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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3107 Reported in House (RH)]

                                                 Union Calendar No. 308

104th CONGRESS

  2d Session

                               H. R. 3107

                  [Report No. 104-523, Parts I and II]

_______________________________________________________________________

                                 A BILL

 To impose sanctions on persons exporting certain goods or technology 
 that would enhance Iran's ability to explore for, extract, refine, or 
   transport by pipeline petroleum resources, and for other purposes.

_______________________________________________________________________

                             June 14, 1996

    Reported from the Committee on Ways and Means with amendments, 
   committed to the Committee of the Whole House on the State of the 
                    Union, and ordered to be printed

                                                 Union Calendar No. 308
104th CONGRESS
  2d Session
                                H. R. 3107

                  [Report No. 104-523, Parts I and II]

 To impose sanctions on persons exporting certain goods or technology 
 that would enhance Iran's ability to explore for, extract, refine, or 
   transport by pipeline petroleum resources, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 1996

   Mr. Gilman (for himself, Mr. Berman, Mr. Gejdenson, Mr. Burton of 
 Indiana, Mr. King, Mr. Shaw, and Mr. Forbes) introduced the following 
 bill; which was referred to the Committee on International Relations, 
 and in addition to the Committees on Banking and Financial Services, 
Ways and Means, and Government Reform and Oversight, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

                             April 17, 1996

 Reported from the Committee on International Relations with amendments
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             April 17, 1996

Referral to the Committees on Banking and Financial Services, Ways and 
Means, and Government Reform and Oversight extended for a period ending 
                       not later than May 3, 1996

                              May 2, 1996

The Committees on Banking and Financial Services and Government Reform 
                        and Oversight discharged

                              May 2, 1996

   Referral to the Committee on Ways and Means extended for a period 
                   ending not later than May 10, 1996

                              May 10, 1996

   Referral to the Committee on Ways and Means extended for a period 
                   ending not later than May 17, 1996

                              May 16, 1996

   Referral to the Committee on Ways and Means extended for a period 
                   ending not later than May 31, 1996

                              May 30, 1996

   Referral to the Committee on Ways and Means extended for a period 
                   ending not later than June 7, 1996

                              June 7, 1996

   Referral to the Committee on Ways and Means extended for a period 
                  ending not later than June 11, 1996

                             June 11, 1996

   Referral to the Committee on Ways and Means extended for a period 
                  ending not later than June 14, 1996

                             June 14, 1996

Additional sponsors: Mr. Ward, Mr. Lewis of Georgia, Mr. Frelinghuysen, 
    Ms. Furse, Mr. McCrery, Mr. Reed, Mr. LaHood, Mr. Campbell, Ms. 
 Slaughter, Mr. Bentsen, Mrs. Roukema, Mr. Lantos, Mr. Torricelli, Mr. 
Royce, Mr. English of Pennsylvania, Mr. Zimmer, Mr. Filner, Mr. Fox of 
  Pennsylvania, Mr. Bunn of Oregon, Mr. Barcia, Mr. Diaz-Balart, Mr. 
  Meehan, Mr. Ehrlich, Mr. Cunningham, Miss Collins of Michigan, Mr. 
   Lipinski, Mr. Engel, Mr. Frank of Massachusetts, Mr. Sanford, Mr. 
Funderburk, Ms. Pryce, Mr. Kasich, Mrs. Meek of Florida, Mr. McCollum, 
 Mr. Traficant, Mr. Knollenberg, Mr. Stark, Mr. Porter, Mr. Paxon, Mr. 
 Deutsch, Mr. Smith of New Jersey, Mr. Frazer, Mr. Metcalf, Mr. Evans, 
Mr. Bryant of Texas, Mr. Saxton, Mr. Houghton, Mr. Durbin, Ms. Kaptur, 
 Mr. Souder, Mr. McHugh, Ms. Roybal-Allard, Mr. Markey, Mr. Oberstar, 
 Mrs. Thurman, Mr. Sisisky, Ms. Lofgren, Mr. LoBiondo, Mrs. Lowey, Mr. 
 Shays, Mr. LaTourette, Mr. Cardin, Mr. Kleczka, Mr. Foley, Mr. Yates, 
 Mr. Ackerman, Mr. Torres, Mr. Coyne, Mr. Towns, Mr. Cooley of Oregon, 
 Ms. Pelosi, Mr. DeFazio, Mr. Matsui, Mr. Kennedy of Rhode Island, Mr. 
Klug, Mr. Calvert, Mr. Blute, Mr. Radanovich, Mr. Ensign, Mr. Horn, Mr. 
Roemer, Mr. Hall of Ohio, Mrs. Cubin, Ms. Ros-Lehtinen, Mr. White, Mr. 
   Brewster, Mr. Hastings of Florida, Mr. Schaefer, Mr. Coburn, Mr. 
Torkildsen, Mr. Graham, Mr. Fazio of California, Mr. Camp, Mr. Hinchey, 
Mr. Levin, Ms. Eshoo, Mr. Dellums, Mr. Hayworth, Mr. Doyle, Mr. Johnson 
of South Dakota, Mr. Clay, Mr. Hostettler, Mr. Duncan, Mr. Schumer, Mr. 
 Lazio of New York, Ms. Molinari, Mr. Tejeda, Mr. Boehlert, Mr. Miller 
 of California, Mr. Shadegg, Mr. Brown of California, Mr. Chabot, Mr. 
 Owens, Mr. Baker of Louisiana, Mrs. Maloney, Mr. Borski, Mr. McNulty, 
Mr. Tate, Mr. Holden, Mr. Farr of California, Mr. Linder, Mr. Ney, Mr. 
 Nadler, Mr. Waxman, Mr. Allard, Mr. Franks of New Jersey, Mr. Schiff, 
  Mr. Sabo, Mr. Stockman, Mr. Pastor, Mr. Martini, Ms. Woolsey, Mrs. 
  Kennelly, Mrs. Schroeder, Mr. Andrews, Mrs. Morella, Mrs. Smith of 
   Washington, Mr. Chapman, Mr. Dooley of California, Mr. Kennedy of 
 Massachusetts, Mr. Martinez, Mr. Pomeroy, Mr. Cummings, Ms. McCarthy, 
     Mr. Browder, Mrs. Vucanovich, Mr. Peterson of Minnesota, Mr. 
         Scarborough, Mr. Talent, Mr. Costello, and Mr. Weller

                             June 14, 1996

    Reported from the Committee on Ways and Means with amendments, 
   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 boldface roman]
 [For text of introduced bill, see copy of bill as introduced on March 
                               19, 1996]

_______________________________________________________________________

                                 A BILL

 
 To impose sanctions on persons exporting certain goods or technology 
 that would enhance Iran's ability to explore for, extract, refine, or 
   transport by pipeline petroleum resources, and for other purposes.

    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 Oil Sanctions Act of 1996''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) The efforts of the Government of Iran to acquire 
        weapons of mass destruction and the means to deliver them and 
        its support of international terrorism endanger potentially the 
        national security and foreign policy interests of the United 
        States and those countries with which the United States shares 
        common strategic and foreign policy objectives.
            (2) The objective of preventing the proliferation of 
        weapons of mass destruction and international terrorism through 
        existing multilateral and bilateral initiatives requires 
        additional efforts to deny Iran the financial means to sustain 
        its nuclear, chemical, biological, and missile weapons 
        programs.
            (3) The Government of Iran uses its diplomatic facilities 
        and quasi-governmental institutions outside of Iran to promote 
        acts of international terrorism and assist its nuclear, 
        chemical, biological, and missile weapons programs.

SEC. 3. DECLARATION OF POLICY.

    The Congress declares that it is the policy of the United States to 
deny Iran the ability to support international terrorism and to fund 
the development and acquisition of weapons of mass destruction and the 
means to deliver them by limiting the development of Iran's ability to 
explore for, extract, refine, or transport by pipeline petroleum 
resources of Iran.

SEC. 4. IMPOSITION OF SANCTIONS.

    (a) In General.--Except as provided in subsection (d), the 
President shall impose 2 or more of the sanctions described in 
paragraphs (1) through (5) of section 5 if the President determines 
that a person has, with actual knowledge or reason to know, on or after 
the date of the enactment of this Act--
            (1) exported, transferred, or released to Iran, nationals 
        of Iran, or entities owned or controlled by Iran or nationals 
        of Iran any items included under subparagraph (A) or (B) of 
        section 9(a)(1) on the List of Petroleum and Natural Gas-
        Related Goods and Technology established under section 9 (in 
        this Act referred to as the ``List'') if the provision of such 
        items would significantly and materially enhance Iran's ability 
        to develop petroleum resources of Iran--
                    (A) whether or not the items are exported from the 
                United States; and
                    (B) whether or not the items are subject to the 
                jurisdiction of the United States; or
            (2) made an investment of $40,000,000 or more (or any 
        combination of investments of at least $10,000,000 each, which 
        in the aggregate equals or exceeds $40,000,000 in any 12-month 
        period), that directly contributed to the enhancement of Iran's 
        ability to develop petroleum resources of Iran.
    (b) Persons Against Which the Sanctions Are To Be Imposed.--The 
sanctions described in subsection (a) shall be imposed on--
            (1) any person the President determines has carried out the 
        activities described in subsection (a); and
            (2) any person the President determines--
                    (A) is a successor entity to the person referred to 
                in paragraph (1);
                    (B) is a wholly owned subsidiary of the person 
                referred to in paragraph (1);
                    (C) is any other subsidiary of the person referred 
                to in paragraph (1) if that subsidiary, with actual 
                knowledge or reason to know, engaged in the activities 
                referred to in paragraph (1);
                    (D) is a parent of the person referred to in 
                paragraph (1) if that parent had actual knowledge or 
                reason to know of the activities referred to in 
                paragraph (1); or
                    (E) is an affiliate of the person referred to in 
                paragraph (1) if that affiliate, with actual knowledge 
                or reason to know, engaged in the activities referred 
                to in paragraph (1).
For purposes of this Act, any person or entity described in this 
subsection shall be referred to as a ``sanctioned person''.
    (c) Publication in Federal Register.--The President shall cause to 
be published in the Federal Register a current list of sanctioned 
persons. The removal of persons from, and the addition of persons to, 
the list, shall also be so published.
    (d) Exceptions.--The President shall not be required to apply or 
maintain the sanctions under subsection (a)--
            (1) in the case of procurement of defense articles or 
        defense services--
                    (A) under existing contracts or subcontracts, 
                including the exercise of options for production 
                quantities to satisfy requirements essential to the 
                national security of the United States;
                    (B) if the President determines in writing that the 
                person to which the sanctions would otherwise be 
                applied is a sole source supplier of the defense 
articles or services, that the defense articles or services are 
essential, and that alternative sources are not readily or reasonably 
available; or
                    (C) if the President determines in writing that 
                such articles or services are essential to the national 
                security under defense coproduction agreements;
            (2) to products or services provided under contracts 
        entered into before the date on which the President publishes 
        his intention to impose the sanctions;
            (3) to--
                    (A) spare parts which are essential to United 
                States products or production;
                    (B) component parts, but not finished products, 
                essential to United States products or production; or
                    (C) routine servicing and maintenance of products, 
                to the extent that alternative sources are not readily 
                or reasonably available;
            (4) to information and technology essential to United 
        States products or production; or
            (5) to medicines, medical supplies, or other humanitarian 
        items.

SEC. 5. DESCRIPTION OF SANCTIONS.

    The sanctions to be imposed on a sanctioned person under section 
4(a) are as follows:
            (1) Export-import bank assistance for exports to sanctioned 
        persons.--The President shall direct the Export-Import Bank of 
        the United States not to guarantee, insure, extend credit, or 
        participate in the extension of credit in connection with the 
        export of any goods or services to any sanctioned person.
            (2) Trade sanction.--The President shall both--
                    (A) order the United States Government not to issue 
                any specific license and not to grant any other 
                specific permission or authority to export any goods or 
                technology to a sanctioned person under--
                            (i) the Export Administration Act of 1979;
                            (ii) the Arms Export Control Act;
                            (iii) the Atomic Energy Act of 1954; or
                            (iv) any other statute that requires the 
                        prior review and approval of the United States 
                        Government as a condition for the export or re-
                        export of goods or services; and
                    (B) prohibit the importation into the United States 
                of products produced by any sanctioned person.
        Subparagraph (B) includes application to the importation of any 
        finished product or component part, whether shipped directly by 
        the sanctioned person or by another entity.
            (3) Loans from united states financial institutions.--The 
        United States Government shall prohibit any United States 
        financial institution from making loans or providing credits to 
        any sanctioned person totaling more than $10,000,000 in any 12-
        month period unless such person is engaged in activities to 
        relieve human suffering and the loans or credits are provided 
        for such activities.
            (4) Prohibitions on financial institutions.--The following 
        prohibitions shall be imposed against a sanctioned person that 
        is a financial institution:
                    (A) Designation as primary dealer.--Neither the 
                Board of Governors of the Federal Reserve System nor 
                the Federal Reserve Bank of New York may designate, or 
                permit the continuation of any prior designation of, 
                such financial institution as a primary dealer in 
                United States Government debt instruments.
                    (B) Government funds.--Such financial institution 
                shall not serve as agent of the United States 
                Government or serve as repository for United States 
                Government funds.
            (5) Procurement sanction.--The United States Government 
        shall not procure, or enter into any contract for the 
        procurement of, any goods or services from a sanctioned person.

SEC. 6. ADVISORY OPINIONS.

    The Secretary of State may, upon the request of any person, issue 
an advisory opinion to that person as to whether a proposed activity by 
that person would subject that person to sanctions under this Act. Any 
person who relies in good faith on such an advisory opinion which 
states that the proposed activity would not subject a person to such 
sanctions, and any person who thereafter engages in such activity, may 
not be made subject to such sanctions on account of such activity.

SEC. 7. TERMINATION OF SANCTIONS.

    (a) In General.--The requirement under section 4 to impose 
sanctions shall no longer have force or effect if the President 
determines and certifies to the appropriate congressional committees 
that Iran--
            (1) has ceased its efforts to design, develop, manufacture, 
        or acquire--
                    (A) a nuclear explosive device or related materials 
                and technology;
                    (B) chemical and biological weapons; and
                    (C) ballistic missiles and ballistic missile launch 
                technology; and
            (2) has been removed from the list of countries the 
        governments of which have been determined, for purposes of 
        section 6(j) of the Export Administration Act of 1979, to have 
        repeatedly provided support for acts of international 
        terrorism.
    (b) Additional Requirement With Respect to Libya.--The requirement 
under section 4 to impose sanctions shall no longer have force and 
effect with respect to Libya only if the President, in addition to 
making the determination required by subsection (a), determines and 
certifies to the appropriate congressional committees that Libya has 
fulfilled the requirements of United Nations Security Council 
Resolution 731, adopted January 21, 1992.

SEC. 8. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.

    (a) Delay of Sanctions.--
            (1) Consultations.--If the President makes a determination 
        described in section 4(a) with respect to a foreign person, the 
        Congress urges the President to initiate consultations 
        immediately with the government with primary jurisdiction over 
        that foreign person with respect to the imposition of sanctions 
        under this Act.
            (2) Actions by government of jurisdiction.--In order to 
        pursue consultations under paragraph (1) with the government 
        concerned, the President may delay imposition of sanctions 
        under this Act for up to 90 days. Following such consultations, 
        the President shall immediately impose sanctions unless the 
        President determines and certifies to the Congress that the 
        government has taken specific and effective actions, including, 
        as appropriate, the imposition of appropriate penalties, to 
        terminate the involvement of the foreign person in the 
        activities that resulted in the determination by the President 
        under section 4(a) concerning such person.
            (3) Additional delay in imposition of sanctions.--The 
        President may delay the imposition of sanctions for up to an 
        additional 90 days if the President determines and certifies to 
        the Congress that the government with primary jurisdiction over 
        the person concerned is in the process of taking the actions 
        described in paragraph (2).
            (4) Report to congress.--Not later than 45 days after 
        making a determination under section 4(a), the President shall 
        submit to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on International Relations of 
        the House of Representatives a report on the status of 
        consultations with the appropriate foreign government under 
        this subsection, and the basis for any determination under 
        paragraph (3).
    (b) Duration of Sanctions.--A sanction imposed under section 4(a) 
shall remain in effect for a period of not less than 2 years from the 
date on which it is imposed.
    (c) Presidential Waiver.--
            (1) Authority.--The President may waive the requirement in 
        section 4(a) to impose a sanction or sanctions on a person 
        described in section 4(b), and may waive the continued 
        imposition of a sanction or sanctions under subsection (b) of 
        this section, 30 days or more after the President determines 
        and so reports to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on International 
        Relations of the House of Representatives that it is important 
        to the national interest of the United States to exercise such 
        waiver authority.
            (2) Contents of report.--Any report under paragraph (1) 
        shall provide a specific and detailed rationale for the 
        determination under paragraph (1), including--
                    (A) a description of the conduct that resulted in 
                the determination;
                    (B) in the case of a foreign person, an explanation 
                of the efforts to secure the cooperation of the 
                government with primary jurisdiction over the 
                sanctioned person to terminate or, as appropriate, 
                penalize the activities that resulted in the 
                determination;
                    (C) an estimate as to the significance of the 
                provision of the items described in section 4(a)(1) or 
                the investment described in section 4(a)(2), as the 
                case may be, to Iran's ability to develop its petroleum 
                resources; and
                    (D) a statement as to the response of the United 
                States in the event that the person concerned engages 
                in other activities that would be subject to section 
                4(a).
            (3) Effect of report on waiver.--If the President makes a 
        report under paragraph (1) with respect to a waiver of 
        sanctions on a person described in section 4(b), sanctions need 
        not be imposed under section 4(a) on that person during the 30-
day period referred to in paragraph (1).

SEC. 9. GOODS AND TECHNOLOGY SUBJECT TO EXPORT CONTROL RESTRICTIONS.

    (a) Control List.--
            (1) Contents of list.--For purposes of the determinations 
        to be made under section 4(a), the President, in consultation 
        with the Secretary of State, the Secretary of Energy, and the 
        heads of other appropriate departments and agencies, shall 
        establish and maintain the List of Petroleum and Natural Gas-
        Related Goods and Technology. The List shall consist of--
                    (A) all items listed in the Annex to Resolution 883 
                of the Security Council of the United Nations, adopted 
                November 11, 1993, and all types of equipment, 
                supplies, and grants of licenses prohibited by 
                paragraph 5 of that resolution; and
                    (B) any other goods or technology (including 
                software and technical data) that the President 
                determines could significantly or materially contribute 
                to Iran's ability to develop its petroleum resources, 
                including goods and technology that are required for 
                the development, production, or use of facilities 
                (including the repair, maintenance, or operation of 
                equipment) for the development of petroleum resources.
            (2) Publication.--The President, within 60 days after the 
        date of the enactment of this Act, shall cause the List to be 
        published in the Federal Register, together with any 
        regulations issued with respect thereto. Thereafter, any 
        revisions to the List or amendments to the regulations shall be 
        published in the same manner.
            (3) Advance notice to congress.--Not less than 30 days in 
        advance of the publication of the List, it shall be provided to 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and to the Committee on International Relations of the 
        House of Representatives. The President shall consult with each 
        such Committee regarding the content of the List and shall 
        respond to questions regarding the basis for the inclusion on, 
        or exclusion from, the List of specified items.
    (b) Statutory Construction.--Nothing in this section prevents the 
inclusion on the List of any items that may be produced in and traded 
internationally by persons or entities in countries other than the 
United States.

SEC. 10. REPORTS REQUIRED.

    (a) Report on Certain International Initiatives.--Not later than 6 
months after the date of the enactment of this Act, and every 6 months 
thereafter, the President shall transmit a report to the appropriate 
congressional committees describing--
            (1) the efforts of the President to mount a multilateral 
        campaign to persuade all countries to pressure Iran to cease 
        its nuclear, chemical, biological, and missile weapons programs 
        and its support of international terrorism;
            (2) the efforts of the President to persuade other 
        governments to ask Iran to reduce the presence of Iranian 
        diplomats and representatives of other government and military 
        or quasi-governmental institutions of Iran and to withdraw any 
        such diplomats or representatives who participated in the 
        takeover of the United States embassy in Tehran on November 4, 
        1979, or the subsequent holding of United States hostages for 
        444 days;
            (3) the extent to which the International Atomic Energy 
        Agency has established regular inspections of all nuclear 
        facilities in Iran, including those presently under 
        construction; and
            (4) Iran's use of Iranian diplomats and representatives of 
        other government and military or quasi-governmental 
        institutions of Iran to promote acts of terrorism or to develop 
        or sustain Iran's nuclear, chemical, biological, and missile 
        weapons programs.
    (b) Other Reports.--The President shall ensure the continued 
transmittal to the Congress of reports describing--
            (1) the nuclear and other military capabilities of Iran, as 
        required by section 601(a) of the Nuclear Non-Proliferation Act 
        of 1978 and section 1607 of the National Defense Authorization 
        Act for Fiscal Year 1993; and
            (2) the support provided by Iran for acts of international 
        terrorism, as part of the Department of State's annual report 
        on international terrorism.

SEC. 11. APPLICATION OF THE ACT TO LIBYA.

    (a) In General.--The sanctions of this Act, including the terms and 
conditions for the imposition, duration, and termination of sanctions, 
shall apply to persons making investments with respect to the 
development of petroleum resources of Libya, or exporting, 
transferring, or releasing of certain items to Libya, nationals of 
Libya, or entities owned or controlled by Libya, in the same manner as 
those sanctions apply under this Act to persons making investments with 
respect to the development of petroleum resources of Iran, or 
exporting, transferring, or releasing of certain items to Iran, 
nationals of Iran, or entities owned or controlled by Iran.
    (b) Application of Specific Provisions.--In applying the provisions 
of this Act with respect to Libya under subsection (a), each reference 
to ``Iran'' shall be deemed to be a reference to ``Libya''.

SEC. 12. DETERMINATIONS NOT REVIEWABLE.

    A determination to impose sanctions under this Act shall not be 
reviewable in any court.

SEC. 13. DEFINITIONS.

    As used in this Act:
            (1) Act of international terrorism.--The term ``act of 
        international terrorism'' means an act--
                    (A) which is violent or dangerous to human life and 
                that is a violation of the criminal laws of the United 
                States or of any State or that would be a criminal 
                violation if committed within the jurisdiction of the 
                United States or any State; and
                    (B) which appears to be intended--
                            (i) to intimidate or coerce a civilian 
                        population;
                            (ii) to influence the policy of a 
                        government by intimidation or coercion; or
                            (iii) to affect the conduct of a government 
                        by assassination or kidnapping.
            (2) Affiliate.--For purposes of section 4(b), a person is 
        an ``affiliate'' of another person if more than 50 percent of 
        the outstanding capital stock of or other beneficial interest 
        in both persons is owned, directly or indirectly, by a third 
        person or both persons are otherwise controlled by a third 
        person.
            (3) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Banking, Housing, and Urban Affairs and the Committee on 
        Foreign Relations of the Senate and the Committee on 
        International Relations of the House of Representatives.
            (4) Component part.--The term ``component part'' has the 
        meaning given that term in section 11A(e)(1) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2410a(e)(1)).
            (5) Develop and development.--To ``develop'', or the 
        ``development'' of, petroleum resources means the exploration 
        for, or the extraction, refining, or transportation by pipeline 
        of, petroleum resources.
            (6) Financial institution.--The term ``financial 
        institution'' includes--
                    (A) a depository institution (as defined in section 
                3(c)(1) of the Federal Deposit Insurance Act), 
                including a branch or agency of a foreign bank (as 
                defined in section 1(b)(7) of the International Banking 
                Act of 1978);
                    (B) a credit union;
                    (C) a securities firm, including a broker or 
                dealer;
                    (D) an insurance company, including an agency or 
                underwriter;
                    (E) any other company that provides financial 
                services; and
                    (F) any subsidiary of an entity described in any of 
                subparagraphs (A) through (E).
            (7) Finished product.--The term ``finished product'' has 
        the meaning given that term in section 11A(e)(2) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2410a(e)(2)).
            (8) Foreign person.--The term ``foreign person'' means--
                    (A) an individual who is not a United States person 
                or an alien lawfully admitted for permanent residence 
                into the United States; or
                    (B) a corporation, partnership, or other 
                nongovernment entity which is not a United States 
                person.
            (9) Goods and technology.--The terms ``goods'' and 
        ``technology'' have the meanings given those terms in section 
        16 of the Export Administration Act of 1979 (50 U.S.C. app. 
        2415).
            (10) Investment.--The term ``investment'' means--
                    (A) the entry into a contract that includes 
                responsibility for the development of petroleum 
                resources located in Iran or Libya (as the case may 
                be), or the entry into a contract providing for the 
                general supervision and guarantee of anther person's 
                performance of such a contract;
                    (B) the purchase of a share of ownership in that 
                development;
                    (C) the entry into a contract providing for the 
                participation in royalties, earnings, or profits in 
                that development, without regard to the form of the 
                participation; or
                    (D) the entry into or performance of--
                            (i) a contract for the financing of the 
                        development of petroleum resources located in 
                        Iran or Libya (as the case may be); or
                            (ii) a guaranty of another person's 
                        performance under such a contract.
            (11) Iran.--The term ``Iran'' includes any agency or 
        instrumentality of Iran.
            (12) Iranian diplomats and representatives of other 
        government and military or quasi-governmental institutions of 
        iran.--The term ``Iranian diplomats and representatives of 
        other government and military or quasi-governmental 
        institutions of Iran'' includes employees, representatives, or 
        affiliates of Iran's--
                    (A) Foreign Ministry;
                    (B) Ministry of Intelligence and Security;
                    (C) Revolutionary Guard Corps;
                    (D) Crusade for Reconstruction;
                    (E) Qods (Jerusalem) Forces;
                    (F) Interior Ministry;
                    (G) Foundation for the Oppressed and Disabled;
                    (H) Prophet's Foundation;
                    (I) June 5th Foundation;
                    (J) Martyr's Foundation;
                    (K) Islamic Propagation Organization; and
                    (L) Ministry of Islamic Guidance.
            (13) Libya.--The term ``Libya'' includes any agency or 
        instrumentality of Libya.
            (14) Nuclear explosive device.--The term ``nuclear 
        explosive device'' means any device, whether assembled or 
        disassembled, that is designed to produce an instantaneous 
        release of an amount of nuclear energy from special nuclear 
        material (as defined in section 11aa. of the Atomic Energy Act 
        of 1954) that is greater than the amount of energy that would 
        be released from the detonation of one pound of trinitrotoluene 
        (TNT).
            (15) Parent.--For purposes of section 4(b), a person is a 
        ``parent'' of another person if that person owns, directly or 
        indirectly, more than 50 percent of the outstanding capital 
        stock of or other beneficial interest in that other person, or 
        otherwise controls that other person.
            (16) Person.--The term ``person'' means--
                    (A) a natural person;
                    (B) a corporation, business association, 
                partnership, society, trust, any other nongovernmental 
                entity, organization, or group, and any governmental 
                entity operating as a business enterprise; and
                    (C) any successor to any entity described in 
                subparagraph (B).
            (17) Petroleum resources.--The term ``petroleum resources'' 
        includes petroleum and natural gas resources.
            (18) Subsidiary.--(A) For purposes of section 4(b), and 
        subject to subparagraph (B), a person is a ``subsidiary'' of 
        another person if that other person owns, directly or 
        indirectly, more than 50 percent of the outstanding capital 
        stock of or other beneficial interest in that person, or 
        otherwise controls that person.
            (B) A person is a ``wholly owned'' subsidiary of another 
        person if that other person owns all of the outstanding capital 
        stock of or other beneficial interests in that person.
            (19) United states or state.--The term ``United States'' or 
        ``State'' means the several States, the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Mariana Islands, American Samoa, Guam, the United 
        States Virgin Islands, and any other territory or possession of 
        the United States.
            (20) United states person.--The term ``United States 
        person'' means--
                    (A) a natural person who is a citizen of the United 
                States or who owes permanent allegiance to the United 
                States; and
                    (B) a corporation or other legal entity which is 
                organized under the laws of the United States, any 
                State or territory thereof, or the District of 
                Columbia, if natural persons described in subparagraph 
                (A) own, directly or indirectly, more than 50 percent 
                of the outstanding capital stock or other beneficial 
                interest in such legal entity.
            Amend the title so as to read: ``A bill to impose sanctions 
        on persons exporting certain items that would enhance Iran's 
        ability to develop its petroleum resources and on persons 
        making certain investments directly contributing to the 
        enhancement of Iran's ability to develop its petroleum 
        resources, and for other purposes.''.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran and Libya Sanctions Act of 
1996''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) The efforts of the Government of Iran to acquire 
        weapons of mass destruction and the means to deliver them and 
        its support of acts of international terrorism endanger the 
        national security and foreign policy interests of the United 
        States and those countries with which the United States shares 
        common strategic and foreign policy objectives.
            (2) The objective of preventing the proliferation of 
        weapons of mass destruction and acts of international terrorism 
        through existing multilateral and bilateral initiatives 
        requires additional efforts to deny Iran the financial means to 
        sustain its nuclear, chemical, biological, and missile weapons 
        programs.
            (3) The Government of Iran uses its diplomatic facilities 
        and quasi-governmental institutions outside of Iran to promote 
        acts of international terrorism and assist its nuclear, 
        chemical, biological, and missile weapons programs.
            (4) The failure of the Government of Libya to comply with 
        Resolutions 731, 748, and 883 of the Security Council of the 
        United Nations, its support of international terrorism, and its 
        efforts to acquire weapons of mass destruction constitute a 
        threat to international peace and security that endangers the 
        national security and foreign policy interests of the United 
        States and those countries with which it shares common 
        strategic and foreign policy objectives.

SEC. 3. DECLARATION OF POLICY.

    (a) Policy With Respect to Iran.--The Congress declares that it is 
the policy of the United States to deny Iran the ability to support 
acts of international terrorism and to fund the development and 
acquisition of weapons of mass destruction and the means to deliver 
them by limiting the development of Iran's ability to explore for, 
extract, refine, or transport by pipeline petroleum resources of Iran.
    (b) Policy With Respect to Libya.--The Congress further declares 
that it is the policy of the United States to seek full compliance by 
Libya with its obligations under Resolutions 731, 748, and 883 of the 
Security Council of the United Nations, including ending all support 
for acts of international terrorism and efforts to develop or acquire 
weapons of mass destruction.

SEC. 4. MULTILATERAL REGIME.

    (a) Multilateral Negotiations.--In order to further the objectives 
of section 3, the Congress urges the President to commence immediately 
diplomatic efforts, both in appropriate international fora such as the 
United Nations, and bilaterally with allies of the United States, to 
establish a multilateral sanctions regime against Iran, including 
provisions limiting the development of petroleum resources, that will 
inhibit Iran's efforts to carry out activities described in section 2.
    (b) Reports to Congress.--The President shall report to the 
appropriate congressional committees, not later than 1 year after the 
date of the enactment of this Act, and periodically thereafter, on the 
extent that diplomatic efforts described in subsection (a) have been 
successful. Each report shall include--
            (1) the countries that have agreed to undertake measures to 
        further the objectives of section 3 with respect to Iran, and a 
        description of those measures; and
            (2) the countries that have not agreed to measures 
        described in paragraph (1), and, with respect to those 
        countries, other measures (in addition to that provided in 
        subsection (d)) the President recommends that the United States 
        take to further the objectives of section 3 with respect to 
        Iran.
    (c) Waiver.--The President may waive the application of section 
5(a) with respect to nationals of a country if--
            (1) that country has agreed to undertake substantial 
        measures, including economic sanctions, that will inhibit 
        Iran's efforts to carry out activities described in section 2 
        and information required by subsection (b)(1) has been included 
        in a report submitted under subsection (b); and
            (2) the President, at least 30 days before the waiver takes 
        effect, notifies the appropriate congressional committees of 
        his intention to exercise the waiver.
    (d) Enhanced Sanction.--
            (1) Sanction.--With respect to nationals of countries 
        except those with respect to which the President has exercised 
        the waiver authority of subsection (c), at any time after the 
        first report is required to be submitted under subsection (b), 
        section 5(a) shall be applied by substituting ``$20,000,000'' 
        for ``$40,000,000'' each place it appears, and by substituting 
        ``$5,000,000'' for ``$10,000,000''.
            (2) Report to congress.--The President shall report to the 
        appropriate congressional committees any country with respect 
        to which paragraph (1) applies.
    (e) Interim Report on Multilateral Sanctions; Monitoring.--The 
President, not later than 90 days after the date of the enactment of 
this Act, shall report to the appropriate congressional committees on--
            (1) whether the member states of the European Union, the 
        Republic of Korea, Australia, Israel, or Japan have legislative 
        or administrative standards providing for the imposition of 
        trade sanctions on persons or their affiliates doing business 
        or having investments in Iran or Libya;
            (2) the extent and duration of each instance of the 
        application of such sanctions; and
            (3) the disposition of any decision with respect to such 
        sanctions by the World Trade Organization or its predecessor 
        organization.

SEC. 5. IMPOSITION OF SANCTIONS.

    (a) Sanctions With Respect to Iran.--Except as provided in 
subsection (f), the President shall impose 2 or more of the sanctions 
described in paragraphs (1) through (6) of section 6 if the President 
determines that a person has, with actual knowledge, on or after the 
date of the enactment of this Act, made an investment of $40,000,000 or 
more (or any combination of investments of at least $10,000,000 each, 
which in the aggregate equals or exceeds $40,000,000 in any 12-month 
period), that directly and significantly contributed to the enhancement 
of Iran's ability to develop petroleum resources of Iran.
    (b) Sanctions With Respect to Libya.--
            (1) Trigger of Mandatory sanctions.--Except as provided in 
        subsection (f), the President shall impose 2 or more of the 
        sanctions described in paragraphs (1) through (6) of section 6 
        if the President determines that a person has, with actual 
        knowledge, on or after the date of the enactment of this Act, 
        exported, transferred, or otherwise provided to Libya any 
        goods, services, technology, or other items the provision of 
        which is prohibited under paragraph 4(b) or 5 of Resolution 748 
        of the Security Council of the United Nations, adopted March 
        31, 1992, or under paragraph 5 or 6 of Resolution 883 of the 
        Security Council of the United Nations, adopted November 11, 
        1993, if the provision of such items significantly and 
        materially--
                    (A) contributed to Libya's ability to acquire 
                chemical, biological, or nuclear weapons or 
                destabilizing numbers and types of advanced 
                conventional weapons or enhanced Libya's military or 
                paramilitary capabilities;
                    (B) contributed to Libya's ability to develop its 
                petroleum resources; or
                    (C) contributed to Libya's ability to maintain its 
                aviation capabilities.
            (2) Trigger of discretionary sanctions.--Except as provided 
        in subsection (f), the President may impose 1 or more of the 
        sanctions described in paragraphs (1) through (6) of section 6 
        if the President determines that a person has, with actual 
        knowledge, on or after the date of the enactment of this Act, 
        made an investment of $40,000,000 or more (or any combination 
        of investments of at least $10,000,000 each, which in the 
        aggregate equals or exceeds $40,000,000 in any 12-month 
        period), that directly and significantly contributed to the 
        enhancement of Libya's ability to develop its petroleum 
        resources.
    (c) Persons Against Which the Sanctions Are To Be Imposed.--The 
sanctions described in subsections (a) and (b) shall be imposed on--
            (1) any person the President determines has carried out the 
        activities described in subsection (a) or (b); and
            (2) any person the President determines--
                    (A) is a successor entity to the person referred to 
                in paragraph (1);
                    (B) is a parent or subsidiary of the person 
                referred to in paragraph (1) if that parent or 
                subsidiary, with actual knowledge, engaged in the 
                activities referred to in paragraph (1); or
                    (C) is an affiliate of the person referred to in 
                paragraph (1) if that affiliate, with actual knowledge, 
                engaged in the activities referred to in paragraph (1) 
                and if that affiliate is controlled in fact by the 
                person referred to in paragraph (1).
For purposes of this Act, any person or entity described in this 
subsection shall be referred to as a ``sanctioned person''.
    (d) Publication in Federal Register.--The President shall cause to 
be published in the Federal Register a current list of persons and 
entities on whom sanctions have been imposed under this Act. The 
removal of persons or entities from, and the addition of persons and 
entities to, the list, shall also be so published.
    (e) Publication of Projects.--The President shall cause to be 
published in the Federal Register a list of all significant projects 
which have been publicly tendered in the oil and gas sector in Iran.
    (f) Exceptions.--The President shall not be required to apply or 
maintain the sanctions under subsection (a) or (b)--
            (1) in the case of procurement of defense articles or 
        defense services--
                    (A) under existing contracts or subcontracts, 
                including the exercise of options for production 
                quantities to satisfy requirements essential to the 
                national security of the United States;
                    (B) if the President determines in writing that the 
                person to which the sanctions would otherwise be 
                applied is a sole source supplier of the defense 
                articles or services, that the defense articles or 
                services are essential, and that alternative sources 
                are not readily or reasonably available; or
                    (C) if the President determines in writing that 
                such articles or services are essential to the national 
                security under defense coproduction agreements;
            (2) in the case of procurement, to eligible products, as 
        defined in section 308(4) of the Trade Agreements Act of 1979 
        (19 U.S.C. 2518(4)), of any foreign country or instrumentality 
        designated under section 301(b)(1) of that Act (19 U.S.C. 
        2511(b)(1));
            (3) to products, technology, or services provided under 
        contracts entered into before the date on which the President 
        publishes in the Federal Register the name of the person on 
        whom the sanctions are to be imposed;
            (4) to--
                    (A) spare parts which are essential to United 
                States products or production;
                    (B) component parts, but not finished products, 
                essential to United States products or production; or
                    (C) routine servicing and maintenance of products, 
                to the extent that alternative sources are not readily 
                or reasonably available;
            (5) to information and technology essential to United 
        States products or production; or
            (6) to medicines, medical supplies, or other humanitarian 
        items.

SEC. 6. DESCRIPTION OF SANCTIONS.

    The sanctions to be imposed on a sanctioned person under section 5 
are as follows:
            (1) Export-import bank assistance for exports to sanctioned 
        persons.--The President may direct the Export-Import Bank of 
        the United States not to give approval to the issuance of any 
        guarantee, insurance, extension of credit, or participation in 
        the extension of credit in connection with the export of any 
        goods or services to any sanctioned person.
            (2) Export sanction.--The President may order the United 
        States Government not to issue any specific license and not to 
        grant any other specific permission or authority to export any 
        goods or technology to a sanctioned person under--
                    (i) the Export Administration Act of 1979;
                    (ii) the Arms Export Control Act;
                    (iii) the Atomic Energy Act of 1954; or
                    (iv) any other statute that requires the prior 
                review and approval of the United States Government as 
                a condition for the export or re-export of goods or 
                services.
            (3) Loans from united states financial institutions.--The 
        United States Government may prohibit any United States 
        financial institution from making loans or providing credits to 
        any sanctioned person totaling more than $10,000,000 in any 12-
        month period unless such person is engaged in activities to 
        relieve human suffering and the loans or credits are provided 
        for such activities.
            (4) Prohibitions on financial institutions.--The following 
        prohibitions may be imposed against a sanctioned person that is 
        a financial institution:
                    (A) Prohibition on designation as primary dealer.--
                Neither the Board of Governors of the Federal Reserve 
                System nor the Federal Reserve Bank of New York may 
                designate, or permit the continuation of any prior 
                designation of, such financial institution as a primary 
                dealer in United States Government debt instruments.
                    (B) Prohibition on service as a repository of 
                government funds.--Such financial institution may not 
                serve as agent of the United States Government or serve 
                as repository for United States Government funds.
        The imposition of either sanction under subparagraph (A) or (B) 
        shall be treated as 1 sanction for purposes of section 5, and 
        the imposition of both such sanctions shall be treated as 2 
        sanctions for purposes of section 5.
            (5) Procurement sanction.--The United States Government may 
        not procure, or enter into any contract for the procurement of, 
        any goods or services from a sanctioned person.
            (6) Additional sanctions.--The President may impose 
        sanctions, as appropriate, to restrict imports with respect to 
        a sanctioned person, in accordance with the International 
        Emergency Economic Powers Act (50 U.S.C. 1701 and following).

SEC. 7. ADVISORY OPINIONS.

    The Secretary of State may, upon the request of any person, issue 
an advisory opinion to that person as to whether a proposed activity by 
that person would subject that person to sanctions under this Act. Any 
person who relies in good faith on such an advisory opinion which 
states that the proposed activity would not subject a person to such 
sanctions, and any person who thereafter engages in such activity, will 
not be made subject to such sanctions on account of such activity.

SEC. 8. TERMINATION OF SANCTIONS.

    (a) Iran.--The requirement under section 5(a) to impose sanctions 
shall no longer have force or effect with respect to Iran if the 
President determines and certifies to the appropriate congressional 
committees that Iran--
            (1) has ceased its efforts to design, develop, manufacture, 
        or acquire--
                    (A) a nuclear explosive device or related materials 
                and technology;
                    (B) chemical and biological weapons; and
                    (C) ballistic missiles and ballistic missile launch 
                technology; and
            (2) has been removed from the list of countries the 
        governments of which have been determined, for purposes of 
        section 6(j) of the Export Administration Act of 1979, to have 
        repeatedly provided support for acts of international 
        terrorism.
    (b) Libya.--The requirement under section 5(b) to impose sanctions 
shall no longer have force or effect with respect to Libya if the 
President determines and certifies to the appropriate congressional 
committees that Libya has fulfilled the requirements of United Nations 
Security Council Resolution 731, adopted January 21, 1992, United 
Nations Security Council Resolution 748, adopted March 31, 1992, and 
United Nations Security Council Resolution 883, adopted November 11, 
1993.

SEC. 9. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.

    (a) Delay of Sanctions.--
            (1) Consultations.--If the President makes a determination 
        described in section 5(a) or 5(b) with respect to a foreign 
        person, the Congress urges the President to initiate 
        consultations immediately with the government with primary 
        jurisdiction over that foreign person with respect to the 
        imposition of sanctions under this Act.
            (2) Actions by government of jurisdiction.--In order to 
        pursue consultations under paragraph (1) with the government 
        concerned, the President may delay imposition of sanctions 
        under this Act for up to 90 days. Following such consultations, 
        the President shall immediately impose sanctions unless the 
        President determines and certifies to the Congress that the 
        government has taken specific and effective actions, including, 
        as appropriate, the imposition of appropriate penalties, to 
        terminate the involvement of the foreign person in the 
        activities that resulted in the determination by the President 
        under section 5(a) or 5(b) concerning such person.
            (3) Additional delay in imposition of sanctions.--The 
        President may delay the imposition of sanctions for up to an 
        additional 90 days if the President determines and certifies to 
        the Congress that the government with primary jurisdiction over 
        the person concerned is in the process of taking the actions 
        described in paragraph (2).
            (4) Report to congress.--Not later than 90 days after 
        making a determination under section 5(a) or 5(b), the 
        President shall submit to the appropriate congressional 
        committees a report on the status of consultations with the 
        appropriate foreign government under this subsection, and the 
        basis for any determination under paragraph (3).
    (b) Duration of Sanctions.--A sanction imposed under section 5 
shall remain in effect--
            (1) for a period of not less than 2 years from the date on 
        which it is imposed; or
            (2) until such time as the President determines and 
        certifies to the Congress that the person whose activities were 
        the basis for imposing the sanction is no longer engaging in 
        such activities and that the President has received reliable 
        assurances that such person will not knowingly engage in such 
        activities in the future, except that such sanction shall 
        remain in effect for a period of at least 1 year.
    (c) Presidential Waiver.--
            (1) Authority.--The President may waive the requirement in 
        section 5 to impose a sanction or sanctions on a person 
        described in section 5(c), and may waive the continued 
        imposition of a sanction or sanctions under subsection (b) of 
        this section, 30 days or more after the President determines 
        and so reports to the appropriate congressional committees that 
        it is important to the national interest of the United States 
        to exercise such waiver authority.
            (2) Contents of report.--Any report under paragraph (1) 
        shall provide a specific and detailed rationale for the 
        determination under paragraph (1), including--
                    (A) a description of the conduct that resulted in 
                the determination under section 5(a) or (b), as the 
                case may be;
                    (B) in the case of a foreign person, an explanation 
                of the efforts to secure the cooperation of the 
                government with primary jurisdiction over the 
                sanctioned person to terminate or, as appropriate, 
                penalize the activities that resulted in the 
                determination under section 5(a) or (b), as the case 
                may be;
                    (C) an estimate as to the significance--
                            (i) of the provision of the items described 
                        in section 5(a) to Iran's ability to develop 
                        its petroleum resources, or
                            (ii) of the provision of the items 
                        described in section 5(b)(1) to the abilities 
                        of Libya described in subparagraph (A), (B), or 
                        (C) of section 5(b)(1), or of the investment 
                        described in section 5(b)(2) on Libya's ability 
                        to develop its petroleum resources,
                as the case may be; and
                    (D) a statement as to the response of the United 
                States in the event that the person concerned engages 
                in other activities that would be subject to section 
                5(a) or (b).
            (3) Effect of report on waiver.--If the President makes a 
        report under paragraph (1) with respect to a waiver of 
        sanctions on a person described in section 5(c), sanctions need 
        not be imposed under section 5(a) or (b) on that person during 
        the 30-day period referred to in paragraph (1).

SEC. 10. REPORTS REQUIRED.

    (a) Report on Certain International Initiatives.--Not later than 6 
months after the date of the enactment of this Act, and every 6 months 
thereafter, the President shall transmit a report to the appropriate 
congressional committees describing--
            (1) the efforts of the President to mount a multilateral 
        campaign to persuade all countries to pressure Iran to cease 
        its nuclear, chemical, biological, and missile weapons programs 
        and its support of acts of international terrorism;
            (2) the efforts of the President to persuade other 
        governments to ask Iran to reduce the presence of Iranian 
        diplomats and representatives of other government and military 
        or quasi-governmental institutions of Iran and to withdraw any 
        such diplomats or representatives who participated in the 
        takeover of the United States embassy in Tehran on November 4, 
1979, or the subsequent holding of United States hostages for 444 days;
            (3) the extent to which the International Atomic Energy 
        Agency has established regular inspections of all nuclear 
        facilities in Iran, including those presently under 
        construction; and
            (4) Iran's use of Iranian diplomats and representatives of 
        other government and military or quasi-governmental 
        institutions of Iran to promote acts of international terrorism 
        or to develop or sustain Iran's nuclear, chemical, biological, 
        and missile weapons programs.
    (b) Other Reports.--The President shall ensure the continued 
transmittal to the Congress of reports describing--
            (1) the nuclear and other military capabilities of Iran, as 
        required by section 601(a) of the Nuclear Non-Proliferation Act 
        of 1978 and section 1607 of the National Defense Authorization 
        Act for Fiscal Year 1993; and
            (2) the support provided by Iran for acts of international 
        terrorism, as part of the Department of State's annual report 
        on international terrorism.

SEC. 11. DETERMINATIONS NOT REVIEWABLE.

    A determination to impose sanctions under this Act shall not be 
reviewable in any court.

SEC. 12. EXCLUSION OF CERTAIN ACTIVITIES.

    Nothing in this Act shall apply to any activities subject to the 
reporting requirements of title V of the National Security Act of 1947.

SEC. 13. EFFECTIVE DATE; SUNSET.

    (a) Effective Date.--This Act shall take effect on the date of the 
enactment of this Act.
    (b) Sunset.--This Act shall cease to be effective on the date that 
is 5 years after the date of the enactment of this Act.

SEC. 14. DEFINITIONS.

    As used in this Act:
            (1) Act of international terrorism.--The term ``act of 
        international terrorism'' means an act--
                    (A) which is violent or dangerous to human life and 
                that is a violation of the criminal laws of the United 
                States or of any State or that would be a criminal 
                violation if committed within the jurisdiction of the 
                United States or any State; and
                    (B) which appears to be intended--
                            (i) to intimidate or coerce a civilian 
                        population;
                            (ii) to influence the policy of a 
                        government by intimidation or coercion; or
                            (iii) to affect the conduct of a government 
                        by assassination or kidnapping.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Finance, the Committee on Banking, Housing, and Urban Affairs, 
        and the Committee on Foreign Relations of the Senate and the 
        Committee on Ways and Means, the Committee on Banking and 
        Financial Services, and the Committee on International 
        Relations of the House of Representatives.
            (3) Component part.--The term ``component part'' has the 
        meaning given that term in section 11A(e)(1) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2410a(e)(1)).
            (4) Develop and development.--To ``develop'', or the 
        ``development'' of, petroleum resources means the exploration 
        for, or the extraction, refining, or transportation by pipeline 
        of, petroleum resources.
            (5) Financial institution.--The term ``financial 
        institution'' includes--
                    (A) a depository institution (as defined in section 
                3(c)(1) of the Federal Deposit Insurance Act), 
                including a branch or agency of a foreign bank (as 
                defined in section 1(b)(7) of the International Banking 
                Act of 1978);
                    (B) a credit union;
                    (C) a securities firm, including a broker or 
                dealer;
                    (D) an insurance company, including an agency or 
                underwriter; and
                    (E) any other company that provides financial 
                services.
            (6) Finished product.--The term ``finished product'' has 
        the meaning given that term in section 11A(e)(2) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2410a(e)(2)).
            (7) Foreign person.--The term ``foreign person'' means--
                    (A) an individual who is not a United States person 
                or an alien lawfully admitted for permanent residence 
                into the United States; or
                    (B) a corporation, partnership, or other 
                nongovernmental entity which is not a United States 
                person.
            (8) Goods and technology.--The terms ``goods'' and 
        ``technology'' have the meanings given those terms in section 
16 of the Export Administration Act of 1979 (50 U.S.C. app. 2415).
            (9) Investment.--The term ``investment'' means any of the 
        following activities if such activity is undertaken pursuant to 
        an agreement, or pursuant to the exercise of rights under such 
        an agreement, that is entered into with the Government of Iran 
        or a nongovenmental entity in Iran, or with the Government of 
        Libya or a nongovernmental entity in Libya, on or after the 
        date of the enactment of this Act:
                    (A) The entry into a contract that includes 
                responsibility for the development of petroleum 
                resources located in Iran or Libya (as the case may 
                be), or the entry into a contract providing for the 
                general supervision and guarantee of another person's 
                performance of such a contract.
                    (B) The purchase of a share of ownership, including 
                an equity interest, in that development.
                    (C) The entry into a contract providing for the 
                participation in royalties, earnings, or profits in 
                that development, without regard to the form of the 
                participation.
        The term ``investment'' does not include the entry into, 
        performance, or financing of a contract to sell or purchase 
        goods, services, or technology.
            (10) Iran.--The term ``Iran'' includes any agency or 
        instrumentality of Iran.
            (11) Iranian diplomats and representatives of other 
        government and military or quasi-governmental institutions of 
        iran.--The term ``Iranian diplomats and representatives of 
        other government and military or quasi-governmental 
        institutions of Iran'' includes employees, representatives, or 
        affiliates of Iran's--
                    (A) Foreign Ministry;
                    (B) Ministry of Intelligence and Security;
                    (C) Revolutionary Guard Corps;
                    (D) Crusade for Reconstruction;
                    (E) Qods (Jerusalem) Forces;
                    (F) Interior Ministry;
                    (G) Foundation for the Oppressed and Disabled;
                    (H) Prophet's Foundation;
                    (I) June 5th Foundation;
                    (J) Martyr's Foundation;
                    (K) Islamic Propagation Organization; and
                    (L) Ministry of Islamic Guidance.
            (12) Libya.--The term ``Libya'' includes any agency or 
        instrumentality of Libya.
            (13) Nuclear explosive device.--The term ``nuclear 
        explosive device'' means any device, whether assembled or 
        disassembled, that is designed to produce an instantaneous 
        release of an amount of nuclear energy from special nuclear 
        material (as defined in section 11aa. of the Atomic Energy Act 
        of 1954) that is greater than the amount of energy that would 
        be released from the detonation of one pound of trinitrotoluene 
        (TNT).
            (14) Person.--The term ``person'' means--
                    (A) a natural person;
                    (B) a corporation, business association, 
                partnership, society, trust, any other nongovernmental 
                entity, organization, or group, and any governmental 
                entity operating as a business enterprise; and
                    (C) any successor to any entity described in 
                subparagraph (B).
            (15) Petroleum resources.--The term ``petroleum resources'' 
        includes petroleum and natural gas resources.
            (16) United states or state.--The term ``United States'' or 
        ``State'' means the several States, the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Mariana Islands, American Samoa, Guam, the United 
        States Virgin Islands, and any other territory or possession of 
        the United States.
            (17) United states person.--The term ``United States 
        person'' means--
                    (A) a natural person who is a citizen of the United 
                States or who owes permanent allegiance to the United 
                States; and
                    (B) a corporation or other legal entity which is 
                organized under the laws of the United States, any 
                State or territory thereof, or the District of 
                Columbia, if natural persons described in subparagraph 
                (A) own, directly or indirectly, more than 50 percent 
                of the outstanding capital stock or other beneficial 
                interest in such legal entity.
            Amend the title so as to read: ``A bill 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.''.
```