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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1698 Introduced in House (IH)]

<DOC>

115th CONGRESS
  1st Session
                                H. R. 1698

To expand sanctions against Iran with respect to the ballistic missile 
                program of Iran, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 23, 2017

Mr. Royce of California (for himself, Mr. Engel, Mr. McCarthy, and Mr. 
    Hoyer) introduced the following bill; which was referred to the 
  Committee on Foreign Affairs, and in addition to the Committees on 
 Financial Services, the Judiciary, Ways and Means, 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 expand sanctions against Iran with respect to the ballistic missile 
                program of Iran, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Ballistic Missiles and 
International Sanctions Enforcement Act''.

SEC. 2. SANCTIONS RELATING TO EFFORTS BY THE GOVERNMENT OF IRAN WITH 
              RESPECT TO BALLISTIC MISSILE-RELATED GOODS, SERVICES, AND 
              TECHNOLOGIES.

    (a) Findings.--Congress finds the following:
            (1) United Nations Security Council Resolution 2231 
        (2015)--
                    (A) calls upon Iran ``not to undertake any activity 
                related to ballistic missiles designed to be capable of 
                delivering nuclear weapons, including launches using 
                such ballistic missile technology''; and
                    (B) calls upon member states to ``take the 
                necessary measures to prevent, except as decided 
                otherwise by the UN Security Council in advance on a 
                case-by-case basis, the supply, sale, or transfer of 
                arms or related materiel from Iran''.
            (2) The United States maintains bilateral sanctions against 
        Iran for its efforts to manufacture, acquire, possess, develop, 
        transport, transfer or use ballistic missiles or ballistic 
        missile launch technology, and its acquisition of destabilizing 
        types and amounts of conventional weapons.
            (3) According to the 2016 Worldwide Threat Assessment, the 
        United States intelligence community judges ``that Tehran would 
        choose ballistic missiles as its preferred method of delivering 
        nuclear weapons, if it builds them. Iran's ballistic missiles 
        are inherently capable of delivering [weapons of mass 
        destruction], and Tehran already has the largest inventory of 
        ballistic missiles in the Middle East. Iran's progress on space 
        launch vehicles--along with its desire to deter the United 
        States and its allies--provides Tehran with the means and 
        motivation to develop longer-range missiles, including 
        ICBMs.''.
            (4) Since the passage of United Nations Security Council 
        2231, Iran has conducted numerous tests of ballistic missiles 
        designed to be capable of delivering nuclear weapons, and has 
        acquired destabilizing types of conventional weapons.
            (5) Iran has pursued the ability to indigenously produce 
        ballistic missile and cruise missile goods, services, and 
        technologies.
    (b) Statement of Policy.--It is the policy of the United States to 
prevent Iran from undertaking any activity related to ballistic 
missiles designed to be capable of delivering nuclear weapons, 
including launches using such ballistic missile technology.
    (c) Report on Supply Chain of Iran's Ballistic Missile Program.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a report that contains the 
        following:
                    (A) An analysis of the foreign and domestic supply 
                chain in Iran that directly or indirectly significantly 
                facilitates, supports, or otherwise aids the Government 
                of Iran's ballistic missile program.
                    (B) A description of the geographic distribution of 
                the foreign and domestic supply chain described in 
                subparagraph (A).
                    (C) An assessment of the Government of Iran's 
                ability to indigenously manufacture or otherwise 
                produce the goods, services, or technology necessary to 
                support its ballistic missile program.
                    (D) An identification of foreign persons that have, 
                based on credible information, directly or indirectly 
                facilitated or supported the development of the 
                Government of Iran's ballistic missile program, 
                including the foreign and domestic supply chain 
                described in subparagraph (A).
            (2) Form.--The report required under paragraph (1) shall be 
        submitted in unclassified form, but may contain a classified 
        annex.
    (d) Investigations.--Section (4)(e) of the Iran Sanctions Act of 
1996 (Public Law 104-172; 50 U.S.C. 1701 note) is amended by inserting 
``or 5(b)'' after ``section 5(a)'' each place it appears.
    (e) Sanctionable Activities With Respect to Weapons of Mass 
Destruction.--Paragraph (1) of section 5(b) of the Iran Sanctions Act 
of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) is amended--
            (1) in the heading, by striking ``Exports, transfers, and 
        transshipments'' and inserting ``Weapons of mass destruction; 
        ballistic missiles; conventional weapons'';
            (2) by striking ``Except as'' and inserting the following:
                    ``(A) Weapons of mass destruction.--Except as'';
            (3) by striking ``(A) on or after the date of the enactment 
        of the Iran Threat Reduction and Syria Human Rights Act of 
        2012'' and inserting the following:
                            ``(i) on or after the date of the enactment 
                        of the Iran Ballistic Missiles and 
                        International Sanctions Enforcement Act'';
            (4) by striking ``and'' at the end of subparagraph (A)(i) 
        (as so redesignated);
            (5) by striking ``(B) knew'' and inserting the following:
                            ``(ii) knew'';
            (6) by striking ``(i) the export'' and inserting the 
        following:
                                    ``(I) the export'';
            (7) by striking ``would likely'' and inserting ``may'';
            (8) by striking ``(ii) the export'' and inserting the 
        following:
                                    ``(II) the export'';
            (9) by striking ``(I) acquire'' and inserting the 
        following:
                                            ``(aa) acquire'';
            (10) by striking ``; or'' at the end of subparagraph 
        (A)(ii)(II)(aa) (as so redesignated);
            (11) by inserting after subparagraph (A)(ii)(II)(aa) (as so 
        redesignated) the following:
                                            ``(bb) acquire or develop 
                                        ballistic missiles or ballistic 
                                        missile launch technologies; 
                                        or'';
            (12) by striking ``(II) acquire'' and inserting the 
        following:
                                            ``(cc) acquire'';
            (13) by striking the period at the end of subparagraph 
        (A)(ii)(II)(cc) (as so redesignated) and inserting ``; and''; 
        and
            (14) by adding at the end of subparagraph (A) the 
        following:
                            ``(iii) knowingly exports or transfers, or 
                        permits or otherwise facilitates the 
                        transshipment or re-export of, any goods, 
                        services, technology, or other items to Iran 
                        that materially contributes to the ability of 
                        Iran to--
                                    ``(I) acquire or develop ballistic 
                                missiles or ballistic missile launch 
                                technologies; or
                                    ``(II) acquire or develop 
                                destabilizing numbers and types of 
                                advanced conventional weapons (as such 
                                term is defined in paragraphs (1) and 
                                (2) of section 1608 of the Iran-Iraq 
                                Arms Non-Proliferation Act of 1992).''.
    (f) Sanctionable Activities With Respect to Ballistic Missiles.--
Paragraph (1) of section 5(b) of the Iran Sanctions Act of 1996 (Public 
Law 104-172; 50 U.S.C. 1701 note), as amended by subsection (e), is 
further amended by adding at the end the following:
                    ``(B) Additional ballistic missile-related goods, 
                services, and technology.--
                            ``(i) Additional authority.--The President 
                        shall impose the sanctions described in 
                        paragraph (8), (10), or (12) of section 6(a), 
                        as the case may be, with respect to--
                                    ``(I) an agency or instrumentality 
                                of the Government of Iran if the agency 
                                or instrumentality, on or after the 
                                date of the enactment of this 
                                subparagraph, seeks to develop, 
                                procure, or acquire goods, services, or 
                                technology that materially contributes 
                                to efforts by the Government of Iran 
                                with respect to ballistic missile-
                                related goods, services, and 
                                technologies as described in clause 
                                (iii);
                                    ``(II) a foreign person or an 
                                agency or instrumentality of a foreign 
                                state if the person or agency or 
                                instrumentality knowingly, on or after 
                                the date of the enactment of this 
                                paragraph, provides material support to 
                                the Government of Iran that materially 
                                contributes to efforts by the 
                                Government of Iran with respect to 
                                ballistic missile-related goods, 
                                services, and technologies as described 
                                in clause (iii); and
                                    ``(III) a foreign person that the 
                                President determines knowingly engages 
                                in a significant transaction or 
                                transactions with, or provides 
                                significant financial services for, a 
                                foreign person or an agency or 
                                instrumentality of a foreign state 
                                described in subclause (I) or (II) with 
                                respect to ballistic missile-related 
                                goods, services, and technologies as 
                                described in clause (iii).
                            ``(ii) Determination on ballistic missile 
                        tests.--
                                    ``(I) In general.--Not later than 
                                30 days after the date on which the 
                                President receives credible information 
                                that the Government of Iran has 
                                conducted a test of a ballistic 
                                missile, the President shall submit to 
                                the Committee on Foreign Affairs of the 
                                House of Representatives and the 
                                Committee on Foreign Relations of the 
                                Senate a determination of whether or 
                                not the test of such missile fails to 
                                comply with, violates, or is in 
                                defiance of United Nations Security 
                                Council Resolution 2231 (2015).
                                    ``(II) Report.--
                                            ``(aa) In general.--If the 
                                        President determines pursuant 
                                        to subclause (I) that the test 
                                        of a ballistic missile fails to 
                                        comply with, violates, or is in 
                                        defiance of United Nations 
                                        Security Council Resolution 
                                        2231 (2015), the President 
                                        shall transmit to the Committee 
                                        on Foreign Affairs of the House 
                                        of Representatives and the 
                                        Committee on Foreign Relations 
                                        of the Senate a report that--

                                                    ``(AA) identifies 
                                                each Iranian person 
                                                that the President 
                                                determines is 
                                                responsible for 
                                                ordering, controlling, 
                                                or otherwise directing 
                                                the missile test 
                                                described in subclause 
                                                (I);

                                                    ``(BB) determines 
                                                whether the persons 
                                                described in sub-item 
                                                (AA) have been 
                                                designated for their 
                                                activities in support 
                                                of Iran's ballistic 
                                                missile program, and if 
                                                not, so designated, the 
                                                reasons therefor; and

                                                    ``(CC) describes 
                                                the steps the President 
                                                is taking to respond to 
                                                the ballistic missile 
                                                test described in 
                                                subclause (I).

                                            ``(bb) Form.--The report 
                                        required by item (aa) shall be 
                                        submitted in unclassified form, 
                                        but may contain a classified 
                                        annex.
                            ``(iii) Efforts by the government of iran 
                        with respect to ballistic missile-related 
                        goods, services, and technologies described.--
                        For purposes of subclauses (I) and (II) of 
                        clause (i), efforts by the Government of Iran 
                        with respect to ballistic missile-related 
                        goods, services, and technologies described in 
                        this subsection are efforts by the Government 
                        of Iran to manufacture, acquire, possess, 
                        develop, transport, transfer, test or use 
                        ballistic missiles or associated goods, 
                        services, or technology by the Government of 
                        Iran in violation of section 3 of Annex B of 
                        United Nations Security Council Resolution 2231 
                        (2015), including efforts by the Government of 
                        Iran to manufacture, acquire, possess, develop, 
                        transport, transfer, purchase--
                                    ``(I) goods, services, or 
                                technology listed on the Missile 
                                Technology Control Regime Equipment and 
                                Technology Annex of October 8, 2015, 
                                and subsequent revisions that have been 
                                acquired outside of the Procurement 
                                Working Group; or
                                    ``(II) goods, services, or 
                                technology not described in the matter 
                                preceding subclause (I) or subclause 
                                (I) but which nevertheless the 
                                President determines would be, if such 
                                goods, services, or technology were 
                                United States goods, services, or 
                                technology, prohibited for export to 
                                Iran because of their potential to make 
                                a material contribution to the 
                                development of ballistic missile 
                                systems or ballistic missile launch 
                                technologies.
                            ``(iv) Procurement working group defined.--
                        In clause (iii)(I), the term `procurement 
                        working group' means the Procurement Working 
                        Group of the Joint Commission established under 
                        Annex IV of the applicable provisions in Annex 
                        A of United Nations Security Council Resolution 
                        2231 (2015).''.
    (g) Sanctionable Activities With Respect to Conventional Weapons.--
Paragraph (1) of section 5(b) of the Iran Sanctions Act of 1996 (Public 
Law 104-172; 50 U.S.C. 1701 note), as amended by subsections (e) and 
(f), is further amended by adding at the end the following:
                    ``(C) Conventional weapons.--The President shall 
                impose the sanctions described in paragraph (8) or (12) 
                of section 6(a), as the case may be, with respect to a 
                foreign person or an agency or instrumentality of a 
                foreign state if the President determines that the 
                person or agency or instrumentality knowingly, on or 
                after the date of the enactment of this paragraph, 
                imports, exports, or re-exports to, into, or from Iran, 
                whether directly or indirectly, any significant arms or 
                related materiel prohibited under Annex B of United 
                Nations Security Council Resolution 2231 (2015).''.
    (h) Exception and Definitions.--Paragraph (1) of section 5(b) of 
the Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 
note), as amended by subsections (e), (f), and (g), is further amended 
by adding at the end the following:
                    ``(D) Exception.--The President may not impose 
                sanctions under subparagraph (B) or (C) with respect to 
                a foreign person or a United States person if the 
                President determines that the person has exercised due 
                diligence in establishing and enforcing official 
                policies, procedures, and controls to ensure that the 
                person does not sell, supply, or transfer to or from 
                Iran materials the sale, supply, or transfer of which 
                would subject a person to the imposition of sanctions 
                under subparagraph (B) or (C), as the case may be, or 
                conduct or facilitate a financial transaction for such 
                a sale, supply, or transfer.
                    ``(E) Definitions.--In subparagraphs (B) and (C) of 
                this paragraph:
                            ``(i) Agency or instrumentality.--The term 
                        `agency or instrumentality' has the meaning 
                        given such term in section 1603(b) of title 28, 
                        United States Code.
                            ``(ii) Foreign state.--The term `foreign 
                        state' has the meaning given such term in 
                        section 1603(a) of title 28, United States 
                        Code.
                            ``(iii) Government of iran.--The term 
                        `Government of Iran' has the meaning given such 
                        term in section 561.404 of title 31, Code of 
                        Federal Regulations, as such section was in 
                        effect on January 1, 2016.
                            ``(iv) Significant transaction or 
                        transactions; significant financial services.--
                        The terms `significant transaction or 
                        transactions' and `significant financial 
                        services' shall be determined, for purposes of 
                        sections 101 and 102, in accordance with 
                        section 561.404 of title 31, Code of Federal 
                        Regulations, as such section 561.404 was in 
                        effect on January 1, 2016.''.
    (i) Sanctions Described.--Section 6(a) of the Iran Sanctions Act of 
1996 (Public Law 104-172; 50 U.S.C. 1701 note) is amended--
            (1) by striking paragraph (10) and inserting the following:
            ``(10) Inadmissibility to united states.--The President may 
        direct the Secretary of State to deny a visa to, and the 
        Secretary of Homeland Security to exclude from the United 
        States and, if the individual has been issued a visa or other 
        documentation, revoke, in accordance with section 221(i) of the 
        Immigration and Nationality Act (8 U.S.C. 1201(i)) of the visa 
        or other documentation any alien that--
                    ``(A) is designated pursuant to subparagraph (B) or 
                (C) of section 5(b)(1); or
                    ``(B) the President determines is a corporate 
                officer or principal of, or a shareholder with a 
                controlling interest in, a sanctioned person.'';
            (2) by redesignating paragraph (12) as paragraph (13); and
            (3) by inserting after paragraph (11) the following:
            ``(12) Export sanction.--In the case of an agency or 
        instrumentality of a foreign state, no item on the United 
        States Munitions List or Commerce Munitions List may be 
        exported to that foreign state for a period of two years.''.
    (j) Rule of Construction.--The sanctions that are required to be 
imposed under this section and the amendments made by this section are 
in addition to other similar or related sanctions that are required to 
be imposed under any other provision of law.

SEC. 3. REPORT ON SANCTIONABLE ACTIVITIES.

    (a) In General.--Not later than 120 days after the date of the 
enactment of this Act, and every 90 days thereafter, the President 
shall submit to the appropriate congressional committees a report that 
contains the following information:
            (1) Any credible information regarding Iran's attempts to 
        develop, procure, or acquire goods, services, or technology 
        with respect to which sanctions may be imposed pursuant to 
        subparagraphs (B) and (C) of section 5(b)(1) of the Iran 
        Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 
        note), as added by section 3 of this Act.
            (2) Any credible information regarding Iran's acquisition 
        or attempted acquisition of significant arms and related 
        material in violation of paragraph 5 of Annex B of United 
        Nations Security Council Resolution 2231 (2015).
            (3) Any credible information regarding Iran's export or 
        attempted export of significant arms and related material in 
        violation of paragraph 5 of Annex B of United Nations Security 
        Council Resolution 2231 (2015).
            (4) Any approval granted by the United Nations Security 
        Council for the export of significant arms and related material 
        identified under paragraph 5 of Annex B of United Nations 
        Security Council Resolution 2231 (2015).
    (b) Form.--The report required by subsection (a) shall be submitted 
in unclassified form, but may contain a classified annex.

SEC. 4. REGULATORY AUTHORITY.

    (a) In General.--The President shall, not later than 120 days after 
the date of the enactment of this Act, promulgate regulations as 
necessary for the implementation of this Act and the amendments made by 
this Act.
    (b) Notification to Congress.--Not less than 10 days before the 
promulgation of regulations under subsection (a), the President shall 
notify the appropriate congressional committees of the proposed 
regulations and the provisions of this Act and the amendments made by 
this Act that the regulations are implementing.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Affairs of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
            (2) Credible information.--The term ``credible 
        information'' has the meaning given such term in section 14 of 
        the Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 
        1701 note).
            (3) Government of iran.--The term ``Government of Iran'' 
        has the meaning given such term in section 561.404 of title 31, 
        Code of Federal Regulations, as such section was in effect on 
        January 1, 2016.
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