF REPORT.—Any report under

8 paragraph (1) shall provide a specific and detailed

9 rationale for the determination under paragraph (1),

10 including—

11 (A) a description of the conduct that re12 sulted in the determination under section 5(a)

13 or (b), as the case may be;

14 (B) in the case of a foreign person, an ex15 planation of the efforts to secure the coopera16 tion of the government with primary jurisdic17 tion over the sanctioned person to terminate or,

18 as appropriate, penalize the activities that re19 sulted in the determination under section 5(a)

20 or (b), as the case may be;

21 (C) an estimate as to the significance—

22 (i) of the provision of the items de23 scribed in section 5(a) to Iran’s ability to

24 develop its petroleum resources, or
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1 (ii) of the provision of the items de2 scribed in section 5(b)(1) to the abilities of

3 Libya described in subparagraph (A), (B),

4 or (C) of section 5(b)(1), or of the invest5 ment described in section 5(b)(2) on

6 Libya’s ability to develop its petroleum re7 sources,

8 as the case may be; and

9 (D) a statement as to the response of the

10 United States in the event that the person con11 cerned engages in other activities that would be

12 subject to section 5(a) or (b).

13 (3) EFFECT OF REPORT ON WAIVER.—If the

14 President makes a report under paragraph (1) with

15 respect to a waiver of sanctions on a person de16 scribed in section 5(c), sanctions need not be im17 posed under section 5(a) or (b) on that person dur18 ing the 30-day period referred to in paragraph (1).

19 SEC. 10. REPORTS REQUIRED.

20 (a) REPORT ON CERTAIN INTERNATIONAL INITIA21 TIVES.—Not later than 6 months after the date of the en22 actment of this Act, and every 6 months thereafter, the

23 President shall transmit a report to the appropriate con24 gressional committees describing—
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1 (1) the efforts of the President to mount a mul2 tilateral campaign to persuade all countries to pres3 sure Iran to cease its nuclear, chemical, biological,

4 and missile weapons programs and its support of

5 acts of international terrorism;

6 (2) the efforts of the President to persuade

7 other governments to ask Iran to reduce the pres8 ence of Iranian diplomats and representatives of

9 other government and military or quasi-govern10 mental institutions of Iran and to withdraw any

11 such diplomats or representatives who participated

12 in the takeover of the United States embassy in

13 Tehran on November 4, 1979, or the subsequent

14 holding of United States hostages for 444 days;

15 (3) the extent to which the International Atom16 ic Energy Agency has established regular inspections

17 of all nuclear facilities in Iran, including those pres18 ently under construction; and

19 (4) Iran’s use of Iranian diplomats and rep20 resentatives of other government and military or

21 quasi-governmental institutions of Iran to promote

22 acts of international terrorism or to develop or sus23 tain Iran’s nuclear, chemical, biological, and missile

24 weapons programs.
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1 (b) OTHER REPORTS.—The President shall ensure

2 the continued transmittal to the Congress of reports de3 scribing—

4 (1) the nuclear and other military capabilities

5 of Iran, as required by section 601(a) of the Nuclear

6 Non-Proliferation Act of 1978 and section 1607 of

7 the National Defense Authorization Act for Fiscal

8 Year 1993; and

9 (2) the support provided by Iran for acts of

10 international terrorism, as part of the Department

11 of State’s annual report on international terrorism.

12 SEC. 11. DETERMINATIONS NOT REVIEWABLE.

13 A determination to impose sanctions under this Act

14 shall not be reviewable in any court.

15 SEC. 12. EXCLUSION OF CERTAIN ACTIVITIES.

16 Nothing in this Act shall apply to any activities sub17 ject to the reporting requirements of title V of the Na18 tional Security Act of 1947.

19 SEC. 13. EFFECTIVE DATE; SUNSET.

20 (a) EFFECTIVE DATE.—This Act shall take effect on

21 the date of the enactment of this Act.

22 (b) SUNSET.—This Act shall cease to be effective on

23 the date that is 5 years after the date of the enactment

24 of this Act.
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1 SEC. 14. DEFINITIONS.

2 As used in this Act:

3 (1) ACT OF INTERNATIONAL TERRORISM.—The

4 term ‘‘act of international terrorism’’ means an

5 act—

6 (A) which is violent or dangerous to

7 human life and that is a violation of the crimi8 nal laws of the United States or of any State

9 or that would be a criminal violation if commit10 ted within the jurisdiction of the United States

11 or any State; and

12 (B) which appears to be intended—

13 (i) to intimidate or coerce a civilian

14 population;

15 (ii) to influence the policy of a govern16 ment by intimidation or coercion; or

17 (iii) to affect the conduct of a govern18 ment by assassination or kidnapping.

19 (2) APPROPRIATE CONGRESSIONAL COMMIT20 TEES.—The term ‘‘appropriate congressional com21 mittees’’ means the Committee on Finance, the

22 Committee on Banking, Housing, and Urban Af23 fairs, and the Committee on Foreign Relations of

24 the Senate and the Committee on Ways and Means,

25 the Committee on Banking and Financial Services,
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1 and the Committee on International Relations of the

2 House of Representatives.

3 (3) COMPONENT PART.—The term ‘‘component

4 part’’ has the meaning given that term in section

5 11A(e)(1) of the Export Administration Act of 1979

6 (50 U.S.C. App. 2410a(e)(1)).

7 (4) DEVELOP AND DEVELOPMENT.—To ‘‘de8 velop’’, or the ‘‘development’’ of, petroleum resources

9 means the exploration for, or the extraction, refin10 ing, or transportation by pipeline of, petroleum re11 sources.

12 (5) FINANCIAL INSTITUTION.—The term ‘‘fi13 nancial institution’’ includes—

14 (A) a depository institution (as defined in

15 section 3(c)(1) of the Federal Deposit Insur16 ance Act), including a branch or agency of a

17 foreign bank (as defined in section 1(b)(7) of

18 the International Banking Act of 1978);

19 (B) a credit union;

20 (C) a securities firm, including a broker or

21 dealer;

22 (D) an insurance company, including an

23 agency or underwriter; and

24 (E) any other company that provides fi25 nancial services.
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1 (6) FINISHED PRODUCT.—The term ‘‘finished

2 product’’ has the meaning given that term in section

3 11A(e)(2) of the Export Administration Act of 1979

4 (50 U.S.C. App. 2410a(e)(2)).

5 (7) FOREIGN PERSON.—The term ‘‘foreign per6 son’’ means—

7 (A) an individual who is not a United

8 States person or an alien lawfully admitted for

9 permanent residence into the United States; or

10 (B) a corporation, partnership, or other

11 nongovernmental entity which is not a United

12 States person.

13 (8) GOODS AND TECHNOLOGY.—The terms

14 ‘‘goods’’ and ‘‘technology’’ have the meanings given

15 those terms in section 16 of the Export Administra16 tion Act of 1979 (50 U.S.C. App. 2415).

17 (9) INVESTMENT.—The term ‘‘investment’’

18 means any of the following activities if such activity

19 is undertaken pursuant to an agreement, or pursu20 ant to the exercise of rights under such an agree21 ment, that is entered into with the Government of

22 Iran or a nongovenmental entity in Iran, or with the

23 Government of Libya or a nongovernmental entity in

24 Libya, on or after the date of the enactment of this

25 Act:
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1 (A) The entry into a contract that includes

2 responsibility for the development of petroleum

3 resources located in Iran or Libya (as the case

4 may be), or the entry into a contract providing

5 for the general supervision and guarantee of an6 other person’s performance of such a contract.

7 (B) The purchase of a share of ownership,

8 including an equity interest, in that develop9 ment.

10 (C) The entry into a contract providing for

11 the participation in royalties, earnings, or prof12 its in that development, without regard to the

13 form of the participation.

14 The term ‘‘investment’’ does not include the entry

15 into, performance, or financing of a contract to sell

16 or purchase goods, services, or technology.

17 (10) IRAN.—The term ‘‘Iran’’ includes any

18 agency or instrumentality of Iran.

19 (11) IRANIAN DIPLOMATS AND REPRESENTA20 TIVES OF OTHER GOVERNMENT AND MILITARY OR

21 QUASI-GOVERNMENTAL INSTITUTIONS OF IRAN.—

22 The term ‘‘Iranian diplomats and representatives of

23 other government and military or quasi-govern24 mental institutions of Iran’’ includes employees, rep25 resentatives, or affiliates of Iran’s—
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1 (A) Foreign Ministry;

2 (B) Ministry of Intelligence and Security;

3 (C) Revolutionary Guard Corps;

4 (D) Crusade for Reconstruction;

5 (E) Qods (Jerusalem) Forces;

6 (F) Interior Ministry;

7 (G) Foundation for the Oppressed and

8 Disabled;

9 (H) Prophet’s Foundation;

10 (I) June 5th Foundation;

11 (J) Martyr’s Foundation;

12 (K) Islamic Propagation Organization; and

13 (L) Ministry of Islamic Guidance.

14 (12) LIBYA.—The term ‘‘Libya’’ includes any

15 agency or instrumentality of Libya.

16 (13) NUCLEAR EXPLOSIVE DEVICE.—The term

17 ‘‘nuclear explosive device’’ means any device, wheth18 er assembled or disassembled, that is designed to

19 produce an instantaneous release of an amount of

20 nuclear energy from special nuclear material (as de21 fined in section 11aa. of the Atomic Energy Act of

22 1954) that is greater than the amount of energy

23 that would be released from the detonation of one

24 pound of trinitrotoluene (TNT).

25 (14) PERSON.—The term ‘‘person’’ means—
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1 (A) a natural person;

2 (B) a corporation, business association,

3 partnership, society, trust, any other non4 governmental entity, organization, or group,

5 and any governmental entity operating as a

6 business enterprise; and

7 (C) any successor to any entity described

8 in subparagraph (B).

9 (15) PETROLEUM RESOURCES.—The term ‘‘pe10 troleum resources’’ includes petroleum and natural

11 gas resources.

12 (16) UNITED STATES OR STATE.—The term

13 ‘‘United States’’ or ‘‘State’’ means the several

14 States, the District of Columbia, the Commonwealth

15 of Puerto Rico, the Commonwealth of the Northern

16 Mariana Islands, American Samoa, Guam, the Unit17 ed States Virgin Islands, and any other territory or

18 possession of the United States.

19 (17) UNITED STATES PERSON.—The term

20 ‘‘United States person’’ means—

21 (A) a natural person who is a citizen of the

22 United States or who owes permanent alle23 giance to the United States; and

24 (B) a corporation or other legal entity

25 which is organized under the laws of the United
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1 States, any State or territory thereof, or the

2 District of Columbia, if natural persons de3 scribed in subparagraph (A) own, directly or in4 directly, more than 50 percent of the outstand5 ing capital stock or other beneficial interest in

6 such legal entity.

Passed the House of Representatives June 19, 1996.

Attest: ROBIN H. CARLE,

Clerk.