I 

111TH CONGRESS 

2D SESSION H. R. 6296 

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 

SEPTEMBER 29, 2010 

Mr. SHERMAN (for himself, Mr. ROYCE, Mr. KLEIN of Florida, Mr. DEUTCH, 

Mr. ENGEL, Mr. POE of Texas, Mr. SIRES, Mrs. MALONEY, Ms. BERKLEY, and Mr. GENE GREEN 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 2010’’. 

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 BILATERAL SANCTIONS AGAINST IRAN 

Sec. 101. Application to subsidiaries. 

Sec. 102. Additional export sanctions against Iran. 

Sec. 103. Temporary increase in fee for certain consular services. 

TITLE II—ADDITIONAL MEASURES 

Sec. 201. Elimination of certain tax incentives for oil companies investing in 

Iran. 

Sec. 202. Expansion of sanctions under the Iran Sanctions Act of 1996. 

TITLE III—APPLICATION OF SANCTIONS AGAINST AFFILIATES OF 

THE IRAN REVOLUTIONARY GUARD CORPS 

Sec. 301. Sanctions against affiliates of the Iran Revolutionary Guard Corps. 

Sec. 302. Measures against foreign persons or entities supporting the Iran Revolutionary Guard Corps. 

Sec. 303. Special measures against foreign governments supporting the Iran 

Revolutionary Guards Corps. 

Sec. 304. Definitions. 

TITLE IV—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. 401. Statement of policy. 

Sec. 402. Reporting requirements under the Iran, North Korea, and Syria Nonproliferation Act. 

Sec. 403. Conforming amendments. 

TITLE V—ROLLOVER OF GAIN FROM DIVESTING CERTAIN QUALIFIED SECURITIES OF BUSINESS ENTITIES ENGAGED IN DISCOURAGED ACTIVITIES IN IRAN OR SUDAN 

Sec. 501. Rollover of gain from divesting certain qualified securities of business 

entities engaged in discouraged activities in Iran or Sudan. 

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

BUSINESS IN IRAN 

Sec. 601. Prohibition on United States Government contracts. 

Sec. 602. Authority of State and local governments to prohibit contracts. 

Sec. 603. United States pension plans. 

Sec. 604. Sunset. 

Sec. 605. Definitions. 

TITLE VII—TERMINATION OF LOAN DISBURSEMENTS TO IRAN 

FROM THE INTERNATIONAL BANK FOR RECONSTRUCTION AND 

DEVELOPMENT 

Sec. 701. Termination of loan disbursements to Iran from the International 

Bank for Reconstruction and Development. 

Sec. 702. United States opposition to new country assistance strategy for Iran. 


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Sec. 703. Sunset. 

Sec. 704. 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). 

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

8 and United Nations Security Council Resolution 

9 1929 on Iran, the European Union, Japan, South 

10 Korea, Australia, and other friends and allies of the 

11 United States also imposed significant economic 

12 sanctions on Iran. 

13 (3) The latest report by the Director General of 

14 the International Atomic Energy Agency to its 

15 Board of Directors, issued on September 6, 2010, 

16 notes that Iran has continued its record of insuffi17 cient cooperation with the agency, has continued to 

18 fail to answer questions posed by the agency regard19 ing potential non-civilian nuclear activities by Iran, 

20 and has failed to suspend sensitive nuclear activities, 

21 as required by successive United Nations Security 

22 Council resolutions. 

23 (4) While the United States and several like24 minded countries have worked individually and in 


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1 concert to increase the diplomatic and economic iso2 lation of Iran to convince the Government of Iran to 

3 abandon sensitive nuclear activities, the United 

4 States and like-minded countries must do more in 

5 the coming months to achieve that goal. 

6 TITLE I—ADDITIONAL BILAT7 ERAL SANCTIONS AGAINST 

8 IRAN 

9 SEC. 101. APPLICATION TO SUBSIDIARIES. 

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

11 (b), in any case in which an entity engages in an act out12 side the United States which, if committed in the United 

13 States or by a United States person, would violate Execu14 tive Order No. 12959 of May 6, 1995, Executive Order 

15 No. 13059 of August 19, 1997, section 103 of the Com16 prehensive Iran Sanctions, Accountability, and Divestment 

17 Act of 2010 (Public Law 111–195; 22 U.S.C. 8512), or 

18 any other prohibition on transactions with respect to Iran 

19 that is imposed under the International Emergency Eco20 nomic Powers Act (50 U.S.C. 1701 et seq.), the parent 

21 company of that entity shall be subject to the penalties 

22 for such violation to the same extent as if the parent com23 pany had engaged in that act. 


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

2 any act carried out under a contract or other obligation 

3 of any entity if— 

4 (1) the contract or obligation existed on the 

5 date of the enactment of this Act, unless such con6 tract or obligation is extended in time in any man7 ner or expanded to cover additional activities beyond 

8 the terms of the contract or other obligation as it ex9 isted on the date of the enactment of this Act; or 

10 (2) the parent company acquired that entity not 

11 knowing, and not having reason to know, that such 

12 contract or other obligation existed, unless such con13 tract or other obligation is extended in time in any 

14 manner or expanded to cover additional activities be15 yond the terms of such contract or other obligation 

16 as it existed at the time of such acquisition. 

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

18 construed as prohibiting the issuance of regulations, or19 ders, directives, or licenses under the Executive orders de20 scribed in subsection (a) or as being inconsistent with the 

21 authorities under the International Emergency Economic 

22 Powers Act. 

23 (d) DEFINITIONS.—In this section— 


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1 (1) the term ‘‘entity’’ means a partnership, as2 sociation, trust, joint venture, corporation, or other 

3 organization; 

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

5 entity if it controls, directly or indirectly, that other 

6 entity and is a United States person; and 

7 (3) the term ‘‘United States person’’ means any 

8 United States citizen, any alien lawfully admitted for 

9 permanent residence to the United States, any entity 

10 organized under the laws of the United States, or 

11 any person in the United States. 

12 SEC. 102. ADDITIONAL EXPORT SANCTIONS AGAINST IRAN. 

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

14 Comprehensive Iran Sanctions, Accountability, and Di15 vestment Act of 2010 (Public Law 111–195; 22 U.S.C. 

16 8512(b)(2)(B)(iv)) or any other provision of law, effective 

17 on the date of the enactment of this Act— 

18 (1) licenses to export or reexport goods, serv19 ices, or technology relating to civil aviation that are 

20 otherwise authorized by section 560.528 of title 31, 

21 Code of Federal Regulations, as in effect on the date 

22 of the enactment of this Act, may not be issued, and 

23 any such license issued before such date of enact24 ment is no longer valid; and 


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

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

3 SEC. 103. TEMPORARY INCREASE IN FEE FOR CERTAIN 

4 CONSULAR SERVICES. 

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

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

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

8 increase by $1.00 the fee or surcharge assessed under sec9 tion 140(a) of the Foreign Relations Authorization Act, 

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

11 U.S.C. 1351 note) for processing machine readable non12 immigrant visas and machine readable combined border 

13 crossing identification cards and nonimmigrant visas. 

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

15 authority of subsection (a) shall be deposited in the Treas16 ury. 

17 (c) DURATION OF INCREASE.—The fee increase au18 thorized under subsection (a) shall terminate on the date 

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

20 collected. 


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1 TITLE II—ADDITIONAL 

2 MEASURES 

3 SEC. 201. ELIMINATION OF CERTAIN TAX INCENTIVES FOR 

4 OIL COMPANIES INVESTING IN IRAN. 

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

6 the Internal Revenue Code of 1986 (relating to amortiza7 tion of geological and geophysical expenditures) is amend8 ed by adding at the end the following new paragraph: 

9 ‘‘(6) DENIAL WHEN IRAN SANCTIONS IN EF10 FECT.— 

11 ‘‘(A) IN GENERAL.—If sanctions are im12 posed under section 5(a) of the Iran Sanctions 

13 Act of 1996 (relating to sanctions with respect 

14 to the development of petroleum resources of 

15 Iran) on any member of an expanded affiliated 

16 group the common parent of which is a foreign 

17 corporation, paragraph (1) shall not apply to 

18 any expense paid or incurred by any such mem19 ber in any period during which the sanctions 

20 are in effect. 

21 ‘‘(B) EXPANDED AFFILIATED GROUP.— 

22 For purposes of subparagraph (A), the term 

23 ‘expanded affiliated group’ means an affiliated 

24 group as defined in section 1504(a), deter25 mined— 


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

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

3 it appears, and 

4 ‘‘(ii) without regard to paragraphs 

5 (2), (3), and (4) of section 1504(b).’’. 

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

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

8 or after January 1, 2010. 

9 SEC. 202. EXPANSION OF SANCTIONS UNDER THE IRAN 

10 SANCTIONS ACT OF 1996. 

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

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

13 is amended— 

14 (1) in the heading, by inserting at the end be15 fore the period the following: ‘‘, ETC’’; and 

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

17 paragraphs: 

18 ‘‘(4) OTHER ACTIONS RELATING TO PETRO19 LEUM RESOURCES OF IRAN.— 

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

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

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

23 with respect to a person if the President deter24 mines that the person knowingly, on or after 


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

2 Nuclear Weapons Program Act of 2010— 

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

4 to purchase petroleum resources from Iran; 

5 ‘‘(ii) enters into an agreement to pro6 vide payment for future delivery of petro7 leum resources from Iran; or 

8 ‘‘(iii) enters into an agreement with 

9 the National Iranian Oil Company, any of 

10 its affiliates, or any entity owned or con11 trolled by the Government of Iran to pro12 vide for the development of petroleum re13 sources wherever located. 

14 ‘‘(B) DEFINITIONS.— 

15 ‘‘(i) LONG-TERM AGREEMENT.—In 

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

17 agreement’ means a contract or other 

18 agreement that provides for delivery of pe19 troleum resources beginning more than 1 

20 year after the date of entry into the con21 tract or agreement (as the case may be). 

22 ‘‘(ii) FUTURE DELIVERY.—In sub23 paragraph (A)(ii), the term ‘future deliv24 ery’ means delivery that occurs more than 


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1 180 days after payment is effected under 

2 the agreement. 

3 ‘‘(5) PURCHASE, SUBSCRIPTION TO, OR FACILI4 TATION OF THE ISSUANCE OF IRANIAN SOVEREIGN

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

6 President shall impose 3 or more of the sanctions 

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

8 the President determines that the person knowingly, 

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

10 Iran’s Nuclear Weapons Program Act of 2010, pur11 chases, subscribes to, or facilitates the issuance of— 

12 ‘‘(A) Iranian sovereign debt, including Ira13 nian governmental bonds; or 

14 ‘‘(B) debt of any entity owned or con15 trolled by the Iranian Government, including 

16 bonds’’. 

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

18 this section shall— 

19 (1) take effect on the date of the enactment of 

20 this Act; and 

21 (2) apply with respect to an investment or ac22 tivity described in subsection (a) of section 5 of the 

23 Iran Sanctions Act of 1996, as amended by this sec24 tion, that is commenced on or after such date of en25 actment. 


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1 TITLE III—APPLICATION OF 

2 SANCTIONS AGAINST AFFILI3 ATES OF THE IRAN REVOLU4 TIONARY GUARD CORPS 

5 SEC. 301. SANCTIONS AGAINST AFFILIATES OF THE IRAN 

6 REVOLUTIONARY GUARD CORPS. 

7 (a) PUBLICATION OF NAMES OF AFFILIATES IN FED8 ERAL REGISTER.—Not later than 90 days after the date 

9 of the enactment of this Act, and as appropriate there10 after, the President shall publish in the Federal Register 

11 the name of each foreign person or foreign entity for which 

12 there is credible information indicating that the person or 

13 entity is as an agent, alias, front, instrumentality, official, 

14 or affiliate of the Iran Revolutionary Guard Corps or is 

15 an individual serving as a representative of the Iran Revo16 lutionary Guard Corps. 

17 (b) APPLICATION OF EXISTING SANCTIONS AGAINST

18 IRAN TO AFFILIATES.—The President shall designate 

19 each foreign person or foreign entity identified in the Fed20 eral Register pursuant to subsection (a) for inclusion in 

21 the Annex to Executive Order 13382 (70 Fed. Reg. 

22 38567; relating to blocking property of weapons of mass 

23 destruction proliferators and their supporters) and shall 

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1 plicable sanctions of the United States contained in Exec2 utive Order 13382. 

3 (c) SANCTIONS UNDER EXECUTIVE ORDER 13438.— 

4 (1) PUBLICATION OF NAMES OF AFFILIATES IN

5 FEDERAL REGISTER.—Not later than 90 days after 

6 the date of the enactment of this Act, and as appro7 priate thereafter, the President shall publish in the 

8 Federal Register the name of each foreign person or 

9 foreign entity— 

10 (A) for which there is credible information 

11 indicating that the person or entity is as an 

12 agent, alias, front, instrumentality, official, or 

13 affiliate of the Iran Revolutionary Guard Corps 

14 or is an individual serving as a representative 

15 of the Iran Revolutionary Guard Corps; and 

16 (B) for which there is credible evidence 

17 that the foreign person or foreign entity— 

18 (i) has committed, or poses a signifi19 cant risk of committing, an act or acts of 

20 violence that have the purpose or effect 

21 of— 

22 (I) threatening the peace or sta23 bility of Iraq or the Government of 

24 Iraq; or 


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1 (II) undermining efforts to pro2 mote economic reconstruction and po3 litical reform in Iraq or to provide hu4 manitarian assistance to the Iraqi 

5 people; 

6 (ii) has materially assisted, sponsored, 

7 or provided financial, material, logistical, 

8 or technical support for, or goods or serv9 ices in support of, such an act or acts of 

10 violence or any person whose property and 

11 interests in property are blocked pursuant 

12 to Executive Order 13438; or 

13 (iii) is owned or controlled by, or has 

14 acted or purported to act for or on behalf 

15 of, directly or indirectly, any person whose 

16 property and interests in property are 

17 blocked pursuant to Executive Order 

18 13438. 

19 (2) APPLICATION OF SANCTIONS UNDER EXEC20 UTIVE ORDER 13438.—The President shall apply to 

21 each foreign person or foreign entity identified in the 

22 Federal Register pursuant to paragraph (1) all ap23 plicable sanctions and measures of the United States 

24 contained in Executive Order 13438 (72 Fed. Reg. 


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1 39719; relating to blocking property of certain per2 sons who threaten stabilization efforts in Iraq). 

3 (d) EXCLUSION FROM UNITED STATES.—The Sec4 retary of State shall deny a visa to, and the Secretary of 

5 Homeland Security shall exclude from the United States, 

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

7 this Act, is a foreign person identified in the Federal Reg8 ister pursuant to subsection (a) or (c). 

9 (e) RULE OF CONSTRUCTION.—Nothing in this sec10 tion shall be construed to remove any sanction of the 

11 United States in force against the Iran Revolutionary 

12 Guard Corps as of the date of the enactment of this Act 

13 by reason of the fact that the Iran Revolutionary Guard 

14 Corps is an entity of the Government of Iran. 

15 SEC. 302. MEASURES AGAINST FOREIGN PERSONS OR ENTI16 TIES SUPPORTING THE IRAN REVOLU17 TIONARY GUARD CORPS. 

18 (a) NOTIFICATION.—Whenever the President deter19 mines that there is credible information indicating that a 

20 foreign person or foreign entity, on or after the date of 

21 the enactment of this Act, knowingly— 

22 (1) provided material support to the Iran Revo23 lutionary Guard Corps or any affiliated foreign per24 son or foreign entity identified pursuant to section 

25 301 (a) or (c), or 


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1 (2) conducted any commercial transaction or fi2 nancial transaction with the Iran Revolutionary 

3 Guards Corps or any affiliated foreign person or for4 eign entity identified pursuant to section 301 (a) or 

5 (c), 

6 the President shall submit to the appropriate congres7 sional committees a notification that contains the name 

8 of the foreign person or foreign entity (as the case may 

9 be). 

10 (b) FORM.—The President may submit the notifica11 tion required under subsection (a) in classified form. 

12 (c) EXECUTIVE ORDER 12938 SANCTIONS.—Not 

13 later than 60 days after the date on which the President 

14 provides notice to the appropriate congressional commit15 tees pursuant to subsection (a), the President shall apply 

16 to each foreign person or foreign entity identified in such 

17 notice, for such time as the President may determine, the 

18 measures set forth in section 4 of Executive Order 12938 

19 (59 Fed. Reg. 59099; relating to proliferation of weapons 

20 of mass destruction) and shall terminate such measures 

21 in accordance with the provisions of such section. 

22 (d) IEEPA SANCTIONS.—The President may exer23 cise the authorities the President has under section 203(a) 

24 of the International Emergency Economic Powers Act (50 

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


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1 foreign person or foreign entity identified pursuant to sub2 section (a) of this section, for such time as the President 

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

4 (e) WAIVER.—The President may waive the applica5 tion of any measure described in subsection (c) with re6 spect to a foreign person or foreign entity if the Presi7 dent— 

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

9 ceased the offending activity and has taken meas10 ures to prevent its recurrence; or 

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

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

13 (2) submits to the appropriate congressional 

14 committees a report that contains the reasons for 

15 the determination. 

16 SEC. 303. SPECIAL MEASURES AGAINST FOREIGN GOVERN17 MENTS SUPPORTING THE IRAN REVOLU18 TIONARY GUARDS CORPS. 

19 (a) EXECUTIVE ORDER 12938 SANCTIONS.—With 

20 respect to any foreign entity identified pursuant to section 

21 302(a) that is a foreign government, the President shall, 

22 in addition to applying to the entity the measures de23 scribed in section 302(d), apply to the entity the measures 

24 set forth in section 5(b) of Executive Order 12938. 


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1 (b) WAIVER.—The President may waive the applica2 tion of any measure described in subsection (a) with re3 spect to a foreign entity if the President— 

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

5 the offending activity and has taken measures to 

6 prevent its recurrence; or 

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

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

9 (2) submits to the appropriate congressional 

10 committees a report that contains the reasons for 

11 the determination. 

12 SEC. 304. DEFINITIONS. 

13 In this title: 

14 (1) APPROPRIATE CONGRESSIONAL COMMIT15 TEES.—The term ‘‘appropriate congressional com16 mittees’’ means the Committee on Foreign Affairs of 

17 the House of Representatives and the Committee on 

18 Foreign Relations of the Senate. 

19 (2) FOREIGN PERSON.—The term ‘‘foreign per20 son’’ has the meaning given the term in section 14 

21 of the Iran Sanctions Act of 1996. 

22 (3) IRAN REVOLUTIONARY GUARD CORPS.—The 

23 term ‘‘Iran Revolutionary Guard Corps’’ includes the 

24 Iran Revolutionary Guard Corps-Qods Force. 


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1 TITLE IV—OPPOSITION OF 

2 TRANSFER TO IRAN, NORTH 

3 KOREA, AND SYRIA OF 

4 GOODS, SERVICES, OR TECH5 NOLOGY RELEVANT TO THEIR 

6 CAPABILITY TO EXTRACT OR 

7 MILL URANIUM ORE 

8 SEC. 401. STATEMENT OF POLICY. 

9 It shall be the policy of the United States— 

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

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

12 relevant to their capability to extract or mill ura13 nium ore; and 

14 (2) to work with like-minded countries to im15 pose restrictions on such transfers internationally. 

16 SEC. 402. REPORTING REQUIREMENTS UNDER THE IRAN, 

17 NORTH KOREA, AND SYRIA NONPROLIFERA18 TION ACT. 

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

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

21 (1) in paragraph (1), by redesignating subpara22 graphs (A) through (E) as clauses (i) through (v), 

23 respectively; 

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

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


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

2 (A) by striking ‘‘paragraph (1)’’ and in3 serting ‘‘subparagraph (A)’’; and 

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

5 inserting ‘‘; or’’; 

6 (4) by striking all that precedes subparagraph 

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

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

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

10 Foreign Affairs of the House of Representatives and the 

11 Committee on Foreign Relations of the Senate a report 

12 identifying every foreign person with respect to whom 

13 there is credible information indicating that person— 

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

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

16 2005, transferred to or acquired from Syria, or on 

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

18 from North Korea—’’; and 

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

20 paragraph: 

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

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

23 technology that could assist efforts to extract or mill 

24 uranium ore within the territory or control of Iran, 

25 North Korea, or Syria.’’. 


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1 SEC. 403. CONFORMING AMENDMENTS. 

2 The Iran, North Korea, and Syria Nonproliferation 

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

4 ‘‘Committee on International Relations’’ each place it ap5 pears and inserting ‘‘Committee on Foreign Affairs’’. 

6 TITLE V—ROLLOVER OF GAIN 

7 FROM DIVESTING CERTAIN 

8 QUALIFIED SECURITIES OF 

9 BUSINESS ENTITIES EN10 GAGED IN DISCOURAGED AC11 TIVITIES IN IRAN OR SUDAN 

12 SEC. 501. ROLLOVER OF GAIN FROM DIVESTING CERTAIN 

13 QUALIFIED SECURITIES OF BUSINESS ENTI14 TIES ENGAGED IN DISCOURAGED ACTIVITIES 

15 IN IRAN OR SUDAN. 

16 (a) IN GENERAL.—Part III of subchapter O of chap17 ter 1 of the Internal Revenue Code of 1986 (relating to 

18 common nontaxable exchanges) is amended by adding at 

19 the end the following new section: 

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

21 QUALIFIED SECURITIES OF BUSINESS ENTI22 TIES ENGAGED IN DISCOURAGED ACTIVITIES 

23 IN IRAN OR SUDAN. 

24 ‘‘(a) NONRECOGNITION OF GAIN.— 

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

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1 spect to which such taxpayer elects the application 

2 of this section, in any business entity that is en3 gaged in an Iran discouraged activity or a Sudan 

4 discouraged activity, gain from such sale shall be 

5 recognized only to the extent that the amount real6 ized on such sale exceeds— 

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

8 property purchased by the taxpayer during the 

9 30-day period beginning on the date of such 

10 sale, reduced by 

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

12 taken into account under this section. 

13 ‘‘(2) EXCEPTION FOR ORDINARY INCOME

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

15 which is treated as ordinary income for purposes of 

16 this title. 

17 ‘‘(3) EXCEPTION WHERE TAXPAYER OWNS CON18 TROLLING INTEREST IN THE BUSINESS ENTITY.— 

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

20 not apply to any sale if, immediately before 

21 such sale, the taxpayer owns a controlling inter22 est in the business entity that is engaged in an 

23 Iran discouraged activity or a Sudan discour24 aged activity. 


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1 ‘‘(B) CONTROLLING INTEREST.—For pur2 poses of subparagraph (A), the term ‘control3 ling interest’ means direct or indirect ownership 

4 of at least 50 percent of the total voting power 

5 and value of all classes of stock of a corpora6 tion. For purposes of the preceding sentence, 

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

8 267(c) shall apply. 

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

10 of this paragraph, all members of the same con11 trolled group of corporations (within the mean12 ing of section 267(f)) and all persons under 

13 common control (within the meaning of section 

14 52(b) but determined by treating an interest of 

15 more than 50 percent as a controlling interest) 

16 shall be treated as 1 person. 

17 ‘‘(b) DEFINITIONS AND SPECIAL RULES RELATING

18 TO SECURITIES AND REPLACEMENT PROPERTY.—For 

19 purposes of this section— 

20 ‘‘(1) QUALIFIED SECURITY.— 

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

22 security’ means any security held by a taxpayer 

23 in any business entity that is engaged in an 

24 Iran discouraged activity or a Sudan discour25 aged activity. 


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1 ‘‘(B) EXCEPTION.—Such term shall not in2 clude any security purchased or otherwise ac3 quired after the date of the enactment of this 

4 section which, at the time of such purchase or 

5 acquisition, was issued by a business entity 

6 then engaged in an Iran discouraged activity or 

7 a Sudan discouraged activity. 

8 ‘‘(C) SECURITY DEFINED.—The term ‘se9 curity’ has the meaning given such term by sec10 tion 165(g)(2). 

11 ‘‘(2) QUALIFIED REPLACEMENT PROPERTY.— 

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

13 replacement property’ means any security of a 

14 business entity that, on the date of purchase by 

15 the taxpayer— 

16 ‘‘(i) is not engaged in an Iran discour17 aged activity or a Sudan discouraged activ18 ity on such date, 

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

20 affiliated group, any member of which is 

21 engaged in an Iran discouraged activity or 

22 a Sudan discouraged activity on such date, 

23 and 

24 ‘‘(iii) meets the requirements of sub25 paragraph (B). 


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1 ‘‘(B) REPLACEMENT PROPERTY.—Property 

2 meets the requirements of this paragraph if, 

3 with respect to the sale of any security— 

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

5 in the case that the security is a share of 

6 stock in a corporation, the replacement 

7 property is a share of stock in a corpora8 tion, 

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

10 share of stock of a regulated investment 

11 company, real estate investment trust, 

12 hedge fund, investment partnership, or 

13 similar business entity, the replacement 

14 property is a share of stock in a regulated 

15 investment company, real estate invest16 ment trust, hedge fund, investment part17 nership, or similar business entity, 

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

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

20 share of stock in a corporation, the re21 placement property is a right to subscribe 

22 for, or to receive, a share of stock in a cor23 poration, and 

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

25 a bond, debenture, note, or certificate, or 


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1 other evidence of indebtedness issued by a 

2 corporation, with interest coupons or in 

3 registered form, the replacement property 

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

5 or other evidence of indebtedness issued by 

6 a corporation, with interest coupons or in 

7 registered form. 

8 ‘‘(C) DEEMED INVESTMENT IF INVESTING

9 IN ENTITIES ENGAGED IN DISCOURAGED AC10 TIVITIES.—Any regulated investment company, 

11 real estate investment trust, hedge fund, invest12 ment partnership, or similar business entity, 

13 which invests in the securities— 

14 ‘‘(i) issued by a business entity deter15 mined to be engaging in Iran discouraged 

16 activities or Sudan discouraged activities, 

17 or 

18 ‘‘(ii) issued by the government of 

19 Sudan or Iran or any agency thereof, 

20 shall be deemed to be a business entity engag21 ing in Iran discouraged activities or Sudan dis22 couraged activities. 

23 ‘‘(D) BUSINESS DECLARATION OF POL24 ICY.— 


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1 ‘‘(i) IN GENERAL.—Notwithstanding 

2 any other provision of this section, in the 

3 case of a business entity described in 

4 clause (iii), a security in such business en5 tity shall not be treated as qualified re6 placement property unless the business en7 tity has made the following declaration: ‘It 

8 is our policy not to make investments in 

9 business entities which engage in Iran dis10 couraged activities or Sudan discouraged 

11 activities as defined in section 1046 of the 

12 Internal Revenue Code of 1986, and to use 

13 due diligence to avoid making such invest14 ments. It is our policy to divest on or be15 fore December 31, 2010, from business en16 tities engaged in Iran discouraged activi17 ties and Sudan discouraged activities.’. 

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

19 business entity described in clause (iii) has 

20 made the declaration specified in clause (i), 

21 then from the time of such declaration an 

22 interest in such business entity shall not be 

23 treated as a qualified security. 

24 ‘‘(iii) BUSINESS ENTITY DE25 SCRIBED.—A business entity described in 


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1 this clause is a regulated investment com2 pany, real estate investment trust, hedge 

3 fund, investment partnership, or similar 

4 business entity. 

5 ‘‘(E) EXPANDED AFFILIATED GROUP.— 

6 The term ‘expanded affiliated group’ means an 

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

8 determined— 

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

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

11 it appears, and 

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

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

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

15 any sale is not recognized by reason of sub16 section (a), such gain shall be applied to reduce 

17 (in the order acquired) the basis for deter18 mining gain or loss of any qualified replacement 

19 property which is purchased by the taxpayer 

20 during the 30-day period described in sub21 section (a). 

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

23 determining the period for which the taxpayer 

24 has held qualified replacement property the ac25 quisition of which resulted in the nonrecognition 


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1 under subsection (a) of any part of the gain re2 alized on the sale of a qualified security, there 

3 shall be included the period for which such 

4 qualified security had been held by the tax5 payer. 

6 ‘‘(3) SPECIAL RULE FOR SECURITIES OF CER7 TAIN ENTITIES.— 

8 ‘‘(A) IN GENERAL.—For any business enti9 ty described in subparagraph (C), a security in 

10 such business entity shall be treated as quali11 fied replacement property if the business entity 

12 has made the following declaration: ‘It is our 

13 policy not to make investments in any person 

14 having an investment in, or carrying on a trade 

15 or business (within the meaning of section 162) 

16 in or with, Iran and Sudan. This policy may or 

17 may not include investments concerning the 

18 provision of food, medicine, humanitarian serv19 ices in or to Iran or Sudan or investments con20 cerning marginalized areas of Sudan (as de21 fined in section 2 of the Sudan Accountability 

22 and Divestment Act of 2007 (121 Stat. 

23 2518)).’. 

24 ‘‘(B) NOT QUALIFIED SECURITY.—If a 

25 business entity described in subparagraph (C) 


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1 has made the declaration specified in subpara2 graph (A), then from the time of such declara3 tion an interest in such business entity shall not 

4 be treated as a qualified security. 

5 ‘‘(C) BUSINESS ENTITY DESCRIBED.—A 

6 business entity described in this subparagraph 

7 is a regulated investment company, real estate 

8 investment trust, hedge fund, investment part9 nership, or similar business entity. 

10 ‘‘(D) CERTAIN BUSINESS ENTITIES AS RE11 PLACEMENT PROPERTY.—A business entity de12 scribed in subparagraph (C) making the dec13 laration described in subparagraph (A) may 

14 qualify as replacement property if it has adopt15 ed restrictions on investment in persons that in16 vest in or carrying on a trade or business (with17 in the meaning of section 162) in or with coun18 tries other than Iran and Sudan that are des19 ignated as state sponsors of terrorism under 

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

21 1979, section 40 of the Arms Export Control 

22 Act, or section 620A of the Foreign Assistance 

23 Act of 1961. 

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

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1 nership, limited liability company, or any other busi2 ness entity conducting business activities in which 

3 the taxpayer has purchased or can purchase securi4 ties. 

5 ‘‘(c) DEFINITIONS AND RULES RELATING TO SUDAN

6 DISCOURAGED ACTIVITY.—For purposes of this section, 

7 the term ‘Sudan discouraged activity’ means an invest8 ment in any business operation described in section 3(d) 

9 of the Sudan Accountability and Divestment Act of 2007 

10 (121 Stat. 2518). 

11 ‘‘(d) DEFINITIONS AND RULES RELATING TO IRAN

12 DISCOURAGED ACTIVITIES.—For purposes of this sec13 tion— 

14 ‘‘(1) IRAN DISCOURAGED ACTIVITY.—The term 

15 ‘Iran discouraged activity’ means— 

16 ‘‘(A) an investment of $20,000,000 or 

17 more— 

18 ‘‘(i) in the energy sector of Iran; or 

19 ‘‘(ii) in a person that provides oil or 

20 liquefied natural gas tankers, or products 

21 used to construct or maintain pipelines 

22 used to transport oil or liquefied natural 

23 gas, for the energy sector in Iran; 

24 ‘‘(B) an extension of $20,000,000 or more 

25 in credit to another person, for 45 days or 


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1 more, if that person will use the credit to invest 

2 in the energy sector in Iran; 

3 ‘‘(C) except as provided in section 5(f) of 

4 the Iran Sanctions Act of 1996 (50 U.S.C. 

5 1701 note), an investment of $20,000,000 or 

6 more (or any combination of investments of at 

7 least $5,000,000 each, which in the aggregate 

8 equals or exceeds $20,000,000 in any 12-month 

9 period), that directly and significantly contrib10 uted to the enhancement of Iran’s ability to de11 velop petroleum resources of Iran; 

12 ‘‘(D) except as provided in section 5(f) of 

13 the Iran Sanctions Act of 1996 (50 U.S.C. 

14 1701 note), the sale, lease, or provision to Iran 

15 of any goods, services, technology, information, 

16 or support that would allow Iran to maintain or 

17 expand its domestic production of refined petro18 leum resources, including any assistance in re19 finery construction, modernization, or repair; or 

20 ‘‘(E) except as provided in section 5(f) of 

21 the Iran Sanctions Act of 1996 (50 U.S.C. 

22 1701 note), providing Iran with refined petro23 leum resources or engaging in any activity that 

24 could contribute to the enhancement of Iran’s 


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1 ability to import refined petroleum resources, 

2 including— 

3 ‘‘(i) providing ships or shipping serv4 ices to deliver refined petroleum resources 

5 to Iran; 

6 ‘‘(ii) underwriting or otherwise pro7 viding insurance or reinsurance for such 

8 activity; or 

9 ‘‘(iii) financing or brokering such ac10 tivity. 

11 ‘‘(2) INVESTMENT.—The ‘investment’ of assets, 

12 with respect to a State or local government, in13 cludes— 

14 ‘‘(A) a commitment or contribution of as15 sets; 

16 ‘‘(B) a loan or other extension of credit; or 

17 ‘‘(C) the entry into or renewal of a con18 tract for goods or services. 

19 ‘‘(3) ENERGY SECTOR.—The term ‘energy sec20 tor’ refers to activities to develop petroleum or nat21 ural gas resources or nuclear power. 

22 ‘‘(4) IRAN.—The term ‘Iran’ includes any agen23 cy or instrumentality of Iran. 

24 ‘‘(e) DOING BUSINESS WITH TERRORISTS.— 


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1 ‘‘(1) IN GENERAL.—For purposes of this sec2 tion— 

3 ‘‘(A) A business entity has engaged in Iran 

4 discouraged activities if it conducts business 

5 with or makes any charitable donation to any 

6 Iranian person designated as a terrorist or to 

7 any foreign terrorist organization. 

8 ‘‘(B) A business entity has engaged in 

9 Sudan discouraged activities if it conducts busi10 ness with or makes any charitable donation to 

11 any Sudanese person designated as a terrorist 

12 or to any foreign terrorist organization. 

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 ‘‘(f) IDENTIFICATION OF BUSINESS ENTITIES EN4 GAGING IN IRAN DISCOURAGED ACTIVITIES OR SUDAN

5 DISCOURAGED ACTIVITIES.— 

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

7 this section, the Secretary shall publish and update 

8 at least every six months a list of business entities 

9 engaging in any Sudan discouraged activities or Iran 

10 discouraged activities, or both. 

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

12 regulations defining how a business entity shall not 

13 be deemed to be engaged in an Iran discouraged ac14 tivity or Sudan discouraged activity, if— 

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

16 this section becomes effective, the business enti17 ty limits its activity to continuing existing con18 tracts, without extension or expansion (except 

19 that an investment (as defined in section 14 of 

20 the Iran Sanctions Act of 1996) that would 

21 subject a business entity to sanctions under sec22 tion 5 of the Iran Sanctions Act of 1996 shall 

23 be considered an Iran discouraged activity, not24 withstanding contracts entered into prior to the 

25 effective date of this section), and 


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

2 activity or Sudan discouraged activity carried 

3 on under contracts entered into or expanded 

4 after the effective date of this section, the con5 tract was entered into at a time when the busi6 ness entity did not own or control the sub7 sidiary business entity, and after acquiring such 

8 ownership or control the business entity has not 

9 extended or expanded or renewed such contract. 

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

11 as the Secretary publishes a list of those engaging 

12 in Iran discouraged activities or Sudan discouraged 

13 activities or if the Secretary fails to update that list 

14 as required in paragraph (1), the taxpayer may de15 termine, using credible, publicly available informa16 tion, which business entities engage in an Iran dis17 couraged activity or a Sudan discouraged activity. 

18 ‘‘(g) IMPROVEMENT IN THE ACTIONS OF THE GOV19 ERNMENT OF THE SUDAN.—Effective on the date when 

20 the President certifies under a section 12 of the Sudan 

21 Accountability and Divestment Act of 2007 (121 Stat. 

22 2523), subsection (a) shall not apply to any Sudan dis23 couraged activity after such date. 

24 ‘‘(h) IMPROVEMENT IN THE ACTIONS OF THE GOV25 ERNMENT OF IRAN.— 


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1 ‘‘(1) TERMINATION OF NONRECOGNITION

2 TREATMENT.—Effective on the date when the re3 quirements described in paragraph (2) are met, sub4 section (a) shall not apply to any Iran discouraged 

5 activity after such date. 

6 ‘‘(2) REQUIREMENTS.—The requirements de7 scribed in this paragraph are— 

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

9 states that, in the opinion of the President, 

10 Iran is no longer engaging in efforts to develop 

11 or retain weapons of mass destruction, and has 

12 not developed and is not developing the capacity 

13 to enrich or reprocess uranium or plutonium, 

14 and 

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

16 State that Iran should no longer be listed as a 

17 state sponsor of acts of international terrorism 

18 pursuant to section 6(j) of the Export Adminis19 tration Act of 1979, section 620A of the For20 eign Assistance Act of 1961, section 40 of the 

21 Arms Export Control Act, or any other provi22 sion of law.’’. 

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

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

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


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

Sudan.’’. 

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

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

3 after the date of the enactment of this Act. 

4 TITLE VI—PROHIBITION ON 

5 UNITED STATES GOVERN6 MENT CONTRACTS AND IN7 VESTMENT FOR COMPANIES 

8 CONDUCTING BUSINESS IN 

9 IRAN 

10 SEC. 601. PROHIBITION ON UNITED STATES GOVERNMENT 

11 CONTRACTS. 

12 (a) CERTIFICATION REQUIREMENT.—The head of 

13 each executive agency shall ensure that each contract with 

14 a company entered into by such executive agency for the 

15 procurement of goods or services or agreement for the use 

16 of Federal funds as part of a grant, loan, or loan guar17 antee, the provision of insurance or reinsurance, or the 

18 provision of technical assistance to a company, includes 

19 a clause that requires the company to certify to the con20 tracting officer that the company does not conduct busi21 ness operations in Iran described in section 605. 

22 (b) REMEDIES.— 

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

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1 section if the head of the executive agency deter2 mines that the contractor has submitted a false cer3 tification under subsection (a) after the date the 

4 Federal Acquisition Regulation is revised pursuant 

5 to subsection (e) to implement the requirements of 

6 this section. 

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

8 agency may terminate a covered contract with a 

9 company upon the determination of a false certifi10 cation under paragraph (1). 

11 (3) SUSPENSION AND DEBARMENT.—The head 

12 of an executive agency may debar or suspend a con13 tractor from eligibility for Federal contracts upon 

14 the determination of a false certification under para15 graph (1). The debarment period may not exceed 3 

16 years. 

17 (4) INCLUSION ON LIST OF PARTIES EXCLUDED

18 FROM FEDERAL PROCUREMENT AND NONPROCURE19 MENT PROGRAMS.—The Administrator of General 

20 Services shall include on the List of Parties Ex21 cluded from Federal Procurement and Nonprocure22 ment Programs maintained by the Administrator 

23 under part 9 of the Federal Acquisition Regulation 

24 issued under section 25 of the Office of Federal Pro25 curement Policy Act (41 U.S.C. 421) each conVerDate Mar 15 2010 00:50 Oct 09, 2010 Jkt 099200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H6296.IH H6296

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1 tractor that is debarred, suspended, proposed for de2 barment or suspension, or declared ineligible by the 

3 head of an executive agency on the basis of a deter4 mination of a false certification under paragraph 

5 (1). 

6 (5) RULE OF CONSTRUCTION.—This section 

7 shall not be construed to limit the use of other rem8 edies available to the head of an executive agency or 

9 any other official of the Federal Government on the 

10 basis of a determination of a false certification 

11 under paragraph (1). 

12 (c) WAIVER.— 

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

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

15 basis if the President determines and certifies in 

16 writing to the appropriate congressional committees 

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

18 (2) REPORTING REQUIREMENT.—Not later than 

19 120 days after the date of the enactment of this Act 

20 and semi-annually thereafter, the Administrator for 

21 Federal Procurement Policy shall submit to the ap22 propriate congressional committees a report on waiv23 ers granted under paragraph (1). 

24 (d) IMPLEMENTATION THROUGH THE FEDERAL AC25 QUISITION REGULATION.—Not later than 120 days after 


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1 the date of the enactment of this Act, the Federal Acquisi2 tion Regulation issued pursuant to section 25 of the Office 

3 of Federal Procurement Policy Act (41 U.S.C. 421) shall 

4 be revised to provide for the implementation of the re5 quirements of this section. 

6 (e) REPORT.—Not later than one year after the date 

7 the Federal Acquisition Regulation is revised pursuant to 

8 subsection (e) to implement the requirements of this sec9 tion, the Administrator of General Services, with the as10 sistance of other executive agencies, shall submit to the 

11 Office of Management and Budget and the appropriate 

12 congressional committees a report on the actions taken 

13 under this section. 

14 SEC. 602. AUTHORITY OF STATE AND LOCAL GOVERN15 MENTS TO PROHIBIT CONTRACTS. 

16 Notwithstanding any other provision of law, a State 

17 or local government may adopt and enforce measures to 

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

19 be, from entering into or renewing a contract for the pro20 curement of goods or services with persons that conduct 

21 business operations in Iran described in section 605. 

22 SEC. 603. UNITED STATES PENSION PLANS. 

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

24 United States Government pension plans or thrift savings 

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


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1 and fiduciary duties otherwise imposed on them, imme2 diate steps to divest all investments in any entity with re3 spect to which sanctions are applied for activities de4 scribed in section 5(a) of the Iran Sanctions Act of 1996 

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

6 by this Act, section 302(a) of this Act, or section 106(a) 

7 of the Comprehensive Iran Sanctions, Accountability, and 

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

9 8515). 

10 (b) PROHIBITION ON FUTURE INVESTMENT.—The 

11 managers of United States Government pension plans or 

12 thrift savings plans shall ensure that there is no future 

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

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

15 is sanctioned under the applicable provision of law de16 scribed in subsection (a). 

17 SEC. 604. SUNSET. 

18 This title shall terminate 30 days after the date on 

19 which— 

20 (1) the President has certified to Congress that 

21 the Government of Iran has ceased providing sup22 port for acts of international terrorism and no 

23 longer satisfies the requirements for designation as 

24 a state-sponsor of terrorism for purposes of section 

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1 tion 620A of the Foreign Assistance Act of 1961, 

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

3 other provision of law; and 

4 (2) Iran has permanently ceased the pursuit, 

5 acquisition, and development of nuclear, biological, 

6 and chemical weapons and missiles. 

7 SEC. 605. DEFINITIONS. 

8 In this title: 

9 (1) COMPANY.—The term ‘‘company’’ means— 

10 (A) a sole proprietorship, organization, as11 sociation, corporation, partnership, limited li12 ability company, venture, or other entity, its 

13 subsidiary or affiliate; and 

14 (B) includes a company owned or con15 trolled, either directly or indirectly, by the gov16 ernment of a foreign country, that is estab17 lished or organized under the laws of, or has its 

18 principal place of business in, such foreign 

19 country and includes United States subsidiaries 

20 of the same. 

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

2 proprietorship, a partnership, limited liability cor3 poration, association, trust, joint venture, corpora4 tion, or other organization. 

5 (4) FEDERAL FUNDS.—The term ‘‘Federal 

6 funds’’ means a sum of money or other resources de7 rived from United States taxpayers, which the 

8 United States Government may provide to compa9 nies through government grants or loans, or through 

10 the terms of a contract with the Federal Govern11 ment, or through the Emergency Economic Sta12 bilization Act of 2008 ‘‘Troubled Asset Relief Pro13 gram’’ or other similar and related transaction vehi14 cles, including a grant, loan, or loan guarantee, the 

15 provision of insurance or reinsurance, or the provi16 sion of technical assistance. 

17 (5) BUSINESS OPERATIONS.—The term ‘‘busi18 ness operations’’ means— 

19 (A) carrying out any of the activities de20 scribed in section 5 (a) and (b) of the Iran 

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

22 50 U.S.C. 1701 note), as amended by this Act, 

23 that are sanctionable under such section; 

24 (B) providing sensitive technology (as de25 fined in section 106(c) of the Comprehensive 


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1 Iran Sanctions, Accountability, and Divestment 

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

3 8515(c)) to the Government of Iran; and 

4 (C) carrying out any of the activities de5 scribed in section 302(a) of this Act. 

6 (6) GOVERNMENT OF IRAN.—The term ‘‘Gov7 ernment of Iran’’ includes the Government of Iran, 

8 any political subdivision, agency, or instrumentality 

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

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

11 (7) PETROLEUM RESOURCES.— 

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

13 resources’’ includes petroleum, petroleum by14 products, oil or liquefied natural gas, oil or liq15 uefied natural gas tankers, and products used 

16 to construct or maintain pipelines used to 

17 transport oil or compressed or liquefied natural 

18 gas. 

19 (B) PETROLEUM BY-PRODUCTS.—The 

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

21 kerosene, distillates, propane or butane gas, die22 sel fuel, residual fuel oil, and other goods classi23 fied in headings 2709 and 2710 of the Har24 monized Tariff Schedule of the United States. 


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1 (8) SENSITIVE TECHNOLOGY.—The term ‘‘sen2 sitive technology’’ means hardware, software, tele3 communications equipment, or any other technology 

4 that the President determines may be used by the 

5 Government of Iran— 

6 (A) to restrict the free flow of unbiased in7 formation in Iran; or 

8 (B) to disrupt, monitor, or otherwise re9 strict speech by the people of Iran. 

10 (9) 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 (10) EXECUTIVE AGENCY.—The term ‘‘execu22 tive agency’’ has the meaning given the term in sec23 tion 4 of the Office of Federal Procurement Policy 

24 Act (41 U.S.C. 403). 


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1 TITLE VII—TERMINATION OF 

2 LOAN DISBURSEMENTS TO 

3 IRAN FROM THE INTER4 NATIONAL BANK FOR RECON5 STRUCTION AND DEVELOP6 MENT 

7 SEC. 701. TERMINATION OF LOAN DISBURSEMENTS TO 

8 IRAN FROM THE INTERNATIONAL BANK FOR 

9 RECONSTRUCTION AND DEVELOPMENT. 

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

11 States shall take all action available to seek a termination 

12 of disbursements of funds under loans made by the Inter13 national Bank for Reconstruction and Development to 

14 Iran. 

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

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

17 and every 6 months thereafter, the President shall submit 

18 to the Committee on Financial Services of the House of 

19 Representatives and the Committee on Foreign Relations 

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

21 States to terminate the loan disbursements referred to in 

22 subsection (a). 


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1 SEC. 702. UNITED STATES OPPOSITION TO NEW COUNTRY 

2 ASSISTANCE STRATEGY FOR IRAN. 

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

4 United States to oppose a new Country Assistance Strat5 egy for Iran. 

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

7 VIOLATES THE POLICY OR MAKES A NEW LOAN TO

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

9 International Bank for Reconstruction and Development 

10 approves a Country Assistance Strategy for Iran, or ap11 proves a loan to Iran, the President of the United States 

12 shall— 

13 (1) terminate any contribution by the United 

14 States to the International Bank for Reconstruction 

15 and Development, the International Finance Cor16 poration, and the Multilateral Investment Guarantee 

17 Corporation for the fiscal year in which the Country 

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

19 disbursements to Iran for that fiscal year have been 

20 made by such institutions) for the following fiscal 

21 year; 

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

23 International Bank for Reconstruction and Develop24 ment in the United States, prohibit the purchase of 

25 any such debt instrument by any United States per26 son; and 


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1 (3) prohibit the United States Government and 

2 any state or municipal governmental entity from 

3 purchasing any such debt instrument. 

4 SEC. 703. SUNSET. 

5 Sections 701 and 702 shall terminate 30 days after 

6 the date on which the President has certified to Congress 

7 that— 

8 (1) the Government of Iran has ceased pro9 viding support for acts of international terrorism 

10 and no longer satisfies the requirements for designa11 tion as a state-sponsor of terrorism for purposes of 

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

13 1979, section 620A of the Foreign Assistance Act of 

14 1961, section 40 of the Arms Export Control Act, 

15 or any other provision of law; and 

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

17 and development of nuclear, biological, and chemical 

18 weapons and ballistic missiles and ballistic missile 

19 launch technology. 

20 SEC. 704. RULE OF INTERPRETATION. 

21 Nothing in section 701 or 702 shall be interpreted 

22 to affect United States contributions to, or the participa23 tion of the United States in, the International Develop24 ment Association. 

Æ 


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