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

purposes.by pipeline petroleum resources, and for otherability to explore for, extract, refine, or transportgoods or technology that would enhance Iran’s

JUNE 14, 1996

Reported from the Committee on Ways and Means with

to be printedWhole House on the State of the Union, and orderedamendments, committed to the Committee of the
IB

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
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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. ROSLEHTINEN, 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.
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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.

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 Oil Sanctions Act

5 of 1996’’.

6 SEC. 2. FINDINGS.

7 The Congress makes the following findings:

8 (1) The efforts of the Government of Iran to ac9 quire weapons of mass destruction and the means to

10 deliver them and its support of international terror11 ism endanger potentially the national security and
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1 foreign policy interests of the United States and those

2 countries with which the United States shares com3 mon strategic and foreign policy objectives.

4 (2) The objective of preventing the proliferation

5 of weapons of mass destruction and international ter6 rorism through existing multilateral and bilateral

7 initiatives requires additional efforts to deny Iran the

8 financial means to sustain its nuclear, chemical, bio9 logical, and missile weapons programs.

10 (3) The Government of Iran uses its diplomatic

11 facilities and quasi-governmental institutions outside

12 of Iran to promote acts of international terrorism and

13 assist its nuclear, chemical, biological, and missile

14 weapons programs.

15 SEC. 3. DECLARATION OF POLICY.

16 The Congress declares that it is the policy of the United

17 States to deny Iran the ability to support international ter18 rorism and to fund the development and acquisition of

19 weapons of mass destruction and the means to deliver them

20 by limiting the development of Iran’s ability to explore for,

21 extract, refine, or transport by pipeline petroleum resources

22 of Iran.

23 SEC. 4. IMPOSITION OF SANCTIONS.

24 (a) IN GENERAL.—Except as provided in subsection

25 (d), the President shall impose 2 or more of the sanctions
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1 described in paragraphs (1) through (5) of section 5 if the

2 President determines that a person has, with actual knowl3 edge or reason to know, on or after the date of the enactment

4 of this Act—

5 (1) exported, transferred, or released to Iran, na6 tionals of Iran, or entities owned or controlled by

7 Iran or nationals of Iran any items included under

8 subparagraph (A) or (B) of section 9(a)(1) on the

9 List of Petroleum and Natural Gas-Related Goods

10 and Technology established under section 9 (in this

11 Act referred to as the ‘‘List’’) if the provision of such

12 items would significantly and materially enhance

13 Iran’s ability to develop petroleum resources of

14 Iran—

15 (A) whether or not the items are exported

16 from the United States; and

17 (B) whether or not the items are subject to

18 the jurisdiction of the United States; or

19 (2) made an investment of $40,000,000 or more

20 (or any combination of investments of at least

21 $10,000,000 each, which in the aggregate equals or ex22 ceeds $40,000,000 in any 12-month period), that di23 rectly contributed to the enhancement of Iran’s ability

24 to develop petroleum resources of Iran.
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1 (b) PERSONS AGAINST WHICH THE SANCTIONS ARE

2 TO BE IMPOSED.—The sanctions described in subsection

3 (a) shall be imposed on—

4 (1) any person the President determines has car5 ried out the activities described in subsection (a); and

6 (2) any person the President determines—

7 (A) is a successor entity to the person re8 ferred to in paragraph (1);

9 (B) is a wholly owned subsidiary of the per10 son referred to in paragraph (1);

11 (C) is any other subsidiary of the person re12 ferred to in paragraph (1) if that subsidiary,

13 with actual knowledge or reason to know, en14 gaged in the activities referred to in paragraph

15 (1);

16 (D) is a parent of the person referred to in

17 paragraph (1) if that parent had actual knowl18 edge or reason to know of the activities referred

19 to in paragraph (1); or

20 (E) is an affiliate of the person referred to

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

22 knowledge or reason to know, engaged in the ac23 tivities referred to in paragraph (1).
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1 For purposes of this Act, any person or entity described

2 in this subsection shall be referred to as a ‘‘sanctioned per3 son’’.

4 (c) PUBLICATION IN FEDERAL REGISTER.—The Presi5 dent shall cause to be published in the Federal Register a

6 current list of sanctioned persons. The removal of persons

7 from, and the addition of persons to, the list, shall also be

8 so published.

9 (d) EXCEPTIONS.—The President shall not be required

10 to apply or maintain the sanctions under subsection (a)—

11 (1) in the case of procurement of defense articles

12 or defense services—

13 (A) under existing contracts or subcontracts,

14 including the exercise of options for production

15 quantities to satisfy requirements essential to the

16 national security of the United States;

17 (B) if the President determines in writing

18 that the person to which the sanctions would oth19 erwise be applied is a sole source supplier of the

20 defense articles or services, that the defense arti21 cles or services are essential, and that alternative

22 sources are not readily or reasonably available;

23 or

24 (C) if the President determines in writing

25 that such articles or services are essential to the
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1 national security under defense coproduction

2 agreements;

3 (2) to products or services provided under con4 tracts entered into before the date on which the Presi5 dent publishes his intention to impose the sanctions;

6 (3) to—

7 (A) spare parts which are essential to Unit8 ed States products or production;

9 (B) component parts, but not finished prod10 ucts, essential to United States products or pro11 duction; or

12 (C) routine servicing and maintenance of

13 products, to the extent that alternative sources

14 are not readily or reasonably available;

15 (4) to information and technology essential to

16 United States products or production; or

17 (5) to medicines, medical supplies, or other hu18 manitarian items.

19 SEC. 5. DESCRIPTION OF SANCTIONS.

20 The sanctions to be imposed on a sanctioned person

21 under section 4(a) are as follows:

22 (1) EXPORT-IMPORT BANK ASSISTANCE FOR EX23 PORTS TO SANCTIONED PERSONS.—The President

24 shall direct the Export-Import Bank of the United

25 States not to guarantee, insure, extend credit, or par-
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1 ticipate in the extension of credit in connection with

2 the export of any goods or services to any sanctioned

3 person.

4 (2) TRADE SANCTION.—The President shall

5 both—

6 (A) order the United States Government not

7 to issue any specific license and not to grant any

8 other specific permission or authority to export

9 any goods or technology to a sanctioned person

10 under—

11 (i) the Export Administration Act of

12 1979;

13 (ii) the Arms Export Control Act;

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

15 (iv) any other statute that requires the

16 prior review and approval of the United

17 States Government as a condition for the

18 export or re-export of goods or services; and

19 (B) prohibit the importation into the Unit20 ed States of products produced by any sanc21 tioned person.

22 Subparagraph (B) includes application to the impor23 tation of any finished product or component part,

24 whether shipped directly by the sanctioned person or

25 by another entity.
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1 (3) LOANS FROM UNITED STATES FINANCIAL IN2 STITUTIONS.—The United States Government shall

3 prohibit any United States financial institution from

4 making loans or providing credits to any sanctioned

5 person totaling more than $10,000,000 in any 12-

6 month period unless such person is engaged in activi7 ties to relieve human suffering and the loans or cred8 its are provided for such activities.

9 (4) PROHIBITIONS ON FINANCIAL INSTITU10 TIONS.—The following prohibitions shall be imposed

11 against a sanctioned person that is a financial insti12 tution:

13 (A) DESIGNATION AS PRIMARY DEALER.—

14 Neither the Board of Governors of the Federal

15 Reserve System nor the Federal Reserve Bank of

16 New York may designate, or permit the continu17 ation of any prior designation of, such financial

18 institution as a primary dealer in United States

19 Government debt instruments.

20 (B) GOVERNMENT FUNDS.—Such financial

21 institution shall not serve as agent of the United

22 States Government or serve as repository for

23 United States Government funds.

24 (5) PROCUREMENT SANCTION.—The United

25 States Government shall not procure, or enter into
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1 any contract for the procurement of, any goods or

2 services from a sanctioned person.

3 SEC. 6. ADVISORY OPINIONS.

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

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

6 whether a proposed activity by that person would subject

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

8 relies in good faith on such an advisory opinion which

9 states that the proposed activity would not subject a person

10 to such sanctions, and any person who thereafter engages

11 in such activity, may not be made subject to such sanctions

12 on account of such activity.

13 SEC. 7. TERMINATION OF SANCTIONS.

14 (a) IN GENERAL.—The requirement under section 4 to

15 impose sanctions shall no longer have force or effect if the

16 President determines and certifies to the appropriate con17 gressional committees that Iran—

18 (1) has ceased its efforts to design, develop, man19 ufacture, or acquire—

20 (A) a nuclear explosive device or related

21 materials and technology;

22 (B) chemical and biological weapons; and

23 (C) ballistic missiles and ballistic missile

24 launch technology; and
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1 (2) has been removed from the list of countries

2 the governments of which have been determined, for

3 purposes of section 6(j) of the Export Administration

4 Act of 1979, to have repeatedly provided support for

5 acts of international terrorism.

6 (b) ADDITIONAL REQUIREMENT WITH RESPECT TO

7 LIBYA.—The requirement under section 4 to impose sanc8 tions shall no longer have force and effect with respect to

9 Libya only if the President, in addition to making the de10 termination required by subsection (a), determines and cer11 tifies to the appropriate congressional committees that

12 Libya has fulfilled the requirements of United Nations Se13 curity Council Resolution 731, adopted January 21, 1992.

14 SEC. 8. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.

15 (a) DELAY OF SANCTIONS.—

16 (1) CONSULTATIONS.—If the President makes a

17 determination described in section 4(a) with respect

18 to a foreign person, the Congress urges the President

19 to initiate consultations immediately with the govern20 ment with primary jurisdiction over that foreign per21 son with respect to the imposition of sanctions under

22 this Act.

23 (2) ACTIONS BY GOVERNMENT OF JURISDIC24 TION.—In order to pursue consultations under para25 graph (1) with the government concerned, the Presi-
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1 dent may delay imposition of sanctions under this

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

3 the President shall immediately impose sanctions un4 less the President determines and certifies to the Con5 gress that the government has taken specific and effec6 tive actions, including, as appropriate, the imposition

7 of appropriate penalties, to terminate the involvement

8 of the foreign person in the activities that resulted in

9 the determination by the President under section 4(a)

10 concerning such person.

11 (3) ADDITIONAL DELAY IN IMPOSITION OF SANC12 TIONS.—The President may delay the imposition of

13 sanctions for up to an additional 90 days if the

14 President determines and certifies to the Congress

15 that the government with primary jurisdiction over

16 the person concerned is in the process of taking the

17 actions described in paragraph (2).

18 (4) REPORT TO CONGRESS.—Not later than 45

19 days after making a determination under section

20 4(a), the President shall submit to the Committee on

21 Banking, Housing, and Urban Affairs of the Senate

22 and the Committee on International Relations of the

23 House of Representatives a report on the status of

24 consultations with the appropriate foreign govern-
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1 ment under this subsection, and the basis for any de2 termination under paragraph (3).

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

4 under section 4(a) shall remain in effect for a period of

5 not less than 2 years from the date on which it is imposed.

6 (c) PRESIDENTIAL WAIVER.—

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

8 requirement in section 4(a) to impose a sanction or

9 sanctions on a person described in section 4(b), and

10 may waive the continued imposition of a sanction or

11 sanctions under subsection (b) of this section, 30 days

12 or more after the President determines and so reports

13 to the Committee on Banking, Housing, and Urban

14 Affairs of the Senate and the Committee on Inter15 national Relations of the House of Representatives

16 that it is important to the national interest of the

17 United States to exercise such waiver authority.

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

19 paragraph (1) shall provide a specific and detailed

20 rationale for the determination under paragraph (1),

21 including—

22 (A) a description of the conduct that re23 sulted in the determination;

24 (B) in the case of a foreign person, an ex25 planation of the efforts to secure the cooperation
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1 of the government with primary jurisdiction over

2 the sanctioned person to terminate or, as appro3 priate, penalize the activities that resulted in the

4 determination;

5 (C) an estimate as to the significance of the

6 provision of the items described in section

7 4(a)(1) or the investment described in section

8 4(a)(2), as the case may be, to Iran’s ability to

9 develop its petroleum resources; and

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

11 United States in the event that the person con12 cerned engages in other activities that would be

13 subject to section 4(a).

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

15 President makes a report under paragraph (1) with

16 respect to a waiver of sanctions on a person described

17 in section 4(b), sanctions need not be imposed under

18 section 4(a) on that person during the 30-day period

19 referred to in paragraph (1).

20 SEC. 9. GOODS AND TECHNOLOGY SUBJECT TO EXPORT

21 CONTROL RESTRICTIONS.

22 (a) CONTROL LIST.—

23 (1) CONTENTS OF LIST.—For purposes of the de24 terminations to be made under section 4(a), the Presi25 dent, in consultation with the Secretary of State, the
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1 Secretary of Energy, and the heads of other appro2 priate departments and agencies, shall establish and

3 maintain the List of Petroleum and Natural Gas-Re4 lated Goods and Technology. The List shall consist

5 of—

6 (A) all items listed in the Annex to Resolu7 tion 883 of the Security Council of the United

8 Nations, adopted November 11, 1993, and all

9 types of equipment, supplies, and grants of li10 censes prohibited by paragraph 5 of that resolu11 tion; and

12 (B) any other goods or technology (includ13 ing software and technical data) that the Presi14 dent determines could significantly or materially

15 contribute to Iran’s ability to develop its petro16 leum resources, including goods and technology

17 that are required for the development, produc18 tion, or use of facilities (including the repair,

19 maintenance, or operation of equipment) for the

20 development of petroleum resources.

21 (2) PUBLICATION.—The President, within 60

22 days after the date of the enactment of this Act, shall

23 cause the List to be published in the Federal Register,

24 together with any regulations issued with respect

25 thereto. Thereafter, any revisions to the List or
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1 amendments to the regulations shall be published in

2 the same manner.

3 (3) ADVANCE NOTICE TO CONGRESS.—Not less

4 than 30 days in advance of the publication of the

5 List, it shall be provided to the Committee on Bank6 ing, Housing, and Urban Affairs of the Senate and

7 to the Committee on International Relations of the

8 House of Representatives. The President shall consult

9 with each such Committee regarding the content of the

10 List and shall respond to questions regarding the

11 basis for the inclusion on, or exclusion from, the List

12 of specified items.

13 (b) STATUTORY CONSTRUCTION.—Nothing in this sec14 tion prevents the inclusion on the List of any items that

15 may be produced in and traded internationally by persons

16 or entities in countries other than the United States.

17 SEC. 10. REPORTS REQUIRED.

18 (a) REPORT ON CERTAIN INTERNATIONAL INITIA19 TIVES.—Not later than 6 months after the date of the enact20 ment of this Act, and every 6 months thereafter, the Presi21 dent shall transmit a report to the appropriate congres22 sional committees describing—

23 (1) the efforts of the President to mount a multi24 lateral campaign to persuade all countries to pressure

25 Iran to cease its nuclear, chemical, biological, and
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1 missile weapons programs and its support of inter2 national terrorism;

3 (2) the efforts of the President to persuade other

4 governments to ask Iran to reduce the presence of Ira5 nian diplomats and representatives of other govern6 ment and military or quasi-governmental institutions

7 of Iran and to withdraw any such diplomats or rep8 resentatives who participated in the takeover of the

9 United States embassy in Tehran on November 4,

10 1979, or the subsequent holding of United States hos11 tages for 444 days;

12 (3) the extent to which the International Atomic

13 Energy Agency has established regular inspections of

14 all nuclear facilities in Iran, including those pres15 ently under construction; and

16 (4) Iran’s use of Iranian diplomats and rep17 resentatives of other government and military or

18 quasi-governmental institutions of Iran to promote

19 acts of terrorism or to develop or sustain Iran’s nu20 clear, chemical, biological, and missile weapons pro21 grams.

22 (b) OTHER REPORTS.—The President shall ensure the

23 continued transmittal to the Congress of reports describ24 ing—
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1 (1) the nuclear and other military capabilities of

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

3 Non-Proliferation Act of 1978 and section 1607 of the

4 National Defense Authorization Act for Fiscal Year

5 1993; and

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

7 international terrorism, as part of the Department of

8 State’s annual report on international terrorism.

9 SEC. 11. APPLICATION OF THE ACT TO LIBYA.

10 (a) IN GENERAL.—The sanctions of this Act, including

11 the terms and conditions for the imposition, duration, and

12 termination of sanctions, shall apply to persons making in13 vestments with respect to the development of petroleum re14 sources of Libya, or exporting, transferring, or releasing of

15 certain items to Libya, nationals of Libya, or entities

16 owned or controlled by Libya, in the same manner as those

17 sanctions apply under this Act to persons making invest18 ments with respect to the development of petroleum re19 sources of Iran, or exporting, transferring, or releasing of

20 certain items to Iran, nationals of Iran, or entities owned

21 or controlled by Iran.

22 (b) APPLICATION OF SPECIFIC PROVISIONS.—In ap23 plying the provisions of this Act with respect to Libya

24 under subsection (a), each reference to ‘‘Iran’’ shall be

25 deemed to be a reference to ‘‘Libya’’.
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1 SEC. 12. DETERMINATIONS NOT REVIEWABLE.

2 A determination to impose sanctions under this Act

3 shall not be reviewable in any court.

4 SEC. 13. DEFINITIONS.

5 As used in this Act:

6 (1) ACT OF INTERNATIONAL TERRORISM.—The

7 term ‘‘act of international terrorism’’ means an act—

8 (A) which is violent or dangerous to human

9 life and that is a violation of the criminal laws

10 of the United States or of any State or that

11 would be a criminal violation if committed with12 in the jurisdiction of the United States or any

13 State; and

14 (B) which appears to be intended—

15 (i) to intimidate or coerce a civilian

16 population;

17 (ii) to influence the policy of a govern18 ment by intimidation or coercion; or

19 (iii) to affect the conduct of a govern20 ment by assassination or kidnapping.

21 (2) AFFILIATE.—For purposes of section 4(b), a

22 person is an ‘‘affiliate’’ of another person if more

23 than 50 percent of the outstanding capital stock of or

24 other beneficial interest in both persons is owned, di25 rectly or indirectly, by a third person or both persons

26 are otherwise controlled by a third person.
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1 (3) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘‘appropriate congressional commit3 tees’’ means the Committee on Banking, Housing, and

4 Urban Affairs and the Committee on Foreign Rela5 tions of the Senate and the Committee on Inter6 national Relations of the House of Representatives.

7 (4) COMPONENT PART.—The term ‘‘component

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

9 11A(e)(1) of the Export Administration Act of 1979

10 (50 U.S.C. App. 2410a(e)(1)).

11 (5) DEVELOP AND DEVELOPMENT.—To ‘‘de12 velop’’, or the ‘‘development’’ of, petroleum resources

13 means the exploration for, or the extraction, refining,

14 or transportation by pipeline of, petroleum resources.

15 (6) FINANCIAL INSTITUTION.—The term ‘‘finan16 cial institution’’ includes—

17 (A) a depository institution (as defined in

18 section 3(c)(1) of the Federal Deposit Insurance

19 Act), including a branch or agency of a foreign

20 bank (as defined in section 1(b)(7) of the Inter21 national Banking Act of 1978);

22 (B) a credit union;

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

24 dealer;
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1 (D) an insurance company, including an

2 agency or underwriter;

3 (E) any other company that provides finan4 cial services; and

5 (F) any subsidiary of an entity described in

6 any of subparagraphs (A) through (E).

7 (7) FINISHED PRODUCT.—The term ‘‘finished

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

9 11A(e)(2) of the Export Administration Act of 1979

10 (50 U.S.C. App. 2410a(e)(2)).

11 (8) FOREIGN PERSON.—The term ‘‘foreign per12 son’’ means—

13 (A) an individual who is not a United

14 States person or an alien lawfully admitted for

15 permanent residence into the United States; or

16 (B) a corporation, partnership, or other

17 nongovernment entity which is not a United

18 States person.

19 (9) GOODS AND TECHNOLOGY.—The terms

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

21 those terms in section 16 of the Export Administra22 tion Act of 1979 (50 U.S.C. app. 2415).

23 (10) INVESTMENT.—The term ‘‘investment’’

24 means—
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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 ther person’s performance of such a contract;

7 (B) the purchase of a share of ownership in

8 that development;

9 (C) the entry into a contract providing for

10 the participation in royalties, earnings, or prof11 its in that development, without regard to the

12 form of the participation; or

13 (D) the entry into or performance of—

14 (i) a contract for the financing of the

15 development of petroleum resources located

16 in Iran or Libya (as the case may be); or

17 (ii) a guaranty of another person’s

18 performance under such a contract.

19 (11) IRAN.—The term ‘‘Iran’’ includes any agen20 cy or instrumentality of Iran.

21 (12) IRANIAN DIPLOMATS AND REPRESENTATIVES

22 OF OTHER GOVERNMENT AND MILITARY OR QUASI23 GOVERNMENTAL INSTITUTIONS OF IRAN.—The term

24 ‘‘Iranian diplomats and representatives of other gov25 ernment and military or quasi-governmental institu-
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1 tions of Iran’’ includes employees, representatives, or

2 affiliates of Iran’s—

3 (A) Foreign Ministry;

4 (B) Ministry of Intelligence and Security;

5 (C) Revolutionary Guard Corps;

6 (D) Crusade for Reconstruction;

7 (E) Qods (Jerusalem) Forces;

8 (F) Interior Ministry;

9 (G) Foundation for the Oppressed and Dis10 abled;

11 (H) Prophet’s Foundation;

12 (I) June 5th Foundation;

13 (J) Martyr’s Foundation;

14 (K) Islamic Propagation Organization; and

15 (L) Ministry of Islamic Guidance.

16 (13) LIBYA.—The term ‘‘Libya’’ includes any

17 agency or instrumentality of Libya.

18 (14) NUCLEAR EXPLOSIVE DEVICE.—The term

19 ‘‘nuclear explosive device’’ means any device, whether

20 assembled or disassembled, that is designed to produce

21 an instantaneous release of an amount of nuclear en22 ergy from special nuclear material (as defined in sec23 tion 11aa. of the Atomic Energy Act of 1954) that is

24 greater than the amount of energy that would be re-
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1 leased from the detonation of one pound of trinitro2 toluene (TNT).

3 (15) PARENT.—For purposes of section 4(b), a

4 person is a ‘‘parent’’ of another person if that person

5 owns, directly or indirectly, more than 50 percent of

6 the outstanding capital stock of or other beneficial in7 terest in that other person, or otherwise controls that

8 other person.

9 (16) PERSON.—The term ‘‘person’’ means—

10 (A) a natural person;

11 (B) a corporation, business association,

12 partnership, society, trust, any other nongovern13 mental entity, organization, or group, and any

14 governmental entity operating as a business en15 terprise; and

16 (C) any successor to any entity described in

17 subparagraph (B).

18 (17) PETROLEUM RESOURCES.—The term ‘‘pe19 troleum resources’’ includes petroleum and natural

20 gas resources.

21 (18) SUBSIDIARY.—(A) For purposes of section

22 4(b), and subject to subparagraph (B), a person is a

23 ‘‘subsidiary’’ of another person if that other person

24 owns, directly or indirectly, more than 50 percent of

25 the outstanding capital stock of or other beneficial in-
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1 terest in that person, or otherwise controls that per2 son.

3 (B) A person is a ‘‘wholly owned’’ subsidiary of

4 another person if that other person owns all of the

5 outstanding capital stock of or other beneficial inter6 ests in that person.

7 (19) UNITED STATES OR STATE.—The term

8 ‘‘United States’’ or ‘‘State’’ means the several States,

9 the District of Columbia, the Commonwealth of Puer10 to Rico, the Commonwealth of the Northern Mariana

11 Islands, American Samoa, Guam, the United States

12 Virgin Islands, and any other territory or possession

13 of the United States.

14 (20) UNITED STATES PERSON.—The term ‘‘Unit15 ed States person’’ means—

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

17 United States or who owes permanent allegiance

18 to the United States; and

19 (B) a corporation or other legal entity

20 which is organized under the laws of the United

21 States, any State or territory thereof, or the Dis22 trict of Columbia, if natural persons described in

23 subparagraph (A) own, directly or indirectly,

24 more than 50 percent of the outstanding capital
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1 stock or other beneficial interest in such legal

2 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.’’.

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Iran and

5 Libya Sanctions Act of 1996’’.

6 SEC. 2. FINDINGS.

7 The Congress makes the following find8 ings:

9 (1) The efforts of the Government of

10 Iran to acquire weapons of mass destruc11 tion and the means to deliver them and

12 its support of acts of international terror13 ism endanger the national security and

14 foreign policy interests of the United

15 States and those countries with which

16 the United States shares common strate17 gic and foreign policy objectives.

18 (2) The objective of preventing the

19 proliferation of weapons of mass destruc20 tion and acts of international terrorism

21 through existing multilateral and bilat-
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1 eral initiatives requires additional efforts

2 to deny Iran the financial means to sus3 tain its nuclear, chemical, biological, and

4 missile weapons programs.

5 (3) The Government of Iran uses its

6 diplomatic facilities and quasi-govern7 mental institutions outside of Iran to pro8 mote acts of international terrorism and

9 assist its nuclear, chemical, biological,

10 and missile weapons programs.

11 (4) The failure of the Government of

12 Libya to comply with Resolutions 731,

13 748, and 883 of the Security Council of

14 the United Nations, its support of inter15 national terrorism, and its efforts to ac16 quire weapons of mass destruction con17 stitute a threat to international peace

18 and security that endangers the national

19 security and foreign policy interests of

20 the United States and those countries

21 with which it shares common strategic

22 and foreign policy objectives.

23 SEC. 3. DECLARATION OF POLICY.

24 (a) POLICY WITH RESPECT TO IRAN.—The

25 Congress declares that it is the policy of the
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1 United States to deny Iran the ability to sup2 port acts of international terrorism and to

3 fund the development and acquisition of

4 weapons of mass destruction and the means

5 to deliver them by limiting the development

6 of Iran’s ability to explore for, extract, refine,

7 or transport by pipeline petroleum resources

8 of Iran.

9 (b) POLICY WITH RESPECT TO LIBYA.—The

10 Congress further declares that it is the policy

11 of the United States to seek full compliance by

12 Libya with its obligations under Resolutions

13 731, 748, and 883 of the Security Council of the

14 United Nations, including ending all support

15 for acts of international terrorism and efforts

16 to develop or acquire weapons of mass de17 struction.

18 SEC. 4. MULTILATERAL REGIME.

19 (a) MULTILATERAL NEGOTIATIONS.—In order

20 to further the objectives of section 3, the Con21 gress urges the President to commence imme22 diately diplomatic efforts, both in appropriate

23 international fora such as the United Nations,

24 and bilaterally with allies of the United

25 States, to establish a multilateral sanctions
30

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1 regime against Iran, including provisions lim2 iting the development of petroleum resources,

3 that will inhibit Iran’s efforts to carry out ac4 tivities described in section 2.

5 (b) REPORTS TO CONGRESS.—The President

6 shall report to the appropriate congressional

7 committees, not later than 1 year after the

8 date of the enactment of this Act, and periodi9 cally thereafter, on the extent that diplomatic

10 efforts described in subsection (a) have been

11 successful. Each report shall include—

12 (1) the countries that have agreed to

13 undertake measures to further the objec14 tives of section 3 with respect to Iran,

15 and a description of those measures; and

16 (2) the countries that have not agreed

17 to measures described in paragraph (1),

18 and, with respect to those countries,

19 other measures (in addition to that pro20 vided in subsection (d)) the President

21 recommends that the United States take

22 to further the objectives of section 3 with

23 respect to Iran.
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1 (c) WAIVER.—The President may waive the

2 application of section 5(a) with respect to na3 tionals of a country if—

4 (1) that country has agreed to under5 take substantial measures, including eco6 nomic sanctions, that will inhibit Iran’s

7 efforts to carry out activities described in

8 section 2 and information required by

9 subsection (b)(1) has been included in a

10 report submitted under subsection (b);

11 and

12 (2) the President, at least 30 days be13 fore the waiver takes effect, notifies the

14 appropriate congressional committees of

15 his intention to exercise the waiver.

16 (d) ENHANCED SANCTION.—

17 (1) SANCTION.—With respect to nation18 als of countries except those with respect

19 to which the President has exercised the

20 waiver authority of subsection (c), at any

21 time after the first report is required to

22 be submitted under subsection (b), sec23 tion 5(a) shall be applied by substituting

24 ‘‘$20,000,000’’ for ‘‘$40,000,000’’ each place
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1 it appears, and by substituting

2 ‘‘$5,000,000’’ for ‘‘$10,000,000’’.

3 (2) REPORT TO CONGRESS.—The Presi4 dent shall report to the appropriate con5 gressional committees any country with

6 respect to which paragraph (1) applies.

7 (e) INTERIM REPORT ON MULTILATERAL

8 SANCTIONS; MONITORING.—The President, not

9 later than 90 days after the date of the enact10 ment of this Act, shall report to the appro11 priate congressional committees on—

12 (1) whether the member states of the

13 European Union, the Republic of Korea,

14 Australia, Israel, or Japan have legisla15 tive or administrative standards provid16 ing for the imposition of trade sanctions

17 on persons or their affiliates doing busi18 ness or having investments in Iran or

19 Libya;

20 (2) the extent and duration of each in21 stance of the application of such sanc22 tions; and

23 (3) the disposition of any decision

24 with respect to such sanctions by the
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1 World Trade Organization or its prede2 cessor organization.

3 SEC. 5. IMPOSITION OF SANCTIONS.

4 (a) SANCTIONS WITH RESPECT TO IRAN.—Ex5 cept as provided in subsection (f), the Presi6 dent shall impose 2 or more of the sanctions

7 described in paragraphs (1) through (6) of sec8 tion 6 if the President determines that a per9 son has, with actual knowledge, on or after

10 the date of the enactment of this Act, made an

11 investment of $40,000,000 or more (or any

12 combination of investments of at least

13 $10,000,000 each, which in the aggregate

14 equals or exceeds $40,000,000 in any 12-month

15 period), that directly and significantly con16 tributed to the enhancement of Iran’s ability

17 to develop petroleum resources of Iran.

18 (b) SANCTIONS WITH RESPECT TO LIBYA.—

19 (1) TRIGGER OF MANDATORY SANC20 TIONS.—Except as provided in subsection

21 (f), the President shall impose 2 or more

22 of the sanctions described in paragraphs

23 (1) through (6) of section 6 if the Presi24 dent determines that a person has, with

25 actual knowledge, on or after the date of
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1 the enactment of this Act, exported,

2 transferred, or otherwise provided to

3 Libya any goods, services, technology, or

4 other items the provision of which is pro5 hibited under paragraph 4(b) or 5 of Res6 olution 748 of the Security Council of the

7 United Nations, adopted March 31, 1992,

8 or under paragraph 5 or 6 of Resolution

9 883 of the Security Council of the United

10 Nations, adopted November 11, 1993, if

11 the provision of such items significantly

12 and materially—

13 (A) contributed to Libya’s ability

14 to acquire chemical, biological, or nu15 clear weapons or destabilizing num16 bers and types of advanced conven17 tional weapons or enhanced Libya’s

18 military or paramilitary capabilities;

19 (B) contributed to Libya’s ability

20 to develop its petroleum resources; or

21 (C) contributed to Libya’s ability

22 to maintain its aviation capabilities.

23 (2) TRIGGER OF DISCRETIONARY SANC24 TIONS.—Except as provided in subsection

25 (f), the President may impose 1 or more
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1 of the sanctions described in paragraphs

2 (1) through (6) of section 6 if the Presi3 dent determines that a person has, with

4 actual knowledge, on or after the date of

5 the enactment of this Act, made an in6 vestment of $40,000,000 or more (or any

7 combination of investments of at least

8 $10,000,000 each, which in the aggregate

9 equals or exceeds $40,000,000 in any 12-

10 month period), that directly and signifi11 cantly contributed to the enhancement of

12 Libya’s ability to develop its petroleum

13 resources.

14 (c) PERSONS AGAINST WHICH THE SANCTIONS

15 ARE TO BE IMPOSED.—The sanctions described

16 in subsections (a) and (b) shall be imposed

17 on—

18 (1) any person the President deter19 mines has carried out the activities de20 scribed in subsection (a) or (b); and

21 (2) any person the President deter22 mines—

23 (A) is a successor entity to the

24 person referred to in paragraph (1);
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1 (B) is a parent or subsidiary of

2 the person referred to in paragraph

3 (1) if that parent or subsidiary, with

4 actual knowledge, engaged in the ac5 tivities referred to in paragraph (1);

6 or

7 (C) is an affiliate of the person re8 ferred to in paragraph (1) if that affil9 iate, with actual knowledge, engaged

10 in the activities referred to in para11 graph (1) and if that affiliate is con12 trolled in fact by the person referred

13 to in paragraph (1).

14 For purposes of this Act, any person or entity

15 described in this subsection shall be referred

16 to as a ‘‘sanctioned person’’.

17 (d) PUBLICATION IN FEDERAL REGISTER.—

18 The President shall cause to be published in

19 the Federal Register a current list of persons

20 and entities on whom sanctions have been im21 posed under this Act. The removal of persons

22 or entities from, and the addition of persons

23 and entities to, the list, shall also be so pub24 lished.
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1 (e) PUBLICATION OF PROJECTS.—The Presi2 dent shall cause to be published in the Fed3 eral Register a list of all significant projects

4 which have been publicly tendered in the oil

5 and gas sector in Iran.

6 (f) EXCEPTIONS.—The President shall not

7 be required to apply or maintain the sanc8 tions under subsection (a) or (b)—

9 (1) in the case of procurement of de10 fense articles or defense services—

11 (A) under existing contracts or

12 subcontracts, including the exercise

13 of options for production quantities

14 to satisfy requirements essential to

15 the national security of the United

16 States;

17 (B) if the President determines in

18 writing that the person to which the

19 sanctions would otherwise be applied

20 is a sole source supplier of the de21 fense articles or services, that the de22 fense articles or services are essen23 tial, and that alternative sources are

24 not readily or reasonably available;

25 or
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1 (C) if the President determines in

2 writing that such articles or services

3 are essential to the national security

4 under defense coproduction agree5 ments;

6 (2) in the case of procurement, to eli7 gible products, as defined in section

8 308(4) of the Trade Agreements Act of

9 1979 (19 U.S.C. 2518(4)), of any foreign

10 country or instrumentality designated

11 under section 301(b)(1) of that Act (19

12 U.S.C. 2511(b)(1));

13 (3) to products, technology, or serv14 ices provided under contracts entered

15 into before the date on which the Presi16 dent publishes in the Federal Register

17 the name of the person on whom the

18 sanctions are to be imposed;

19 (4) to—

20 (A) spare parts which are essen21 tial to United States products or pro22 duction;

23 (B) component parts, but not fin24 ished products, essential to United

25 States products or production; or
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1 (C) routine servicing and mainte2 nance of products, to the extent that

3 alternative sources are not readily or

4 reasonably available;

5 (5) to information and technology es6 sential to United States products or pro7 duction; or

8 (6) to medicines, medical supplies, or

9 other humanitarian items.

10 SEC. 6. DESCRIPTION OF SANCTIONS.

11 The sanctions to be imposed on a sanc12 tioned person under section 5 are as follows:

13 (1) EXPORT-IMPORT BANK ASSISTANCE

14 FOR EXPORTS TO SANCTIONED PERSONS.—

15 The President may direct the Export-Im16 port Bank of the United States not to give

17 approval to the issuance of any guaran18 tee, insurance, extension of credit, or par19 ticipation in the extension of credit in

20 connection with the export of any goods

21 or services to any sanctioned person.

22 (2) EXPORT SANCTION.—The President

23 may order the United States Government

24 not to issue any specific license and not

25 to grant any other specific permission or
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1 authority to export any goods or tech2 nology to a sanctioned person under—

3 (i) the Export Administration Act

4 of 1979;

5 (ii) the Arms Export Control Act;

6 (iii) the Atomic Energy Act of

7 1954; or

8 (iv) any other statute that re9 quires the prior review and approval

10 of the United States Government as a

11 condition for the export or re-export

12 of goods or services.

13 (3) LOANS FROM UNITED STATES FINAN14 CIAL INSTITUTIONS.—The United States

15 Government may prohibit any United

16 States financial institution from making

17 loans or providing credits to any sanc18 tioned person totaling more than

19 $10,000,000 in any 12-month period unless

20 such person is engaged in activities to re21 lieve human suffering and the loans or

22 credits are provided for such activities.

23 (4) PROHIBITIONS ON FINANCIAL INSTI24 TUTIONS.—The following prohibitions may
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1 be imposed against a sanctioned person

2 that is a financial institution:

3 (A) PROHIBITION ON DESIGNATION

4 AS PRIMARY DEALER.—Neither the

5 Board of Governors of the Federal

6 Reserve System nor the Federal Re7 serve Bank of New York may des8 ignate, or permit the continuation of

9 any prior designation of, such finan10 cial institution as a primary dealer in

11 United States Government debt in12 struments.

13 (B) PROHIBITION ON SERVICE AS A

14 REPOSITORY OF GOVERNMENT FUNDS.—

15 Such financial institution may not

16 serve as agent of the United States

17 Government or serve as repository

18 for United States Government funds.

19 The imposition of either sanction under

20 subparagraph (A) or (B) shall be treated

21 as 1 sanction for purposes of section 5,

22 and the imposition of both such sanctions

23 shall be treated as 2 sanctions for pur24 poses of section 5.
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1 (5) PROCUREMENT SANCTION.—The

2 United States Government may not pro3 cure, or enter into any contract for the

4 procurement of, any goods or services

5 from a sanctioned person.

6 (6) ADDITIONAL SANCTIONS.—The Presi7 dent may impose sanctions, as appro8 priate, to restrict imports with respect to

9 a sanctioned person, in accordance with

10 the International Emergency Economic

11 Powers Act (50 U.S.C. 1701 and follow12 ing).

13 SEC. 7. ADVISORY OPINIONS.

14 The Secretary of State may, upon the re15 quest of any person, issue an advisory opinion

16 to that person as to whether a proposed activ17 ity by that person would subject that person

18 to sanctions under this Act. Any person who

19 relies in good faith on such an advisory opin20 ion which states that the proposed activity

21 would not subject a person to such sanctions,

22 and any person who thereafter engages in

23 such activity, will not be made subject to such

24 sanctions on account of such activity.
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1 SEC. 8. TERMINATION OF SANCTIONS.

2 (a) IRAN.—The requirement under section

3 5(a) to impose sanctions shall no longer have

4 force or effect with respect to Iran if the

5 President determines and certifies to the ap6 propriate congressional committees that

7 Iran—

8 (1) has ceased its efforts to design, de9 velop, manufacture, or acquire—

10 (A) a nuclear explosive device or

11 related materials and technology;

12 (B) chemical and biological weap13 ons; and

14 (C) ballistic missiles and ballistic

15 missile launch technology; and

16 (2) has been removed from the list of

17 countries the governments of which have

18 been determined, for purposes of section

19 6(j) of the Export Administration Act of

20 1979, to have repeatedly provided sup21 port for acts of international terrorism.

22 (b) LIBYA.—The requirement under sec23 tion 5(b) to impose sanctions shall no longer

24 have force or effect with respect to Libya if

25 the President determines and certifies to the

26 appropriate congressional committees that
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1 Libya has fulfilled the requirements of United

2 Nations Security Council Resolution 731,

3 adopted January 21, 1992, United Nations Se4 curity Council Resolution 748, adopted March

5 31, 1992, and United Nations Security Council

6 Resolution 883, adopted November 11, 1993.

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

8 (a) DELAY OF SANCTIONS.—

9 (1) CONSULTATIONS.—If the President

10 makes a determination described in sec11 tion 5(a) or 5(b) with respect to a foreign

12 person, the Congress urges the President

13 to initiate consultations immediately

14 with the government with primary juris15 diction over that foreign person with re16 spect to the imposition of sanctions

17 under this Act.

18 (2) ACTIONS BY GOVERNMENT OF JURIS19 DICTION.—In order to pursue consulta20 tions under paragraph (1) with the gov21 ernment concerned, the President may

22 delay imposition of sanctions under this

23 Act for up to 90 days. Following such con24 sultations, the President shall imme25 diately impose sanctions unless the Presi-
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1 dent determines and certifies to the Con2 gress that the government has taken spe3 cific and effective actions, including, as

4 appropriate, the imposition of appro5 priate penalties, to terminate the involve6 ment of the foreign person in the activi7 ties that resulted in the determination by

8 the President under section 5(a) or 5(b)

9 concerning such person.

10 (3) ADDITIONAL DELAY IN IMPOSITION OF

11 SANCTIONS.—The President may delay the

12 imposition of sanctions for up to an addi13 tional 90 days if the President determines

14 and certifies to the Congress that the

15 government with primary jurisdiction

16 over the person concerned is in the proc17 ess of taking the actions described in

18 paragraph (2).

19 (4) REPORT TO CONGRESS.—Not later

20 than 90 days after making a determina21 tion under section 5(a) or 5(b), the Presi22 dent shall submit to the appropriate con23 gressional committees a report on the

24 status of consultations with the appro25 priate foreign government under this
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1 subsection, and the basis for any deter2 mination under paragraph (3).

3 (b) DURATION OF SANCTIONS.—A sanction

4 imposed under section 5 shall remain in ef5 fect—

6 (1) for a period of not less than 2

7 years from the date on which it is im8 posed; or

9 (2) until such time as the President

10 determines and certifies to the Congress

11 that the person whose activities were the

12 basis for imposing the sanction is no

13 longer engaging in such activities and

14 that the President has received reliable

15 assurances that such person will not

16 knowingly engage in such activities in

17 the future, except that such sanction

18 shall remain in effect for a period of at

19 least 1 year.

20 (c) PRESIDENTIAL WAIVER.—

21 (1) AUTHORITY.—The President may

22 waive the requirement in section 5 to im23 pose a sanction or sanctions on a person

24 described in section 5(c), and may waive

25 the continued imposition of a sanction or
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1 sanctions under subsection (b) of this sec2 tion, 30 days or more after the President

3 determines and so reports to the appro4 priate congressional committees that it is

5 important to the national interest of the

6 United States to exercise such waiver au7 thority.

8 (2) CONTENTS OF REPORT.—Any report

9 under paragraph (1) shall provide a spe10 cific and detailed rationale for the deter11 mination under paragraph (1), includ12 ing—

13 (A) a description of the conduct

14 that resulted in the determination

15 under section 5(a) or (b), as the case

16 may be;

17 (B) in the case of a foreign per18 son, an explanation of the efforts to

19 secure the cooperation of the govern20 ment with primary jurisdiction over

21 the sanctioned person to terminate

22 or, as appropriate, penalize the ac23 tivities that resulted in the deter24 mination under section 5(a) or (b), as

25 the case may be;
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1 (C) an estimate as to the signifi2 cance—

3 (i) of the provision of the

4 items described in section 5(a) to

5 Iran’s ability to develop its petro6 leum resources, or

7 (ii) of the provision of the

8 items described in section 5(b)(1)

9 to the abilities of Libya described

10 in subparagraph (A), (B), or (C) of

11 section 5(b)(1), or of the invest12 ment described in section 5(b)(2)

13 on Libya’s ability to develop its

14 petroleum resources,

15 as the case may be; and

16 (D) a statement as to the response

17 of the United States in the event that

18 the person concerned engages in

19 other activities that would be subject

20 to section 5(a) or (b).

21 (3) EFFECT OF REPORT ON WAIVER.—If

22 the President makes a report under para23 graph (1) with respect to a waiver of

24 sanctions on a person described in sec25 tion 5(c), sanctions need not be imposed
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1 under section 5(a) or (b) on that person

2 during the 30-day period referred to in

3 paragraph (1).

4 SEC. 10. REPORTS REQUIRED.

5 (a) REPORT ON CERTAIN INTERNATIONAL INI6 TIATIVES.—Not later than 6 months after the

7 date of the enactment of this Act, and every

8 6 months thereafter, the President shall trans9 mit a report to the appropriate congressional

10 committees describing—

11 (1) the efforts of the President to

12 mount a multilateral campaign to per13 suade all countries to pressure Iran to

14 cease its nuclear, chemical, biological,

15 and missile weapons programs and its

16 support of acts of international terror17 ism;

18 (2) the efforts of the President to per19 suade other governments to ask Iran to

20 reduce the presence of Iranian diplomats

21 and representatives of other government

22 and military or quasi-governmental insti23 tutions of Iran and to withdraw any such

24 diplomats or representatives who partici25 pated in the takeover of the United
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1 States embassy in Tehran on November 4,

2 1979, or the subsequent holding of United

3 States hostages for 444 days;

4 (3) the extent to which the Inter5 national Atomic Energy Agency has es6 tablished regular inspections of all nu7 clear facilities in Iran, including those

8 presently under construction; and

9 (4) Iran’s use of Iranian diplomats

10 and representatives of other government

11 and military or quasi-governmental insti12 tutions of Iran to promote acts of inter13 national terrorism or to develop or sus14 tain Iran’s nuclear, chemical, biological,

15 and missile weapons programs.

16 (b) OTHER REPORTS.—The President shall

17 ensure the continued transmittal to the Con18 gress of reports describing—

19 (1) the nuclear and other military ca20 pabilities of Iran, as required by section

21 601(a) of the Nuclear Non-Proliferation

22 Act of 1978 and section 1607 of the Na23 tional Defense Authorization Act for Fis24 cal Year 1993; and
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1 (2) the support provided by Iran for

2 acts of international terrorism, as part of

3 the Department of State’s annual report

4 on international terrorism.

5 SEC. 11. DETERMINATIONS NOT REVIEWABLE.

6 A determination to impose sanctions

7 under this Act shall not be reviewable in any

8 court.

9 SEC. 12. EXCLUSION OF CERTAIN ACTIVITIES.

10 Nothing in this Act shall apply to any ac11 tivities subject to the reporting requirements

12 of title V of the National Security Act of 1947.

13 SEC. 13. EFFECTIVE DATE; SUNSET.

14 (a) EFFECTIVE DATE.—This Act shall take

15 effect on the date of the enactment of this Act.

16 (b) SUNSET.—This Act shall cease to be ef17 fective on the date that is 5 years after the

18 date of the enactment of this Act.

19 SEC. 14. DEFINITIONS.

20 As used in this Act:

21 (1) ACT OF INTERNATIONAL TERROR22 ISM.—The term ‘‘act of international ter23 rorism’’ means an act—

24 (A) which is violent or dangerous

25 to human life and that is a violation
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1 of the criminal laws of the United

2 States or of any State or that would

3 be a criminal violation if committed

4 within the jurisdiction of the United

5 States or any State; and

6 (B) which appears to be in7 tended—

8 (i) to intimidate or coerce a

9 civilian population;

10 (ii) to influence the policy of a

11 government by intimidation or

12 coercion; or

13 (iii) to affect the conduct of a

14 government by assassination or

15 kidnapping.

16 (2) APPROPRIATE CONGRESSIONAL COM17 MITTEES.—The term ‘‘appropriate congres18 sional committees’’ means the Committee

19 on Finance, the Committee on Banking,

20 Housing, and Urban Affairs, and the Com21 mittee on Foreign Relations of the Senate

22 and the Committee on Ways and Means,

23 the Committee on Banking and Financial

24 Services, and the Committee on Inter-
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1 national Relations of the House of Rep2 resentatives.

3 (3) COMPONENT PART.—The term ‘‘com4 ponent part’’ has the meaning given that

5 term in section 11A(e)(1) of the Export

6 Administration Act of 1979 (50 U.S.C. App.

7 2410a(e)(1)).

8 (4) DEVELOP AND DEVELOPMENT.—To

9 ‘‘develop’’, or the ‘‘development’’ of, petro10 leum resources means the exploration

11 for, or the extraction, refining, or trans12 portation by pipeline of, petroleum re13 sources.

14 (5) FINANCIAL INSTITUTION.—The term

15 ‘‘financial institution’’ includes—

16 (A) a depository institution (as de17 fined in section 3(c)(1) of the Federal

18 Deposit Insurance Act), including a

19 branch or agency of a foreign bank

20 (as defined in section 1(b)(7) of the

21 International Banking Act of 1978);

22 (B) a credit union;

23 (C) a securities firm, including a

24 broker or dealer;
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1 (D) an insurance company, in2 cluding an agency or underwriter;

3 and

4 (E) any other company that pro5 vides financial services.

6 (6) FINISHED PRODUCT.—The term ‘‘fin7 ished product’’ has the meaning given

8 that term in section 11A(e)(2) of the Ex9 port Administration Act of 1979 (50 U.S.C.

10 App. 2410a(e)(2)).

11 (7) FOREIGN PERSON.—The term ‘‘for12 eign person’’ means—

13 (A) an individual who is not a

14 United States person or an alien law15 fully admitted for permanent resi16 dence into the United States; or

17 (B) a corporation, partnership, or

18 other nongovernmental entity which

19 is not a United States person.

20 (8) GOODS AND TECHNOLOGY.—The

21 terms ‘‘goods’’ and ‘‘technology’’ have the

22 meanings given those terms in section 16

23 of the Export Administration Act of 1979

24 (50 U.S.C. app. 2415).
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1 (9) INVESTMENT.—The term ‘‘invest2 ment’’ means any of the following activi3 ties if such activity is undertaken pursu4 ant to an agreement, or pursuant to the

5 exercise of rights under such an agree6 ment, that is entered into with the Gov7 ernment of Iran or a nongovenmental en8 tity in Iran, or with the Government of

9 Libya or a nongovernmental entity in

10 Libya, on or after the date of the enact11 ment of this Act:

12 (A) The entry into a contract that

13 includes responsibility for the devel14 opment of petroleum resources lo15 cated in Iran or Libya (as the case

16 may be), or the entry into a contract

17 providing for the general supervision

18 and guarantee of another person’s

19 performance of such a contract.

20 (B) The purchase of a share of

21 ownership, including an equity inter22 est, in that development.

23 (C) The entry into a contract pro24 viding for the participation in royal25 ties, earnings, or profits in that devel-
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1 opment, without regard to the form of

2 the participation.

3 The term ‘‘investment’’ does not include

4 the entry into, performance, or financing

5 of a contract to sell or purchase goods,

6 services, or technology.

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

8 any agency or instrumentality of Iran.

9 (11) IRANIAN DIPLOMATS AND REP10 RESENTATIVES OF OTHER GOVERNMENT AND

11 MILITARY OR QUASI-GOVERNMENTAL INSTITU12 TIONS OF IRAN.—The term ‘‘Iranian dip13 lomats and representatives of other gov14 ernment and military or quasi-govern15 mental institutions of Iran’’ includes em16 ployees, representatives, or affiliates of

17 Iran’s—

18 (A) Foreign Ministry;

19 (B) Ministry of Intelligence and

20 Security;

21 (C) Revolutionary Guard Corps;

22 (D) Crusade for Reconstruction;

23 (E) Qods (Jerusalem) Forces;

24 (F) Interior Ministry;
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1 (G) Foundation for the Oppressed

2 and Disabled;

3 (H) Prophet’s Foundation;

4 (I) June 5th Foundation;

5 (J) Martyr’s Foundation;

6 (K) Islamic Propagation Organiza7 tion; and

8 (L) Ministry of Islamic Guidance.

9 (12) LIBYA.—The term ‘‘Libya’’ in10 cludes any agency or instrumentality of

11 Libya.

12 (13) NUCLEAR EXPLOSIVE DEVICE.—The

13 term ‘‘nuclear explosive device’’ means

14 any device, whether assembled or dis15 assembled, that is designed to produce an

16 instantaneous release of an amount of

17 nuclear energy from special nuclear ma18 terial (as defined in section 11aa. of the

19 Atomic Energy Act of 1954) that is great20 er than the amount of energy that would

21 be released from the detonation of one

22 pound of trinitrotoluene (TNT).

23 (14) PERSON.—The term ‘‘person’’

24 means—

25 (A) a natural person;
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1 (B) a corporation, business asso2 ciation, partnership, society, trust,

3 any other nongovernmental entity,

4 organization, or group, and any gov5 ernmental entity operating as a busi6 ness enterprise; and

7 (C) any successor to any entity

8 described in subparagraph (B).

9 (15) PETROLEUM RESOURCES.—The

10 term ‘‘petroleum resources’’ includes pe11 troleum and natural gas resources.

12 (16) UNITED STATES OR STATE.—The

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

14 several States, the District of Columbia,

15 the Commonwealth of Puerto Rico, the

16 Commonwealth of the Northern Mariana

17 Islands, American Samoa, Guam, the

18 United States Virgin Islands, and any

19 other territory or possession of the Unit20 ed States.

21 (17) UNITED STATES PERSON.—The term

22 ‘‘United States person’’ means—

23 (A) a natural person who is a citi24 zen of the United States or who owes
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1 permanent allegiance to the United

2 States; and

3 (B) a corporation or other legal

4 entity which is organized under the

5 laws of the United States, any State

6 or territory thereof, or the District of

7 Columbia, if natural persons de8 scribed in subparagraph (A) own, di9 rectly or indirectly, more than 50 per10 cent of the outstanding capital stock

11 or other beneficial interest in such

12 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.’’.