In the Senate of the United States, 

March 11, 2010. 

Resolved, That the bill from the House of Representatives (H.R. 2194) entitled ‘‘An Act to amend the Iran Sanctions Act of 1996 to enhance United States diplomatic efforts 

with respect to Iran by expanding economic sanctions against 

Iran.’’, do pass with the following 

AMENDMENT: 

Strike all after the enacting clause and insert the 

following: 

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Comprehensive Iran Sanctions, Accountability, and Di4 vestment Act of 2009’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Sense of Congress regarding illicit nuclear activities and violations of 

human rights in Iran. 

TITLE I—SANCTIONS 

Sec. 101. Definitions. 
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Sec. 102. Expansion of sanctions under the Iran Sanctions Act of 1996. 

Sec. 103. Economic sanctions relating to Iran. 

Sec. 104. Liability of parent companies for violations of sanctions by foreign 

subsidiaries. 

Sec. 105. Prohibition on procurement contracts with persons that export sensitive technology to Iran. 

Sec. 106. Increased capacity for efforts to combat unlawful or terrorist financing. 

Sec. 107. Reporting requirements. 

Sec. 108. Sense of Congress regarding the imposition of sanctions on the Central Bank of Iran. 

Sec. 109. Policy of the United States regarding Iran’s Revolutionary Guard 

Corps and its affiliates. 

Sec. 110. Policy of the United States with respect to Iran and Hezbollah. 

Sec. 111. Sense of Congress regarding the imposition of multilateral sanctions 

with respect to Iran. 

TITLE II—DIVESTMENT FROM CERTAIN COMPANIES THAT INVEST 

IN IRAN 

Sec. 201. Definitions. 

Sec. 202. Authority of State and local governments to divest from certain companies that invest in Iran. 

Sec. 203. Safe harbor for changes of investment policies by asset managers. 

Sec. 204. Sense of Congress regarding certain ERISA plan investments. 

TITLE III—PREVENTION OF TRANSSHIPMENT, REEXPORTATION, 

OR DIVERSION OF SENSITIVE ITEMS TO IRAN 

Sec. 301. Definitions. 

Sec. 302. Identification of locations of concern with respect to transshipment, 

reexportation, or diversion of certain items to Iran. 

Sec. 303. Destinations of Possible Diversion Concern and Destinations of Diversion Concern. 

Sec. 304. Report on expanding diversion concern system to countries other than 

Iran. 

TITLE IV—EFFECTIVE DATE; SUNSET 

Sec. 401. Effective date; sunset. 

1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) The illicit nuclear activities of the Govern4 ment of Iran and its support for international ter5 rorism represent threats to the security of the 

6 United States, its strong ally Israel, and other allies 

7 of the United States around the world. 
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1 (2) The United States and other responsible 

2 countries have a vital interest in working together to 

3 prevent the Government of Iran from acquiring a 

4 nuclear weapons capability. 

5 (3) The International Atomic Energy Agency 

6 has repeatedly called attention to Iran’s illicit nu7 clear activities and, as a result, the United Nations 

8 Security Council has adopted a range of sanctions 

9 designed to encourage the Government of Iran to 

10 cease those activities and comply with its obligations 

11 under the Treaty on Non-Proliferation of Nuclear 

12 Weapons, done at Washington, London, and Moscow 

13 July 1, 1968, and entered into force March 5, 1970 

14 (commonly known as the ‘‘Nuclear Non-Proliferation 

15 Treaty’’). 

16 (4) The serious and urgent nature of the threat 

17 from Iran demands that the United States work to18 gether with its allies to prevent Iran from acquiring 

19 a nuclear weapons capability. 

20 (5) The United States and its major European 

21 allies, including the United Kingdom, France, and 

22 Germany, have advocated that sanctions be strength23 ened should international diplomatic efforts fail to 

24 achieve verifiable suspension of Iran’s uranium en-
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1 richment program and an end to its illicit nuclear 

2 activities. 

3 (6) There is an increasing interest by States, 

4 local governments, educational institutions, and pri5 vate institutions to seek to disassociate themselves 

6 from companies that conduct business activities in 

7 the energy sector of Iran, since such business activi8 ties may directly or indirectly support the efforts of 

9 the Government of Iran to achieve a nuclear weap10 ons capability. 

11 (7) Black market proliferation networks con12 tinue to flourish in the Middle East, allowing coun13 tries like Iran to gain access to sensitive dual-use 

14 technologies. 

15 (8) The Government of Iran continues to en16 gage in serious, systematic, and ongoing violations of 

17 human rights and religious freedom, including ille18 gitimate prolonged detention, torture, and execu19 tions. Such violations have increased in the after20 math of the presidential election in Iran on June 12, 

21 2009. 

22 SEC. 3. SENSE OF CONGRESS REGARDING ILLICIT NU23 CLEAR ACTIVITIES AND VIOLATIONS OF 

24 HUMAN RIGHTS IN IRAN. 

25 It is the sense of Congress that— 
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1 (1) international diplomatic efforts to address 

2 Iran’s illicit nuclear efforts and support for inter3 national terrorism are more likely to be effective if 

4 the President is empowered with the explicit author5 ity to impose additional sanctions on the Govern6 ment of Iran; 

7 (2) additional measures should be adopted by 

8 the United States to prevent the diversion and 

9 transshipment of sensitive dual-use technologies to 

10 Iran; 

11 (3) the concerns of the United States regarding 

12 Iran are strictly the result of the actions of the Gov13 ernment of Iran; 

14 (4) the people of the United States— 

15 (A) have a long history of friendship and 

16 exchange with the people of Iran; 

17 (B) regret that developments in recent dec18 ades have created impediments to that friend19 ship; 

20 (C) hold the people of Iran, their culture, 

21 and their ancient and rich history in the highest 

22 esteem; and 

23 (D) remain deeply concerned about con24 tinuing human rights abuses in Iran; 

25 (5) the President should— 
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1 (A) continue to press the Government of 

2 Iran to respect the internationally recognized 

3 human rights and religious freedoms of its citi4 zens; 

5 (B) identify the officials of the Government 

6 of Iran that are responsible for continuing and 

7 severe violations of human rights and religious 

8 freedom in Iran; and 

9 (C) take appropriate measures to respond 

10 to such violations, including by— 

11 (i) prohibiting officials the President 

12 identifies as being responsible for such vio13 lations from entry into the United States; 

14 and 

15 (ii) freezing the assets of those offi16 cials; and 

17 (6) additional funding should be provided to the 

18 Secretary of State to document, collect, and dissemi19 nate information about human rights abuses in Iran, 

20 including serious abuses that have taken place since 

21 the presidential election in Iran conducted on June 

22 12, 2009. 

23 TITLE I—SANCTIONS 

24 SEC. 101. DEFINITIONS. 

25 In this title: 
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1 (1) AGRICULTURAL COMMODITY.—The term 

2 ‘‘agricultural commodity’’ has the meaning given 

3 that term in section 102 of the Agricultural Trade 

4 Act of 1978 (7 U.S.C. 5602). 

5 (2) APPROPRIATE CONGRESSIONAL COMMIT6 TEES.—The term ‘‘appropriate congressional com7 mittees’’ has the meaning given that term in section 

8 14(2) of the Iran Sanctions Act of 1996 (Public 

9 Law 104–172; 50 U.S.C. 1701 note). 

10 (3) EXECUTIVE AGENCY.—The term ‘‘executive 

11 agency’’ has the meaning given that term in section 

12 4 of the Office of Federal Procurement Policy Act 

13 (41 U.S.C. 403). 

14 (4) FAMILY MEMBER.—The term ‘‘family mem15 ber’’ means, with respect to an individual, the 

16 spouse, children, grandchildren, or parents of the in17 dividual. 

18 (5) INFORMATION AND INFORMATIONAL MATE19 RIALS.—The term ‘‘information and informational 

20 materials’’ includes publications, films, posters, pho21 nograph records, photographs, microfilms, micro22 fiche, tapes, compact disks, CD ROMs, artworks, 

23 and news wire feeds. 

24 (6) INVESTMENT.—The term ‘‘investment’’ has 

25 the meaning given that term in section 14(9) of the 
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1 Iran Sanctions Act of 1996 (Public Law 104–172; 

2 50 U.S.C. 1701 note). 

3 (7) IRANIAN DIPLOMATS AND REPRESENTA4 TIVES OF OTHER GOVERNMENT AND MILITARY OR

5 QUASI-GOVERNMENTAL INSTITUTIONS OF IRAN.— 

6 The term ‘‘Iranian diplomats and representatives of 

7 other government and military or quasi-govern8 mental institutions of Iran’’ has the meaning given 

9 that term in section 14(11) of the Iran Sanctions 

10 Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 

11 note). 

12 (8) MEDICAL DEVICE.—The term ‘‘medical de13 vice’’ has the meaning given the term ‘‘device’’ in 

14 section 201 of the Federal Food, Drug, and Cos15 metic Act (21 U.S.C. 321). 

16 (9) MEDICINE.—The term ‘‘medicine’’ has the 

17 meaning given the term ‘‘drug’’ in section 201 of the 

18 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

19 321). 

20 SEC. 102. EXPANSION OF SANCTIONS UNDER THE IRAN 

21 SANCTIONS ACT OF 1996. 

22 (a) IN GENERAL.—Section 5 of the Iran Sanctions 

23 Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) 

24 is amended by striking subsection (a) and inserting the 

25 following: 
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1 ‘‘(a) SANCTIONS WITH RESPECT TO THE DEVELOP2 MENT OF PETROLEUM RESOURCES OF IRAN, PRODUC3 TION OF REFINED PETROLEUM PRODUCTS IN IRAN, AND

4 EXPORTATION OF REFINED PETROLEUM PRODUCTS TO

5 IRAN.— 

6 ‘‘(1) DEVELOPMENT OF PETROLEUM RE7 SOURCES OF IRAN.— 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subsection (f), the President shall impose 2 or 

10 more of the sanctions described in paragraphs 

11 (1) through (6) of section 6(a) with respect to 

12 a person if the President determines that the 

13 person, with actual knowledge, on or after the 

14 effective date of the Comprehensive Iran Sanc15 tions, Accountability, and Divestment Act of 

16 2009— 

17 ‘‘(i) makes an investment described in 

18 subparagraph (B) of $20,000,000 or more; 

19 or 

20 ‘‘(ii) makes a combination of invest21 ments described in subparagraph (B) in a 

22 12-month period if each such investment is 

23 at least $5,000,000 and such investments 

24 equal or exceed $20,000,000 in the aggre25 gate. 
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1 ‘‘(B) INVESTMENT DESCRIBED.—An in2 vestment described in this subparagraph is an 

3 investment that directly and significantly con4 tributes to the enhancement of Iran’s ability to 

5 develop petroleum resources. 

6 ‘‘(2) PRODUCTION OF REFINED PETROLEUM

7 PRODUCTS.— 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subsection (f), the President shall impose the 

10 sanctions described in section 6(b) (in addition 

11 to any other sanctions imposed under this sub12 section) with respect to a person if the Presi13 dent determines that the person, with actual 

14 knowledge, on or after the effective date of the 

15 Comprehensive Iran Sanctions, Accountability, 

16 and Divestment Act of 2009, sells, leases, or 

17 provides to Iran any goods, services, technology, 

18 information, or support described in subpara19 graph (B)— 

20 ‘‘(i) any of which has a fair market 

21 value of $200,000 or more; or 

22 ‘‘(ii) that, during a 12-month period, 

23 have an aggregate fair market value of 

24 $1,000,000 or more. 
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1 ‘‘(B) GOODS, SERVICES, TECHNOLOGY, IN2 FORMATION, OR SUPPORT DESCRIBED.—Goods, 

3 services, technology, information, or support de4 scribed in this subparagraph are goods, serv5 ices, technology, information, or support that 

6 could directly and significantly facilitate the 

7 maintenance or expansion of Iran’s domestic 

8 production of refined petroleum products, in9 cluding any assistance with respect to construc10 tion, modernization, or repair of petroleum re11 fineries. 

12 ‘‘(3) EXPORTATION OF REFINED PETROLEUM

13 PRODUCTS TO IRAN.— 

14 ‘‘(A) IN GENERAL.—Except as provided in 

15 subsection (f), the President shall impose the 

16 sanctions described in section 6(b) (in addition 

17 to any other sanctions imposed under this sub18 section) with respect to a person if the Presi19 dent determines that the person, with actual 

20 knowledge, on or after the effective date of the 

21 Comprehensive Iran Sanctions, Accountability, 

22 and Divestment Act of 2009— 

23 ‘‘(i) provides Iran with refined petro24 leum products— 
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1 ‘‘(I) that have a fair market 

2 value of $200,000 or more; or 

3 ‘‘(II) that, during a 12-month pe4 riod, have an aggregate fair market 

5 value of $1,000,000 or more; or 

6 ‘‘(ii) sells, leases, or provides to Iran 

7 any goods, services, technology, informa8 tion, or support described in subparagraph 

9 (B)— 

10 ‘‘(I) any of which has a fair mar11 ket value of $200,000 or more; or 

12 ‘‘(II) that, during a 12-month pe13 riod, have an aggregate fair market 

14 value of $1,000,000 or more. 

15 ‘‘(B) GOODS, SERVICES, TECHNOLOGY, IN16 FORMATION, OR SUPPORT DESCRIBED.—Goods, 

17 services, technology, information, or support de18 scribed in this subparagraph are goods, serv19 ices, technology, or support that could directly 

20 and significantly contribute to the enhancement 

21 of Iran’s ability to import refined petroleum 

22 products, including— 

23 ‘‘(i) underwriting or otherwise pro24 viding insurance or reinsurance for the 

25 sale, lease, or provision of such goods, 
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1 services, technology, information, or sup2 port; 

3 ‘‘(ii) financing or brokering such sale, 

4 lease, or provision; or 

5 ‘‘(iii) providing ships or shipping serv6 ices to deliver refined petroleum products 

7 to Iran.’’. 

8 (b) DESCRIPTION OF SANCTIONS.—Section 6 of such 

9 Act is amended— 

10 (1) by striking ‘‘The sanctions to be imposed on 

11 a sanctioned person under section 5 are as follows:’’ 

12 and inserting the following: 

13 ‘‘(a) IN GENERAL.—The sanctions to be imposed on 

14 a sanctioned person under subsections (a)(1) and (b) of 

15 section 5 are as follows:’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(b) ADDITIONAL SANCTIONS.—The sanctions to be 

18 imposed on a sanctioned person under paragraphs (2) and 

19 (3) of section 5(a) are as follows: 

20 ‘‘(1) FOREIGN EXCHANGE.—The President 

21 shall, pursuant to such regulations as the President 

22 may prescribe, prohibit any transactions in foreign 

23 exchange by the sanctioned person. 

24 ‘‘(2) BANKING TRANSACTIONS.—The President 

25 shall, pursuant to such regulations as the President 
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1 may prescribe, prohibit any transfers of credit or 

2 payments between, by, through, or to any financial 

3 institution, to the extent that such transfers or pay4 ments involve any interest of the sanctioned person. 

5 ‘‘(3) PROPERTY TRANSACTIONS.—The Presi6 dent shall, pursuant to such regulations as the 

7 President may prescribe and subject to the jurisdic8 tion of the United States, prohibit any person 

9 from— 

10 ‘‘(A) acquiring, holding, withholding, 

11 using, transferring, withdrawing, transporting, 

12 importing, or exporting any property with re13 spect to which the sanctioned person has any 

14 interest; 

15 ‘‘(B) dealing in or exercising any right, 

16 power, or privilege with respect to such prop17 erty; or 

18 ‘‘(C) conducting any transactions involving 

19 such property.’’. 

20 (c) REPORT RELATING TO PRESIDENTIAL WAIV21 ER.—Section 9(c)(2) of such Act is amended by striking 

22 subparagraph (C) and inserting the following: 

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

24 conduct of the person in contributing to the 

25 ability of Iran to, as the case may be— 
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1 ‘‘(i) develop petroleum resources, 

2 produce refined petroleum products, or im3 port refined petroleum products; or 

4 ‘‘(ii) acquire or develop— 

5 ‘‘(I) chemical, biological, or nu6 clear weapons or related technologies; 

7 or 

8 ‘‘(II) destabilizing numbers and 

9 types of advanced conventional weap10 ons; and’’. 

11 (d) CLARIFICATION AND EXPANSION OF DEFINI12 TIONS.—Section 14 of such Act is amended— 

13 (1) in paragraph (13)(B)— 

14 (A) by inserting ‘‘financial institution, in15 surer, underwriter, guarantor, and any other 

16 business organization, including any foreign 

17 subsidiary, parent, or affiliate thereof,’’ after 

18 ‘‘trust,’’; and 

19 (B) by inserting ‘‘, such as an export cred20 it agency’’ before the semicolon at the end; 

21 (2) in paragraph (14), by striking ‘‘petroleum 

22 and natural gas resources’’ and inserting ‘‘petro23 leum, refined petroleum products, oil or liquefied 

24 natural gas, natural gas resources, oil or liquefied 

25 natural gas tankers, and products used to construct 
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1 or maintain pipelines used to transport oil or lique2 fied natural gas’’; 

3 (3) by redesignating paragraphs (15) and (16) 

4 as paragraphs (16) and (17), respectively; and 

5 (4) by inserting after paragraph (14) the fol6 lowing: 

7 ‘‘(15) REFINED PETROLEUM PRODUCTS.—The 

8 term ‘refined petroleum products’ means diesel, gas9 oline, jet fuel (including naphtha-type and kerosene10 type jet fuel), and aviation gasoline.’’. 

11 (e) CONFORMING AMENDMENT.—Section 4 of such 

12 Act is amended— 

13 (1) in subsection (b)(2), by striking ‘‘(in addi14 tion to that provided in subsection (d))’’; 

15 (2) by striking subsection (d); and 

16 (3) by redesignating subsections (e) and (f) as 

17 subsections (d) and (e), respectively. 

18 SEC. 103. ECONOMIC SANCTIONS RELATING TO IRAN. 

19 (a) IN GENERAL.—Notwithstanding any other provi20 sion of law, and in addition to any other sanction in effect, 

21 beginning on the date that is 15 days after the effective 

22 date of this Act, the economic sanctions described in sub23 section (b) shall apply with respect to Iran. 

24 (b) SANCTIONS.—The sanctions described in this 

25 subsection are the following: 
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1 (1) PROHIBITION ON IMPORTS.— 

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

3 subparagraph (B), no article of Iranian origin 

4 may be imported directly or indirectly into the 

5 United States. 

6 (B) EXCEPTION.—The prohibition in sub7 paragraph (A) does not apply to imports from 

8 Iran of information and informational mate9 rials. 

10 (2) PROHIBITION ON EXPORTS.— 

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

12 subparagraph (B), no article of United States 

13 origin may be exported directly or indirectly to 

14 Iran. 

15 (B) EXCEPTIONS.—The prohibition in sub16 paragraph (A) does not apply to exports to Iran 

17 of— 

18 (i) agricultural commodities, food, 

19 medicine, or medical devices; 

20 (ii) articles exported to Iran to pro21 vide humanitarian assistance to the people 

22 of Iran; 

23 (iii) except as provided in subpara24 graph (C), information or informational 

25 materials; 
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1 (iv) goods, services, or technologies 

2 necessary to ensure the safe operation of 

3 commercial passenger aircraft produced in 

4 the United States if the exportation of 

5 such goods, services, or technologies is ap6 proved by the Secretary of the Treasury, in 

7 consultation with the Secretary of Com8 merce, pursuant to regulations promul9 gated by the Secretary of the Treasury re10 garding the exportation of such goods, 

11 services, or technologies, if appropriate; or 

12 (v) goods, services, or technologies 

13 that— 

14 (I) are provided to the Inter15 national Atomic Energy Agency and 

16 are necessary to support activities of 

17 that Agency in Iran; 

18 (II) are necessary to support ac19 tivities, including the activities of non20 governmental organizations, relating 

21 to promoting democracy in Iran; or 

22 (III) the President determines to 

23 be necessary to the national interest 

24 of the United States. 
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1 (C) SPECIAL RULE WITH RESPECT TO IN2 FORMATION AND INFORMATIONAL MATE3 RIALS.—Notwithstanding subparagraph (B)(iii), 

4 information and informational materials of 

5 United States origin may not be exported di6 rectly or indirectly to Iran— 

7 (i) if the exportation of such informa8 tion or informational materials is otherwise 

9 controlled— 

10 (I) under section 5 of the Export 

11 Administration Act of 1979 (50 

12 U.S.C. App. 2404) (as in effect pur13 suant to the International Emergency 

14 Economic Powers Act (50 U.S.C. 

15 1701 et seq.)); or 

16 (II) under section 6 of that Act 

17 (50 U.S.C. App. 2405), to the extent 

18 that such controls promote the non19 proliferation or antiterrorism policies 

20 of the United States; or 

21 (ii) if such information or informa22 tional materials are information or infor23 mational materials with respect to which 

24 acts are prohibited by chapter 37 of title 

25 18, United States Code. 
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1 (3) FREEZING ASSETS.— 

2 (A) IN GENERAL.—At such time as the 

3 United States has access to the names of per4 sons in Iran, including Iranian diplomats and 

5 representatives of other government and mili6 tary or quasi-governmental institutions of Iran 

7 (including Iran’s Revolutionary Guard Corps 

8 and its affiliates), that satisfy the criteria for 

9 designation with respect to the imposition of 

10 sanctions under the authority of the Inter11 national Emergency Economic Powers Act (50 

12 U.S.C. 1701 et seq.) or are otherwise subject to 

13 sanctions under any other provision of law, the 

14 President shall take such action as may be nec15 essary to freeze, as soon as possible, the funds 

16 and other assets belonging to anyone so named 

17 and any family members or associates of those 

18 so named to whom assets or property of those 

19 so named were transferred on or after January 

20 1, 2009. The action described in the preceding 

21 sentence includes requiring any United States 

22 financial institution that holds funds and assets 

23 of a person so named to report promptly to the 

24 Office of Foreign Assets Control information 

25 regarding such funds and assets. 
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1 (B) ASSET REPORTING REQUIREMENT.— 

2 Not later than 14 days after a decision is made 

3 to freeze the property or assets of any person 

4 under this paragraph, the President shall report 

5 the name of such person to the appropriate con6 gressional committees. Such a report may con7 tain a classified annex. 

8 (4) UNITED STATES GOVERNMENT CON9 TRACTS.—The head of an executive agency may not 

10 procure, or enter into a contract for the procurement 

11 of, any goods or services from a person that meets 

12 the criteria for the imposition of sanctions under 

13 section 5 of the Iran Sanctions Act of 1996 (Public 

14 Law 104–172; 50 U.S.C. 1701 note). 

15 (c) WAIVER.—The President may waive the applica16 tion of the sanctions described in subsection (b) if the 

17 President— 

18 (1) determines that such a waiver is in the na19 tional interest of the United States; and 

20 (2) submits to the appropriate congressional 

21 committees a report describing the reasons for the 

22 determination. 
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1 SEC. 104. LIABILITY OF PARENT COMPANIES FOR VIOLA2 TIONS OF SANCTIONS BY FOREIGN SUBSIDI3 ARIES. 

4 (a) DEFINITIONS.—In this section: 

5 (1) ENTITY.—The term ‘‘entity’’ means a part6 nership, association, trust, joint venture, corpora7 tion, or other organization. 

8 (2) OWN OR CONTROL.—The term ‘‘own or con9 trol’’ means, with respect to an entity— 

10 (A) to hold more than 50 percent of the 

11 equity interest by vote or value in the entity; 

12 (B) to hold a majority of seats on the 

13 board of directors of the entity; or 

14 (C) to otherwise control the actions, poli15 cies, or personnel decisions of the entity. 

16 (3) SUBSIDIARY.—The term ‘‘subsidiary’’ 

17 means an entity that is owned or controlled, directly 

18 or indirectly, by a United States person. 

19 (4) UNITED STATES PERSON.—The term 

20 ‘‘United States person’’ means— 

21 (A) a natural person who is a citizen, resi22 dent, or national of the United States; and 

23 (B) an entity that is organized under the 

24 laws of the United States, any State or terri25 tory thereof, or the District of Columbia, if nat-
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1 ural persons described in subparagraph (A) own 

2 or control the entity. 

3 (b) IN GENERAL.—A United States person shall be 

4 subject to a penalty for a violation of the provisions of 

5 Executive Order 12959 (50 U.S.C. 1701 note) or Execu6 tive Order 13059 (50 U.S.C. 1701 note), or any other pro7 hibition on transactions with respect to Iran imposed 

8 under the authority of the International Emergency Eco9 nomic Powers Act (50 U.S.C. 1701 et seq.), if— 

10 (1) the President determines, pursuant to such 

11 regulations as the President may prescribe, that the 

12 United States person establishes or maintains a sub13 sidiary outside of the United States for the purpose 

14 of circumventing such provisions; and 

15 (2) that subsidiary engages in an act that, if 

16 committed in the United States or by a United 

17 States person, would violate such provisions. 

18 (c) WAIVER.—The President may waive the applica19 tion of subsection (b) if the President— 

20 (1) determines that such a waiver is in the na21 tional interest of the United States; and 

22 (2) submits to the appropriate congressional 

23 committees a report describing the reasons for the 

24 determination. 

25 (d) EFFECTIVE DATE.— 
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1 (1) IN GENERAL.—Subsection (b) shall take ef2 fect on the date of the enactment of this Act and 

3 apply with respect to acts described in subsection 

4 (b)(2) that are— 

5 (A) commenced on or after the date of the 

6 enactment of this Act; or 

7 (B) except as provided in paragraph (2), 

8 commenced before such date of enactment, if 

9 such acts continue on or after such date of en10 actment. 

11 (2) EXCEPTION.—Subsection (b) shall not 

12 apply with respect to an act described in paragraph 

13 (1)(B) by a subsidiary owned or controlled by a 

14 United States person if the United States person di15 vests or terminates its business with the subsidiary 

16 not later than 90 days after the date of the enact17 ment of this Act. 

18 SEC. 105. PROHIBITION ON PROCUREMENT CONTRACTS 

19 WITH PERSONS THAT EXPORT SENSITIVE 

20 TECHNOLOGY TO IRAN. 

21 (a) IN GENERAL.—Notwithstanding any other provi22 sion of law, and pursuant to such regulations as the Presi23 dent may prescribe, the head of an executive agency may 

24 not enter into or renew a contract for the procurement 
25 

† HR 2194 EAS 

1 of goods or services with a person that exports sensitive 

2 technology to Iran. 

3 (b) WAIVER.—The President may waive the applica4 tion of the prohibition under subsection (a) if the Presi5 dent— 

6 (1) determines that such a waiver is in the na7 tional interest of the United States; and 

8 (2) submits to Congress a report describing the 

9 reasons for the determination. 

10 (c) SENSITIVE TECHNOLOGY DEFINED.—The term 

11 ‘‘sensitive technology’’ means hardware, software, tele12 communications equipment, or any other technology that 

13 the President determines is to be used specifically— 

14 (1) to restrict the free flow of unbiased infor15 mation in Iran; or 

16 (2) to disrupt, monitor, or otherwise restrict 

17 speech of the people of Iran. 

18 SEC. 106. INCREASED CAPACITY FOR EFFORTS TO COMBAT 

19 UNLAWFUL OR TERRORIST FINANCING. 

20 (a) FINDING.—Congress finds that the work of the 

21 Office of Terrorism and Financial Intelligence of the De22 partment of the Treasury, which includes the Office of 

23 Foreign Assets Control and the Financial Crimes Enforce24 ment Network, is critical to ensuring that the inter25 national financial system is not used for purposes of sup-
26 

† HR 2194 EAS 

1 porting terrorism and developing weapons of mass de2 struction. 

3 (b) AUTHORIZATION OF APPROPRIATIONS FOR OF4 FICE OF TERRORISM AND FINANCIAL INTELLIGENCE.— 

5 There are authorized to be appropriated to the Secretary 

6 of the Treasury for the Office of Terrorism and Financial 

7 Intelligence— 

8 (1) $64,611,000 for fiscal year 2010; and 

9 (2) such sums as may be necessary for each of 

10 the fiscal years 2011 and 2012. 

11 (c) AUTHORIZATION OF APPROPRIATIONS FOR THE

12 FINANCIAL CRIMES ENFORCEMENT NETWORK.—Section 

13 310(d)(1) of title 31, United States Code, is amended by 

14 striking ‘‘such sums as may be necessary for fiscal years 

15 2002, 2003, 2004, and 2005’’ and inserting 

16 ‘‘$104,260,000 for fiscal year 2010 and such sums as may 

17 be necessary for each of the fiscal years 2011 and 2012’’. 

18 SEC. 107. REPORTING REQUIREMENTS. 

19 (a) REPORT ON INVESTMENT AND ACTIVITIES THAT

20 MAY BE SANCTIONABLE UNDER IRAN SANCTIONS ACT

21 OF 1996.— 

22 (1) IN GENERAL.—Not later than 180 days 

23 after the date of the enactment of this Act, the 

24 President shall submit to the appropriate congres25 sional committees a report containing— 
27 

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1 (A) a description of— 

2 (i) any foreign investments of 

3 $20,000,000 or more that contribute di4 rectly and significantly to the enhancement 

5 of Iran’s ability to develop petroleum re6 sources made during the period described 

7 in paragraph (2); 

8 (ii) any sale, lease, or provision to 

9 Iran during the period described in para10 graph (2) of any goods, services, tech11 nology, information, or support that would 

12 facilitate the maintenance or expansion of 

13 Iran’s domestic production of refined pe14 troleum products; and 

15 (iii) any refined petroleum products 

16 provided to Iran during the period de17 scribed in paragraph (2) and any other ac18 tivity that could contribute directly and 

19 significantly to the enhancement of Iran’s 

20 ability to import refined petroleum prod21 ucts during that period; 

22 (B) with respect to each investment or 

23 other activity described in subparagraph (A), an 

24 identification of— 
28 

† HR 2194 EAS 

1 (i) the date or dates of the investment 

2 or activity; 

3 (ii) the steps taken by the United 

4 States to respond to the investment or ac5 tivity; 

6 (iii) the name and United States 

7 domiciliary of any person that participated 

8 or invested in or facilitated the investment 

9 or activity; and 

10 (iv) any Federal Government con11 tracts to which any person referred to in 

12 clause (iii) are parties; and 

13 (C) the determination of the President 

14 with respect to whether each such investment or 

15 activity qualifies as a sanctionable offense 

16 under section 5(a) of the Iran Sanctions Act of 

17 1996 (Public Law 104–172; 50 U.S.C. 1701 

18 note). 

19 (2) PERIOD DESCRIBED.—The period described 

20 in this paragraph is the period beginning on Janu21 ary 1, 2009, and ending on the date on which the 

22 President submits the report under paragraph (1). 

23 (b) SUBSEQUENT REPORTS.—Not later than 1 year 

24 after the date of the enactment of this Act, and every 180 

25 days thereafter, the President shall submit to the appro-
29 

† HR 2194 EAS 

1 priate congressional committees an updated version of the 

2 report required under subsection (a) that contains the in3 formation required under that subsection for the 180-day 

4 period preceding the submission of the updated report. 

5 (c) FORM OF REPORTS; PUBLICATION.—A report 

6 submitted under subsection (a) or (b) shall be submitted 

7 in unclassified form, but may contain a classified annex. 

8 The unclassified portion of the report shall be published 

9 in the Federal Register. 

10 SEC. 108. SENSE OF CONGRESS REGARDING THE IMPOSI11 TION OF SANCTIONS ON THE CENTRAL BANK 

12 OF IRAN. 

13 Congress urges the President, in the strongest terms, 

14 to consider immediately using the authority of the Presi15 dent to impose sanctions on the Central Bank of Iran and 

16 any other Iranian bank engaged in proliferation activities 

17 or support of terrorist groups. 

18 SEC. 109. POLICY OF THE UNITED STATES REGARDING 

19 IRAN’S REVOLUTIONARY GUARD CORPS AND 

20 ITS AFFILIATES. 

21 It is the sense of Congress that the United States 

22 should— 

23 (1) continue to target Iran’s Revolutionary 

24 Guard Corps persistently with economic sanctions 

25 for its support for terrorism, its role in proliferation, 
30 

† HR 2194 EAS 

1 and its oppressive activities against the people of 

2 Iran; and 

3 (2) impose sanctions, including travel restric4 tions, sanctions authorized pursuant to this Act, and 

5 the full range of sanctions available to the President 

6 under the International Emergency Economic Pow7 ers Act (50 U.S.C. 1701 et seq.), on— 

8 (A) any foreign individual or entity that is 

9 an agent, alias, front, instrumentality, official, 

10 or affiliate of Iran’s Revolutionary Guard Corps 

11 and is designated for the imposition of sanc12 tions by the President; 

13 (B) any individual or entity who— 

14 (i) has provided material support to 

15 Iran’s Revolutionary Guard Corps or any 

16 of its affiliates designated for the imposi17 tion of sanctions by the President; or 

18 (ii) has conducted any financial or 

19 commercial transaction with Iran’s Revolu20 tionary Guard Corps or any of its affiliates 

21 so designated; and 

22 (C) any foreign government found— 

23 (i) to be providing material support to 

24 Iran’s Revolutionary Guard Corps or any 
31 

† HR 2194 EAS 

1 of its affiliates designated for the imposi2 tion of sanctions by the President; or 

3 (ii) to have conducted any commercial 

4 transaction or financial transaction with 

5 Iran’s Revolutionary Guard Corps or any 

6 of its affiliates so designated. 

7 SEC. 110. POLICY OF THE UNITED STATES WITH RESPECT 

8 TO IRAN AND HEZBOLLAH. 

9 It is the sense of Congress that the United States 

10 should— 

11 (1) continue to counter support received by 

12 Hezbollah from the Government of Iran and other 

13 foreign governments in response to Hezbollah’s ter14 rorist activities and the threat Hezbollah poses to 

15 Israel, the democratic sovereignty of Lebanon, and 

16 the national security interests of the United States; 

17 (2) impose the full range of sanctions available 

18 to the President under the International Emergency 

19 Economic Powers Act (50 U.S.C. 1701 et seq.) on 

20 Hezbollah, its designated affiliates and supporters, 

21 and persons providing Hezbollah with commercial, 

22 financial, or other services; 

23 (3) urge the European Union, individual coun24 tries in Europe, and other countries to classify 
32 

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1 Hezbollah as a terrorist organization to facilitate the 

2 disruption of Hezbollah’s operations; and 

3 (4) renew international efforts to disarm 

4 Hezbollah and disband its militias in Lebanon, as 

5 called for by United Nations Security Council Reso6 lutions 1559 (2004) and 1701 (2006). 

7 SEC. 111. SENSE OF CONGRESS REGARDING THE IMPOSI8 TION OF MULTILATERAL SANCTIONS WITH 

9 RESPECT TO IRAN. 

10 It is the sense of Congress that— 

11 (1) in general, multilateral sanctions are more 

12 effective than unilateral sanctions at achieving de13 sired results from countries such as Iran; 

14 (2) the President should continue to work with 

15 allies of the United States to impose such sanctions 

16 as may be necessary to prevent the Government of 

17 Iran from acquiring a nuclear weapons capability; 

18 and 

19 (3) the United States should continue to con20 sult with the 5 permanent members of the United 

21 Nations Security Council and Germany (commonly 

22 referred to as the ‘‘P5-plus-1’’) and other interested 

23 countries regarding imposing new sanctions with re24 spect to Iran in the event that diplomatic efforts to 
33 

† HR 2194 EAS 

1 prevent Iran from acquiring a nuclear weapons capa2 bility fail. 

3 TITLE II—DIVESTMENT FROM 

4 CERTAIN COMPANIES THAT 

5 INVEST IN IRAN 

6 SEC. 201. DEFINITIONS. 

7 In this title: 

8 (1) ENERGY SECTOR.—The term ‘‘energy sec9 tor’’ refers to activities to develop petroleum or nat10 ural gas resources or nuclear power. 

11 (2) FINANCIAL INSTITUTION.—The term ‘‘fi12 nancial institution’’ has the meaning given that term 

13 in section 14(5) of the Iran Sanctions Act of 1996 

14 (Public Law 104–172; 50 U.S.C. 1701 note). 

15 (3) IRAN.—The term ‘‘Iran’’ includes any agen16 cy or instrumentality of Iran. 

17 (4) PERSON.—The term ‘‘person’’ means— 

18 (A) a natural person, corporation, com19 pany, business association, partnership, society, 

20 trust, or any other nongovernmental entity, or21 ganization, or group; 

22 (B) any governmental entity or instrumen23 tality of a government, including a multilateral 

24 development institution (as defined in section 
34 

† HR 2194 EAS 

1 1701(c)(3) of the International Financial Insti2 tutions Act (22 U.S.C. 262r(c)(3))); and 

3 (C) any successor, subunit, parent com4 pany, or subsidiary of any entity described in 

5 subparagraph (A) or (B). 

6 (5) STATE.—The term ‘‘State’’ means each of 

7 the several States, the District of Columbia, the 

8 Commonwealth of Puerto Rico, the United States 

9 Virgin Islands, Guam, American Samoa, and the 

10 Commonwealth of the Northern Mariana Islands. 

11 (6) STATE OR LOCAL GOVERNMENT.—The term 

12 ‘‘State or local government’’ includes— 

13 (A) any State and any agency or instru14 mentality thereof; 

15 (B) any local government within a State, 

16 and any agency or instrumentality thereof; 

17 (C) any other governmental instrumen18 tality; and 

19 (D) any public institution of higher edu20 cation within the meaning of the Higher Edu21 cation Act of 1965 (20 U.S.C. 1001 et seq.). 
35 

† HR 2194 EAS 

1 SEC. 202. AUTHORITY OF STATE AND LOCAL GOVERN2 MENTS TO DIVEST FROM CERTAIN COMPA3 NIES THAT INVEST IN IRAN. 

4 (a) SENSE OF CONGRESS.—It is the sense of Con5 gress that the United States Government should support 

6 the decision of any State or local government that for 

7 moral, prudential, or reputational reasons divests from, or 

8 prohibits the investment of assets of the State or local gov9 ernment in, a person that engages in investment activities 

10 in the energy sector of Iran, as long as that country is 

11 subject to economic sanctions imposed by the United 

12 States. 

13 (b) AUTHORITY TO DIVEST.—Notwithstanding any 

14 other provision of law, a State or local government may 

15 adopt and enforce measures that meet the requirements 

16 of subsection (d) to divest the assets of the State or local 

17 government from, or prohibit investment of the assets of 

18 the State or local government in, any person that the 

19 State or local government determines, using credible infor20 mation available to the public, engages in investment ac21 tivities in Iran described in subsection (c). 

22 (c) INVESTMENT ACTIVITIES DESCRIBED.—A person 

23 engages in investment activities in Iran described in this 

24 subsection if the person— 

25 (1) has an investment of $20,000,000 or more 

26 in the energy sector of Iran, including in a person 
36 

† HR 2194 EAS 

1 that provides oil or liquified natural gas tankers, or 

2 products used to construct or maintain pipelines 

3 used to transport oil or liquified natural gas, for the 

4 energy sector in Iran; or 

5 (2) is a financial institution that extends 

6 $20,000,000 or more in credit to another person, for 

7 45 days or more, if that person will use the credit 

8 to invest in the energy sector in Iran. 

9 (d) REQUIREMENTS.—Any measure taken by a State 

10 or local government under subsection (b) shall meet the 

11 following requirements: 

12 (1) NOTICE.—The State or local government 

13 shall provide written notice to each person to which 

14 a measure is to be applied. 

15 (2) TIMING.—The measure shall apply to a per16 son not earlier than the date that is 90 days after 

17 the date on which written notice is provided to the 

18 person under paragraph (1). 

19 (3) OPPORTUNITY FOR HEARING.—The State 

20 or local government shall provide an opportunity to 

21 comment in writing to each person to which a meas22 ure is to be applied. If the person demonstrates to 

23 the State or local government that the person does 

24 not engage in investment activities in Iran described 
37 

† HR 2194 EAS 

1 in subsection (c), the measure shall not apply to the 

2 person. 

3 (4) SENSE OF CONGRESS ON AVOIDING ERRO4 NEOUS TARGETING.—It is the sense of Congress 

5 that a State or local government should not adopt 

6 a measure under subsection (b) with respect to a 

7 person unless the State or local government has 

8 made every effort to avoid erroneously targeting the 

9 person and has verified that the person engages in 

10 investment activities in Iran described in subsection 

11 (c). 

12 (e) NOTICE TO DEPARTMENT OF JUSTICE.—Not 

13 later than 30 days after adopting a measure pursuant to 

14 subsection (b), a State or local government shall submit 

15 written notice to the Attorney General describing the 

16 measure. 

17 (f) NONPREEMPTION.—A measure of a State or local 

18 government authorized under subsection (b) is not pre19 empted by any Federal law or regulation. 

20 (g) DEFINITIONS.—In this section: 

21 (1) INVESTMENT.—The ‘‘investment’’ of assets, 

22 with respect to a State or local government, in23 cludes— 

24 (A) a commitment or contribution of as25 sets; 
38 

† HR 2194 EAS 

1 (B) a loan or other extension of credit; and 

2 (C) the entry into or renewal of a contract 

3 for goods or services. 

4 (2) ASSETS.— 

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

6 subparagraph (B), the term ‘‘assets’’ refers to 

7 public monies and includes any pension, retire8 ment, annuity, or endowment fund, or similar 

9 instrument, that is controlled by a State or 

10 local government. 

11 (B) EXCEPTION.—The term ‘‘assets’’ does 

12 not include employee benefit plans covered by 

13 title I of the Employee Retirement Income Se14 curity Act of 1974 (29 U.S.C. 1001 et seq.). 

15 (h) EFFECTIVE DATE.— 

16 (1) IN GENERAL.—Except as provided in para17 graph (2), this section applies to measures adopted 

18 by a State or local government before, on, or after 

19 the date of the enactment of this Act. 

20 (2) NOTICE REQUIREMENTS.—Subsections (d) 

21 and (e) apply to measures adopted by a State or 

22 local government on or after the date of the enact23 ment of this Act. 
39 

† HR 2194 EAS 

1 SEC. 203. SAFE HARBOR FOR CHANGES OF INVESTMENT 

2 POLICIES BY ASSET MANAGERS. 

3 (a) IN GENERAL.—Section 13(c)(1) of the Invest4 ment Company Act of 1940 (15 U.S.C. 80a–13(c)(1)) is 

5 amended to read as follows: 

6 ‘‘(1) IN GENERAL.—Notwithstanding any other 

7 provision of Federal or State law, no person may 

8 bring any civil, criminal, or administrative action 

9 against any registered investment company, or any 

10 employee, officer, director, or investment adviser 

11 thereof, based solely upon the investment company 

12 divesting from, or avoiding investing in, securities 

13 issued by persons that the investment company de14 termines, using credible information available to the 

15 public— 

16 ‘‘(A) conduct or have direct investments in 

17 business operations in Sudan described in sec18 tion 3(d) of the Sudan Accountability and Di19 vestment Act of 2007 (50 U.S.C. 1701 note); or 

20 ‘‘(B) engage in investment activities in 

21 Iran described in section 202(c) of the Com22 prehensive Iran Sanctions, Accountability, and 

23 Divestment Act of 2009.’’. 

24 (b) SEC REGULATIONS.—Not later than 120 days 

25 after the date of the enactment of this Act, the Securities 

26 and Exchange Commission shall issue any revisions the 
40 

† HR 2194 EAS 

1 Commission determines to be necessary to the regulations 

2 requiring disclosure by each registered investment com3 pany that divests itself of securities in accordance with 

4 section 13(c) of the Investment Company Act of 1940 to 

5 include divestments of securities in accordance with para6 graph (1)(B) of such section, as added by subsection (a). 

7 SEC. 204. SENSE OF CONGRESS REGARDING CERTAIN 

8 ERISA PLAN INVESTMENTS. 

9 It is the sense of Congress that a fiduciary of an em10 ployee benefit plan, as defined in section 3(3) of the Em11 ployee Retirement Income Security Act of 1974 (29 

12 U.S.C. 1002(3)), may divest plan assets from, or avoid 

13 investing plan assets in, any person the fiduciary deter14 mines engages in investment activities in Iran described 

15 in section 202(c) of this Act, without breaching the re16 sponsibilities, obligations, or duties imposed upon the fidu17 ciary by section 404 of the Employee Retirement Income 

18 Security Act of 1974 (29 U.S.C. 1104), if— 

19 (1) the fiduciary makes such determination 

20 using credible information that is available to the 

21 public; and 

22 (2) such divestment or avoidance of investment 

23 is conducted in accordance with section 2509.08–1 

24 of title 29, Code of Federal Regulations (as in effect 
41 

† HR 2194 EAS 

1 on the day before the date of the enactment of this 

2 Act). 

3 TITLE III—PREVENTION OF 

4 TRANSSHIPMENT, REEXPOR5 TATION, OR DIVERSION OF 

6 SENSITIVE ITEMS TO IRAN 

7 SEC. 301. DEFINITIONS. 

8 In this title: 

9 (1) APPROPRIATE CONGRESSIONAL COMMIT10 TEES.—The term ‘‘appropriate congressional com11 mittees’’ means— 

12 (A) the Committee on Banking, Housing, 

13 and Urban Affairs, the Committee on Foreign 

14 Relations, and the Select Committee on Intel15 ligence of the Senate; and 

16 (B) the Committee on Financial Services, 

17 the Committee on Foreign Affairs, and the Per18 manent Select Committee on Intelligence of the 

19 House of Representatives. 

20 (2) END-USER.—The term ‘‘end-user’’ means 

21 an end-user as that term is used in the Export Ad22 ministration Regulations. 

23 (3) EXPORT ADMINISTRATION REGULATIONS.— 

24 The term ‘‘Export Administration Regulations’’ 
42 

† HR 2194 EAS 

1 means subchapter C of chapter VII of title 15, Code 

2 of Federal Regulations. 

3 (4) GOVERNMENT.—The term ‘‘government’’ 

4 includes any agency or instrumentality of a govern5 ment. 

6 (5) IRAN.—The term ‘‘Iran’’ includes any agen7 cy or instrumentality of Iran. 

8 (6) STATE SPONSOR OF TERRORISM.—The term 

9 ‘‘state sponsor of terrorism’’ means any country the 

10 government of which the Secretary of State has de11 termined has repeatedly provided support for acts of 

12 international terrorism pursuant to— 

13 (A) section 6(j)(1)(A) of the Export Ad14 ministration Act of 1979 (50 U.S.C. App. 

15 2405(j)(1)(A)) (or any successor thereto); 

16 (B) section 40(d) of the Arms Export Con17 trol Act (22 U.S.C. 2780(d)); or 

18 (C) section 620A(a) of the Foreign Assist19 ance Act of 1961 (22 U.S.C. 2371(a)). 

20 (7) TRANSSHIPMENT, REEXPORTATION, OR DI21 VERSION.—The term ‘‘transshipment, reexportation, 

22 or diversion’’ means the exportation, directly or indi23 rectly, of items that originated in the United States 

24 to an end-user whose identity cannot be verified or 

25 to an entity in Iran in violation of the laws or regu-
43 

† HR 2194 EAS 

1 lations of the United States by any means, including 

2 by— 

3 (A) shipping such items through 1 or more 

4 foreign countries; or 

5 (B) by using false information regarding 

6 the country of origin of such items. 

7 SEC. 302. IDENTIFICATION OF LOCATIONS OF CONCERN 

8 WITH RESPECT TO TRANSSHIPMENT, RE9 EXPORTATION, OR DIVERSION OF CERTAIN 

10 ITEMS TO IRAN. 

11 Not later than 180 days after the date of the enact12 ment of this Act, and annually thereafter, the Director 

13 of National Intelligence shall submit to the Secretary of 

14 Commerce, the Secretary of State, the Secretary of the 

15 Treasury, and the appropriate congressional committees 

16 a report that identifies all countries that the Director de17 termines are of concern with respect to transshipment, re18 exportation, or diversion of items subject to the provisions 

19 of the Export Administration Regulations to an entity in 

20 Iran. 

21 SEC. 303. DESTINATIONS OF POSSIBLE DIVERSION CON22 CERN AND DESTINATIONS OF DIVERSION 

23 CONCERN. 

24 (a) DESTINATIONS OF POSSIBLE DIVERSION CON25 CERN.— 
44 

† HR 2194 EAS 

1 (1) DESIGNATION.—The Secretary of Com2 merce shall designate a country as a Destination of 

3 Possible Diversion Concern if the Secretary, in con4 sultation with the Secretary of State and the Sec5 retary of the Treasury, determines that such des6 ignation is appropriate to carry out activities to 

7 strengthen the export control systems of that coun8 try based on criteria that include— 

9 (A) the volume of items that originated in 

10 the United States that are transported through 

11 the country to end-users whose identities cannot 

12 be verified; 

13 (B) the inadequacy of the export and reex14 port controls of the country; 

15 (C) the unwillingness or demonstrated in16 ability of the government of the country to con17 trol diversion activities; and 

18 (D) the unwillingness or inability of the 

19 government of the country to cooperate with the 

20 United States in interdiction efforts. 

21 (2) STRENGTHENING EXPORT CONTROL SYS22 TEMS OF DESTINATIONS OF POSSIBLE DIVERSION

23 CONCERN.—If the Secretary of Commerce designates 

24 a country as a Destination of Possible Diversion 

25 Concern under paragraph (1), the United States 
45 

† HR 2194 EAS 

1 shall initiate government-to-government activities de2 scribed in paragraph (3) to strengthen the export 

3 control systems of the country. 

4 (3) GOVERNMENT-TO-GOVERNMENT ACTIVITIES

5 DESCRIBED.—The government-to-government activi6 ties described in this paragraph include— 

7 (A) cooperation by agencies and depart8 ments of the United States with counterpart 

9 agencies and departments in a country des10 ignated as a Destination of Possible Diversion 

11 Concern under paragraph (1) to— 

12 (i) develop or strengthen export con13 trol systems in the country; 

14 (ii) strengthen cooperation and facili15 tate enforcement of export control systems 

16 in the country; and 

17 (iii) promote information and data ex18 changes among agencies of the country 

19 and with the United States; and 

20 (B) efforts by the Office of International 

21 Programs of the Department of Commerce to 

22 strengthen the export control systems of the 

23 country to— 

24 (i) facilitate legitimate trade in high25 technology goods; and 
46 

† HR 2194 EAS 

1 (ii) prevent terrorists and state spon2 sors of terrorism, including Iran, from ob3 taining nuclear, biological, and chemical 

4 weapons, defense technologies, components 

5 for improvised explosive devices, and other 

6 defense items. 

7 (b) DESTINATIONS OF DIVERSION CONCERN.— 

8 (1) DESIGNATION.—The Secretary of Com9 merce shall designate a country as a Destination of 

10 Diversion Concern if the Secretary, in consultation 

11 with the Secretary of State and the Secretary of the 

12 Treasury, determines— 

13 (A) that the government of the country al14 lows substantial transshipment, reexportation, 

15 or diversion of items that originated in the 

16 United States to end-users whose identities can17 not be verified or to entities in Iran; or 

18 (B) 12 months after the Secretary of Com19 merce designates the country as a Destination 

20 of Possible Diversion Concern under subsection 

21 (a)(1), that the country has failed— 

22 (i) to cooperate with the government23 to-government activities initiated by the 

24 United States under subsection (a)(2); or 
47 

† HR 2194 EAS 

1 (ii) based on the criteria described in 

2 subsection (a)(1), to adequately strengthen 

3 the export control systems of the country. 

4 (2) LICENSING CONTROLS WITH RESPECT TO

5 DESTINATIONS OF DIVERSION CONCERN.— 

6 (A) REPORT ON SUSPECT ITEMS.— 

7 (i) IN GENERAL.—Not later than 45 

8 days after the date of the enactment of 

9 this Act, the Secretary of Commerce, in 

10 consultation with the Director of National 

11 Intelligence, the Secretary of State, and 

12 the Secretary of the Treasury, shall submit 

13 to the appropriate congressional commit14 tees a report containing a list of items 

15 that, if the items were transshipped, reex16 ported, or diverted to Iran, could con17 tribute to— 

18 (I) Iran obtaining nuclear, bio19 logical, or chemical weapons, defense 

20 technologies, components for impro21 vised explosive devices, or other de22 fense items; or 

23 (II) support by Iran for acts of 

24 international terrorism. 
48 

† HR 2194 EAS 

1 (ii) CONSIDERATIONS FOR LIST.—In 

2 developing the list required under clause 

3 (i), the Secretary of Commerce shall con4 sider— 

5 (I) the items subject to licensing 

6 requirements under section 742.8 of 

7 title 15, Code of Federal Regulations 

8 (or any corresponding similar regula9 tion or ruling) and other existing li10 censing requirements; and 

11 (II) the items added to the list of 

12 items for which a license is required 

13 for exportation to North Korea by the 

14 final rule of the Bureau of Export Ad15 ministration of the Department of 

16 Commerce issued on June 19, 2000 

17 (65 Fed. Reg. 38148; relating to ex18 port restrictions on North Korea). 

19 (B) LICENSING REQUIREMENT.—Not later 

20 than 180 days after the date of the enactment 

21 of this Act, the Secretary of Commerce shall re22 quire a license to export an item on the list re23 quired under subparagraph (A)(i) to a country 

24 designated as a Destination of Diversion Con25 cern. 
49 

† HR 2194 EAS 

1 (C) WAIVER.—The President may waive 

2 the imposition of the licensing requirement 

3 under subparagraph (B) with respect to a coun4 try designated as a Destination of Diversion 

5 Concern if the President— 

6 (i) determines that such a waiver is in 

7 the national interest of the United States; 

8 and 

9 (ii) submits to the appropriate con10 gressional committees a report describing 

11 the reasons for the determination. 

12 (c) TERMINATION OF DESIGNATION.—The designa13 tion of a country as a Destination of Possible Diversion 

14 Concern or a Destination of Diversion Concern shall ter15 minate on the date on which the Secretary of Commerce 

16 determines, based on the criteria described in subpara17 graphs (A) through (D) of subsection (a)(1), and certifies 

18 to Congress and the President that the country has ade19 quately strengthened the export control systems of the 

20 country to prevent transshipment, reexportation, and di21 version of items through the country to end-users whose 

22 identities cannot be verified or to entities in Iran. 

23 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

24 are authorized to be appropriated such sums as may be 

25 necessary to carry out this section. 
50 

† HR 2194 EAS 

1 SEC. 304. REPORT ON EXPANDING DIVERSION CONCERN 

2 SYSTEM TO COUNTRIES OTHER THAN IRAN. 

3 Not later than 180 days after the date of the enact4 ment of this Act, the Director of National Intelligence, in 

5 consultation with the Secretary of Commerce, the Sec6 retary of State, and the Secretary of the Treasury, shall 

7 submit to the appropriate congressional committees a re8 port that— 

9 (1) identifies any country that the Director de10 termines may be transshipping, reexporting, or di11 verting items subject to the provisions of the Export 

12 Administration Regulations to another country if 

13 such other country— 

14 (A) is seeking to obtain nuclear, biological, 

15 or chemical weapons, defense technologies, com16 ponents for improvised explosive devices, or 

17 other defense items; or 

18 (B) provides support for acts of inter19 national terrorism; and 

20 (2) assesses the feasability and advisability of 

21 expanding the system established under section 303 

22 for designating countries as Destinations of Possible 

23 Diversion Concern and Destinations of Diversion 

24 Concern to include countries identified under para25 graph (1). 
51 

† HR 2194 EAS 

1 TITLE IV—EFFECTIVE DATE; 

2 SUNSET 

3 SEC. 401. EFFECTIVE DATE; SUNSET. 

4 (a) EFFECTIVE DATE.—Except as provided in sec5 tions 104, 202, and 303(b)(2), the provisions of, and 

6 amendments made by, this Act shall take effect on the 

7 date that is 120 days after the date of the enactment of 

8 this Act. 

9 (b) SUNSET.—The provisions of this Act shall termi10 nate on the date that is 30 days after the date on which 

11 the President certifies to Congress that— 

12 (1) the Government of Iran has ceased pro13 viding support for acts of international terrorism 

14 and no longer satisfies the requirements for designa15 tion as a state sponsor of terrorism under— 

16 (A) section 6(j)(1)(A) of the Export Ad17 ministration Act of 1979 (50 U.S.C. App. 

18 2405(j)(1)(A)) (or any successor thereto); 

19 (B) section 40(d) of the Arms Export Con20 trol Act (22 U.S.C. 2780(d)); or 

21 (C) section 620A(a) of the Foreign Assist22 ance Act of 1961 (22 U.S.C. 2371(a)); and 

23 (2) Iran has ceased the pursuit, acquisition, 

24 and development of nuclear, biological, and chemical 
52 

† HR 2194 EAS 

1 weapons and ballistic missiles and ballistic missile 

2 launch technology. 

Attest: 

Secretary. 

111TH CONGRESS 

2D SESSION H.R. 2194 

AMENDMENT