I 

112TH CONGRESS 

1ST SESSION H. R. 1655 

To enhance United States diplomatic efforts with respect to Iran by imposing 

additional economic sanctions against Iran, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2011 

Mr. SHERMAN (for himself, Mr. ROYCE, Ms. BERKLEY, Mr. SHULER, Mrs. 

MALONEY, and Mr. POE of Texas) introduced the following bill; which 

was referred to the Committee on Foreign Affairs, and in addition to the 

Committees on Ways and Means, the Judiciary, Financial Services, and 

Oversight and Government Reform, 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 

A BILL 

To enhance United States diplomatic efforts with respect 

to Iran by imposing additional economic sanctions 

against Iran, 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 AND TABLE OF CONTENTS. 

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

5 ‘‘Stop Iran’s Nuclear Weapons Program Act of 2011’’. 

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

7 this Act is as follows: 


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Sec. 1. Short title and table of contents. 

Sec. 2. Findings. 

TITLE I—ADDITIONAL SANCTIONS WITH RESPECT TO IRAN 

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

Sec. 102. Application to subsidiaries. 

Sec. 103. Additional export sanctions against Iran. 

Sec. 104. Elimination of certain tax incentives for oil companies investing in 

Iran. 

Sec. 105. Inadmissibility of certain aliens who engage in certain activities with 

respect to Iran. 

Sec. 106. Temporary increase in fee for certain consular services. 

TITLE II—APPLICATION OF SANCTIONS AGAINST AFFILIATES OF 

IRAN’S ISLAMIC REVOLUTIONARY GUARD CORPS 

Sec. 201. Sanctions against affiliates of Iran’s Islamic Revolutionary Guard 

Corps. 

Sec. 202. Measures against foreign persons or entities supporting Iran’s Islamic 

Revolutionary Guard Corps. 

Sec. 203. Special measures against foreign countries supporting Iran’s Islamic 

Revolutionary Guard Corps. 

Sec. 204. Rule of construction. 

Sec. 205. Definitions. 

Sec. 206. Sunset. 

TITLE III—OPPOSITION OF TRANSFER TO IRAN, NORTH KOREA, 

AND SYRIA OF GOODS, SERVICES, OR TECHNOLOGY RELEVANT 

TO THEIR CAPABILITY TO EXTRACT OR MILL URANIUM ORE 

Sec. 301. Statement of policy. 

Sec. 302. Reporting requirements under the Iran, North Korea, and Syria Nonproliferation Act. 

Sec. 303. Conforming amendments. 

TITLE IV—ROLLOVER OF GAIN FROM DIVESTING CERTAIN 

QUALIFIED SECURITIES OF BUSINESS ENTITIES ENGAGED IN 

DISCOURAGED ACTIVITIES IN IRAN 

Sec. 401. Rollover of gain from divesting certain qualified securities of business 

entities engaged in discouraged activities in Iran. 

TITLE V—PROHIBITION ON UNITED STATES GOVERNMENT CONTRACTS AND INVESTMENT FOR COMPANIES CONDUCTING 

BUSINESS IN IRAN 

Sec. 501. Prohibition on United States Government contracts. 

Sec. 502. Authority of State and local governments to restrict contracts or licenses for certain sanctionable persons. 

Sec. 503. United States pension plans. 

Sec. 504. Definitions. 


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Sec. 505. Sunset. 

TITLE VI—TERMINATION OF LOAN DISBURSEMENTS TO IRAN 

FROM THE INTERNATIONAL BANK FOR RECONSTRUCTION AND 

DEVELOPMENT 

Sec. 601. Termination of loan disbursements to Iran from the International 

Bank for Reconstruction and Development. 

Sec. 602. United States opposition to new country assistance strategy for Iran. 

Sec. 603. Sunset. 

Sec. 604. Rule of interpretation. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) On July 1, 2010, President Obama signed 

4 into law the Comprehensive Iran Sanctions, Ac5 countability, and Divestment Act of 2010 (Public 

6 Law 111–195; 124 Stat. 1312). 

7 (2) In the wake of this new United States law 

8 and United Nations Security Council Resolution 

9 1929 (2010) with respect to Iran, the European 

10 Union, Japan, South Korea, Australia, and other 

11 friends and allies of the United States also imposed 

12 significant economic sanctions on Iran. 

13 (3) According to the report of the Director 

14 General of the International Atomic Energy Agency 

15 titled ‘‘Implementation of the NPT Safeguards 

16 Agreement and relevant provisions of Security Coun17 cil resolutions in the Islamic Republic of Iran’’, 

18 dated February 25, 2011, Iran continues to defy the 

19 international community by continuing uranium en20 richment activities, failing to suspend heavy waterVerDate Mar 15 2010 23:43 Apr 21, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1655.IH H1655

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1 related projects, failing to provide sufficient coopera2 tion to the Agency to resolve outstanding suspicions 

3 about potential military dimensions of its program, 

4 withholding requested design information regarding 

5 various facilities and equipment, and by not imple6 menting the Additional Protocol to the NPT Safe7 guards Agreement. 

8 (4) While the United States and several like9 minded countries have worked individually and in 

10 concert to increase the diplomatic and economic iso11 lation of Iran in an effort to convince the Govern12 ment of Iran to abandon sensitive nuclear activities, 

13 the United States and like-minded countries must do 

14 more in the coming months to achieve that goal. 

15 TITLE I—ADDITIONAL SANC16 TIONS WITH RESPECT TO 

17 IRAN 

18 SEC. 101. EXPANSION OF SANCTIONS UNDER THE IRAN 

19 SANCTIONS ACT OF 1996. 

20 Section 5(a) of the Iran Sanctions Act of 1996 (Pub21 lic Law 104–172; 50 U.S.C. 1701 note) is amended— 

22 (1) in the heading, by inserting at the end be23 fore the period the following: ‘‘, ETC’’; and 

24 (2) by adding at the end the following new 

25 paragraphs: 


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1 ‘‘(4) OTHER ACTIONS RELATING TO PETRO2 LEUM RESOURCES OF IRAN.— 

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

4 subsection (f), the President shall impose 3 or 

5 more of the sanctions described in section 6(a) 

6 with respect to a person if the President deter7 mines that the person knowingly, on or after 

8 the date of the enactment of the Stop Iran’s 

9 Nuclear Weapons Program Act of 2011— 

10 ‘‘(i) enters into a long-term agreement 

11 to purchase petroleum resources from Iran; 

12 ‘‘(ii) enters into an agreement to pro13 vide payment for future delivery of petro14 leum resources from Iran; or 

15 ‘‘(iii) enters into an agreement with 

16 the National Iranian Oil Company, any of 

17 its affiliates, or any entity owned or con18 trolled by the Government of Iran to pro19 vide for the development of petroleum re20 sources wherever located. 

21 ‘‘(B) ANCILLARY SERVICES.— 

22 ‘‘(i) IN GENERAL.—Except as pro23 vided in clause (ii) and subsection (f), the 

24 President shall impose 3 or more of the 

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1 spect to a person if the President deter2 mines that the person knowingly, on or 

3 after the date of the enactment of the Stop 

4 Iran’s Nuclear Weapons Program Act of 

5 2011, enters into an agreement to provide 

6 ancillary services to support an agreement 

7 described in clause (i), (ii), or (iii) of sub8 paragraph (A). 

9 ‘‘(ii) EXCEPTION.—The President 

10 shall not be required to apply or maintain 

11 the sanctions under clause (i) with respect 

12 to a person who provides underwriting, in13 surance, or reinsurance services to support 

14 an agreement described in clause (i), (ii), 

15 or (iii) of subparagraph (A) if the Presi16 dent determines in writing that the person 

17 has exercised due diligence in establishing 

18 and enforcing official policies, procedures, 

19 and controls to ensure that the person does 

20 not underwrite or enter into a contract to 

21 provide insurance or reinsurance for the 

22 activities described in clause (i), (ii), or 

23 (iii) of subparagraph (A). 

24 ‘‘(C) DEFINITIONS.— 


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1 ‘‘(i) ANCILLARY SERVICES.—In sub2 paragraph (A), the term ‘ancillary services’ 

3 means underwriting, insurance, reinsur4 ance, financing, guarantees, brokering, or 

5 providing ships or shipping services. 

6 ‘‘(ii) LONG-TERM AGREEMENT.—In 

7 subparagraph (A)(i), the term ‘long-term 

8 agreement’ means a contract or other 

9 agreement that provides for delivery of pe10 troleum resources beginning more than 1 

11 year after the date of entry into the con12 tract or agreement (as the case may be). 

13 ‘‘(iii) FUTURE DELIVERY.—In sub14 paragraph (A)(ii), the term ‘future deliv15 ery’ means delivery that occurs more than 

16 180 days after payment is effected under 

17 the agreement. 

18 ‘‘(5) PURCHASE, SUBSCRIPTION TO, OR FACILI19 TATION OF THE ISSUANCE OF IRANIAN SOVEREIGN

20 DEBT.—Except as provided in subsection (f), the 

21 President shall impose 3 or more of the sanctions 

22 described in section 6(a) with respect to a person if 

23 the President determines that the person knowingly, 

24 on or after the date of the enactment of the Stop 


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1 Iran’s Nuclear Weapons Program Act of 2011, pur2 chases, subscribes to, or facilitates the issuance of— 

3 ‘‘(A) sovereign debt of the Government of 

4 Iran, including governmental bonds; or 

5 ‘‘(B) debt of any entity owned or con6 trolled by the Government of Iran, including 

7 bonds.’’. 

8 SEC. 102. APPLICATION TO SUBSIDIARIES. 

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

10 (b), in any case in which an entity engages in an act out11 side the United States which, if committed in the United 

12 States or by a United States person, would violate Execu13 tive Order 12959 (50 U.S.C. 1701 note) or Executive 

14 Order 13059 (50 U.S.C. 1701 note) (or any successor 

15 thereto), section 103 of the Comprehensive Iran Sanc16 tions, Accountability, and Divestment Act of 2010 (Public 

17 Law 111–195; 22 U.S.C. 8512), or any other prohibition 

18 on transactions with respect to Iran that is imposed under 

19 the International Emergency Economic Powers Act (50 

20 U.S.C. 1701 et seq.), the parent company of that entity 

21 shall be subject to the penalties for the act to the same 

22 extent as if the parent company had engaged in the act. 

23 (b) EXCEPTION.—Subsection (a) shall not apply to 

24 a parent company of an entity for an act described in sub25 section (a) if— 


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1 (1) within 90 days after the date of the enact2 ment of this Act— 

3 (A) the parent company causes the entity 

4 to cease committing acts described in subsection 

5 (a); or 

6 (B) the entity ceases committing acts de7 scribed in subsection (a); or 

8 (2) in the case of an entity acquired by a par9 ent company, within 90 days of acquisition of the 

10 entity— 

11 (A) the parent company causes the entity 

12 to cease committing acts described in subsection 

13 (a); or 

14 (B) the entity ceases committing acts de15 scribed in subsection (a). 

16 (c) CONSTRUCTION.—Nothing in this section shall be 

17 construed as prohibiting the issuance of regulations, or18 ders, directives, or licenses under the Executive orders de19 scribed in subsection (a) or as being inconsistent with the 

20 authorities under the International Emergency Economic 

21 Powers Act. 

22 (d) DEFINITIONS.—In this section: 

23 (1) ENTITY.—The term ‘‘entity’’ means a part24 nership, association, trust, joint venture, corpora25 tion, or other organization. 


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1 (2) PARENT COMPANY.—An entity is a ‘‘parent 

2 company’’ of another entity if it controls, directly or 

3 indirectly, that other entity and is a United States 

4 person. 

5 (3) UNITED STATES PERSON.—The term 

6 ‘‘United States person’’ means any United States 

7 citizen, any alien lawfully admitted for permanent 

8 residence to the United States, any entity organized 

9 under the laws of the United States, or any person 

10 in the United States. 

11 SEC. 103. ADDITIONAL EXPORT SANCTIONS AGAINST IRAN. 

12 Notwithstanding section 103(b)(2)(B)(iv) of the 

13 Comprehensive Iran Sanctions, Accountability, and Di14 vestment Act of 2010 (Public Law 111–195; 22 U.S.C. 

15 8512(b)(2)(B)(iv)) or section 1606 of the Iran-Iraq Arms 

16 Non-Proliferation Act of 1992 (Public Law 102–484; 50 

17 U.S.C. 1701 note) or any other provision of law, effective 

18 on the date of the enactment of this Act— 

19 (1) licenses to export or reexport goods, serv20 ices, or technology relating to civil aviation of United 

21 States origin to Iran may not be issued, and any 

22 such license issued before such date of enactment is 

23 no longer valid; and 

24 (2) goods, services, or technology described in 

25 paragraph (1) may not be exported or reexported. 


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1 SEC. 104. ELIMINATION OF CERTAIN TAX INCENTIVES FOR 

2 OIL COMPANIES INVESTING IN IRAN. 

3 (a) IN GENERAL.—Subsection (h) of section 167 of 

4 the Internal Revenue Code of 1986 (relating to amortiza5 tion of geological and geophysical expenditures) is amend6 ed by adding at the end the following new paragraph: 

7 ‘‘(6) DENIAL WHEN IRAN SANCTIONS IN EF8 FECT.— 

9 ‘‘(A) IN GENERAL.—If sanctions are im10 posed under section 5(a) of the Iran Sanctions 

11 Act of 1996 (relating to sanctions with respect 

12 to the development of petroleum resources of 

13 Iran) on any member of an expanded affiliated 

14 group the common parent of which is a foreign 

15 corporation, paragraph (1) shall not apply to 

16 any expense paid or incurred by any such mem17 ber in any period during which the sanctions 

18 are in effect. 

19 ‘‘(B) AFFIRMATION OF COMPLIANCE.— 

20 ‘‘(i) IN GENERAL.—Paragraph (1) 

21 shall not apply to any expense paid or in22 curred by any member of such group in 

23 any period in the taxable year unless the 

24 corporation affirms that it and all mem25 bers of its expanded affiliated group have 

26 not conducted any activities during the 


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1 taxable year described in section 5(a) of 

2 the Iran Sanctions Act of 1996. The affir3 mation required by the preceding sentence 

4 shall be made on the return of tax for such 

5 taxable year in the manner required by the 

6 Secretary. 

7 ‘‘(ii) SPECIAL RULE.—If, with respect 

8 to any provision under section 5(a) of the 

9 Iran Sanctions Act of 1996— 

10 ‘‘(I) a certification is made under 

11 section 4(e)(3) of such Act, and 

12 ‘‘(II) after the certification the 

13 taxpayer does not conduct any activity 

14 in violation of the provision, 

15 any activity by the taxpayer occurring be16 fore the certification with respect to the 

17 provision shall not be taken into account. 

18 ‘‘(C) EXPANDED AFFILIATED GROUP.— 

19 For purposes of this paragraph, the term ‘ex20 panded affiliated group’ means an affiliated 

21 group as defined in section 1504(a), deter22 mined— 

23 ‘‘(i) by substituting ‘more than 50 

24 percent’ for ‘at least 80 percent’ each place 

25 it appears, and 


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1 ‘‘(ii) without regard to paragraphs 

2 (2), (3), and (4) of section 1504(b).’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 subsection (a) shall apply to expenses paid or incurred on 

5 or after January 1, 2010. 

6 SEC. 105. INADMISSIBILITY OF CERTAIN ALIENS WHO EN7 GAGE IN CERTAIN ACTIVITIES WITH RESPECT 

8 TO IRAN. 

9 (a) IN GENERAL.—Section 212(a)(3) of the Immi10 gration and Nationality Act (8 U.S.C. 1182(a)(3)) is 

11 amended by adding at the end the following: 

12 ‘‘(H) INDIVIDUALS WHO ENGAGE IN CER13 TAIN ACTIVITIES WITH RESPECT TO IRAN.— 

14 ‘‘(i) IN GENERAL.—Subject to clause 

15 (iii), any alien described in clause (ii) is in16 admissible. 

17 ‘‘(ii) ALIENS DESCRIBED.—An alien 

18 described in this clause is an alien that the 

19 Secretary of State determines— 

20 ‘‘(I) engages in— 

21 ‘‘(aa) an activity for which 

22 sanctions may be imposed pursu23 ant to section 5 of the Iran Sanc24 tions Act of 1996 (Public Law 

25 104–172; 50 U.S.C. 1701 note); 


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1 ‘‘(bb) an activity— 

2 ‘‘(AA) relating to the 

3 proliferation by Iran of 

4 weapons of mass destruction 

5 or the means of delivery of 

6 such weapons; and 

7 ‘‘(BB) for which sanc8 tions may be imposed pursu9 ant to Executive Order 

10 13382 (70 Fed. Reg. 38567) 

11 (or any successor thereto); 

12 ‘‘(cc) an activity— 

13 ‘‘(AA) relating to sup14 port for international ter15 rorism by the Government of 

16 Iran; and 

17 ‘‘(BB) for which sanc18 tions may be imposed pursu19 ant to Executive Order 

20 13224 (66 Fed. Reg. 49079) 

21 (or any successor thereto); 

22 or 

23 ‘‘(dd) any other activity with 

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1 tions may be imposed pursuant 

2 to any other provision of law; 

3 ‘‘(II) is the chief executive offi4 cer, president, or other individual in 

5 charge of overall management of, a 

6 member of the board of directors of, 

7 or a shareholder with a controlling in8 terest in, an entity that engages in an 

9 activity described in subclause (I); or 

10 ‘‘(III) is a spouse or minor child 

11 of— 

12 ‘‘(aa) an alien who engages 

13 in an activity described in sub14 clause (I); or 

15 ‘‘(bb) the chief executive of16 ficer, president, or other indi17 vidual in charge of overall man18 agement of, a member of the 

19 board of directors of, or a share20 holder with a controlling interest 

21 in, an entity that engages in an 

22 activity described in subclause 

23 (I). 

24 ‘‘(iii) NOTICE; WAIVER WITH RESPECT

25 TO CERTAIN ENTITIES.— 


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1 ‘‘(I) NOTICE.—The Secretary of 

2 State may notify an alien the Sec3 retary determines may be inadmissible 

4 under this subparagraph— 

5 ‘‘(aa) that the alien may be 

6 inadmissible; and 

7 ‘‘(bb) of the reason for the 

8 inadmissibility of the alien. 

9 ‘‘(II) WAIVER.—The President 

10 may waive the application of this sub11 paragraph and admit an alien to the 

12 United States if— 

13 ‘‘(aa) the alien is described 

14 in subclause (II) or (III)(bb) of 

15 clause (ii); 

16 ‘‘(bb) the entity that en17 gaged in the activity that would 

18 otherwise result in the inadmis19 sibility of the alien under this 

20 subparagraph is no longer engag21 ing the activity or has taken sig22 nificant steps toward stopping 

23 the activity; and 

24 ‘‘(cc) the President has re25 ceived reliable assurances that 


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1 the entity will not knowingly en2 gage in an activity described in 

3 clause (ii)(I) again.’’. 

4 (b) REGULATIONS.—Section 428 of the Homeland 

5 Security Act of 2002 (6 U.S.C. 236) is amended by adding 

6 at the end the following: 

7 ‘‘(j) REGULATIONS WITH RESPECT TO INADMIS8 SIBILITY OF ALIENS WHO ENGAGE IN CERTAIN TRANS9 ACTIONS WITH IRAN.—Not later than 180 days after the 

10 date of the enactment of this subsection, the Secretary 

11 shall issue regulations and guidelines for interpreting and 

12 enforcing the prohibition under subparagraph (H) of sec13 tion 212(a)(3) of the Immigration and Nationality Act (8 

14 U.S.C. 1182(a)(3)) on the admissibility of aliens who en15 gage in certain sanctionable activities with respect to 

16 Iran.’’. 

17 SEC. 106. TEMPORARY INCREASE IN FEE FOR CERTAIN 

18 CONSULAR SERVICES. 

19 (a) INCREASE IN FEE.—Notwithstanding any other 

20 provision of law, not later than 120 days after the date 

21 of the enactment of this Act, the Secretary of State shall 

22 increase by $1.00 the fee or surcharge assessed under sec23 tion 140(a) of the Foreign Relations Authorization Act, 

24 Fiscal Years 1994 and 1995 (Public Law 103–236; 8 

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1 immigrant visas and machine readable combined border 

2 crossing identification cards and nonimmigrant visas. 

3 (b) DEPOSIT OF AMOUNTS.—Fees collected under the 

4 authority of subsection (a) shall be deposited in the Treas5 ury. 

6 (c) DURATION OF INCREASE.—The fee increase au7 thorized under subsection (a) shall terminate on the date 

8 that is one year after the date on which such fee is first 

9 collected. 

10 TITLE II—APPLICATION OF 

11 SANCTIONS AGAINST AFFILI12 ATES OF IRAN’S ISLAMIC REV13 OLUTIONARY GUARD CORPS 

14 SEC. 201. SANCTIONS AGAINST AFFILIATES OF IRAN’S IS15 LAMIC REVOLUTIONARY GUARD CORPS. 

16 (a) IN GENERAL.—Not later than 90 days after the 

17 date of the enactment of this Act, and as appropriate 

18 thereafter, the President shall identify in, and, in the case 

19 of a foreign person or foreign entity not already so des20 ignated, shall designate for inclusion in the Annex to Ex21 ecutive Order 13382 (70 Fed. Reg. 38567; relating to 

22 blocking property of weapons of mass destruction 

23 proliferators and their supporters) and shall apply all ap24 plicable sanctions of the United States pursuant to Execu25 tive Order 13382 to each foreign person or foreign entity 


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1 for which there is a reasonable basis for determining that 

2 the person or entity is as an agent, alias, front, instrumen3 tality, official, or affiliate of Iran’s Islamic Revolutionary 

4 Guard Corps or is an individual serving as a representa5 tive of Iran’s Islamic Revolutionary Guard Corps. 

6 (b) PRIORITY FOR INVESTIGATION.—In carrying out 

7 this section, the President shall give priority to inves8 tigating foreign persons and foreign entities identified 

9 under section 560.304 of title 31, Code of Federal Regula10 tions (relating to the definition of the Government of Iran) 

11 and foreign persons and foreign entities for which there 

12 is a reasonable basis to suspect that the person or entity 

13 has conducted or attempted to conduct one or more sen14 sitive transactions or activities described in subsection (c). 

15 (c) SENSITIVE TRANSACTION OR ACTIVITY.—A sen16 sitive transaction or activity referred to in subsection (b) 

17 is— 

18 (1) a financial transaction or series of trans19 actions valued at more than $1,000,000 in the ag20 gregate in any 12-month period involving a non-Ira21 nian financial institution; 

22 (2) a transaction to facilitate the manufacture, 

23 import, export, or transfer of items needed for the 

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1 vanced conventional weapons, including ballistic mis2 siles; 

3 (3) a transaction relating to the manufacture, 

4 procurement, or sale of goods, services, and tech5 nology relating to Iran’s energy sector, including the 

6 development of the energy resources of Iran, export 

7 of petroleum products, and import of refined petro8 leum and refining capacity available to Iran; 

9 (4) a transaction relating to the procurement of 

10 sensitive technologies (as defined in section 106(c) of 

11 the Comprehensive Iran Sanctions, Accountability, 

12 and Divestment Act of 2010 (Public Law 111–195; 

13 22 U.S.C. 8515(c)); or 

14 (5) an attempt to interfere in the internal af15 fairs of Iraq or Afghanistan, or equip or train, or 

16 encourage violence by, individuals or groups opposed 

17 to the governments of those countries. 

18 (d) EXCLUSION FROM UNITED STATES.—The Sec19 retary of State shall deny a visa to, and the Secretary of 

20 Homeland Security shall exclude from the United States, 

21 any alien who, on or after the date of the enactment of 

22 this Act, is a foreign person designated for inclusion in 

23 the Annex to Executive Order 13382 pursuant to sub24 section (a). 


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1 (e) RULE OF CONSTRUCTION.—Nothing in this sec2 tion shall be construed to remove any sanction of the 

3 United States in force against Iran’s Islamic Revolu4 tionary Guard Corps as of the date of the enactment of 

5 this Act by reason of the fact that Iran’s Islamic Revolu6 tionary Guard Corps is an entity of the Government of 

7 Iran. 

8 SEC. 202. MEASURES AGAINST FOREIGN PERSONS OR ENTI9 TIES SUPPORTING IRAN’S ISLAMIC REVOLU10 TIONARY GUARD CORPS. 

11 (a) IDENTIFICATION AND NOTIFICATION.—The 

12 President shall notify the appropriate congressional com13 mittees in any case in which the President determines that 

14 there is credible information indicating that a foreign per15 son or foreign entity, on or after the date of the enactment 

16 of this Act, knowingly— 

17 (1) provides material support to Iran’s Islamic 

18 Revolutionary Guard Corps or any person or entity 

19 that identified pursuant to section 201(a) as an 

20 agent, alias, front, instrumentality, official, or affil21 iate of Iran’s Islamic Revolutionary Guard Corps or 

22 an individual serving as a representative of Iran’s Is23 lamic Revolutionary Guard Corps; or 


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1 (2) conducts any commercial transaction or fi2 nancial transaction with Iran’s Islamic Revolu3 tionary Guard Corps or any such person or entity. 

4 (b) WAIVER.— 

5 (1) IN GENERAL.—Notwithstanding any other 

6 provision of this title and subject to paragraph (2), 

7 the President is not required to make any identifica8 tion or designation of or determination with respect 

9 to a foreign person or foreign entity for purposes of 

10 this title if doing so would cause damage to the na11 tional security of the United States through the di12 vulgence of sources and methods of intelligence or 

13 other critical classified information. 

14 (2) NOTICE TO CONGRESS.—The President 

15 shall notify Congress of any exercise of the authority 

16 of paragraph (1) and shall include in the notification 

17 an identification of the foreign person or foreign en18 tity, including a description of the activity or trans19 action that would have caused the identification, des20 ignation, or determination for purposes of this title. 

21 (c) SANCTIONS.— 

22 (1) IN GENERAL.—Not later than 60 days after 

23 the date on which the President provides notice to 

24 the appropriate congressional committees pursuant 

25 to subsection (a), the President shall apply to each 


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1 foreign person or foreign entity identified in the no2 tice, for such time as the President may determine, 

3 the following sanctions: 

4 (A) No department or agency of the 

5 United States Government may procure or 

6 enter into a contract for the procurement of 

7 goods or services from the person or entity. 

8 (B) No products produced by the person or 

9 entity may be imported into the United States. 

10 (2) TERMINATION.—The President may termi11 nate the sanctions applied to a foreign person or for12 eign entity pursuant to paragraph (1) if the Presi13 dent determines that the person or entity no longer 

14 engages in the activity or activities for which the 

15 sanctions were imposed and has provided assurances 

16 to the United States Government that it will not en17 gage in the activity or activities in the future. 

18 (d) IEEPA SANCTIONS.—The President may exer19 cise the authorities provided under section 203(a) of the 

20 International Emergency Economic Powers Act (50 

21 U.S.C. 1702(a)) to impose additional sanctions on each 

22 foreign person or foreign entity identified pursuant to sub23 section (a) of this section, for such time as the President 

24 may determine, without regard to section 202 of that Act. 


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1 (e) WAIVER.—The President may waive the applica2 tion of any measure described in subsection (c) with re3 spect to a foreign person or foreign entity if the Presi4 dent— 

5 (1)(A) determines that the person or entity has 

6 ceased the activity that resulted in the notification 

7 under subsection (a) with respect to the person or 

8 entity (as the case may be) and has taken measures 

9 to prevent its recurrence; or 

10 (B) determines that it is vital to the national 

11 security interests of the United States to do so; and 

12 (2) submits to the appropriate congressional 

13 committees a report that contains the reasons for 

14 the determination. 

15 SEC. 203. SPECIAL MEASURES AGAINST FOREIGN COUN16 TRIES SUPPORTING IRAN’S ISLAMIC REVOLU17 TIONARY GUARD CORPS. 

18 (a) SANCTIONS.—With respect to any foreign entity 

19 identified pursuant to section 202(a) that is an agency of 

20 the government of a foreign country, the President shall, 

21 in addition to applying to the entity the sanctions de22 scribed in section 202(c), apply to the foreign country the 

23 following measures: 

24 (1) No assistance shall be provided to the for25 eign country under the Foreign Assistance Act of 


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1 1961, or any successor Act, or the Arms Export 

2 Control Act, or any successor Act, other than assist3 ance that is intended to benefit the people of the for4 eign country directly and that is not provided 

5 through governmental agencies or entities of the for6 eign country. 

7 (2) The United States shall oppose any loan or 

8 financial or technical assistance to the foreign coun9 try by international financial institutions in accord10 ance with section 701 of the International Financial 

11 Institutions Act (22 U.S.C. 262d). 

12 (3) The United States shall deny to the foreign 

13 country any credit or financial assistance by any de14 partment, agency, or instrumentality of the United 

15 States Government. 

16 (4) The United States Government shall not 

17 approve the sale to the foreign country any defense 

18 articles or defense services or issue any license for 

19 the export of items on the United States Munitions 

20 List. 

21 (5) No exports to the foreign country shall be 

22 permitted of any goods or technologies controlled for 

23 national security reasons under the Export Adminis24 tration Regulations. 


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1 (6) Restrictions shall be imposed on the impor2 tation into the United States of articles that are the 

3 growth, product, or manufacture of the foreign coun4 try. 

5 (7) At the earliest practicable date, the Sec6 retary of State shall terminate, in a manner con7 sistent with international law, the authority of any 

8 air carrier that is controlled in fact by the govern9 ment of the foreign country to engage in air trans10 portation (as defined in section 40102(5) of title 49, 

11 United States Code). 

12 (b) TERMINATION.—The President may terminate 

13 the sanctions applied to a foreign country pursuant to sub14 section (a) if the President determines that the foreign 

15 entity involved no longer engages in the activity or activi16 ties for which the sanctions were imposed and has pro17 vided assurances to the United States Government that 

18 it will not engage in the activity or activities in the future. 

19 (c) WAIVER.—The President may waive the applica20 tion of any measure described in subsection (a) with re21 spect to a foreign country if the President— 

22 (1)(A) determines that the entity has ceased 

23 the activity that resulted in the notification under 

24 section 202(a) with respect to the entity and has 

25 taken measures to prevent its recurrence; or 


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1 (B) determines that it is vital to the national 

2 security interests of the United States to do so; and 

3 (2) submits to the appropriate congressional 

4 committees a report that contains the reasons for 

5 the determination. 

6 SEC. 204. RULE OF CONSTRUCTION. 

7 Nothing in this title shall be construed to limit the 

8 authority of the President to otherwise designate foreign 

9 persons or foreign entities for inclusion in the Annex to 

10 Executive Order 13382 (70 Fed. Reg. 38567; relating to 

11 blocking property of weapons of mass destruction 

12 proliferators and their supporters). 

13 SEC. 205. DEFINITIONS. 

14 In this title: 

15 (1) APPROPRIATE CONGRESSIONAL COMMIT16 TEES.—The term ‘‘appropriate congressional com17 mittees’’ means the Committee on Foreign Affairs of 

18 the House of Representatives and the Committee on 

19 Foreign Relations of the Senate. 

20 (2) FOREIGN PERSON.—The term ‘‘foreign per21 son’’ has the meaning given the term in section 14 

22 of the Iran Sanctions Act of 1996. 

23 (3) IRAN’S ISLAMIC REVOLUTIONARY GUARD

24 CORPS.—The term ‘‘Iran’s Islamic Revolutionary 


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1 Guard Corps’’ includes the Iran’s Islamic Revolu2 tionary Guard Corps-Qods Force. 

3 SEC. 206. SUNSET. 

4 This title shall terminate on the date that is 30 days 

5 after the date on which the President makes the certifi6 cation described in section 401(a) of the Comprehensive 

7 Iran Sanctions, Accountability, and Divestment Act of 

8 2010 (22 U.S.C. 8551(a)). 

9 TITLE III—OPPOSITION OF 

10 TRANSFER TO IRAN, NORTH 

11 KOREA, AND SYRIA OF 

12 GOODS, SERVICES, OR TECH13 NOLOGY RELEVANT TO THEIR 

14 CAPABILITY TO EXTRACT OR 

15 MILL URANIUM ORE 

16 SEC. 301. STATEMENT OF POLICY. 

17 It shall be the policy of the United States— 

18 (1) to oppose the transfer to Iran, North 

19 Korea, and Syria of goods, services, or technology 

20 relevant to the capability of those countries to ex21 tract or mill uranium ore; and 

22 (2) to work with like-minded countries to im23 pose restrictions on such transfers internationally. 


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1 SEC. 302. REPORTING REQUIREMENTS UNDER THE IRAN, 

2 NORTH KOREA, AND SYRIA NONPROLIFERA3 TION ACT. 

4 Section 2(a) of the Iran, North Korea, and Syria 

5 Nonproliferation Act (50 U.S.C. 1701 note) is amended— 

6 (1) in paragraph (1), by redesignating subpara7 graphs (A) through (E) as clauses (i) through (v), 

8 respectively; 

9 (2) by redesignating paragraphs (1) and (2) as 

10 subparagraphs (A) and (B), respectively; 

11 (3) in subparagraph (B), as redesignated— 

12 (A) by striking ‘‘paragraph (1)’’ and in13 serting ‘‘subparagraph (A)’’; and 

14 (B) by striking the period at the end and 

15 inserting ‘‘; or’’; 

16 (4) by striking all that precedes subparagraph 

17 (A), as redesignated, and inserting the following: 

18 ‘‘(a) REPORTS.—The President shall, at the times 

19 specified in subsection (b), submit to the Committee on 

20 Foreign Affairs of the House of Representatives and the 

21 Committee on Foreign Relations of the Senate a report 

22 identifying every foreign person with respect to whom 

23 there is credible information indicating that person— 

24 ‘‘(1) on or after January 1, 1999, transferred 

25 to or acquired from Iran, on or after January 1, 

26 2005, transferred to or acquired from Syria, or on 


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1 or after January 1, 2006, transferred to or acquired 

2 from North Korea—’’; and 

3 (5) by adding at the end the following new 

4 paragraph: 

5 ‘‘(2) on or after January 1, 2009, transferred 

6 to Iran, Syria, or North Korea goods, services, or 

7 technology that could assist efforts to extract or mill 

8 uranium ore within the territory or control of Iran, 

9 North Korea, or Syria.’’. 

10 SEC. 303. CONFORMING AMENDMENTS. 

11 The Iran, North Korea, and Syria Nonproliferation 

12 Act (50 U.S.C. 1701 note) is further amended by striking 

13 ‘‘Committee on International Relations’’ each place it ap14 pears and inserting ‘‘Committee on Foreign Affairs’’. 


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1 TITLE IV—ROLLOVER OF GAIN 

2 FROM DIVESTING CERTAIN 

3 QUALIFIED SECURITIES OF 

4 BUSINESS ENTITIES EN5 GAGED IN DISCOURAGED AC6 TIVITIES IN IRAN 

7 SEC. 401. ROLLOVER OF GAIN FROM DIVESTING CERTAIN 

8 QUALIFIED SECURITIES OF BUSINESS ENTI9 TIES ENGAGED IN DISCOURAGED ACTIVITIES 

10 IN IRAN. 

11 (a) IN GENERAL.—Part III of subchapter O of chap12 ter 1 of the Internal Revenue Code of 1986 (relating to 

13 common nontaxable exchanges) is amended by adding at 

14 the end the following new section: 

15 ‘‘SEC. 1046. ROLLOVER OF GAIN FROM DIVESTING CERTAIN 

16 QUALIFIED SECURITIES OF BUSINESS ENTI17 TIES ENGAGED IN DISCOURAGED ACTIVITIES 

18 IN IRAN. 

19 ‘‘(a) NONRECOGNITION OF GAIN.— 

20 ‘‘(1) IN GENERAL.—In the case of any sale of 

21 any qualified security held by a taxpayer with re22 spect to which such taxpayer elects the application 

23 of this section, in any business entity that is en24 gaged in an Iran discouraged activity, gain from 


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1 such sale shall be recognized only to the extent that 

2 the amount realized on such sale exceeds— 

3 ‘‘(A) the cost of any qualified replacement 

4 property purchased by the taxpayer during the 

5 30-day period beginning on the date of such 

6 sale, reduced by 

7 ‘‘(B) any portion of such cost previously 

8 taken into account under this section. 

9 ‘‘(2) EXCEPTION FOR ORDINARY INCOME

10 GAIN.—This section shall not apply to any gain 

11 which is treated as ordinary income for purposes of 

12 this title. 

13 ‘‘(3) EXCEPTION WHERE TAXPAYER OWNS CON14 TROLLING INTEREST IN THE BUSINESS ENTITY.— 

15 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

16 not apply to any sale if, immediately before 

17 such sale, the taxpayer owns a controlling inter18 est in the business entity that is engaged in an 

19 Iran discouraged activity. 

20 ‘‘(B) CONTROLLING INTEREST.—For pur21 poses of subparagraph (A), the term ‘control22 ling interest’ means direct or indirect ownership 

23 of at least 50 percent of the total voting power 

24 and value of all classes of stock of a corpora25 tion. For purposes of the preceding sentence, 


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1 the rules of paragraphs (1) and (5) of section 

2 267(c) shall apply. 

3 ‘‘(C) AGGREGATION RULE.—For purposes 

4 of this paragraph, all members of the same con5 trolled group of corporations (within the mean6 ing of section 267(f)) and all persons under 

7 common control (within the meaning of section 

8 52(b) but determined by treating an interest of 

9 more than 50 percent as a controlling interest) 

10 shall be treated as 1 person. 

11 ‘‘(b) DEFINITIONS AND SPECIAL RULES RELATING

12 TO SECURITIES AND REPLACEMENT PROPERTY.—For 

13 purposes of this section— 

14 ‘‘(1) QUALIFIED SECURITY.— 

15 ‘‘(A) IN GENERAL.—The term ‘qualified 

16 security’ means any security held by a taxpayer 

17 in any business entity that is engaged in an 

18 Iran discouraged activity. 

19 ‘‘(B) EXCEPTION.—Such term shall not in20 clude any security purchased or otherwise ac21 quired after the date of the enactment of this 

22 section which, at the time of such purchase or 

23 acquisition, was issued by a business entity 

24 then engaged in an Iran discouraged activity. 


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1 ‘‘(C) SECURITY DEFINED.—The term ‘se2 curity’ has the meaning given such term by sec3 tion 165(g)(2). 

4 ‘‘(2) QUALIFIED REPLACEMENT PROPERTY.— 

5 ‘‘(A) IN GENERAL.—The term ‘qualified 

6 replacement property’ means any security of a 

7 business entity that, on the date of purchase by 

8 the taxpayer— 

9 ‘‘(i) is not engaged in an Iran discour10 aged activity on such date, 

11 ‘‘(ii) is not a member of an expanded 

12 affiliated group, any member of which is 

13 engaged in an Iran discouraged activity on 

14 such date, and 

15 ‘‘(iii) meets the requirements of sub16 paragraph (B) or paragraph (3). 

17 ‘‘(B) REPLACEMENT PROPERTY.—Property 

18 meets the requirements of this paragraph if, 

19 with respect to the sale of any security— 

20 ‘‘(i) except as provided in clause (ii), 

21 in the case that the security is a share of 

22 stock in a corporation, the replacement 

23 property is a share of stock in a corpora24 tion, 


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1 ‘‘(ii) in the case that the security is a 

2 share of stock of a regulated investment 

3 company, real estate investment trust, 

4 hedge fund, investment partnership, or 

5 similar business entity, the replacement 

6 property is a share of stock in a regulated 

7 investment company, real estate invest8 ment trust, hedge fund, investment part9 nership, or similar business entity, 

10 ‘‘(iii) in the case that the security is 

11 a right to subscribe for, or to receive, a 

12 share of stock in a corporation, the re13 placement property is a right to subscribe 

14 for, or to receive, a share of stock in a cor15 poration, and 

16 ‘‘(iv) in the case that the security is 

17 a bond, debenture, note, or certificate, or 

18 other evidence of indebtedness issued by a 

19 corporation, with interest coupons or in 

20 registered form, the replacement property 

21 is a bond, debenture, note, or certificate, 

22 or other evidence of indebtedness issued by 

23 a corporation, with interest coupons or in 

24 registered form. 


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1 ‘‘(C) DEEMED INVESTMENT IF INVESTING

2 IN ENTITIES ENGAGED IN DISCOURAGED AC3 TIVITIES.—Any regulated investment company, 

4 real estate investment trust, hedge fund, invest5 ment partnership, or similar business entity, 

6 which invests in the securities— 

7 ‘‘(i) issued by a business entity deter8 mined to be engaging in Iran discouraged 

9 activities, or 

10 ‘‘(ii) issued by the government of Iran 

11 or any agency thereof, 

12 shall be deemed to be a business entity engag13 ing in Iran discouraged activities. 

14 ‘‘(D) BUSINESS DECLARATION OF POL15 ICY.— 

16 ‘‘(i) IN GENERAL.—Notwithstanding 

17 any other provision of this section, in the 

18 case of a business entity described in 

19 clause (iii), a security in such business en20 tity shall not be treated as qualified re21 placement property unless the business en22 tity has made the following declaration: ‘It 

23 is our policy not to make investments in 

24 business entities which engage in Iran dis25 couraged activities as defined in section 


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1 1046 of the Internal Revenue Code of 

2 1986, and to use due diligence to avoid 

3 making such investments. It is our policy 

4 to divest on or before December 31, 2012, 

5 from business entities engaged in Iran dis6 couraged activities.’. 

7 ‘‘(ii) NOT QUALIFIED SECURITY.—If a 

8 business entity described in clause (iii) has 

9 made the declaration specified in clause (i), 

10 then from the time of such declaration an 

11 interest in such business entity shall not be 

12 treated as a qualified security. 

13 ‘‘(iii) BUSINESS ENTITY DE14 SCRIBED.—A business entity described in 

15 this clause is a regulated investment com16 pany, real estate investment trust, hedge 

17 fund, investment partnership, or similar 

18 business entity. 

19 ‘‘(E) EXPANDED AFFILIATED GROUP.— 

20 The term ‘expanded affiliated group’ means an 

21 affiliated group as defined in section 1504(a), 

22 determined— 

23 ‘‘(i) by substituting ‘more than 50 

24 percent’ for ‘at least 80 percent’ each place 

25 it appears, and 


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1 ‘‘(ii) without regard to paragraphs (2) 

2 and (4) of section 1504(b). 

3 ‘‘(F) BASIS ADJUSTMENTS.—If gain from 

4 any sale is not recognized by reason of sub5 section (a), such gain shall be applied to reduce 

6 (in the order acquired) the basis for deter7 mining gain or loss of any qualified replacement 

8 property which is purchased by the taxpayer 

9 during the 30-day period described in sub10 section (a). 

11 ‘‘(G) HOLDING PERIOD.—For purposes of 

12 determining the period for which the taxpayer 

13 has held qualified replacement property the ac14 quisition of which resulted in the nonrecognition 

15 under subsection (a) of any part of the gain re16 alized on the sale of a qualified security, there 

17 shall be included the period for which such 

18 qualified security had been held by the tax19 payer. 

20 ‘‘(3) SPECIAL RULE FOR SECURITIES OF CER21 TAIN ENTITIES.— 

22 ‘‘(A) IN GENERAL.—For any business enti23 ty described in subparagraph (C), a security in 

24 such business entity shall be treated as quali25 fied replacement property if— 


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1 ‘‘(i) the business entity has made the 

2 following declaration: ‘It is our policy not 

3 to make investments in any person having 

4 an investment in, or carrying on a trade or 

5 business (within the meaning of section 

6 162) in or with, Iran. This policy may or 

7 may not include investments concerning 

8 the provision of food, medicine, humani9 tarian services in or to Iran.’, and 

10 ‘‘(ii) the business entity has adopted 

11 restrictions on investment in persons that 

12 invest in or carrying on a trade or business 

13 (within the meaning of section 162) in or 

14 with countries other than Iran that have 

15 been determined by the Secretary of State 

16 to have repeatedly provided support acts of 

17 international terrorism pursuant to— 

18 ‘‘(I) section 6(j)(1)(A) of the Ex19 port Administration Act of 1979 (50 

20 U.S.C. App. 2405(j)(1)(A)) (as in ef21 fect pursuant to the International 

22 Emergency Economic Powers Act (50 

23 U.S.C. 1701 et seq.)) (or any suc24 cessor thereto); 


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1 ‘‘(II) section 40(d) of the Arms 

2 Export Control Act (22 U.S.C. 

3 2780(d)); or 

4 ‘‘(III) section 620A(a) of the 

5 Foreign Assistance Act of 1961 (22 

6 U.S.C. 2371(a)). 

7 ‘‘(B) NOT QUALIFIED SECURITY.—If a 

8 business entity described in subparagraph (C) 

9 has made the declaration specified in subpara10 graph (A), then from the time of such declara11 tion an interest in such business entity shall not 

12 be treated as a qualified security. 

13 ‘‘(C) BUSINESS ENTITY DESCRIBED.—A 

14 business entity described in this subparagraph 

15 is a regulated investment company, real estate 

16 investment trust, hedge fund, investment part17 nership, or similar business entity. 

18 ‘‘(4) BUSINESS ENTITY.—The term ‘business 

19 entity’ means any corporation, limited liability part20 nership, limited liability company, or any other busi21 ness entity conducting business activities in which 

22 the taxpayer has purchased or can purchase securi23 ties. 

24 ‘‘(c) DEFINITIONS AND RULES RELATING TO IRAN

25 DISCOURAGED ACTIVITIES.—For purposes of this section, 


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1 the term ‘Iran discouraged activity’ means any activity de2 scribed in section 5(a) of the Iran Sanctions Act of 1996 

3 (Public Law 104–172; 50 U.S.C. 1701 note) with respect 

4 to which sanctions described in section 6(a) of such Act 

5 may be imposed. 

6 ‘‘(d) DOING BUSINESS WITH TERRORISTS.— 

7 ‘‘(1) IN GENERAL.—For purposes of this sec8 tion, a business entity has engaged in Iran discour9 aged activities if it conducts business with or makes 

10 any charitable donation to any Iranian person des11 ignated as a terrorist or to any foreign terrorist or12 ganization. 

13 ‘‘(2) TERRORIST.—A person is designated as a 

14 terrorist for purposes of paragraph (1) if such per15 son is designated or otherwise individually identified 

16 in or pursuant to an Executive Order which is re17 lated to terrorism and issued under the authority of 

18 the International Emergency Economic Powers Act 

19 or section 5 of the United Nations Participation Act 

20 of 1945 for the purpose of imposing on such organi21 zation an economic or other sanction. 

22 ‘‘(3) FOREIGN TERRORIST ORGANIZATION.— 

23 For purposes of paragraph (1), the term ‘foreign 

24 terrorist organization’ means an organization des25 ignated under section 219 of the Immigration and 


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1 Nationality Act (8 U.S.C. 1189) as a foreign ter2 rorist organization. 

3 ‘‘(e) IDENTIFICATION OF BUSINESS ENTITIES EN4 GAGING IN IRAN DISCOURAGED ACTIVITIES.— 

5 ‘‘(1) PUBLICATION OF LIST.—For purposes of 

6 this section, the Secretary shall publish and update 

7 at least every six months a list of business entities 

8 engaging in any Iran discouraged activity. 

9 ‘‘(2) REGULATIONS.—The Secretary shall issue 

10 regulations defining how a business entity shall not 

11 be deemed to be engaged in an Iran discouraged ac12 tivity, if— 

13 ‘‘(A) with regard to activities on the date 

14 this section becomes effective, the business enti15 ty limits its activity to continuing existing con16 tracts, without extension or expansion (except 

17 that an investment (as defined in section 14 of 

18 the Iran Sanctions Act of 1996) that would 

19 subject a business entity to sanctions under sec20 tion 5 of the Iran Sanctions Act of 1996 shall 

21 be considered an Iran discouraged activity, not22 withstanding contracts entered into prior to the 

23 effective date of this section), and 

24 ‘‘(B) with regard to any Iran discouraged 

25 activity carried on under contracts entered into 


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1 or expanded after the effective date of this sec2 tion, the contract was entered into at a time 

3 when the business entity did not own or control 

4 the subsidiary business entity, and after acquir5 ing such ownership or control the business enti6 ty has not extended or expanded or renewed 

7 such contract. 

8 ‘‘(3) TAXPAYER SELF-HELP.—Until such time 

9 as the Secretary publishes a list of those engaging 

10 in Iran discouraged activities or if the Secretary fails 

11 to update that list as required in paragraph (1), the 

12 taxpayer may determine, using credible, publicly 

13 available information, which business entities engage 

14 in an Iran discouraged activity. 

15 ‘‘(f) IMPROVEMENT IN THE ACTIONS OF THE GOV16 ERNMENT OF IRAN.— 

17 ‘‘(1) TERMINATION OF NONRECOGNITION

18 TREATMENT.—Effective on the date when the re19 quirements described in paragraph (2) are met, sub20 section (a) shall not apply to any Iran discouraged 

21 activity after such date. 

22 ‘‘(2) REQUIREMENTS.—The requirements de23 scribed in this paragraph are— 

24 ‘‘(A) a declaration by the President which 

25 states that, in the opinion of the President, 


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1 Iran is no longer engaging in efforts to develop 

2 or retain weapons of mass destruction, and has 

3 not developed and is not developing the capacity 

4 to enrich or reprocess uranium or plutonium, 

5 and 

6 ‘‘(B) a determination by the Secretary of 

7 State that Iran should no longer be listed as a 

8 state sponsor of acts of international terrorism 

9 pursuant to section 6(j) of the Export Adminis10 tration Act of 1979, section 620A of the For11 eign Assistance Act of 1961, section 40 of the 

12 Arms Export Control Act, or any other provi13 sion of law.’’. 

14 (b) CLERICAL AMENDMENT.—The table of sections 

15 for part III of subchapter O of chapter 1 of such Code 

16 is amended by adding at the end the following new item: 

‘‘Sec. 1046. Rollover of gain from divesting certain qualified securities of business entities engaged in discouraged activities in Iran.’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to with respect to sales of securities 

19 after the date of the enactment of this Act. 


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1 TITLE V—PROHIBITION ON 

2 UNITED STATES GOVERN3 MENT CONTRACTS AND IN4 VESTMENT FOR COMPANIES 

5 CONDUCTING BUSINESS IN 

6 IRAN 

7 SEC. 501. PROHIBITION ON UNITED STATES GOVERNMENT 

8 CONTRACTS. 

9 (a) CERTIFICATION REQUIREMENT.—The head of 

10 each executive agency shall ensure that each contract with 

11 a company entered into by such executive agency for the 

12 procurement of goods or services or agreement for the use 

13 of Federal funds as part of a grant, loan, or loan guar14 antee, the provision of insurance or reinsurance, or the 

15 provision of technical assistance to a company, includes 

16 a clause that requires the company to certify to the con17 tracting officer or other appropriate official, as the case 

18 may be, that the company does not conduct business oper19 ations in Iran described in section 504. 

20 (b) REMEDIES.— 

21 (1) IN GENERAL.—The head of an executive 

22 agency may impose remedies as provided in this sub23 section if the head of the executive agency deter24 mines that the contractor has submitted a false cer25 tification under subsection (a) after the date the 


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1 Federal Acquisition Regulation is revised pursuant 

2 to subsection (e) to implement the requirements of 

3 this section. 

4 (2) TERMINATION.—The head of an executive 

5 agency may terminate a covered contract with a 

6 company upon the determination of a false certifi7 cation under paragraph (1). 

8 (3) SUSPENSION AND DEBARMENT.—The head 

9 of an executive agency may debar or suspend a con10 tractor from eligibility for Federal contracts upon 

11 the determination of a false certification under para12 graph (1). The debarment period may not exceed 3 

13 years. 

14 (4) INCLUSION ON LIST OF PARTIES EXCLUDED

15 FROM FEDERAL PROCUREMENT AND NONPROCURE16 MENT PROGRAMS.—The Administrator of General 

17 Services shall include on the List of Parties Ex18 cluded from Federal Procurement and Nonprocure19 ment Programs maintained by the Administrator 

20 under part 9 of the Federal Acquisition Regulation 

21 issued pursuant to section 1303 of title 41, United 

22 States Code, each contractor that is debarred, sus23 pended, proposed for debarment or suspension, or 

24 declared ineligible by the head of an executive agenVerDate Mar 15 2010 23:43 Apr 21, 2011 Jkt 099200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H1655.IH H1655

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1 cy on the basis of a determination of a false certifi2 cation under paragraph (1). 

3 (5) RULE OF CONSTRUCTION.—This section 

4 shall not be construed to limit the use of other rem5 edies available to the head of an executive agency or 

6 any other official of the Federal Government on the 

7 basis of a determination of a false certification 

8 under paragraph (1). 

9 (c) WAIVER.— 

10 (1) IN GENERAL.—The President may waive 

11 the requirement of subsection (a) on a case-by-case 

12 basis if the President determines and certifies in 

13 writing to the appropriate congressional committees 

14 that it is in the national interest to do so. 

15 (2) REPORTING REQUIREMENT.—Not later than 

16 120 days after the date of the enactment of this Act 

17 and semi-annually thereafter, the Administrator for 

18 Federal Procurement Policy shall submit to the ap19 propriate congressional committees a report on waiv20 ers granted under paragraph (1). 

21 (d) IMPLEMENTATION THROUGH THE FEDERAL AC22 QUISITION REGULATION.—Not later than 120 days after 

23 the date of the enactment of this Act, the Federal Acquisi24 tion Regulation issued pursuant to section 1303 of title 


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1 41, United States Code, shall be revised to provide for the 

2 implementation of the requirements of this section. 

3 SEC. 502. AUTHORITY OF STATE AND LOCAL GOVERN4 MENTS TO RESTRICT CONTRACTS OR LI5 CENSES FOR CERTAIN SANCTIONABLE PER6 SONS. 

7 Notwithstanding any other provision of law, a State 

8 or local government may adopt and enforce measures to 

9 prohibit the State or local government, as the case may 

10 be, from entering into or renewing any contract with, or 

11 granting to or renewing any license for persons that con12 duct business operations in Iran described in section 504. 

13 SEC. 503. UNITED STATES PENSION PLANS. 

14 (a) DIVESTITURE FROM IRAN.—The managers of 

15 United States Government pension plans or thrift savings 

16 plans, shall take, to the extent consistent with the legal 

17 and fiduciary duties otherwise imposed on them, imme18 diate steps to divest all investments in any entity with re19 spect to which sanctions are applied for activities de20 scribed in section 5(a) of the Iran Sanctions Act of 1996 

21 (Public Law 104–172; 50 U.S.C. 1701 note), as amended 

22 by this Act, section 202(a) of this Act, or section 106(a) 

23 of the Comprehensive Iran Sanctions, Accountability, and 

24 Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 

25 8515). 


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1 (b) PROHIBITION ON FUTURE INVESTMENT.—The 

2 managers of United States Government pension plans or 

3 thrift savings plans shall ensure that there is no future 

4 investment in any entity described in subsection (a) for 

5 the duration of the period of time during which the entity 

6 is sanctioned under the applicable provision of law de7 scribed in subsection (a). 

8 SEC. 504. DEFINITIONS. 

9 In this title: 

10 (1) APPROPRIATE CONGRESSIONAL COMMIT11 TEES.—The term ‘‘appropriate congressional com12 mittees’’ means— 

13 (A) the Committee on Banking, Housing, 

14 and Urban Affairs, the Committee on Foreign 

15 Relations, and the Select Committee on Intel16 ligence of the Senate; and 

17 (B) the Committee on Financial Services, 

18 the Committee on Foreign Affairs, and the Per19 manent Select Committee on Intelligence of the 

20 House of Representatives. 

21 (2) AFFILIATE.—The term ‘‘affiliate’’ means 

22 any individual or entity that directly or indirectly 

23 controls, is controlled by, or is under common con24 trol with, the company, including without limitation 

25 direct and indirect subsidiaries of the company. 


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1 (3) BUSINESS OPERATIONS.—The term ‘‘busi2 ness operations’’ means— 

3 (A) carrying out any of the activities de4 scribed in section 5 (a) and (b) of the Iran 

5 Sanctions Act of 1996 (Public Law 104–172; 

6 50 U.S.C. 1701 note), as amended by this Act, 

7 that are sanctionable under such section; 

8 (B) providing sensitive technology (as de9 fined in section 106(c) of the Comprehensive 

10 Iran Sanctions, Accountability, and Divestment 

11 Act of 2010 (Public Law 111–195; 22 U.S.C. 

12 8515(c))) to the Government of Iran; and 

13 (C) carrying out any of the activities de14 scribed in section 302(a) of this Act. 

15 (4) COMPANY.—The term ‘‘company’’ means— 

16 (A) a sole proprietorship, organization, as17 sociation, corporation, partnership, limited li18 ability company, venture, or other entity, its 

19 subsidiary or affiliate; and 

20 (B) includes a company owned or con21 trolled, either directly or indirectly, by the gov22 ernment of a foreign country, that is estab23 lished or organized under the laws of, or has its 

24 principal place of business in, such foreign 


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1 country and includes United States subsidiaries 

2 of the same. 

3 (5) ENTITY.—The term ‘‘entity’’ means a sole 

4 proprietorship, a partnership, limited liability cor5 poration, association, trust, joint venture, corpora6 tion, or other organization. 

7 (6) EXECUTIVE AGENCY.—The term ‘‘executive 

8 agency’’ has the meaning given the term in section 

9 133 of title 41, United States Code. 

10 (7) FEDERAL FUNDS.—The term ‘‘Federal 

11 funds’’ means a sum of money or other resources de12 rived from United States taxpayers, which the 

13 United States Government may provide to compa14 nies through government grants or loans, or through 

15 the terms of a contract with the Federal Govern16 ment, or through the Emergency Economic Sta17 bilization Act of 2008 ‘‘Troubled Asset Relief Pro18 gram’’ or other similar and related transaction vehi19 cles, including a grant, loan, or loan guarantee, the 

20 provision of insurance or reinsurance, or the provi21 sion of technical assistance. 

22 (8) GOVERNMENT OF IRAN.—The term ‘‘Gov23 ernment of Iran’’ includes the Government of Iran, 

24 any political subdivision, agency, or instrumentality 


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1 thereof, and any person owned or controlled by, or 

2 acting for or on behalf of, the Government of Iran. 

3 (9) PETROLEUM RESOURCES.— 

4 (A) IN GENERAL.—The term ‘‘petroleum 

5 resources’’ includes petroleum, petroleum by6 products, oil or liquefied natural gas, oil or liq7 uefied natural gas tankers, and products used 

8 to construct or maintain pipelines used to 

9 transport oil or compressed or liquefied natural 

10 gas. 

11 (B) PETROLEUM BY-PRODUCTS.—The 

12 term ‘‘petroleum by-products’’ means gasoline, 

13 kerosene, distillates, propane or butane gas, die14 sel fuel, residual fuel oil, and other goods classi15 fied in headings 2709 and 2710 of the Har16 monized Tariff Schedule of the United States. 

17 (10) SENSITIVE TECHNOLOGY.—The term 

18 ‘‘sensitive technology’’ has the meaning given the 

19 term in section 106(c) of the Comprehensive Iran 

20 Sanctions, Accountability, and Divestment Act of 

21 2010 (Public Law 111–195; 22 U.S.C. 8515(c)). 

22 SEC. 505. SUNSET. 

23 This title shall terminate 30 days after the date on 

24 which— 


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1 (1) the President has certified to Congress that 

2 the Government of Iran has ceased providing sup3 port for acts of international terrorism and no 

4 longer satisfies the requirements for designation as 

5 a state-sponsor of terrorism for purposes of section 

6 6(j) of the Export Administration Act of 1979, sec7 tion 620A of the Foreign Assistance Act of 1961, 

8 section 40 of the Arms Export Control Act, or any 

9 other provision of law; and 

10 (2) Iran has permanently ceased the pursuit, 

11 acquisition, and development of nuclear, biological, 

12 and chemical weapons and missiles. 

13 TITLE VI—TERMINATION OF 

14 LOAN DISBURSEMENTS TO 

15 IRAN FROM THE INTER16 NATIONAL BANK FOR RECON17 STRUCTION AND DEVELOP18 MENT 

19 SEC. 601. TERMINATION OF LOAN DISBURSEMENTS TO 

20 IRAN FROM THE INTERNATIONAL BANK FOR 

21 RECONSTRUCTION AND DEVELOPMENT. 

22 (a) IN GENERAL.—The President of the United 

23 States shall take all action available to seek a termination 

24 of disbursements of funds under loans made by the InterVerDate Mar 15 2010 23:43 Apr 21, 2011 Jkt 099200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H1655.IH H1655

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1 national Bank for Reconstruction and Development to 

2 Iran. 

3 (b) REPORT TO THE CONGRESS.—On the date that 

4 is 6 months after the date of the enactment of this Act, 

5 and every 6 months thereafter, the President shall submit 

6 to the Committee on Financial Services of the House of 

7 Representatives and the Committee on Foreign Relations 

8 of the Senate a report on the efforts made by the United 

9 States to terminate the loan disbursements referred to in 

10 subsection (a). 

11 SEC. 602. UNITED STATES OPPOSITION TO NEW COUNTRY 

12 ASSISTANCE STRATEGY FOR IRAN. 

13 (a) STATEMENT OF POLICY.—It is the policy of the 

14 United States to oppose a new Country Assistance Strat15 egy for Iran. 

16 (b) ACTIONS TO BE TAKEN IF THE WORLD BANK

17 VIOLATES THE POLICY OR MAKES A NEW LOAN TO

18 IRAN.—If, after the date of the enactment of this Act, the 

19 International Bank for Reconstruction and Development 

20 approves a Country Assistance Strategy for Iran, or ap21 proves a loan to Iran, the President of the United States 

22 shall— 

23 (1) terminate any contribution by the United 

24 States to the International Bank for Reconstruction 

25 and Development, the International Finance CorVerDate Mar 15 2010 23:43 Apr 21, 2011 Jkt 099200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H1655.IH H1655

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1 poration, and the Multilateral Investment Guarantee 

2 Corporation for the fiscal year in which the Country 

3 Assistance Strategy or loan is approved, or (if loan 

4 disbursements to Iran for that fiscal year have been 

5 made by such institutions) for the following fiscal 

6 year; 

7 (2) prohibit the sale of debt instruments of the 

8 International Bank for Reconstruction and Develop9 ment in the United States, prohibit the purchase of 

10 any such debt instrument by any United States per11 son; and 

12 (3) prohibit the United States Government and 

13 any state or municipal governmental entity from 

14 purchasing any such debt instrument. 

15 SEC. 603. SUNSET. 

16 Sections 601 and 602 shall terminate 30 days after 

17 the date on which the President has certified to Congress 

18 that— 

19 (1) the Government of Iran has ceased pro20 viding support for acts of international terrorism 

21 and no longer satisfies the requirements for designa22 tion as a state-sponsor of terrorism for purposes of 

23 section 6(j) of the Export Administration Act of 

24 1979, section 620A of the Foreign Assistance Act of 


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1 1961, section 40 of the Arms Export Control Act, 

2 or any other provision of law; and 

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

4 and development of nuclear, biological, and chemical 

5 weapons and ballistic missiles and ballistic missile 

6 launch technology. 

7 SEC. 604. RULE OF INTERPRETATION. 

8 Nothing in section 601 or 602 shall be interpreted 

9 to affect United States contributions to, or the participa10 tion of the United States in, the International Develop11 ment Association. 

Æ 


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