I 

111TH CONGRESS 

1ST SESSION H. R. 1208 

To strengthen existing legislation sanctioning persons aiding and facilitating 

nonproliferation activities by the Government of Iran, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 26, 2009 

Ms. ROS-LEHTINEN (for herself, Mr. BOEHNER, Mr. CANTOR, Mr. PENCE, 

Mr. MCCARTHY of California, Mr. MCCOTTER, Mr. HOEKSTRA, Mr. KING

of New York, Mr. BUYER, Mr. BLUNT, Mrs. BLACKBURN, Mr. PRICE of 

Georgia, Mr. BURTON of Indiana, Mr. GALLEGLY, Mr. MACK, Mr. WILSON of South Carolina, Mr. BOOZMAN, Mr. MCCAUL, Mr. POE of Texas, 

Mr. BILIRAKIS, Mrs. MYRICK, Mr. LINCOLN DIAZ-BALART of Florida, 

Mr. CONAWAY, Mr. MILLER of Florida, Mr. GOHMERT, Mr. LINDER, Mr. 

PLATTS, Mr. LOBIONDO, Mr. BISHOP of Utah, Mr. TERRY, Mr. 

LAMBORN, Mr. TIBERI, Mrs. BACHMANN, Mr. BUCHANAN, Mr. BROUN

of Georgia, Mr. ROONEY, and Mr. SAM JOHNSON of Texas) introduced 

the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Oversight 

and Government Reform, Ways and Means, the Judiciary, Education and 

Labor, and Science and Technology, 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 strengthen existing legislation sanctioning persons aiding 

and facilitating nonproliferation activities by the Government of 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, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Iran Threat Reduction Act of 2009’’. 

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

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—AMENDMENTS TO THE IRAN FREEDOM SUPPORT ACT 

Sec. 101. Codification of sanctions against Iran. 

TITLE II—AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996 

AND RELATED PROVISIONS 

Sec. 201. Exclusion from the United States of senior officials of foreign persons 

who have aided proliferation relating to Iran. 

Sec. 202. Import sanctions. 

Sec. 203. Expansion and clarification of entities against which sanctions may 

be imposed pursuant to the Iran Sanctions Act of 1996. 

Sec. 204. Application to subsidiaries. 

Sec. 205. Authority to impose sanctions on principal executive officers. 

Sec. 206. Strengthening of waiver authority and sanctions implementation. 

TITLE III—AMENDMENTS TO THE IRAN, NORTH KOREA, AND 

SYRIA NONPROLIFERATION ACT 

Sec. 301. Transshipment of certain goods, services, or technology. 

Sec. 302. Prohibition on payments related to Service Module of the Russian 

Aviation and Space Agency. 

TITLE IV—DIVESTMENT FROM IRAN 

Sec. 401. Requiring the divestiture of current investments in Iran, prohibiting 

future investments in Iran, and requiring the disclosure to investors of information relating to such investments. 

Sec. 402. Incentives for divestment from Iran. 

Sec. 403. Denial of tax benefits for taxpayers engaged in business activity with 

Iran prohibited by United States law. 

Sec. 404. Tax on income derived by foreign corporations from business activity 

with Iran prohibited by United States law. 

TITLE V—COMPENSATION FOR FORMER UNITED STATES HOSTAGES HELD BY IRAN AND VICTIMS OF IRANIAN-SPONSORED 

TERRORIST ATTACKS AGAINST THE UNITED STATES 

Sec. 501. Creation of Fund. 

Sec. 502. Transfers to Fund. 

Sec. 503. Expenditures from Fund. 

Sec. 504. Compensation amounts. 

Sec. 505. Remaining funds. 


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Sec. 506. Rule of construction. 

TITLE VI—ADDITIONAL PROVISIONS RELATED TO IRANIAN UNCONVENTIONAL WEAPONS PROGRAMS AND SUPPORT FOR 

INTERNATIONAL TERRORISM 

Sec. 601. Biological weapons capabilities and programs. 

Sec. 602. Iranian chemical weapons capabilities and programs. 

Sec. 603. Restrictions on nuclear cooperation with countries assisting the nuclear program of Iran. 

Sec. 604. Continuation of restrictions against the Government of Iran. 

TITLE VII—DEFINITIONS 

Sec. 701. Definitions. 

1 TITLE I—AMENDMENTS TO THE 

2 IRAN FREEDOM SUPPORT ACT 

3 SEC. 101. CODIFICATION OF SANCTIONS AGAINST IRAN. 

4 (a) IN GENERAL.—Section 101(a) of the Iran Free5 dom Support Act (Public Law 109–293; 50 U.S.C. 1701 

6 note) is amended in the first sentence by striking ‘‘and 

7 sections 2, 3, and 5 of Executive Order No. 13059 (relat8 ing to exports and certain other transactions with Iran) 

9 as in effect on January 1, 2006,’’ and inserting ‘‘sections 

10 2, 3, and 5 of Executive Order No. 13059 (relating to 

11 exports and certain other transactions with Iran) as in ef12 fect on January 1, 2006, and Executive Order No. 13382 

13 as in effect on January 15, 2009, until the President cer14 tifies to the appropriate congressional committees, at least 

15 90 days before the removal of sanctions, that the Govern16 ment of Iran has verifiably dismantled its weapons of mass 

17 destruction programs and ceased its support for inter18 national terrorism.’’. 


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1 (b) SANCTIONS RELATING TO SUPPORT FOR ACTS OF

2 INTERNATIONAL TERRORISM.—Section 101 of the Iran 

3 Freedom Support Act is amended by amending subsection 

4 (b) to read as follows: 

5 ‘‘(b)(1) SANCTIONS RELATING TO SUPPORT FOR

6 ACTS OF INTERNATIONAL TERRORISM.—Any United 

7 States sanctions, controls, or regulations prohibiting or 

8 limiting engagement with Iranian entities as in effect on 

9 January 1, 2006, relating to a determination under sec10 tion 6(j)(1)(A) of the Export Administration Act of 1979 

11 (50 U.S.C. App. 2405(j)(1)(A)), section 620A(a) of the 

12 Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), or 

13 section 40(d) of the Arms Export Control Act (22 U.S.C. 

14 2780(d)) shall remain in effect until the President certifies 

15 to the appropriate congressional committees, at least 90 

16 days before the removal of such sanctions, that the Gov17 ernment of Iran— 

18 ‘‘(A) is no longer engaged in the illegal develop19 ment, acquisition, procurement, or stockpiling of 

20 missile, nuclear, chemical, biological, or radiological 

21 technology, or transfer to any other country, the 

22 government of which the Secretary of State has de23 termined, for purposes of any of the provisions of 

24 law specified in the matter preceding this paragraph, 


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1 is a government that has repeatedly provided sup2 port for acts of international terrorism; 

3 ‘‘(B) is no longer engaged in training, har4 boring, supplying, financing, or supporting in any 

5 way— 

6 ‘‘(i) any organization designated by the 

7 Secretary of State as a foreign terrorist organi8 zation in accordance with section 219(a) of the 

9 Immigration and Nationality Act (8 U.S.C. 

10 1189(a)); and 

11 ‘‘(ii) any person included on the Annex to 

12 Executive Order 13224 (September 23, 2001) 

13 and any other person identified under section 1 

14 of that Executive Order whose property and in15 terests in property are blocked by that section 

16 (commonly known as a ‘specially designated 

17 global terrorist’); and 

18 ‘‘(C) has provided compensation for former 

19 United States hostages held in Iran, and other vic20 tims of acts of Iranian-sponsored terrorism against 

21 United States persons before the date of the enact22 ment of this subsection, in accordance with section 

23 503 of the Iran Threat Reduction Act of 2009. 

24 ‘‘(2) DETERMINATION.—The determination of Iran 

25 as a state-sponsor of terrorism under section 6(j)(1)(A) 


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1 of the Export Administration Act of 1979 (50 U.S.C. App. 

2 2405(j)(1)(A)), section 620A(a) of the Foreign Assistance 

3 Act of 1961 (22 U.S.C. 2371(a)), or section 40(d) of the 

4 Arms Export Control Act (22 U.S.C. 2780(d)) shall re5 main in effect until the requirements of the notification 

6 described in subsection (a) and the certification described 

7 in this subsection are met.’’. 

8 TITLE II—AMENDMENTS TO THE 

9 IRAN SANCTIONS ACT OF 1996 

10 AND RELATED PROVISIONS 

11 SEC. 201. EXCLUSION FROM THE UNITED STATES OF SEN12 IOR OFFICIALS OF FOREIGN PERSONS WHO 

13 HAVE AIDED PROLIFERATION RELATING TO 

14 IRAN. 

15 The Iran Sanctions Act of 1996 (Public Law 104– 

16 172; 50 U.S.C. 1701 note) is amended— 

17 (1) in section 5(b), in the matter preceding 

18 paragraph (1), by inserting ‘‘, or permitted, hosted, 

19 or otherwise facilitated transshipment that may have 

20 enabled a person to export, transfer, or otherwise 

21 provide to Iran,’’ after ‘‘or otherwise provided to 

22 Iran’’; 

23 (2) by redesignating sections (7) through (14) 

24 as sections (8) through (15), respectively; and 


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1 (3) by inserting after section (6) the following 

2 new section: 

3 ‘‘SEC. 7. EXCLUSION FROM THE UNITED STATES OF SENIOR 

4 OFFICIALS OF FOREIGN PERSONS WHO HAVE 

5 AIDED PROLIFERATION RELATING TO IRAN. 

6 ‘‘(a) GROUNDS FOR EXCLUSION.—Except as pro7 vided in subsection (b), the Secretary of State shall deny 

8 a visa to, and the Secretary of State shall exclude from 

9 the United States, any alien whom the Secretary of State 

10 determines is an alien who, on or after the date of the 

11 enactment of this Act is a— 

12 ‘‘(1) corporate officer, principal, or shareholder 

13 with a controlling interest of a person against whom 

14 sanctions have been imposed pursuant to section 5; 

15 ‘‘(2) corporate officer, principal, or shareholder 

16 with a controlling interest of a successor entity to or 

17 a parent or subsidiary of such a person; 

18 ‘‘(3) corporate officer, principal, or shareholder 

19 with a controlling interest of an affiliate of such a 

20 sanctioned person, if such affiliate engaged in a 

21 sanctionable activity described in subsection (a) or 

22 (b) of section 5, and if such affiliate is controlled in 

23 fact by such a person; 

24 ‘‘(4) spouse, minor child, or agent of a person 

25 excludable under paragraph (1), (2), or (3); 


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1 ‘‘(5) senior official of a foreign government that 

2 is identified as a person against whom sanctions 

3 have been imposed pursuant to section 5; 

4 ‘‘(6) senior official of a foreign government with 

5 primary jurisdiction over such a person; or 

6 ‘‘(7) spouse, minor child, or agent of a person 

7 excludable under paragraph (5) or (6). 

8 ‘‘(b) EXCEPTION.—The President may waive the 

9 sanctions described in subsection (a) with respect to a per10 son specified in paragraph (5), (6), or (7) if the President 

11 determines and certifies in writing to the appropriate con12 gressional committees, on a case by case basis, that the 

13 foreign government with primary jurisdiction over such a 

14 person against whom sanctions have been imposed pursu15 ant to section 5 has made and continues to make clear, 

16 specific efforts to stop and deter a sanctionable activity 

17 described in subsection (a) or (b) of section 5.’’; and 

18 (4) in section 15, as redesignated pursuant to 

19 paragraph (2) of this section— 

20 (A) by redesignating paragraphs (15) and 

21 (16) as paragraphs (17) and (18), respectively; 

22 and 

23 (B) by inserting after paragraph (14) the 

24 following new paragraphs: 


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1 ‘‘(14) TRANSFER.—The term ‘transfer’ means 

2 the conveyance of technological or intellectual prop3 erty, or the conversion of intellectual or technological 

4 advances into marketable goods, services, or articles 

5 of value, developed and generated in one place, to 

6 another through illegal or illicit means to a country, 

7 the government of which the Secretary of State has 

8 determined, for purposes of section 6(j)(1)(A) of the 

9 Export Administration Act of 1979 (as in effect pur10 suant to the International Emergency Economic 

11 Powers Act; 50 U.S.C. 1701 et seq.), section 40(d) 

12 of the Arms Export Control Act (22 U.S.C. 

13 2780(d)), and section 620A of the Foreign Assist14 ance Act of 1961 (22 U.S.C. 2371), is a government 

15 that has repeatedly provided support for acts of 

16 international terrorism. 

17 ‘‘(15) TRANSSHIPMENT.—The term ‘trans18 shipment’ means the export from one country to an19 other that passes through a third country, in which 

20 cargo is off-loaded and there is some change to con21 veyance.’’. 

22 SEC. 202. IMPORT SANCTIONS. 

23 (a) PROHIBITION ON IMPORTS.— 

24 (1) IN GENERAL.—Except as provided in para25 graph (2), no article that is the growth, product, or 


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1 manufacture of Iran may be imported directly or in2 directly into the United States. 

3 (2) EXCEPTION.—The prohibition described in 

4 paragraph (1) shall not apply to imports from Iran 

5 of information and informational materials. 

6 (b) WAIVER.—The President may waive the applica7 tion on a case-by-case basis of the prohibition described 

8 in subsection (a) if the President— 

9 (1) determines that such a waiver is vital to the 

10 national security interest of the United States; and 

11 (2) submits to the appropriate congressional 

12 committees a report describing the reasons for such 

13 determination. 

14 SEC. 203. EXPANSION AND CLARIFICATION OF ENTITIES 

15 AGAINST WHICH SANCTIONS MAY BE IM16 POSED PURSUANT TO THE IRAN SANCTIONS 

17 ACT OF 1996. 

18 (a) PERSON.—Section 14(13)(B) of the Iran Sanc19 tions Act of 1996 (50 U.S.C. 1701 note) is amended— 

20 (1) by inserting ‘‘financial institution, insurer, 

21 underwriter, guarantor, and any other business or22 ganization, including any foreign subsidiary, parent, 

23 or affiliate of the foregoing,’’ after ‘‘trust,’’; and 

24 (2) by inserting ‘‘, such as an export credit 

25 agency’’ before the semicolon. 


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1 (b) PETROLEUM RESOURCES.—Section 14(14) of the 

2 Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is 

3 amended to read as follows: 

4 ‘‘(14) PETROLEUM RESOURCES.— 

5 ‘‘(A) PETROLEUM RESOURCES.—The term 

6 ‘petroleum resources’ includes petroleum, petro7 leum by-products, oil or liquefied natural gas, 

8 oil or liquefied natural gas tankers, and prod9 ucts used to construct or maintain pipelines 

10 used to transport oil or compressed or liquefied 

11 natural gas. 

12 ‘‘(B) PETROLEUM BY-PRODUCTS.—The 

13 term ‘petroleum by-products’ means gasoline, 

14 kerosene, distillates, propane or butane gas, die15 sel fuel, residual fuel oil, and other goods classi16 fied in headings 2709 and 2710 of the Har17 monized Tariff Schedule of the United States.’’. 

18 SEC. 204. APPLICATION TO SUBSIDIARIES. 

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

20 (b), in any case in which an entity engages in an act out21 side the United States which, if committed in the United 

22 States or by a United States person, would violate Execu23 tive Order No. 12959 of May 6, 1995, Executive Order 

24 No. 13059 of August 19, 1997, or any other prohibition 

25 on transactions with respect to Iran that is imposed under 


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1 the International Emergency Economic Powers Act (50 

2 U.S.C. 1701 et seq.) and if such entity was created or 

3 availed of for the purpose of engaging in such an act, the 

4 parent company of such entity shall be subject to the pen5 alties for such violation to the same extent as if such par6 ent company had engaged in such act. 

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

8 an act carried out under a contract or other obligation 

9 of an entity if such contract or obligation was entered into 

10 before the acquisition of such entity by a parent company 

11 unless such parent company acquired such entity knowing 

12 or having reason to know that such contract or other obli13 gation existed or such contract or other obligation is ex14 panded to cover additional activities beyond the terms of 

15 such contract or other obligation as it existed at the time 

16 of such acquisition. 

17 (c) DEFINITIONS.—In this section— 

18 (1) the term ‘‘entity’’ means a partnership, as19 sociation, trust, joint venture, corporation, or other 

20 organization; 

21 (2) an entity is a ‘‘parent company’’ of another 

22 entity if it owns, directly or indirectly, more than 50 

23 percent of the equity interest in that other entity 

24 and is a United States person; and 


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1 (3) the term ‘‘United States person’’ means an 

2 entity organized under the laws of the United States 

3 or a person in the United States. 

4 SEC. 205. AUTHORITY TO IMPOSE SANCTIONS ON PRIN5 CIPAL EXECUTIVE OFFICERS. 

6 Section 5 of the Iran Sanctions Act of 1996 (50 

7 U.S.C. 1701 note) is amended by adding at the end the 

8 following new subsection: 

9 ‘‘(g) AUTHORITY TO IMPOSE SANCTIONS ON PRIN10 CIPAL EXECUTIVE OFFICERS.— 

11 ‘‘(1) SANCTIONS UNDER SECTION 6.—In addi12 tion to the sanctions imposed under subsection (a), 

13 the President may impose on the principal executive 

14 officer or officers of any sanctioned person, or on 

15 persons performing similar functions as such officer 

16 or officers, any of the sanctions under section 6. The 

17 President shall include on the list published under 

18 subsection (d) the name of any person against whom 

19 sanctions are imposed under this paragraph. 

20 ‘‘(2) ADDITIONAL SANCTIONS.—In addition to 

21 the sanctions imposed under paragraph (1), the 

22 President may block the property of any person de23 scribed in such paragraph, and prohibit transactions 

24 in such property, to the same extent as the property 

25 of a foreign person determined to have committed 


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1 acts of terrorism for purposes of Executive Order 

2 No. 13224 of September 23, 2001 (50 U.S.C. 1701 

3 note).’’. 

4 SEC. 206. STRENGTHENING OF WAIVER AUTHORITY AND 

5 SANCTIONS IMPLEMENTATION. 

6 (a) INVESTIGATIONS.—Section 4(f) of the Iran Sanc7 tions Act of 1996 (50 U.S.C. 1701 note) is amended— 

8 (1) in subsection 4(f)(1), by striking ‘‘should’’ 

9 and inserting ‘‘shall immediately;’’ and 

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

11 paragraph: 

12 ‘‘(3) DEFINITION OF CREDIBLE INFORMA13 TION.—For the purposes of this subsection, the term 

14 ‘credible information’ means public or classified in15 formation or reporting supported by other substan16 tiating evidence.’’. 

17 (b) EXCEPTION FOR PROLIFERATION SECURITY INI18 TIATIVE.—Section 5(f) of the Iran Sanctions Act of 1996 

19 (50 U.S.C. 1701 note) is amended— 

20 (1) in paragraph (6), by striking ‘‘or’’ at the 

21 end; 

22 (2) in paragraph (7), by striking the period at 

23 the end and inserting ‘‘; or’’; and 

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

25 paragraph: 


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1 ‘‘(8) if the President determines in writing that 

2 the person to which the sanctions would otherwise be 

3 applied is a citizen, resident, or subsidiary of a coun4 try that is a participant in the Proliferation Security 

5 Initiative.’’. 

6 (c) GENERAL WAIVER AUTHORITY.—Section 9(c)(1) 

7 of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) 

8 is amended by striking ‘‘important to the national interest 

9 of the United States’’ and inserting ‘‘vital to the national 

10 security interest of the Untied States’’. 

11 (d) RULE OF CONSTRUCTION.—The amendments 

12 made by this section shall not be construed to affect any 

13 exercise of the authority of section 4(f) or section 9(c) of 

14 the Iran Sanctions Act of 1996 as in effect on the day 

15 before the date of the enactment of this Act. 

16 TITLE III—AMENDMENTS TO 

17 THE IRAN, NORTH KOREA, 

18 AND SYRIA NONPROLIFERA19 TION ACT 

20 SEC. 301. TRANSSHIPMENT OF CERTAIN GOODS, SERVICES, 

21 OR TECHNOLOGY. 

22 The Iran, North Korea, and Syria Nonproliferation 

23 Act (Public Law 106–178; 50 U.S.C. 1701 note) is 

24 amended— 

25 (1) in section 2— 


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1 (A) in subsection (a), in the matter pre2 ceding paragraph (1)— 

3 (i) by striking ‘‘or’’ after ‘‘Syria,’’; 

4 and 

5 (ii) by inserting after ‘‘North Korea’’ 

6 the following: ‘‘, on or after January 1, 

7 1999, permitted, hosted, or otherwise fa8 cilitated a transshipment (as such term is 

9 defined in section 5) that may have en10 abled a foreign person to transfer (as such 

11 term is defined in section 7) to or acquire 

12 from Iran, on or after January 1, 2005, 

13 permitted, hosted or otherwise facilitated a 

14 transshipment that may have enabled a 

15 foreign person to transfer to or acquire 

16 from Syria, or on or after January 1, 

17 2006, permitted, hosted or otherwise facili18 tated a transshipment that may have en19 abled a person to transfer to or acquire 

20 from North Korea’’; and 

21 (B) in subsection (e), by inserting ‘‘, or 

22 whose transfer via transshipment was per23 mitted, hosted, or facilitated,’’ after ‘‘trans24 ferred’’; and 

25 (2) in section 5— 


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1 (A) in subsection (a)— 

2 (i) in paragraph (1), by inserting ‘‘, or 

3 did not permit, host, or otherwise facilitate 

4 transshipment that may have enabled a 

5 foreign person to transfer to or acquire 

6 from,’’ before ‘‘Iran’’; 

7 (ii) in paragraph (3), by striking ‘‘or’’ 

8 at the end; 

9 (iii) in paragraph (4), by striking the 

10 period at the end and inserting ‘‘; or’’; and 

11 (iv) by adding at the end the following 

12 new paragraph: 

13 ‘‘(5) in the case of a foreign person who per14 mitted, hosted, or otherwise facilitated trans15 shipment that may have enabled a foreign person to 

16 transfer to or acquire from Iran, North Korea, or 

17 Syria, as the case may be, the goods, services, or 

18 technology the apparent transfer of which caused 

19 that person to be identified in a report submitted 

20 pursuant to section 2(a), the government with pri21 mary jurisdiction over the foreign person has made 

22 and continues to make clear, specific efforts to stop 

23 and deter the permitting, hosting, or other facili24 tating of transshipments that may enable such 

25 transfers or acquisitions.’’; and 


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1 (B) by adding at the end the following new 

2 subsection: 

3 ‘‘(g) DEFINITIONS.—In this section: 

4 ‘‘(1) GOODS, SERVICES, OR TECHNOLOGY.—The 

5 term ‘goods, services, or technology’ includes— 

6 ‘‘(A) any defense articles or defense serv7 ices on the United States Munitions List under 

8 section 38 of the Arms Export Control Act (22 

9 U.S.C. 2778) for which special export controls 

10 are warranted under such Act (22 U.S.C. 2751 

11 3 et seq.); 

12 ‘‘(B) any item identified on the Commerce 

13 Control List maintained under part 774 of title 

14 15, Code of Federal Regulations; and 

15 ‘‘(C) other sensitive United States goods, 

16 including intellectual property and services, that 

17 would contribute to the ability of Iran, North 

18 Korea, or Syria, as the case may be, to further 

19 its conventional and unconventional military ca20 pabilities. 

21 ‘‘(2) TRANSSHIPMENT.—The term ‘trans22 shipment’ means the export from one country to an23 other that passes through a third country, in which 

24 cargo is off-loaded and there is some change to con25 veyance.’’. 


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1 SEC. 302. PROHIBITION ON PAYMENTS RELATED TO SERV2 ICE MODULE OF THE RUSSIAN AVIATION AND 

3 SPACE AGENCY. 

4 Section 6 of the Iran, North Korea, and Syria Non5 proliferation Act (Public Law 106–178; 50 U.S.C. 1701 

6 note) is amended by— 

7 (1) striking subsection (g); and 

8 (2) redesignating subsections (h) and (i) as 

9 subsections (g) and (h), respectively. 

10 TITLE IV—DIVESTMENT FROM 

11 IRAN 

12 SEC. 401. REQUIRING THE DIVESTITURE OF CURRENT IN13 VESTMENTS IN IRAN, PROHIBITING FUTURE 

14 INVESTMENTS IN IRAN, AND REQUIRING THE 

15 DISCLOSURE TO INVESTORS OF INFORMA16 TION RELATING TO SUCH INVESTMENTS. 

17 (a) UNITED STATES PENSION PLANS.— 

18 (1) PUBLICATION IN FEDERAL REGISTER.—Not 

19 later than six months after the date of the enact20 ment of this Act and every six months thereafter, 

21 the President shall ensure publication in the Federal 

22 Register of a list of all United States and foreign en23 tities that have invested more than $20,000,000 in 

24 Iran’s energy sector between August 5, 1996, and 

25 the date of such publication. Such list shall include 

26 an itemization of individual investments of each such 


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1 entity, including the dollar value, intended purpose, 

2 and current status of each such investment. 

3 (2) DISCLOSURE TO INVESTORS.— 

4 (A) IN GENERAL.—Not later than 30 days 

5 after the date of publication of a list in the rel6 evant Federal Register under paragraph (1), 

7 managers of United States Government pension 

8 plans or thrift savings plans, managers of pen9 sion plans maintained in the private sector by 

10 plan sponsors in the United States, and man11 agers of mutual funds sold or distributed in the 

12 United States shall notify investors that the 

13 funds of such investors are invested in an entity 

14 included on the list and that the funds will be 

15 divested from such investments. Such notifica16 tion shall contain the following information: 

17 (i) The name or other identification of 

18 the entity. 

19 (ii) The amount of the investment in 

20 the entity. 

21 (iii) The potential liability to the enti22 ty if sanctions are imposed by the United 

23 States on Iran or on the entity. 

24 (iv) The potential liability to investors 

25 if such sanctions are imposed. 


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1 (v) The measures being undertaken by 

2 the managers to divest from such invest3 ments. 

4 (B) FOLLOW-UP NOTIFICATION.— 

5 (i) IN GENERAL.—Except as provided 

6 in clause (iii), in addition to the notifica7 tion required under paragraph (A), such 

8 managers shall also include such notifica9 tion in every prospectus and in every regu10 larly provided quarterly, semi-annual, or 

11 annual report provided to investors, if the 

12 funds of such investors are invested in an 

13 entity included on the list. 

14 (ii) CONTENTS OF NOTIFICATION.— 

15 The notification described in clause (i) 

16 shall be displayed prominently in any such 

17 prospectus or report and shall contain the 

18 information described in subparagraph (A). 

19 (iii) GOOD-FAITH EXCEPTION.—If, 

20 upon publication of a list in the relevant 

21 Federal Register under subsection (a)(1), 

22 such managers verifiably divest all invest23 ments of such plans or funds in any entity 

24 included on the list and such managers do 

25 not initiate any new investment in any 


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1 other such entity, such managers shall not 

2 be required to include in any prospectus or 

3 report provided to investors the notifica4 tion described in subparagraph (A). 

5 (3) DIVESTITURE FROM IRAN.—Upon notifica6 tion under subsection (a)(2), managers of United 

7 States Government pension plans or thrift savings 

8 plans, shall take, to the extent consistent with the 

9 legal and fiduciary duties otherwise imposed on 

10 them, immediate steps to divest all investments of 

11 such plans or funds in any entity included on the 

12 list. 

13 (4) SENSE OF CONGRESS RELATING TO FUR14 THER DIVESTITURE FROM IRAN.—It is the sense of 

15 Congress that upon publication of a list in the rel16 evant Federal Register under subsection (a)(1), 

17 managers of pension plans maintained in the private 

18 sector by plan sponsors in the United States and 

19 managers of mutual funds sold or distributed in the 

20 United States should take immediate steps to divest 

21 all investments of such plans or funds in any entity 

22 included on the list. 

23 (5) PROHIBITION ON FUTURE INVESTMENT.— 

24 Upon publication of a list in the relevant Federal 

25 Register under subsection (a)(1), there shall be, to 


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1 the extent consistent with the legal and fiduciary du2 ties otherwise imposed on them, no future invest3 ment in any entity included on the list by managers 

4 of United States Government pension plans or thrift 

5 savings plans, managers of pension plans maintained 

6 in the private sector by plan sponsors in the United 

7 States, or managers of mutual funds sold or distrib8 uted in the United States. 

9 (b) REPORT BY OFFICE OF GLOBAL SECURITY

10 RISKS.—Not later than 30 days after the date of publica11 tion of a list in the relevant Federal Register under sub12 section (a), the Office of Global Security Risks within the 

13 Division of Corporation Finance of the United States Se14 curities and Exchange Commission shall issue a report 

15 containing a list of the United States and foreign entities 

16 identified in accordance with such subsection, a deter17 mination of whether or not the operations in Iran of any 

18 such entity constitute a political, economic, or other risk 

19 to the United States, and a determination of whether or 

20 not the entity faces United States litigation, sanctions, or 

21 similar circumstances that are reasonably likely to have 

22 a material adverse impact on the financial condition or 

23 operations of the entity. 

24 (c) SUNSET.—This section shall terminate 30 days 

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1 cations described in section 101(b) of the Iran Freedom 

2 Support Act, as amended by section 101(b) of this Act. 

3 SEC. 402. INCENTIVES FOR DIVESTMENT FROM IRAN. 

4 It shall be the policy of the United States to— 

5 (1) expedite the approval process and issuance 

6 of any guarantee, insurance, extension of credit, or 

7 participation in the extension of credit in connection 

8 with the export of any goods or services to an entity 

9 or person that deliberately and willingly divests all 

10 investments in Iran; 

11 (2) provide preference to United States finan12 cial institution loans or credits to an entity or per13 son that deliberately and willingly divests all invest14 ments in Iran; and 

15 (3) provide preference to United States Govern16 ment contracting or procurement of goods or serv17 ices from an entity or person that deliberately and 

18 willingly divests all investments in Iran. 

19 SEC. 403. DENIAL OF TAX BENEFITS FOR TAXPAYERS EN20 GAGED IN BUSINESS ACTIVITY WITH IRAN 

21 PROHIBITED BY UNITED STATES LAW. 

22 (a) IN GENERAL.—Section 901 of the Internal Rev23 enue Code of 1986 (relating to taxes of foreign countries 

24 and of possessions of United States) is amended by redesVerDate Nov 24 2008 02:24 Feb 28, 2009 Jkt 079200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H1208.IH H1208

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1 ignating subsection (m) as subsection (n) and by inserting 

2 after subsection (l) the following new subsection: 

3 ‘‘(m) TAXPAYERS ENGAGED IN BUSINESS ACTIVITY

4 WITH IRAN PROHIBITED BY UNITED STATES LAW.— 

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

6 provision of this part, in the case of a taxpayer 

7 which is a member of an expanded affiliated group 

8 any member of which, on any day during the taxable 

9 year, engaged in business activity with Iran which is 

10 prohibited by United States law, no credit shall be 

11 allowed under subsection (a) to the taxpayer for any 

12 income, war profits, or excess profits taxes paid or 

13 accrued (or deemed paid under section 902 or 960) 

14 to any country if such taxes are with respect to in15 come attributable to a period any part of which oc16 curs during such taxable year. 

17 ‘‘(2) BUSINESS ACTIVITY.—For purposes of 

18 paragraph (1)— 

19 ‘‘(A) IN GENERAL.—The term ‘business 

20 activity’ means any of the following: 

21 ‘‘(i) An entity described in subpara22 graph (D) that— 

23 ‘‘(I) has in effect a contract that 

24 includes the responsibility for the de25 velopment of petroleum resources, peVerDate Nov 24 2008 02:24 Feb 28, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H1208.IH H1208

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1 troleum refining capacity, or liquefied 

2 natural gas located in Iran or (as the 

3 case may be), or 

4 ‘‘(II) has in effect a contract pro5 viding for the general supervision and 

6 guarantee of another person’s per7 formance of a contract described in 

8 subclause (I). 

9 ‘‘(ii) The purchase of a share of own10 ership, including an equity interest, in the 

11 development described in clause (i). 

12 ‘‘(iii) Having in effect a contract pro13 viding for the participation in royalties, 

14 earnings, or profits in the development de15 scribed in clause (i), without regard to the 

16 form of the participation. 

17 ‘‘(B) GOODS, SERVICES, AND TECH18 NOLOGY.—The term ‘business activity’ includes 

19 the entry into, performance, or financing of a 

20 contract to sell or purchase goods, services, or 

21 technology. 

22 ‘‘(C) SPECIAL RULE.—For purposes of this 

23 paragraph, an amendment or other modification 

24 that is made, on or the date of the enactment 

25 of this subsection to an agreement or contract 


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1 shall be treated as the entry of an agreement 

2 or contract. 

3 ‘‘(D) ENTITIES DESCRIBED.—For pur4 poses of subparagraph (A), an entity described 

5 in this subparagraph is— 

6 ‘‘(i) a natural person; 

7 ‘‘(ii) a corporation, business associa8 tion, partnership, society, trust, financial 

9 institution, insurer, underwriter, guar10 antor, and any other business organization; 

11 ‘‘(iii) any foreign subsidiary of any en12 tity described in clause (ii); 

13 ‘‘(iv) any governmental entity oper14 ating as a business enterprise, such as an 

15 export credit agency; and 

16 ‘‘(v) any successor to any entity de17 scribed in clause (ii), (iii), or (iv). 

18 ‘‘(3) TAXES ALLOWED AS A DEDUCTION, ETC.— 

19 Sections 275 and 78 shall not apply to any tax 

20 which is not allowable as a credit under subsection 

21 (a) by reason of this subsection. 

22 ‘‘(4) EXPANDED AFFILIATED GROUP.—For pur23 poses of paragraph (1), the term ‘expanded affiliated 

24 group’ means an affiliated group (as defined in sub25 section (a) of section 1504 (without regard to subVerDate Nov 24 2008 02:24 Feb 28, 2009 Jkt 079200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H1208.IH H1208

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1 sections (b)(2), (b)(4), and (c) thereof)); except that 

2 section 1504(a) shall be applied by substituting 

3 ‘more than 50 percent’ for ‘at least 80 percent’ each 

4 place it appears. 

5 ‘‘(5) REGULATIONS.—The Secretary shall pre6 scribe such regulations as may be necessary or ap7 propriate to carry out the purposes of this sub8 section, including regulations which impose appro9 priate reporting requirements.’’. 

10 (b) INCOME INCLUDED AS SUBPART F INCOME.— 

11 Subsection (a) of section 952 is amended by striking 

12 ‘‘and’’ at the end of paragraph (4), by striking the period 

13 at the end of paragraph (5) and inserting ‘‘, and’’, and 

14 by inserting after paragraph (5) the following new para15 graph: 

16 ‘‘(6) all income of such corporation derived 

17 from all foreign countries during any period during 

18 which section 901(m) applies to such corporation.’’. 

19 (c) REPORTING.— 

20 (1) IN GENERAL.—Part II of subchapter B of 

21 chapter 68 of the Internal Revenue Code of 1986 

22 (relating to failure to comply with certain informa23 tion reporting requirements) is amended by adding 

24 at the end the following new section: 


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1 ‘‘SEC. 6726. FAILURE TO REPORT INFORMATION UNDER 

2 SECTION 901(M). 

3 ‘‘(a) IN GENERAL.—In the case of each failure de4 scribed in subsection (c) by any person, such person shall 

5 pay a penalty of $100,000 for each day in the noncompli6 ance period with respect to which the failure relates. 

7 ‘‘(b) NONCOMPLIANCE PERIOD.—For purposes of 

8 this section, the term ‘noncompliance period’ means, with 

9 respect to any failure, the period— 

10 ‘‘(1) beginning on the date such failure first oc11 curs; and 

12 ‘‘(2) ending on the date such failure is cor13 rected. 

14 ‘‘(c) FAILURES SUBJECT TO PENALTY.—For pur15 poses of subsection (a), the failure described in this sub16 section is a failure to comply with any requirement con17 tained in the regulations prescribed under section 

18 901(m).’’. 

19 (2) CLERICAL AMENDMENT.—The table of sec20 tions for part II of subchapter B of chapter 68 of 

21 such Code is amended by adding at the end the fol22 lowing new item: 

‘‘Sec. 6726. Failure to report information under section 901(m).’’. 

23 (d) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to taxable years beginning after 

25 the date of the enactment of this Act. 


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1 SEC. 404. TAX ON INCOME DERIVED BY FOREIGN CORPORA2 TIONS FROM BUSINESS ACTIVITY WITH IRAN 

3 PROHIBITED BY UNITED STATES LAW. 

4 (a) TAX AMENDMENT.—Subpart B of part II of sub5 chapter N of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to foreign corporations) is amended by in7 serting after section 884 the following new section: 

8 ‘‘SEC. 884A. TAX ON INCOME DERIVED BY FOREIGN COR9 PORATIONS FROM BUSINESS ACTIVITY WITH 

10 IRAN PROHIBITED BY UNITED STATES LAW. 

11 ‘‘In the case of a foreign corporation which is en12 gaged in business activity with Iran prohibited by United 

13 States law— 

14 ‘‘(1) in respect of tax on income derived from 

15 such prohibited activity— 

16 ‘‘(A) section 881(a) shall be applied by 

17 substituting ‘45 percent’ for ‘30 percent’; 

18 ‘‘(B) subsections (b), (c), (d) and (e) of 

19 section 881 shall not apply; 

20 ‘‘(C) tax imposed pursuant to section 882 

21 shall be imposed at a rate of ‘45 percent’; 

22 ‘‘(D) section 883 shall not apply; and 

23 ‘‘(E) section 884(a) shall be applied by 

24 substituting ‘45 percent’ for ‘30 percent’; and 

25 ‘‘(2) in respect of withholding— 


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•HR 1208 IH

1 ‘‘(A) section 1442(a) shall be applied by 

2 substituting ‘45 percent’ for ‘30 percent’; and 

3 ‘‘(B) section 1442(c) shall not apply.’’. 

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

5 for subpart B of part II of subchapter N of chapter 1 

6 of such Code is amended by inserting after the item relat7 ing to section 884 the following new item: 

‘‘Sec. 884A. Income tax of foreign corporations engaged in business activity 

with Iran prohibited by United States law.’’. 

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

9 this section shall apply to taxable years beginning after 

10 the date of the enactment of this Act. 

11 TITLE V—COMPENSATION FOR 

12 FORMER UNITED STATES 

13 HOSTAGES HELD BY IRAN 

14 AND VICTIMS OF IRANIAN15 SPONSORED TERRORIST AT16 TACKS AGAINST THE UNITED 

17 STATES 

18 SEC. 501. CREATION OF FUND. 

19 There is established a fund to be known as the ‘‘Com20 pensation for Former United States Hostages in Iran 

21 Fund’’ (in this title referred to as the ‘‘Fund’’), consisting 

22 of such amounts as may be appropriated to the Fund as 

23 provided by this section. 


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1 SEC. 502. TRANSFERS TO FUND. 

2 There are hereby appropriated to the Fund amounts 

3 equivalent to the taxes received in the Treasury by reason 

4 of the amendments made by sections 403 and 404 of this 

5 Act. 

6 SEC. 503. EXPENDITURES FROM FUND. 

7 Amounts in the Fund shall be available, as provided 

8 by appropriation Acts, for making expenditures to pay 

9 claims to the United States citizens held hostage in Iran, 

10 and to members of the families of such United States citi11 zens, who are identified as plaintiffs or class members in 

12 Case Number 1:00CV03110 (EGS). 

13 SEC. 504. COMPENSATION AMOUNTS. 

14 Plaintiffs or class members referred to in section 503 

15 shall be compensated from amounts in the Fund as fol16 lows: 

17 (1) For each former hostage so identified as a 

18 plaintiff or class member, $1,000 for each day of 

19 captivity of such former hostage. 

20 (2) For each spouse and child so identified as 

21 a plaintiff or class member, $500 for each day of 

22 captivity of the hostage to whom such spouse or 

23 child is related. 

24 (3) Interest on each amount identified in ac25 cordance with paragraphs (1) and (2), calculated at 

26 the daily prime rate, as determined by the Board of 


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•HR 1208 IH

1 Governors of the Federal Reserve System, from the 

2 period beginning on the date on which a former hos3 tage so identified was taken hostage until the date 

4 of payment under this section. 

5 SEC. 505. REMAINING FUNDS. 

6 (a) IN GENERAL.—After all plaintiffs and class mem7 bers referred to in section 503 are compensated in accord8 ance with section 504, any amounts remaining in the 

9 Fund shall be distributed evenly among plaintiffs and 

10 class members who were granted judgments and awarded 

11 damages by United States courts in claims against Iran 

12 (identified in subsection (b)), but were not compensated. 

13 (b) CLAIMS IDENTIFIED.—Claims referred to in sub14 section (a) are the following: 

15 (1) Acosta v. Iran, 574 F. Supp. 2d 15 (D.D.C. 

16 2008). 

17 (2) Bakhtiar v. Islamic Republic of Iran, Civil 

18 Action No. 02–00092 (HHK) (D.D.C. 2008). 

19 (3) Beer v. Iran, 574 F. Supp. 2d 1 (D.D.C. 

20 2008). 

21 (4) Bennett v. Islamic Republic of Iran, 507 F. 

22 Supp. 2d 117 (D.D.C. 2007). 

23 (5) Ben-Rafael v. Islamic Republic of Iran, 

24 2008 WL 485091 (D.D.C. 2008). 


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1 (6) Blais v. Islamic Republic of Iran, 459 F. 

2 Supp. 2d 40 (D.D.C. 2006). 

3 (7) Bodoff v. Islamic Republic of Iran, 424 F. 

4 Supp. 2d 74 (D.D.C. 2006). 

5 (8) Campuzano v. Islamic Republic of Iran, 281 

6 F. Supp. 2d 258 (D.D.C. 2003). 

7 (9) Cicippio-Puleo v. Islamic Republic of Iran, 

8 Civil Action No. 01–01496 (HHK) (D.D.C. 2005). 

9 (10) Cronin v. Islamic Republic of Iran, 238 F. 

10 Supp. 2d 222 (D.D.C. 2002). 

11 (11) Dammarell v. Islamic Republic of Iran, 

12 2006 WL 2583043 (D.D.C 2006). 

13 (12) Dodge v. Islamic Republic of Iran, 2004 

14 WL 5353873 (D.D.C. 2004). 

15 (13) Estate of Heiser v. Islamic Republic of 

16 Iran, 466 F. Supp. 2d 229 (D.D.C. 2006). 

17 (14) Estate of Bayani v. Islamic Republic of 

18 Iran, Civil Action No. 04–01712 (HHK), 2007 WL 

19 4116167 (D.D.C. 2007). 

20 (15) Greenbaum v. Islamic Republic of Iran, 

21 451 F. Supp. 2d 90 (D.D.C 2006). 

22 (16) Haim v. Islamic Republic of Iran, 425 F. 

23 Supp. 2d 56 (D.D.C 2006). 

24 (17) Holland v. Islamic Republic of Iran, 496 

25 F. Supp. 2d 1 (D.D.C. 2005). 


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1 (18) Jacobsen v. Islamic Republic of Iran, Civil 

2 Action No. 02–1365 (JR) (D.D.C. 2006). 

3 (19) Kerr v. Islamic Republic of Iran, 245 F. 

4 Supp. 2d 59 (D.D.C. 2003). 

5 (20) Levin v. Islamic Republic of Iran, Civil Ac6 tion No. 05–02494 (GK), 2007 WL 4564399 

7 (D.D.C. 2008). 

8 (21) Nikbin v. Islamic Republic of Iran, 517 F. 

9 Supp. 2d 416 (D.D.C. 2007). 

10 (22) Peterson v. Islamic Republic of Iran, 515 

11 F. Supp. 2d 25 (D.D.C. 2007). 

12 (23) Prevatt v. Islamic Republic of Iran, 421 F. 

13 Supp. 2d 152 (D.D.C. 2006). 

14 (24) Rafii v. Islamic Republic of Iran, Civil Ac15 tion No. 01–850 (CKK) (D.D.C. 2002). 

16 (25) Regier v. Islamic Republic of Iran, 281 F. 

17 Supp. 2d 87 (D.D.C. 2003). 

18 (26) Salazar v. Islamic Republic of Iran, 370 F. 

19 Supp. 2d 105 (D.D.C. 2005). 

20 (27) Sisso v. Islamic Republic of Iran, 2007 

21 WL 2007582 (D.D.C. 2007). 

22 (28) Steen v. Islamic Republic of Iran, 2003 

23 WL 21672820 (D.D.C. 2003). 

24 (29) Stern v. Islamic Republic of Iran, 271 F. 

25 Supp. 2d 286 (D.D.C. 2003). 


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1 (30) Surette v. Islamic Republic of Iran, 231 F. 

2 Supp. 2d 260 (D.D.C. 2002). 

3 (31) Tracy v. Islamic Republic of Iran, 2003 

4 U.S. Dist. LEXIS 15844 (D.D.C. 2003). 

5 (32) Turner v. Islamic Republic of Iran, 2002 

6 U.S. Dist. LEXIS 26730 (D.D.C. 2002). 

7 (33) Valore v. Islamic Republic of Iran, 478 F. 

8 Supp. 2d 101 (D.D.C. 2007). 

9 (34) Weir v. Islamic Republic of Iran, Civil Ac10 tion No. 01–1303 (TPJ) (D.D.C. 2003). 

11 (35) Welch v. Islamic Republic of Iran, Civil 

12 Action No. A01–863(CKK)(AK) (D.D.C. 2007). 

13 SEC. 506. RULE OF CONSTRUCTION. 

14 No plaintiff or class member referred to in section 

15 503, as a result of belonging to more than one claim iden16 tified in section 505, shall be eligible for multiple com17 pensation under section 504. 


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1 TITLE VI—ADDITIONAL PROVI2 SIONS RELATED TO IRANIAN 

3 UNCONVENTIONAL WEAPONS 

4 PROGRAMS AND SUPPORT 

5 FOR INTERNATIONAL TER6 RORISM 

7 SEC. 601. BIOLOGICAL WEAPONS CAPABILITIES AND PRO8 GRAMS. 

9 (a) STATEMENT OF POLICY.—It shall be the policy 

10 of the United States— 

11 (1) to recognize the grave threat to the United 

12 States and to United States allies and interests that 

13 Iranian biological weapons programs represent; 

14 (2) to use voice, vote, and influence of the 

15 United States within international organizations to 

16 raise and investigate Iranian compliance with its ob17 ligations under the Convention on the Prohibition of 

18 the Development, Production and Stockpiling of 

19 Bacteriological (Biological) and Toxin Weapons and 

20 on Their Destruction; and 

21 (3) to refrain from directly engaging with any 

22 person, agent, instrumentality, or official of, is affili23 ated with, or is serving as a representative of the 

24 Government of Iran until Iran verifiably dismantles 


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1 or otherwise ceases its programs conducive to pro2 ducing biological weapons. 

3 (b) REPORT.— 

4 (1) REQUIREMENT.—Not later than 180 days 

5 after the date of the enactment of this Act and an6 nually thereafter, the President shall transmits to 

7 the appropriate congressional committees an inter8 agency assessment of Iran’s biological weapons capa9 bilities. 

10 (2) CLASSIFIED ANNEX.—The report required 

11 under paragraph (1) shall be in unclassified form to 

12 the greatest extent possible, but may include a clas13 sified annex where necessary. 

14 (3) APPROPRIATE CONGRESSIONAL COMMIT15 TEES DEFINED.—In this subsection, the term ‘‘ap16 propriate congressional committees’’ means the 

17 Committee on Foreign Affairs of the House of Rep18 resentatives and the Committee on Foreign Rela19 tions of the Senate. 

20 SEC. 602. IRANIAN CHEMICAL WEAPONS CAPABILITIES AND 

21 PROGRAMS. 

22 (a) STATEMENT OF POLICY.—It shall be the policy 

23 of the United States to— 

24 (1) to recognize the grave threat to the United 

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1 ests that Iranian chemical weapons programs rep2 resent; 

3 (2) to use voice, vote, and influence of the 

4 United States within international organizations to 

5 declare the Government of Iran in violation of its ob6 ligations under the Chemical Weapons Convention; 

7 and 

8 (3) to refrain from directly engaging with any 

9 person, agent, instrumentality, or official of, is affili10 ated with, or is serving as a representative of the 

11 Government of Iran until Iran verifiably dismantles 

12 otherwise ceases its programs conducive to pro13 ducing chemical weapons. 

14 (b) REPORT.— 

15 (1) IN GENERAL.—Not later 180 days after the 

16 date of the enactment of this Act and annually 

17 thereafter, the President shall transmit to the appro18 priate congressional committees an interagency as19 sessment of Iran’s chemical weapons capabilities. 

20 (2) CLASSIFIED ANNEX.—The report required 

21 under paragraph (1) shall be in unclassified form to 

22 the greatest extent practicable, but may include a 

23 classified annex if necessary. 

24 (3) APPROPRIATE CONGRESSIONAL COMMIT25 TEES DEFINED.—In this subsection, the term ‘‘apVerDate Nov 24 2008 02:24 Feb 28, 2009 Jkt 079200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H1208.IH H1208

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1 propriate congressional committees’’ means the 

2 Committee on Foreign Affairs of the House of Rep3 resentatives and the Committee on Foreign Rela4 tions of the Senate. 

5 SEC. 603. RESTRICTIONS ON NUCLEAR COOPERATION WITH 

6 COUNTRIES ASSISTING THE NUCLEAR PRO7 GRAM OF IRAN. 

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of law or any international agreement, no agreement 

10 for cooperation between the United States and the govern11 ment of any country that is assisting the nuclear program 

12 of Iran or transferring advanced conventional weapons or 

13 missiles to Iran may be submitted to the President or to 

14 Congress pursuant to section 123 of the Atomic Energy 

15 Act of 1954 (42 U.S.C. 2153), no such agreement may 

16 enter into force with such country, no license may be 

17 issued for export directly or indirectly to such country of 

18 any nuclear material, facilities, components, or other 

19 goods, services, or technology that would be subject to 

20 such agreement, and no approval may be given for the 

21 transfer or retransfer directly or indirectly to such country 

22 of any nuclear material, facilities, components, or other 

23 goods, services, or technology that would be subject to 

24 such agreement, until the President determines and re25 ports to the Committee on Foreign Affairs of the House 


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1 of Representatives and the Committee on Foreign Rela2 tions of the Senate— 

3 (1) Iran has ceased its efforts to design, de4 velop, or acquire a nuclear explosive device or related 

5 materials or technology; or 

6 (2) the government of the country that is as7 sisting the nuclear program of Iran or transferring 

8 advanced conventional weapons or missiles to Iran— 

9 (A) has suspended all nuclear assistance to 

10 Iran and all transfers of advanced conventional 

11 weapons and missiles to Iran; and 

12 (B) is committed to maintaining that sus13 pension until Iran has implemented measures 

14 that would permit the President to make the 

15 determination described in paragraph (1). 

16 (b) CONSTRUCTION.—The restrictions described in 

17 subsection (a)— 

18 (1) shall apply in addition to all other applica19 ble procedures, requirements, and restrictions con20 tained in the Atomic Energy Act of 1954 and other 

21 laws; and 

22 (2) shall not be construed as affecting the valid23 ity of agreements for cooperation that are in effect 

24 on the date of the enactment of this Act. 

25 (c) DEFINITIONS.—In this section: 


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1 (1) AGREEMENT FOR COOPERATION.—The term 

2 ‘‘agreement for cooperation’’ has the meaning given 

3 that term in section 11 b. of the Atomic Energy Act 

4 of 1954 (42 U.S.C. 2014 b.). 

5 (2) ASSISTING THE NUCLEAR PROGRAM OF

6 IRAN.—The term ‘‘assisting the nuclear program of 

7 Iran’’ means the intentional transfer to Iran by a 

8 government, or by a person subject to the jurisdic9 tion of a government with the knowledge and acqui10 escence of such government, of goods, services, or 

11 technology listed on the Nuclear Suppliers Group 

12 Guidelines for the Export of Nuclear Material, 

13 Equipment and Technology (published by the Inter14 national Atomic Energy Agency as Information Cir15 cular INFCIRC/254/Rev. 3/Part 1, and subsequent 

16 revisions), or the Nuclear Suppliers Group Guide17 lines for Transfers of Nuclear-Related Dual-Use 

18 Equipment, Material, and Related Technology (pub19 lished by the International Atomic Energy Agency as 

20 Information Circular INFCIR/254/Rev. 3/Part 2, 

21 and subsequent revisions). 

22 (3) COUNTRY THAT IS ASSISTING THE NU23 CLEAR PROGRAM OF IRAN OR TRANSFERRING AD24 VANCED CONVENTIONAL WEAPONS OR MISSILES TO

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1 clear program of Iran or transferring advanced con2 ventional weapons or missiles to Iran’’ means— 

3 (A) the Russia Federation; and 

4 (B) any other country determined by the 

5 President to be assisting the nuclear program 

6 of Iran or transferring advanced conventional 

7 weapons or missiles to Iran. 

8 (4) TRANSFERRING ADVANCED CONVENTIONAL

9 WEAPONS OR MISSILES TO IRAN.—The term ‘‘trans10 ferring advanced conventional weapons or missiles to 

11 Iran’’ means the intentional transfer to Iran by a 

12 government, or by a person subject to the jurisdic13 tion of a government with the knowledge and acqui14 escence of such government, of goods, services, or 

15 technology listed on— 

16 (A) the Wassenaar Arrangement list of 

17 Dual Use Goods and Technologies and Muni18 tions list of July 12, 1996, and subsequent revi19 sions; or 

20 (B) the Missile Technology Control Regime 

21 Equipment and Technology Annex of June 11, 

22 1996, and subsequent revisions. 


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1 SEC. 604. CONTINUATION OF RESTRICTIONS AGAINST THE 

2 GOVERNMENT OF IRAN. 

3 (a) IN GENERAL.—Restrictions against the Govern4 ment of Iran that were imposed by reason of a determina5 tion of the Secretary of State that the Government of 

6 Syria, for purposes of section 6(j) of the Export Adminis7 tration Act of 1979 (as continued in effect pursuant to 

8 the International Emergency Economic Powers Act), sec9 tion 40 of the Arms Export Control Act, section 620A of 

10 the Foreign Assistance Act of 1961, or other provision of 

11 law, is a government that has repeatedly provided support 

12 for acts of international terrorism, shall remain in effect, 

13 and shall not be lifted pursuant to such provisions of law, 

14 unless the President certifies to Congress that the Govern15 ment of Iran— 

16 (1) is no longer engaged in the illegal develop17 ment, acquisition, procurement, or stockpiling of 

18 missile, nuclear, chemical, biological, or radiological 

19 technology, or transfer to any other country, the 

20 government of which the Secretary of State has de21 termined, for purposes of any of the provisions of 

22 law specified in the matter preceding this paragraph, 

23 is a government that has repeatedly provided sup24 port for acts of international terrorism; 

25 (2) is no longer engaged in training, harboring, 

26 supplying, financing, or supporting in any way— 


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1 (A) any organization designated by the 

2 Secretary of State as a foreign terrorist organi3 zation in accordance with section 219(a) of the 

4 Immigration and Nationality Act (8 U.S.C. 

5 1189(a)); and 

6 (B) any person included on the Annex to 

7 Executive Order 13224 (September 23, 2001) 

8 and any other person identified under section 1 

9 of that Executive Order whose property and in10 terests in property are blocked by that section 

11 (commonly known as a ‘‘specially designated 

12 global terrorist’’). 

13 (b) LIMITATION ON ASSISTANCE.—Notwithstanding 

14 any other provision of law, no funds under this or any 

15 other Act shall be used to provide direct or indirect assist16 ance to the Government of Iran unless the President 

17 makes the certification described in subsection (a). 

18 TITLE VII—DEFINITIONS 

19 SEC. 701. DEFINITIONS. 

20 Except as otherwise provided, in this Act: 

21 (1) APPROPRIATE CONGRESSIONAL COMMIT22 TEES.—The term ‘‘appropriate congressional com23 mittees’’ means— 


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1 (A) the Committee on Foreign Affairs and 

2 the Committee on Appropriations of the House 

3 of Representatives; and 

4 (B) the Committee on Foreign Relations 

5 and the Committee on Appropriations of the 

6 Senate. 

7 (2) GOVERNMENT OF IRAN.—The term ‘‘Gov8 ernment of Iran’’ includes any agency or instrumen9 tality of the Government of Iran, including any enti10 ty that is controlled by the Government of Iran. 

11 (3) WEAPONS OF MASS DESTRUCTION PRO12 GRAMS.—The term ‘‘weapons of mass destruction 

13 programs’’ means— 

14 (A) and chemical weapons, biological weap15 ons, radiological or nuclear procurement and 

16 development programs and efforts; 

17 (B) ballistic missile procurement and devel18 opment programs and efforts; and 

19 (C) other actions in violation of the 

20 Waasenaar Arrangement on Export Controls 

21 for Conventional Arms and Dual-Use Goods 

22 and Technologies, the Missile Technology Con23 trol Regime, the Australia Group, the Nuclear 

24 Suppliers’ Group, the Zangger Committee, and 

25 any other international agreement or arrangeVerDate Nov 24 2008 02:24 Feb 28, 2009 Jkt 079200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H1208.IH H1208

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1 ment to which the United States is a party that 

2 restricts the export of chemical, biological, nu3 clear, and other weapons and their delivery sys4 tems, and effectively restricts the export of dual 

5 use components of such weapons and their de6 livery systems. 

Æ 


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