II 

Calendar No. 863 

110TH CONGRESS 

2D SESSION S. 3227 

[Report No. 110–408] 

To impose sanctions on Iran and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 7, 2008 

Mr. BAUCUS, from the Committee on Finance, reported the following original 

bill; which was read twice and placed on the calendar 

A BILL 

To impose sanctions on 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; TABLE OF CONTENTS. 

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

5 ‘‘Iran Sanctions Act of 2008’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Sense of Congress. 

Sec. 4. Construction with respect to use of military force. 

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Sec. 5. Definitions. 

Sec. 6. Expansion of definition of person in the Iran Sanctions Act of 1996. 

Sec. 7. Russia nuclear cooperation. 

Sec. 8. Economic sanctions relating to Iran. 

Sec. 9. Liability of parent companies for violations of sanctions by foreign entities. 

Sec. 10. Mandatory investigations into the imposition of sanctions. 

Sec. 11. Modification of certain tax incentives for oil companies investing in 

Iran. 

Sec. 12. World Bank loans to Iran. 

Sec. 13. Increased capacity for efforts to combat unlawful or terrorist financing. 

Sec. 14. Exchange programs with the people of Iran. 

Sec. 15. Sense of Congress on radio broadcasting to Iran. 

Sec. 16. Sense of Congress regarding the international regime for the assured 

supply of nuclear fuel for peaceful means. 

Sec. 17. Reporting requirements. 

Sec. 18. Waiver authority. 

Sec. 19. Termination. 

1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) For more than 20 years, Iran has pursued 

4 a secret nuclear program that is intended to produce 

5 a nuclear weapons capability for Iran. 

6 (2) The Government of Iran has consistently 

7 misled the United Nations, the International Atomic 

8 Energy Agency, and the United States as to the ob9 jectives and scope of its nuclear activities. 

10 (3) Iran has refused to comply with United Na11 tions Security Council Resolutions 1737 (2006), 

12 1747 (2007), and 1803 (2008), which called for the 

13 suspension of all uranium enrichment-related and re14 processing activities, and is advancing work at its 

15 largest nuclear facility. 

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1 (4) The International Atomic Energy Agency is 

2 unable to verify the absence of undeclared nuclear 

3 material and activities in Iran and its Director Gen4 eral has stated that Iran could be 6 months to a 

5 year away from acquiring the material necessary to 

6 make a nuclear weapon. 

7 (5) The Government of Iran possessing a nu8 clear weapons capability would pose a grave threat 

9 to the security of the United States and its allies 

10 around the world. 

11 (6) It is in the national security interests of the 

12 United States to prevent Iran from acquiring a nu13 clear weapons capability. 

14 (7) The United States should use all political, 

15 economic, and diplomatic tools at its disposal to pre16 vent Iran from acquiring a nuclear weapons capa17 bility. 

18 SEC. 3. SENSE OF CONGRESS. 

19 The following is the sense of Congress: 

20 (1) The United States should pursue vigorously 

21 all measures in the international financial sector to 

22 restrict Iran’s ability to conduct international finan23 cial transactions, including prohibiting banks in the 

24 United States from handling indirect transactions 

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1 cial institutions from engaging in dollar transactions 

2 with Iranian institutions. 

3 (2) Iran should comply fully with its obligations 

4 under United Nations Security Council Resolutions 

5 1737, 1747, and 1803, and any subsequent United 

6 Nations resolutions related to Iran’s nuclear pro7 gram, and in particular the requirement to suspend 

8 without delay all uranium enrichment-related and re9 processing activities, including research and develop10 ment, and all work on all heavy water-related nu11 clear activities, including research and development. 

12 (3) The United Nations Security Council should 

13 take further measures beyond Resolutions 1737, 

14 1747, and 1803 to tighten sanctions on Iran, includ15 ing preventing new investment in Iran’s energy sec16 tor, as long as Iran fails to comply with the inter17 national community’s demand to halt its uranium 

18 enrichment campaign. 

19 (4) The United States should encourage foreign 

20 governments to direct state-owned entities to cease 

21 all investment in Iran’s energy sector and all exports 

22 to and imports from Iran of refined petroleum prod23 ucts and to persuade, and, where possible, require 

24 private entities based in their territories to cease all 

25 investment in Iran’s energy sector and all exports to 

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1 and imports from Iran of refined petroleum prod2 ucts. 

3 (5) Administrators of Federal and State pen4 sion plans should divest all assets or holdings from 

5 foreign companies and entities that have invested or 

6 invest in the future in Iran’s energy sector. 

7 SEC. 4. CONSTRUCTION WITH RESPECT TO USE OF MILI8 TARY FORCE. 

9 Nothing in this Act shall be construed as giving the 

10 President the authority to use military force against Iran. 

11 SEC. 5. DEFINITIONS. 

12 In this Act: 

13 (1) AGRICULTURAL COMMODITY.—The term 

14 ‘‘agricultural commodity’’ has the meaning given 

15 that term in section 102 of the Agricultural Trade 

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

17 (2) APPROPRIATE CONGRESSIONAL COMMIT18 TEES.—The term ‘‘appropriate congressional com19 mittees’’ has the meaning given that term in section 

20 14(2) of the Iran Sanctions Act of 1996 (Public 

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

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

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

24 4 of the Office of Federal Procurement Policy Act 

25 (41 U.S.C. 403). 

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1 (4) FAMILY MEMBER.—The term ‘‘family mem2 ber’’ means, with respect to an individual, the 

3 spouse, children, grandchildren, or parents of the in4 dividual. 

5 (5) INVESTMENT.—The term ‘‘investment’’ has 

6 the meaning given that term in section 14(9) of the 

7 Iran Sanctions Act of 1996 (Public Law 104–172; 

8 50 U.S.C. 1701 note). 

9 (6) IRANIAN DIPLOMATS AND REPRESENTA10 TIVES OF OTHER GOVERNMENT AND MILITARY OR

11 QUASI-GOVERNMENTAL INSTITUTIONS OF IRAN.— 

12 The term ‘‘Iranian diplomats and representatives of 

13 other government and military or quasi-govern14 mental institutions of Iran’’ has the meaning given 

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

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

17 note). 

18 (7) MEDICAL DEVICE.—The term ‘‘medical de19 vice’’ has the meaning given the term ‘‘device’’ in 

20 section 201 of the Federal Food, Drug, and Cos21 metic Act (21 U.S.C. 321). 

22 (8) MEDICINE.—The term ‘‘medicine’’ has the 

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

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

25 321). 

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1 SEC. 6. EXPANSION OF DEFINITION OF PERSON IN THE 

2 IRAN SANCTIONS ACT OF 1996. 

3 Section 14(13)(B) of the Iran Sanctions Act of 1996 

4 (Public Law 104–172; 50 U.S.C. 1701 note) is amended 

5 to read as follows: 

6 ‘‘(B)(i)(I) a corporation, business associa7 tion, partnership, society, trust, financial insti8 tution, insurer, underwriter, guarantor, or any 

9 other business organization, including any for10 eign subsidiary, parent, or affiliate of one of the 

11 foregoing; or 

12 ‘‘(II) any other nongovernmental entity, 

13 organization, or group; and 

14 ‘‘(ii) any governmental entity operating as 

15 a business enterprise, including an export credit 

16 agency; and’’. 

17 SEC. 7. RUSSIA NUCLEAR COOPERATION. 

18 (a) IN GENERAL.—Notwithstanding any other provi19 sion of law, and in addition to any other sanction in effect, 

20 beginning on the date that is 15 days after the date of 

21 the enactment of this Act, the policies described in sub22 section (b) shall apply with respect to Russia, unless the 

23 President makes a certification to Congress described in 

24 subsection (c). 

25 (b) POLICIES.—The policies described in this sub26 section are the following: 

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1 (1) AGREEMENTS.—The United States may not 

2 enter into an agreement for cooperation with Russia 

3 pursuant to section 123 of the Atomic Energy Act 

4 (42 U.S.C. 2153). 

5 (2) LICENSES TO EXPORT NUCLEAR MATERIAL, 

6 FACILITIES, OR COMPONENTS.—The United States 

7 may not issue a license to export directly or indi8 rectly to Russia any nuclear material, facilities, com9 ponents, or other goods, services, or technology that 

10 would be subject to an agreement under section 123 

11 of the Atomic Energy Act (42 U.S.C. 2153). 

12 (3) TRANSFERS OF NUCLEAR MATERIAL, FA13 CILITIES, OR COMPONENTS.—The United States 

14 may not approve the transfer or retransfer directly 

15 or indirectly to Russia of any nuclear material, fa16 cilities, components, or other goods, services, or 

17 technology that would be subject to an agreement 

18 under section 123 of the Atomic Energy Act (42 

19 U.S.C. 2153). 

20 (c) CERTIFICATION.—The certification described in 

21 this subsection means a certification made by the Presi22 dent to Congress on or after the date that is 15 days after 

23 the date of the enactment of this Act that the President 

24 has determined that— 

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1 (1) Russia has suspended all nuclear assistance 

2 to Iran and all transfers of advanced conventional 

3 weapons and missiles to Iran; or 

4 (2) Iran has completely, verifiably, and irrevers5 ibly dismantled all nuclear enrichment-related and 

6 reprocessing-related programs. 

7 (d) TERMINATION OF POLICIES.—The policies de8 scribed in subsection (b) shall remain in effect until such 

9 time as the President makes the certification to Congress 

10 described in subsection (c). 

11 SEC. 8. ECONOMIC SANCTIONS RELATING TO IRAN. 

12 (a) IN GENERAL.—Notwithstanding any other provi13 sion of law, and in addition to any other sanction in effect, 

14 beginning on the date that is 15 days after the date of 

15 the enactment of this Act, the economic sanctions de16 scribed in subsection (b) shall apply with respect to Iran. 

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

18 subsection are the following: 

19 (1) PROHIBITION ON IMPORTS.—No article of 

20 Iranian origin may be imported directly or indirectly 

21 into the United States. 

22 (2) PROHIBITION ON EXPORTS.— 

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

24 subparagraph (B), no article that is of United 

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1 States origin may be exported directly or indi2 rectly to Iran. 

3 (B) EXCEPTIONS.— 

4 (i) IN GENERAL.—The prohibition in 

5 subparagraph (A) does not apply to ex6 ports to Iran of— 

7 (I) agricultural commodities; 

8 (II) medicine or medical devices; 

9 or 

10 (III) other articles exported to 

11 Iran to provide humanitarian assist12 ance to the people of Iran. 

13 (ii) INFORMATIONAL MATERIALS.— 

14 (I) IN GENERAL.—The President 

15 may not regulate or prohibit the ex16 portation, directly or indirectly, to 

17 Iran of informational materials, in18 cluding publications, films, posters, 

19 phonograph records, photographs, 

20 microfilms, microfiche, tapes, compact 

21 discs, CD ROMs, artworks, and news 

22 wire feeds that are classifiable under 

23 headings 9701, 9702, or 9703 of the 

24 Harmonized Tariff Schedule of the 

25 United States. 

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1 (II) EXCEPTION.—The limitation 

2 on regulation or prohibition of expor3 tation under subclause (I) does not 

4 apply to informational materials the 

5 exportation of which are otherwise 

6 controlled— 

7 (aa) under section 5 of the 

8 Export Administration Act of 

9 1979 (50 U.S.C. App. 2404) (as 

10 in effect pursuant to the Inter11 national Emergency Economic 

12 Powers Act (50 U.S.C. 1701 et 

13 seq.)); or 

14 (bb) under section 6 of that 

15 Act (50 U.S.C. App. 2405), to 

16 the extent that such controls pro17 mote the nonproliferation or 

18 antiterrorism policies of the 

19 United States or with respect to 

20 which acts are prohibited by 

21 chapter 37 of title 18, United 

22 States Code. 

23 (3) ACCESSION TO WTO.—The United States 

24 Trade Representative or any other Federal official 

25 may not take any action that would extend prefmstockstill on PROD1PC66 with BILLS

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1 erential trade treatment to, or lead to the accession 

2 to the World Trade Organization of, Iran. 

3 (4) FREEZING ASSETS.— 

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

5 United States has access to the names of Ira6 nian diplomats and representatives of other 

7 government and military or quasi-governmental 

8 institutions of Iran that are subject to sanctions 

9 imposed under the authority of the Inter10 national Emergency Economic Powers Act (50 

11 U.S.C. 1701 et seq.) or any other provision of 

12 law relating to the imposition of sanctions with 

13 respect to Iran, the President shall take such 

14 action as may be necessary to freeze imme15 diately the funds and other assets belonging to 

16 anyone so named and any family members or 

17 associates of those so named to whom assets or 

18 property of those so named were transferred on 

19 or after January 1, 2008. The action described 

20 in the preceding sentence includes requiring any 

21 United States financial institution that holds 

22 funds and assets of a person so named to re23 port promptly to the Office of Foreign Assets 

24 Control information regarding such funds and 

25 assets. 

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1 (B) ASSET REPORTING REQUIREMENT.— 

2 Not later than 14 days after a decision is made 

3 to freeze the property or assets of any person 

4 under this paragraph, the President shall report 

5 the name of such person to the appropriate con6 gressional committees. 

7 (5) UNITED STATES GOVERNMENT CON8 TRACTS.—The head of an executive agency may not 

9 procure, or enter into a contract for the procurement 

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

11 the criteria for the imposition of sanctions under 

12 section 5(a) of the Iran Sanctions Act of 1996 (Pub13 lic Law 104–172; 50 U.S.C. 1701 note). 

14 SEC. 9. LIABILITY OF PARENT COMPANIES FOR VIOLA15 TIONS OF SANCTIONS BY FOREIGN ENTITIES. 

16 (a) IN GENERAL.—In any case in which an entity, 

17 the parent company of which is a United States person, 

18 engages in an act outside the United States that, if com19 mitted in the United States or by a United States person, 

20 would violate the provisions of Executive Order 12959 (50 

21 U.S.C. 1701 note) or Executive Order 13059 (50 U.S.C. 

22 1701 note), or any other prohibition on transactions with 

23 respect to Iran imposed under the authority of the Inter24 national Emergency Economic Powers Act (50 U.S.C. 

25 1701 et seq.) or any other provision of law, the parent 

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1 company of the entity shall be subject to the penalties for 

2 the act if the parent company knowingly participates in 

3 the act. 

4 (b) EFFECTIVE DATE.— 

5 (1) IN GENERAL.—Subsection (a) shall take ef6 fect on the date of the enactment of this Act and 

7 apply with respect to acts described in that sub8 section that are— 

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

10 enactment of this Act; or 

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

12 commenced before such date of enactment, if 

13 such acts continue on or after such date of en14 actment. 

15 (2) EXCEPTION.—Subsection (a) shall not 

16 apply with respect to an act described in paragraph 

17 (1)(B) by an entity if the parent company of the en18 tity divests or terminates its business with that enti19 ty not later than 90 days after such date of enact20 ment. 

21 (c) DEFINITIONS.—In this section: 

22 (1) ENTITY.—The term ‘‘entity’’ means a part23 nership, association, trust, joint venture, corpora24 tion, or other organization. 

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1 (2) PARENT COMPANY.—The term ‘‘parent 

2 company’’ means an entity— 

3 (A) that is a United States person; and 

4 (B)(i) that owns, directly or indirectly, 

5 more than 50 percent of the equity interest by 

6 vote or value in another entity; 

7 (ii) board members or employees of which 

8 hold a majority of the seats on the board of di9 rectors of another entity; or 

10 (iii) that otherwise controls or is able to 

11 control the actions, policies, or personnel deci12 sions of another entity. 

13 (3) UNITED STATES PERSON.—The term 

14 ‘‘United States person’’ means— 

15 (A) a natural person who is a citizen, resi16 dent, or national of the United States; and 

17 (B) an entity that is organized under the 

18 laws of the United States, any State or terri19 tory thereof, or the District of Columbia, if nat20 ural persons described in subparagraph (A) 

21 own, directly or indirectly, more than 50 per22 cent of the outstanding capital stock or other 

23 beneficial interest in such entity. 

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1 SEC. 10. MANDATORY INVESTIGATIONS INTO THE IMPOSI2 TION OF SANCTIONS. 

3 (a) IN GENERAL.—Section 4(f) of the Iran Sanctions 

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

5 is amended— 

6 (1) in paragraph (1), by striking ‘‘should’’ and 

7 inserting ‘‘shall’’; 

8 (2) in paragraph (2), by striking ‘‘should’’ and 

9 inserting ‘‘shall’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(3) EXTENSION OF TIME FOR INVESTIGA12 TIONS.—The President may extend the time period 

13 for making a determination under paragraph (2) by 

14 not more than an additional 180 days if the Presi15 dent determines that the President will be unable to 

16 make a determination during the time period re17 quired under paragraph (2).’’. 

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

19 subsection (a) shall apply with respect to investigations 

20 initiated based on information indicating that a person is 

21 engaged in investment activity described in section 5(a) 

22 of the Iran Sanctions Act of 1996 (Public Law 104–172; 

23 50 U.S.C. 1701 note) that is received by the United States 

24 on or after the date that is 90 days after the date of the 

25 enactment of this Act. 

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1 SEC. 11. MODIFICATION OF CERTAIN TAX INCENTIVES FOR 

2 OIL COMPANIES INVESTING IN IRAN. 

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

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

7 ‘‘(6) LONGER AMORTIZATION PERIOD WHEN

8 IRAN SANCTIONS IN EFFECT.— 

9 ‘‘(A) IN GENERAL.—In the case of geologi10 cal and geophysical expenses paid or incurred 

11 during any taxable year ending during a sanc12 tion period with respect to the taxpayer— 

13 ‘‘(i) paragraphs (1) and (4) shall be 

14 applied by substituting ‘10-year’ for ‘24- 

15 month’, and 

16 ‘‘(ii) paragraph (5)(A) shall be applied 

17 by substituting ‘10-year’ for ‘7-year’. 

18 ‘‘(B) SPECIAL RULE FOR UNAMORTIZED

19 EXPENSES AS OF BEGINNING OF SANCTION PE20 RIOD.—In the case of geological and geo21 physical expenses paid or incurred after Decem22 ber 31, 2008, and remaining unamortized as of 

23 the beginning of the first taxable year ending 

24 during a sanction period with respect to the 

25 taxpayer, such unamortized expenses shall be 

26 treated as having been paid or incurred during 

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1 such first taxable year for purposes of applying 

2 subparagraph (A). 

3 ‘‘(C) SPECIAL RULE FOR UNAMORTIZED

4 EXPENSES AS OF END OF SANCTION PERIOD.— 

5 In the case of geological and geophysical ex6 penses paid or incurred after December 31, 

7 2008, and remaining unamortized as of the be8 ginning of the first taxable year ending after 

9 the last day of a sanction period, the taxpayer 

10 may elect to treat such unamortized expenses 

11 as having been paid or incurred during such 

12 first taxable year for purposes of applying this 

13 subsection. 

14 ‘‘(D) SANCTION PERIOD.—For purposes of 

15 this paragraph, the term ‘sanction period’ 

16 means, with respect to any taxpayer, any period 

17 during which sanctions under section 5(a) of 

18 the Iran Sanctions Act of 1996 or section 8 of 

19 the Iran Sanctions Act of 2008 (relating to 

20 sanctions with respect to the development of pe21 troleum resources of Iran)— 

22 ‘‘(i) are imposed on the taxpayer, or 

23 ‘‘(ii) are imposed on any other mem24 ber of the expanded affiliated group which 

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1 posed if such other member were a domes2 tic corporation. 

3 ‘‘(E) EXPANDED AFFILIATED GROUP.— 

4 For purposes of this paragraph— 

5 ‘‘(i) IN GENERAL.—The term ‘ex6 panded affiliated group’ means an affili7 ated group as defined in section 1504(a), 

8 determined— 

9 ‘‘(I) by substituting ‘more than 

10 50 percent’ for ‘at least 80 percent’ 

11 each place it appears, and 

12 ‘‘(II) without regard to para13 graphs (2), (3), and (4) of section 

14 1504(b). 

15 ‘‘(ii) OTHER AFFILIATED ENTITIES.— 

16 Under regulations prescribed by the Sec17 retary, the term ‘expanded affiliated group’ 

18 shall include entities other than corpora19 tions which, based on principles similar to 

20 the principles which apply in the case of 

21 clause (i), are members of the same affili22 ated group.’’. 

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

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

25 or after January 1, 2009. 

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1 SEC. 12. WORLD BANK LOANS TO IRAN. 

2 (a) REPORT.—Not later than 180 days after the date 

3 of the enactment of this Act, and every 180 days there4 after, the Secretary of the Treasury shall submit to the 

5 appropriate congressional committees a report on— 

6 (1) the number of loans provided by the World 

7 Bank to entities in Iran and for projects or activities 

8 in Iran; 

9 (2) the dollar amount of such loans; and 

10 (3) the voting record of each member of the 

11 World Bank on such loans. 

12 (b) REDUCTION OF CONTRIBUTION OF THE UNITED

13 STATES.—If the World Bank extends any new loans to 

14 entities in Iran, or for projects and activities in Iran, after 

15 December 31, 2008, the President shall reduce the total 

16 amount otherwise payable on behalf of the United States 

17 to the World Bank for fiscal year 2010 and each fiscal 

18 year thereafter by an amount that bears the same ratio 

19 to the total amount otherwise payable as— 

20 (1) the total of the amounts provided by the 

21 Bank to entities in Iran, and for projects and activi22 ties in Iran, in the preceding fiscal year, bears to 

23 (2) the total of the amounts provided by the 

24 Bank to all entities, and for all projects and activi25 ties, in the preceding fiscal year. 

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1 (c) ALLOCATION OF AMOUNTS NOT CONTRIBUTED

2 TO THE WORLD BANK.—There is authorized to be appro3 priated to the United States Agency for International De4 velopment for fiscal year 2010 and each fiscal year there5 after an amount equal to the amount made available as 

6 a result of the application of subsection (b). Funds appro7 priated pursuant to this subsection shall be made available 

8 for the Child Survival and Health Programs Fund to carry 

9 out programs relating to maternal and child health, vul10 nerable children, and infectious diseases other than HIV/ 

11 AIDS. 

12 SEC. 13. INCREASED CAPACITY FOR EFFORTS TO COMBAT 

13 UNLAWFUL OR TERRORIST FINANCING. 

14 (a) FINDINGS.—The work of the Office of Terrorism 

15 and Financial Intelligence of the Department of the 

16 Treasury, which includes the Office of Foreign Assets 

17 Control and the Financial Crimes Enforcement Network, 

18 is critical to ensuring that the international financial sys19 tem is not used for purposes of supporting terrorism and 

20 developing weapons of mass destruction. 

21 (b) AUTHORIZATION OF APPROPRIATIONS FOR OF22 FICE OF TERRORISM AND FINANCIAL INTELLIGENCE.— 

23 There is authorized to be appropriated to the Secretary 

24 of the Treasury for the Office of Terrorism and Financial 

25 Intelligence— 

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1 (1) $61,712,000 for fiscal year 2009; and 

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

3 the fiscal years 2010 and 2011. 

4 (c) AUTHORIZATION OF APPROPRIATIONS FOR FI5 NANCIAL CRIMES ENFORCEMENT NETWORK.—Section 

6 310(d)(1) of title 31, United States Code, is amended by 

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

8 2002, 2003, 2004, and 2005’’ and inserting ‘‘$91,335,000 

9 for fiscal year 2009 and such sums as may be necessary 

10 for each of the fiscal years 2010 and 2011’’. 

11 SEC. 14. EXCHANGE PROGRAMS WITH THE PEOPLE OF 

12 IRAN. 

13 (a) SENSE OF CONGRESS.—It is the sense of Con14 gress that the United States should seek to enhance its 

15 friendship with the people of Iran, particularly by identi16 fying young people of Iran to come to the United States 

17 under United States exchange programs. 

18 (b) EXCHANGE PROGRAMS AUTHORIZED.—The 

19 President is authorized to carry out exchange programs 

20 with the people of Iran, particularly the young people of 

21 Iran. To the extent practicable, such programs shall be 

22 carried out in a manner consistent with the requirements 

23 for eligibility for assistance specified in section 302(b) of 

24 the Iran Freedom Support Act (Public Law 109–293; 120 

25 Stat. 1348). 

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1 (c) AUTHORIZATION OF APPROPRIATIONS.—Of the 

2 amounts available under the heading ‘‘Educational and 

3 Cultural Exchange Programs’’, under the heading ‘‘Ad4 ministration of Foreign Affairs’’, under title IV of the 

5 Science, State, Justice, Commerce, and Related Agencies 

6 Appropriations Act, 2006 (Public Law 109–108; 119 Stat. 

7 2321), there are authorized to be appropriated to the 

8 President to carry out this section $15,000,000 for fiscal 

9 year 2009. 

10 SEC. 15. SENSE OF CONGRESS ON RADIO BROADCASTING 

11 TO IRAN. 

12 It is the sense of Congress that the Broadcasting 

13 Board of Governors should devote a greater proportion of 

14 the programming of the Radio Farda service to programs 

15 offering news and analysis to further the open communica16 tion of information and ideas to Iran. 

17 SEC. 16. SENSE OF CONGRESS REGARDING THE INTER18 NATIONAL REGIME FOR THE ASSURED SUP19 PLY OF NUCLEAR FUEL FOR PEACEFUL 

20 MEANS. 

21 (a) POLICY.—It is the policy of the United States to 

22 support the establishment of an international regime for 

23 the assured supply of nuclear fuel for peaceful means 

24 under a multilateral authority, such as the International 

25 Atomic Energy Agency. 

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1 (b) SENSE OF CONGRESS ON AN INTERNATIONAL RE2 GIME FOR THE ASSURED SUPPLY OF NUCLEAR FUEL.— 

3 It is the sense of Congress that— 

4 (1) the Concept for a Multilateral Mechanism 

5 for Reliable Access to Nuclear Fuel, proposed by the 

6 United States, France, the Russian Federation, the 

7 Federal Republic of Germany, the United Kingdom, 

8 and the Netherlands on May 31, 2006, is welcome 

9 and should be expanded upon at the earliest possible 

10 opportunity; 

11 (2) the proposal by the Government of the Rus12 sian Federation to bring one of its uranium enrich13 ment facilities under international management and 

14 oversight is also a welcome development and should 

15 be encouraged by the United States; 

16 (3) the offer by the Nuclear Threat Initiative of 

17 $50,000,000 in funds to support the creation of an 

18 international nuclear fuel bank by the International 

19 Atomic Energy Agency is also welcome, and the 

20 United States and other member states of the Inter21 national Atomic Energy Agency should pledge collec22 tively at least an additional $100,000,000 in match23 ing funds to fulfill the proposal made by the Nuclear 

24 Threat Initiative; and 

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1 (4) the Global Nuclear Energy Partnership, ini2 tiated by President George W. Bush in January 

3 2006, is intended to provide a reliable fuel supply 

4 throughout the fuel cycle and promote the non5 proliferation goals of the United States. 

6 (c) SENSE OF CONGRESS ON CONTRIBUTIONS TO

7 IAEA TO ESTABLISH AN INTERNATIONAL NUCLEAR

8 FUEL BANK.— 

9 (1) IN GENERAL.—It is the sense of Congress 

10 that the President should determine the appropriate11 ness of making voluntary contributions on a grant 

12 basis to the International Atomic Energy Agency (in 

13 this subsection referred to as the ‘‘IAEA’’) to sup14 port the establishment of an international nuclear 

15 fuel bank to maintain a reserve of low-enriched ura16 nium for the production of reactor fuel to be pro17 vided to eligible countries in the case of a disruption 

18 in the supply of reactor fuel by normal market 

19 mechanisms. 

20 (2) DETERMINATIONS.—It is the sense of Con21 gress that, in making a determination under para22 graph (1), the President should consider whether— 

23 (A) the IAEA has received pledges in a 

24 total amount of not less than $100,000,000 

25 from other governments or entities for the purmstockstill on PROD1PC66 with BILLS

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1 pose of supporting the establishment of the 

2 international nuclear fuel bank referred to in 

3 paragraph (1); 

4 (B) the international nuclear fuel bank re5 ferred to in paragraph (1) will be under the 

6 oversight of the IAEA or another multilateral 

7 authority; and 

8 (C) the international nuclear fuel bank will 

9 provide nuclear reactor fuel to a country only 

10 if— 

11 (i) at the time of the request for nu12 clear reactor fuel, the country is in full 

13 compliance with its IAEA safeguards 

14 agreement and has an additional protocol 

15 for safeguards in force; 

16 (ii) in the case of a country that at 

17 any time prior to the request for nuclear 

18 reactor fuel has been determined to be in 

19 noncompliance with its IAEA safeguards 

20 agreement, the IAEA Board of Governors 

21 determines that the country has taken all 

22 necessary actions to satisfy any concerns of 

23 the IAEA Director General regarding the 

24 activities that led to the prior determina25 tion of noncompliance; 

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1 (iii) the country agrees to use the nu2 clear reactor fuel in accordance with its 

3 IAEA safeguards agreement; and 

4 (iv) the country does not operate ura5 nium enrichment or spent-fuel reprocessing 

6 facilities of any scale. 

7 (3) AUTHORIZATION OF APPROPRIATIONS.— 

8 There are authorized to be appropriated 

9 $50,000,000 to carry out this section for fiscal year 

10 2009. Amounts appropriated pursuant to this sec11 tion shall remain available until September 30, 

12 2011. 

13 SEC. 17. REPORTING REQUIREMENTS. 

14 (a) FOREIGN INVESTMENT IN IRAN.—Not later than 

15 180 days after the date of the enactment of this Act, and 

16 every 180 days thereafter, the Secretary of the Treasury 

17 shall submit to the appropriate congressional committees 

18 a report on— 

19 (1) any foreign investments made in Iran’s en20 ergy sector on or after January 1, 2008; and 

21 (2) the determination of the President on 

22 whether each such investment qualifies as a 

23 sanctionable offense under section 5(a) of the Iran 

24 Sanctions Act of 1996 (Public Law 104–172; 50 

25 U.S.C. 1701 note). 

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1 (b) INVESTMENT BY UNITED STATES COMPANIES IN

2 IRAN.—Not later than 180 days after the date of the en3 actment of this Act, and annually thereafter, the Secretary 

4 of the Treasury shall report to the appropriate congres5 sional committees the names of persons that have oper6 ations or conduct business in the United States that have 

7 invested in Iran and the dollar amount of each such invest8 ment. 

9 (c) ESTABLISHMENT OF INTERNATIONAL REGIME.— 

10 Not later than 180 days after the date of the enactment 

11 of this Act, the President shall submit to the Committee 

12 on Foreign Affairs of the House of Representatives and 

13 the Committee on Foreign Relations of the Senate a re14 port on the activities of the United States to support the 

15 establishment of an international regime for the assured 

16 supply of nuclear fuel for peaceful means under a multilat17 eral authority, such as the International Atomic Energy 

18 Agency. 

19 (d) EXPORT CREDITS.—Not later than 90 days after 

20 the date of the enactment of this Act, and every 90 days 

21 thereafter, the Secretary of the Treasury shall report to 

22 the appropriate congressional committees on the export 

23 credits issued by foreign banks to persons investing in the 

24 energy sector of Iran, and any fines, restrictions, or other 

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1 actions taken by the President to discourage or prevent 

2 the issuance of such export credits. 

3 (e) SENSE OF CONGRESS ON INVESTMENT BY THE

4 FEDERAL THRIFT SAVINGS PLAN IN IRAN.—It is the 

5 sense of Congress that not later than 180 days after the 

6 date of the enactment of this Act, and annually thereafter, 

7 the Executive Director of the Federal Retirement Thrift 

8 Investment Board should report to the appropriate con9 gressional committees on any investment in entities that 

10 invest in Iran from the Thrift Savings Fund established 

11 under section 8437 of title 5, United States Code. 

12 SEC. 18. WAIVER AUTHORITY. 

13 The President may waive the imposition of sanctions 

14 under section 8, 9, or 12 if the President— 

15 (1) determines that such a waiver is in the na16 tional interest of the United States; and 

17 (2) submits to the appropriate congressional 

18 committees a report describing the reasons for the 

19 determination. 

20 SEC. 19. TERMINATION. 

21 Except as provided in section 7, the provisions of, and 

22 amendments made by, this Act shall terminate on the ear23 lier of— 

24 (1) the date on which the President determines 

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1 mittees that Iran has completely, verifiably, and irre2 versibly dismantled all uranium enrichment-related 

3 and reprocessing-related programs; or 

4 (2) the date that is 5 years after the date of the 

5 enactment of this Act. 

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Calendar No. 863 

110TH CONGRESS 

2D SESSION S. 3227 

[Report No. 110

–408] 

A BILL 

To impose sanctions on Iran and for other 

purposes. 

JULY 7, 2008 

Read twice and placed on the calendar 

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